Negotiation Skills: An Ancient Mantra for Professional Success

Transcription

1 Negotiation Skills: An Ancient Mantra for Professional Success Dr. Mallika Tripathi Assoc. Professor & Head FGIET Raebareli Uttar Pradesh Abstract: In today s corporate world we can t deny the significance of negotiation skills as now a day everyone is governed by the desire of being on top. Everyone hopes for the best in one s personal as well as professional life. Though there remains a cut throat competition but everyone strives to get the best deal as none wish to compromise for less. So in such a difficult scenario the need for effective negotiation skills becomes the major concern that seeks attention of all. Thus the present paper deals with the different hues of negotiation skills with special focus on exclusive tips to become a successful negotiator. Keywords: Business, Conflict, Negotiation, Satisfaction 106

2 Introduction: Friends! My comrades in the war of liberation! Today I demand of you one thing, above all, I demand of you blood. It is blood alone that can avenge the blood that the enemy has spilt. It is blood alone that can pay the price of freedom. Give me blood and I promise you freedom. Subhash Chandra Bose at a rally of Indians in Burma, July 4, These famous lines of Subhash Chandra Bose, a renowned martyr remind us of a concept that no one is untouched of. In the modern world we feel bound to negotiate in day today life. Since beginning of civilization we had been negotiating in one or the other way and now in the business world it has become the need of the hour. Talking about personal, professional or political world it is all dominated by some kind of negotiation. Negotiation has become an unavoidable element of our life. Starting from bureaucrats to a common man, none can escape the aura of negotiation skills. Even a salesperson at doorstep also negotiates for a better deal. It has become the part and parcel of human life. National and international market remains occupied with the desire of being on top where everyone wishes for a better deal. Indirectly it rules even the most talented brains of the world. In modern time the human race is ruled by two factors: success and satisfaction. If one loses one factor, the other is automatically lost. The powerful might influence a deal but it certainly leaves the other party dissatisfied and disappointed. Thus the two terms are interconnected. Success is the source of satisfaction and satisfaction depends upon how successful we are; may it personally, professionally or spiritually. In other words if one wishes to be successful in true terms, one needs to be an effective negotiator. Origin of Negotiation : The word Negotiation has a very interesting origin as it derives from the Latin infinitive negotiari meaning to trade or do business. This verb itself was derived from another, negare, meaning to deny and a noun, otium, meaning leisure. Therefore, the ancient Roman businessman would deny leisure until the deal had been settled (Curry, 1999). According to 107

3 Cambridge Dictionary, Negotiation refers to the process of discussing something with someone in order to reach an agreement with them, or the discussions themselves. It can be defined as a process to get the desired result. It can further be explained as the process through which the parties involved come to a common solution to resolve a matter of dispute which needs to be mutually agreed by both the parties. According to McCormack negotiation is the process of getting the best terms once the other side starts to act on their interest. In the words of Forsyth, The negotiating process involves balancing matters between two parties so that the negotiator not only get what he wants but also get what he wants in the best possible way. Dr. Gregory Tillett explains it as Negotiation involves two (or more) parties with competing or conflicting interests or needs, working towards an agreement on how they will co-operate. Thus it is a process that leads us towards our destination through communication to resolve a matter of difference in order to satisfy both the parties though it remains a difficult task. Here the term negotiator denotes someone who tries to help two groups who disagree to reach an agreement with each other, usually as a job. - (Cambridge Dictionary) Different approaches to negotiation: There are different kind of approaches in the process of negotiation depending upon the outcome of negotiation as it is truly said by Morton Deutsch E.L. Thorndlike, In a co-operative situation, the goals are so linked that everybody sinks or swims together, while in the competitive situation, if one swims, the other must sink. Thus the various approaches can be summarized as follows: 1. Distributive Negotiation: It is always ruled by the profit of someone at the loss of other as the parties involved try to get the maximum and no one wishes to compromise. Here the key question is, who will claim the most value? It is also known as zero-sum negotiation where the parties try to keep the information confidential and strive to extract maximum information from the other party. Under such circumstances the terms relations, values, reputation, lose its path. For example: A to B: What is the cost of ten ream of paper? 108

4 B to A: Its 300/- per ream. A to B: What? Everywhere its 150/- per ream. Are you taking advantage of the remote location? B to A: Whatever! If you are interested its o.k. else let other come forward. A to B: O.k. give me ten ream but it s not fair. 2. Integrative negotiation: It is also known as win-win negotiation as both the parties cooperate to achieve maximum profit by integrating their interest into an agreement, leading to the satisfaction of both the parties. It is characterized by open communication and the end results are always encouraging for the future deals. The success of integrative negotiations depends on a spirit of cooperation and trust. 3. Mixed approach: In the real world it often gets difficult to satisfy one at the cost of other or to satisfy both the parties thus it gives rise to a mediocre situation where the deal contain the elements of both distributive and integrative negotiation. Thus it is known as mixed approach. Role of Communication in Negotiation: No business transaction can be carried out without communication. To communicate, we use language, signs, and symbols which are all determined by culture. Effective communication requires understanding of cultural influences. (Fatehi, 2008) The role of communication can t be denied in the process of negotiation as the words carry the power even to change the mind of the most complicated people in this world. It is truly said that words are mightier than the sword. Positive and amicable conversation is bound to have a fruitful result provided it needs to focus on the interest of both the parties. Once Jawahar Lal Nehru said, If we seek to understand people, we have to try to put ourselves, as far as we can, in that particular historical and cultural background. It is not easy for a person of one country to enter into the background of another country. So there is great irritation, because one fact that 109

5 seems obvious to us is not immediately accepted by the other party or does not seem obvious to him at all.but that extreme irritation will go when we think that he is just differently conditioned and simply can t get out of that condition. One has to recognize that whatever the future may hold, countries and people differ in their approach to life and their ways of living and thinking. In order to understand them, we have to understand their way of life and approach. If we wish to convince them, we have to use their language as far as we can, not language in the narrow sense of word, but the language of the mind. That is one necessity. Something that goes even further than that is not the appeal to logic and reason, but some kind of emotional awareness of other people. Everything is possible through effective communication. Changing the mind and heart of a person is not difficult if one excels in the art of communication. Thus striking the best deal through the power of words becomes as simple as creating a sketch of Lord Ganesha through few simple lines. Various steps of negotiation: 1. Preparatory: It is like getting familiar with the facts and figure in order to initiate the process of negotiation. At this stage it is very important to get to know the parties involved as knowing the concerned party prior to deal might be helpful in analyzing one s situation. 2. Exploratory: Once you get acquainted with the parties involved, just try to figure out the objective of the deal. Knowing the pros and cons will certainly prove to be of greater value once you initiate with the process. Try to build the atmosphere of cooperation and trust. 3. Bidding: After you get to know the parties and their objective initiate with your offer that might benefit you most. Don t get biased; be open but initially stick to your point as turning the deal in your favor is what you wish for. 4. Bargaining: This is the most crucial step as the outcome purely depends on certain unavoidable factors and the bargaining capacity of the parties. While bargaining keep your WAP (Walk Away Price) to yourself as disclosing your WAP might put you in weak position

6 5. Settling and evaluation: Finally it comes to resolve the conflict to the benefit of both the parties or at least to the satisfaction of both. Here it is of utmost importance to evaluate the deal before closing it. 6. Ratification: Give the deal its final shape to make it official and authentic. 7. Dissemination: The deal is ready to be disclosed to the outer world to avoid any sort of inconvenience in near future. Common reasons for negotiation failure: A Survey Report of 2014 clearly indicates the people s view behind negotiation failure. Here the employees of an organization were divided into four groups with a set of question asking about the most dominant factor about negotiation failure: Series 1 Series 2 Series 3 Series Category 1 Category 2 Category 3 Category 4 Here people under Category 1 found the restricted communication to be the major factor in negotiation failure. People under Category 2 declared Lack of information to be the major concern for negotiation failure

7 People under category 3 were of the view that biased approach spoils the process of negotiation. Whereas people under Category 4 found confused state of mind to be the most dominant factor behind negotiation failure. Thus on the basis of above mentioned and my knowledge about the subject I ve figured out some specific reasons that cause negotiation failure and one must avoid them for a successful deal: 1. Underestimating one s potential: Your part is equally important irrespective of the power play of other party. The deal can never be completed without you. So identify your strength and act accordingly. 2. Biased approach: This certainly acts as a barrier to successful deal as it hampers the entire process of negotiation. Thus one need to be unbiased in one s approach as we all know that experience makes a man perfect but being preoccupied on the basis of your prior experience may spoil the entire deal. 3. Restricted communication: Obstructing the free flow of communication results in communication gap as one feels hesitant to share his point of view resulting in negotiation failure. Mutual and honest sharing of information remains to be an integral part of a successful deal. 4. Lack of up-to-date information: Not having sufficient information on the matter certainly hampers the smooth processing as it might leave you clueless at certain time and might affect your decision policy. 5. Inferiority complex: Suffering from inferiority complex gives rise to restricted communication where one gets influenced by the power and authority of other party and sometimes it becomes the major reason for negotiation failure. 6. Confused state of mind: Clarity of thought and expression is a must for any successful deal. Thus one needs to be clear in one s approach. In the words of Ben Stein, the first step to getting the things out of life is this: Decide what you want? 112

8 7. Lack of confidence and communication skills: So many times one fails to express one s views due to lack of confidence and communication skill that ultimately results in negotiation failure. 8. Wrong timing: Appropriate timing plays a very important role. Right things said at the wrong time might fetch negative results.thus one needs to be prudent enough to use it as a tool for a successful deal. Tips to be an effective negotiator: 1. Get acquainted: It is very important to know yourself and your goal. What do you expect while negotiating? Clarity of objective will smoothen your way towards a successful deal. If you wish to turn the deal in your favour without analyzing the cost, you might get too aggressive and might end up spoiling the relation. 2. Be prepared: Thorough preparation before initializing the process is a must. It is too important to know the other party, the power, position or anything that might obstruct your way. Complete investigation on that part makes you stronger than before. 3. Anticipate at other s end: Don t be confined to yourself rather visualize at other s end too. What the other party might expect or wish for and how far you find yourself to be prepared for such situations. 4. Build trust: Providing a congenial atmosphere and building trust is of utmost importance as it results in fetching positive results. One needs to value one s words as the virtue of truthfulness will certainly help in maintaining a long lasting rapport. 5. Be a good listener and communicator: If you wish to be an effective negotiator, develop a habit of listening others first. Paying attention to others ideas will help you to understand their view point and to resolve the matter in a better way. Simultaneously you must be capable enough to put your ideas in an effective manner. 6. Exploring the concepts of BATNA: BATNA was first coined by Roger Fisher and William Ury of the Harward Program on Negotiation in their series of books on Negotiation. The term stands for the Best Alternative To the Negotiated Agreement. It is essential for a negotiator to analyse the BATNA, WATNA (Worst Alternative To the Negotiated Agreement) and ZOPA (the Zone Of Possible Agreement) prior hand as it will certainly be instrumental in achieving the best

9 7. Always be polite, firm, balanced and calm: One must have the balanced approach to develop relationship for future negotiations and to strike the best deal. Here it is equally important to be polite, firm and calm while negotiating. 8. Live in the real world: Knowing positive and negative traits of a deal will prepare you to face the real life situation effectively. You will be in a better position to settle for your inner satisfaction. 9. Be flexible: Being rigid in one s approach might obstruct the smooth process. So it will always be better to be flexible and to be open to communication. 10. Cherish the moment: Don t get lost in a deal. Enjoy the process of negotiation. You learn from your experience. Everything happens for a better cause. So be stable and learn from your mistakes to succeed in future. Conclusion: Having an expertise in negotiation skills makes you successful, leading to an inner satisfaction where you enjoy the glory of being influential. What really count are the key components like commitment, communication, respect, confidence, cultural analysis, power and planning and once you practice them, you not only succeed in changing the mind of people but also get the miraculous results, enjoying the long lasting and fruitful relations with others. It leaves you calm and content and you feel confident enough to call the shots in future negotiations. References: 114

10 1. equence=1/web Web 5. Raman M. & Sharma, Technical Communication. OUP, New Delhi, Print 6. Dr Tillett Gregory, Resolving Conflict, Sydney: Sydney University Press, Print 7. Curry, J., A short course in international negotiating. USA: World Trade Press, Print 8. Forsyth, P. Negotiation Skills for Rookies. Singapore, SGP: Marshall Cavendish, Print 115