THE ART OF LEADING NEGOTIATIONS

Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution. Professional negotiators are often specialized, such as union negotiators,leverage buyout negotiators, peace negotiators, or may work under other titles, such as diplomats or brokers.

Negotiation is something that we do all the time and is not only used for business or diplomatic purposes. For example, we use it in our social lives perhaps for deciding a time to meet, or where to go on a rainy day. Negotiation is usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible.

The whole process of negotiation is divided into three stages.

Stage I — Pre-Negotiation

Before you decided to negotiate, it is a good idea to prepare. What is it exactly that you want to negotiate? Set out your objectives (e.g. I want more time to pay off the loan). You have to take into account how it will benefit the other party by offering some sort of reward or incentive. Know what your opposition is trying to achieve by their negotiation. This is useful information that could be used to your benefit and may well be used to reach a final agreement.

Stage II-Negotiating

Try to be fairly open about your reason foe contact or they may lose interest instantly and not follow up on the appointment. Save all your comments for the actual appointment — don’t give away anything that will give them a chance to prepare too thoroughly: it’s not war, but it is business! So, it’s time to negotiate and you’ve prepared well. What else must you have? Two things: confidence and power. Your power will come from your ability to influence. It is always important that you keep the negotiation in your control. If you fail to do so, you will end up on the wrong side of the agreement.

In general, the art of negotiation is very complicated. The way of leading the negotiations refers to the special style of negotiations. Scientific literature divides the style of negotiations according to the method which you use, into three ways: collaboration, competition and balanced way.

Collaborative Negotiation

Win-Win

In collaborative negotiation, it is assumed that the pie can be enlarged by finding things of value to both parties, thus creating a win-win situation where both parties can leave the table feeling that they have gained something of value. The collaborative approach to negotiation seeks to convert individual wants into a single problem and to bring both parties together to work on solving this problem

By converting individual positions and wants into separated problems, the people can be freed up from jealous and personal attachment to their requirements so they can then take a more objective and equitable position from which they can act in a more collaborayive way.

Collaborative Strategy

Being collaborative does not mean being weak and giving in. On contrary, a collaborative approach seeks to gain the best possible solution

Competitive negotiation

Win-Lose

One person gets what they want and feels smug (or maybe a bit guilty) whilst the other person gets loses out and feels cheated or failure. In competitive negotiation, the relationship between the people is unimportant.

Competitive Strategy

They do not care about one another or what the other thinks about them. For example, this may occur in one-off sales where “caveat emptor” is key rule. To show concern for the other is to show weakness that may be taken advantage of.

Summery of Differences

There are a number of differences between Competitive and Collaborative negotiation, which are summarized in the following table:

Balanced negotiations

Compromise

Between competitive and collaborative negotiation is a narrow path which is a grey zone between black and white where many real-life negotiations tread. Negotiation helps to create a healthy balance between “giving” and “getting”. Everyone becomes a ‘winner” through negotiation.

Balanced Strategy or the Way Between

Individuals who are eager to close the deal by doing what is fair and equal for all parties involved in the negotiation. Compromises can be useful when there is limited time to complete the deal; however, compromisers often unnecessarily rush the negotiation process and make concessions too quickly.

Emotion in Negotiation

Emotions play an important part in the negotiation process, although it is only in recent years that their effect is being studied. Emotions have the potential to play either a positive or negative role in negotiation.

Positive affect in negotiation

Even before the negotiation process starts, people in positive mood have more confidence, and higher tendencies to plan to use a cooperative strategy. During the negotiation, negotiators who are in positive mood tend to enjoy the interaction more, show less contentious behavior, use less aggressive tactics and more cooperative strategies.

Negative affect in negotiation

Negative affect has detrimental effect on various stages in the negotiation process. Although various negative emotions affect negotiation outcomes, by far the most researched is anger. Angry negotiators plan to use more competitive strategies and to cooperate less, even before the negotiation starts. These competitive strategies are related to reduced joint outcomes. During negotiations, anger disrupt the process by reducing the level of trust, clouding parties’ judgment, narrowing parties’ focus of attention and changing their central goal from reaching agreement to retaliating against the other side.

Stage III-Coming to an agreement

We use negotiation in everything we do but you have to be sure that it is done in the best way possible to achieve maximum benefit. The most important part is planning: preparing well will give you an advantage when negotiating.

KEYWORDS:

1. negotiation—official discussion between the representatives of opposite groups

2. leverage buyout—technical, when someone borrows money to buy a company by promising to pay the bank back by selling the company assets if they can not pay the money they borrowed(важелі викупу)

3. hostage negotiations—the negotiations about the conditions of getting out the prisoners

4. benefit—an advantage, improvement or help get from something

5. reward—something that you get because you have done something good

6. incentive –something that encourages you to work harder

7. collaboration—when you work together with another person

8. converting—to change into a different from something

9. strategy—the plan of actions in some situation

10. balance—to get into a steady position

11. disrupt—to prevent something from continuing in its usual way by causing problems

12. retaliate—to do something bad to someone because they have done something bad to you

13. equitable position—treating all people in fair and equal way

14. concession—something that you allow someone to have in order to end an argument

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