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Negotiation and different types of negotiation essay
Advantages of negotiation in business
Explain the features and uses of different approaches to negotiation
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Negotiation is an integral part of human existence and interpersonal relationships. People negotiate all the time. Friends negotiate where to have dinner. Children negotiate to decide which television programme to watch. Organisations negotiate to purchase materials and to sell their products. Lawyers negotiate to settle legal claims before they go to court. Negotiation occurs between spouses, parents and children, managers and staff, employers and employees, professionals and clients, within and between organisations and between agencies and the public.
The word "negotiation" is from the Latin expression, "negotiatus", past participle of negotiare which means "to carry on business". There are numerous definitions of negotiation; Gulliver
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Chikwe (2011) posited that there are two types of negotiation. The positional negotiation and the collaborative negotiation. The first type of negotiation is based on the aggressive pursuit of interest by parties, and is typically adversarial and competitive. Parties make demands that are inconsiderate of the interest and needs of others, and this makes it difficult for this interest to be met. Parties may also perceive themselves to be in competition. The desire will be to win, instead of working towards a mutually beneficial outcome. Thus, the demands of one party can be met only to the detriment of the other. Parties tend to stubbornly adhere to their positions and one side seems to dominate the negotiation. Collaborative or constructive negotiation, on the other hand, is a process where parties try to educate each other about their needs and solve their problems in ways that the interests and fears of both or all parties are met. The process is collaborative in principle and the emphasis is on mutual understanding and feeling, all aimed at building a sustainable relationship. Negotiation seems to have universal application as a principle of conflict management based on dialogue (Chikwe, 2011; Balogun,
Lewicki, J. R., Barry, B., & Saunders, M. D. (2010). Negotiation: Readings, exercises and cases
Lewicki, J. R., Barry, B., & Saunders, M. D. (2011). Essentials of negotiation (5th ed.). New York, NY: McGraw Hill. ISBN-13: 9780073530369
Negotiations are supposed to begin in a positive way in which the negotiators consider the needs and wants of the others involved and their shared interests and interdependencies.... ... middle of paper ... ... References Michael R. Carrell, C. H. (2008). Negotiating Essentials: Theory, Skills, and Practice.
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
Most of the common activities in our daily life present an opportunity to negotiate, whether or not we realise it. Meta-reflecting upon my negotiation experiences during the class and other activities have led me to identify few common themes. In this assignment, the two themes I will be discussing are (1) the importance of being clear on the strategic intent and big picture thinking, and (2) the importance of managing the negotiation process through understanding the various phases and visualising negotiation as a train journey.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2005). Negotiation, Fifth Ed. New York, NY: McGraw-Hill Irwin.
Lewicki, J. R., Barry, B., & Saunders, M. D. (2006). Negotiation: Readings, Exercises and Cases (5th ed.). New York: McGraw Hill.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation: Readings, exercises, and cases. New York: McGraw-Hill Irwin
The negotiation revolved around three main individuals, Terry Hardel, Josephine McNair, and Joe Abernathy. For this negotiation, my partner played the part of Joe while I played Terry. We were both given the same general instructions. However, an additional set of secret instructions were given to each of us separately.
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
Integrative negotiation is often referred to as ‘win-win’ and typically entails two or more issues to be negotiated. It often involves an agreement process that better integrates the aims and goals of all the involved negotiating parties through creative and collaborative problem solving. Relationship is usually more important, with more complex issues being negotiated than with Distributive Negotiation. Integrative negotiation is the process of defining these goals and engaging in a process that permits both parties to maximize their objectives.
Negotiation has been used as a vital communication tool not only in business but also in social intercourse. It helps people make common agreement and avoid conflict. So we need to use the tactics which we learned from this course and books to do more practice, only in this way we can gain advantages in negotiation.
Relative value of distributive agreement is determined based on the competitiveness of the market which negotiation is conducted about. For instance, in a market under perfect competition, where there are many buyers and sellers, prices mainly reflect supply and demand, and the parties are simply price takers, the value of distributive approach to negotiation will be trivial since any potential agreement will be at a pre-determined “market price”. Slight variance to that value will trigger failure in the negotiation. On the other hand, under conditions of monopolistic competition where number of producers or provides is very limited and uniqueness of the product or service is extremely high,
Lewicki, R. J., Barry, B., & Saunders, D. M. (2007). Essentials of Negotiation. New York: McGraw-Hill/ Irwin.
Negotiation approaches are generally described as either distributive or integrative. At the heart of each strategy is a measurement of conflict between each party’s desired outcomes. Consider the following situation. Chris, an entrepreneur, is starting a new business that will occupy most of his free time for the near future. Living in a fancy new development, Chris is concerned that his new business will prevent him from taking care of his lawn, which has strict requirements under neighborhood rules. Not wanted to upset his neighbors, Chris decides to hire Matt to cut his grass.