NEGOTIATING

 NEGOTIATING

NEGOTIATING

COMPILED BY :

   
    HALIMA YANTI SIREGAR
    1113093381
             
DEPARTMENT     :  D3_COMPUTER ACCOUNTING
       
LECTURER    :     YOHANA

STIE IBBI MEDAN

NEGOTIATING


Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two people/parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise.

    Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject is called negotiation theory. Professional negotiators are often specialized, such as union negotiators, leverage buyout negotiators, peace negotiators, hostage negotiators, or may work under other titles, such as diplomats, legislators or brokers.


1.    MASSIVE SUFFERING
  
Separate The People From The Problem

A common failing when there is a difference of opinion or goals is to attack the opposing person while attacking the opposing position, especially if the attack is demeaning. It will unfailingly have negative outcomes in both decision making and bargaining. Experienced leaders and experienced negotiators separate the people from the problem. Some of the ways Fisher and Ury suggest are:

    Relationships.
Bargaining, even principled bargaining, may involve strong comments about the substantive issues. It is only human nature that these, on occasion, are taken as personal attacks, generating emotions that block communication. A good relationship can be a vaccine against communication blockages. But the relationship needs to be built early in the game, just as a vaccine works best before exposure to the disease. Some negotiators do this by chatting in a friendly way during the breaks. On more consequential issues, negotiators may ask for and get a "book" on the other side, that includes background and interests, to facilitate building a good relationship.

    Perceptions.
In the heat of battle, it is easy to view the opponent as a personal enemy, as opposed to someone who is just doing a job. Effective negotiators must get inside the heads of their opponents so they can see the issues as they do. From inside the opponent's frame of reference, many things become clear: why a given position is held so fiercely, where the vulnerabilities are, where there are doubts, and where there may be blind spots.

The primary goal of principled negotiation is to achieve rational outcomes in the best interest of both parties. However, sometimes this just doesn't work, and positional bargaining is the only option. Then it becomes imperative to know the issues well from your opponent's perspective while denying that advantage in turn. In that way, you can control your opponent's perceptions better than your opponent can control yours.

Perceptions come in many ways. Colosi makes a point of the importance of body language and tone as communications channels that give information, sometimes information of crucial value, to the other side. Fisher and Ury emphasize such things as acting inconsistently with expectations. For example, they believe an important part of the peace process between Israel and Egypt was that Sadat upset Israeli-and Arab- expectations by flying to Jerusalem in November 1977. "Holding the door" for your enemy is inconsistent with the perception of being an enemy; so do it.

    Emotion.
The heat of battle is truly felt by all. And while a principled negotiator would not launch invective toward the other side, the other side might not be so principled. Experienced negotiators have long since learned how to manage their emotions. A part of this is understanding that there are going to be emotions. Skillful strategic leaders and skillful negotiators can turn anger on and can turn it off for effect, while at the same time avoiding the blow and counterblow that gets out of control. This is not always easy, especially when the other side is trying to destabilize your side by personal attack.

If under personal attack, promise don't threaten: You might say, "These are personal attacks which are not relevant to the substantive issue, and for that reason they are unfair. If they continue, I am going to leave and return tomorrow. Perhaps we can make more substantive progress then." The essence of promise versus threat is that the statement takes the form of what the speaker will do as opposed to what will be done to the other party (Colosi).

    Communication.
The essence of communication is the transmission of meaning. Fisher and Ury think much communication in positional bargaining fails because meaning is not clearly transmitted. Where the bargaining is positional, Colosi adds that one may want to be judicious about the direction of communication. If the bargaining is positional, the negotiator who gets "inside the other negotiator's head" has a competitive advantage. The mandate is for active listening, getting the other person to talk more and thus reveal more. Listening with interest to what the other negotiator has to say pays dividends, you are getting valuable information about his/her position and intentions, without giving away your own.

These are only a few of the many ways to build a positive relationship. Your image as a negotiator must be that of someone who is credible, reliable, trustworthy, and principled. In many negotiations, this image can be used as a tool to move toward negotiating on the merits of the case, rather than on the relative hard-headedness of the negotiators.





2.    LEADERSHIP AND ORGANIZATIONAL  BEHAVIOR
  
Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking a system approach. That is, it interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives.

    Many situations make it important to productively synchronize "internal" with "external" negotiations. In fact, much research to date has focused on how each side can best manage its internal opposition to agreements negotiated "at the table." Often implicit in this research is the view that each side's leadership is best positioned to manage its own internal conflicts. Traditionally, a negotiator does this by :

1) pressing for deal terms that will meet its internal objections.
2) effectively "selling" the agreement to its key constituencies.

However, James Sebenius argues that to achieve your own goals in negotiation it is also vital to understand all the ways in which you can help the other side with the its "behind-the-table" barriers (and vice versa). Independent of any altruistic motives, helping them to solve "their internal negotiation problem" is often the best way to get them to say yes to an agreement that is in your interest. To do this, negotiators should explicitly probe the full set of the other party's interests including the other side's interest in dealing effectively with its internal, behind-the-table challenges and conflicts. This requires you to deeply probe the context in which they are enmeshed: the web of favorable and opposing constituencies as well as their relationships, perceptions, sensitivities, and substantive interests. By way of a number of challenging case examples, this paper details a number of ways to develop this fuller understanding and to act effectively on it.


3.    HUMAN RESOURCES

10 Essential Negotiating Skills for Human Resources Managers .
Human resource managers spend enormous amounts of time helping both employees and upper management cope with everyday issues involving two or more stakeholder groups often with conflicting interests. What you are doing day in and day out, whether you realize it or not, is negotiating. Any time you are involved in helping two or more parties come to an agreement, you are, in effect, handling a negotiation.HR professionals who hone their negotiating skills are in a tremendous position to influence company morale, improve productivity, boost the bottom line, and foster a company culture that is harmonious and competitive. In other words, being a better negotiator makes you better at managing your workforce, with all of its complexities.In human resources, you can master the same type of negotiating techniques that are used by high-powered companies to secure multimillion-dollar contracts. At the core of every negotiation are two sets of interests that need to get resolved so that the parties can move forward in a constructive way. HR professionals spend many hours of every day knocking out agreements, large and small, so that the company organism can continue to function smoothly. Competent negotiating is essential to HR.What type of everyday issues confronting HR managers could be improved with more effective negotiation skills? Here’s a short list:
  
a.   Working out labor disputes with unions and other labor groups.
b.   Hammering out benefits packages.
c.   Negotiating salaries and raises.
d.   Dealing with employee conflicts.
e.   Hiring top-notch people.
f.   Motivating sales staff.
g.  Managing change initiatives.
h.  Dealing with disgruntled, litigious employees.
i.   Making downsizing and outsourcing decisions.
j.    Developing leadership skills among your talent pool.
k.   Selling new strategic initiatives to department heads.
l.    Managing post-merger cultural acclimation.
m.  Bringing in new management.
n.   Working out budgetary allocations.


4.      CORPORATE DEVELOPMENT
  
Business development is a combination of strategic analysis, marketing, and sales. Business development professionals can be involved in everything from the development of their employers' products and services, to the creation of marketing strategies, to the generation of sales leads, to negotiating and closing deals.
  
The job of the business development professional is typically to identify new business opportunities-whether that means new markets, new partnerships with other businesses, new ways to reach existing markets, or new product or service offerings to better meet the needs of existing markets-and then to go out and exploit those opportunities to bring in more revenue.

Since the field is a cousin of marketing and sales, even when an organization doesn't have a stand-alone business development department or employees with the phrase "biz dev" in their job titles, you can bet that folks in sales and/or marketing are handling business development responsibilities. You can find biz dev jobs in all industries-at everything from tech startups to huge pharmaceutical companies. What the work entails, exactly, depends on how big a company is and what industry it's in.

Your job in business development may involve any or all of the following:
The first aspect of the business development professional's job is typically to identify new business opportunities.

This means several things, in terms of what you'll do. First, you'll need to stay abreast of what's happening in your industry-what your competitors are up to in terms of products and service offerings, pricing, marketing strategies, and so on. Second, you'll need to make sure you understand what your company is up to on an ongoing basis-to understand your company's strategy, how your company compares to its competitors, and how it's perceived in the marketplace. Third, you'll need to understand the market for your company's offerings-who comprises it, and how it may be changing.
Next, as a business development professional, you'll need to think creatively about everything you know about your company. This is the part of the job in which you identify possible ways to improve your company's sales, which can mean identifying anything from new market segments (or individual potential clients), to new sales channels to sell through, to other, related products or services in the marketplace with which your company's products or services can be combined into synergistic, "co-branded" offerings.

The next part of the job is prioritizing the new business opportunities you've identified. To do this, you'll need to compare the potential returns of each new opportunity to the costs your company would incur to exploit it. Which means spreadsheets-lots of spreadsheets.

Finally, you have to bring the new opportunities you've identified and prioritized to fruition. In other words, you'll be negotiating with those at other organizations who can help you take advantage of the opportunities you've identified. And, if you're good at what you do, you'll be closing deals with those other organizations to increase your company's bottom line.

One thing you'd probably be doing as part of a biz dev career at an enterprise software company, for instance, is identifying and signing partnership deals with IT consulting firms that implement enterprise software for their clients-deals that will give those firms you partner with a cut of your company's revenue from any new sales of your software that they can bring in. Or, say you're in biz dev at a big publishing company that's looking to deliver a new, younger market to its advertisers; in this case, you might be involved in acquiring a smaller publisher that already has expertise in marketing to a younger audience, as well as established distribution channels for getting products to that market.

Business development involves varying degrees of sales and strategy. In some companies, biz dev people may focus on getting new corporate sales accounts, while in others they may lead new product development. At larger companies such as Oracle, Cisco, or Microsoft, one of biz dev's many responsibilities may be to decide which smaller companies the company should acquire next to ensure that it retains its market strength in the future.

Working in business development is an excellent way to become adept at business strategy while gaining hands-on experience in negotiating deals and managing partner relationships. Business development jobs are also highly cross-functional, requiring close collaboration with various internal and partner-company teams such as sales, engineering, and marketing to ensure that a deal is consummated. With its focus on strategy, biz dev steers the direction of a company-the deals forged today determine what the rest of the company will be working on tomorrow.


5.    BUILD A STRONG RELATIONSHIP      
          
It is so important to forge trust in your negotiations to create a solid and durable partnership.
  
Every business can often be judged by the extent in how it values its relationships. The truth is that every business does have a relationship with numerous groups and individuals. We have suppliers, customers, employees, labour and union representatives, to name a few. Whether we realize it or not, we interact with these groups and individuals through our relationship with them. Relationships matter and we must understand the reason why they are so important to our business.

In the past couple of decades, we have seen businesses evolve and change in how they conduct business. Internal changes have seen the dispersal of power, filtered down to the lower levels of management and employees, by giving them more responsibility and authority. Similarly, we have also seen an evolutionary change in the interaction between businesses and how they have developed relationships, to achieve more cohesive and durable partnerships.
We are moving away from fighting over the available bits of scrap, and more often we are looking to expand our meal, by creating both cooperative ventures and developing more creative business solutions. In other words, our negotiations have moved from competitive negotiations, to creating greater value, by forming relationships that  focus more on creative negotiations.
  
There are 3 reasons for this change in behaviour:

1) Taking future considerations into account
Many companies realize that if we concentrate too heavily on the amount of value we can get today, we may lose opportunities from transactions of greater value, later on down the road.

2) Give some - get some in return
Todays businesses recognize that by giving something to our negotiating counterpart in a transaction, we can expect getting back something of greater potential value in return.

3) Creating trust moves us further ahead
By developing relationships that are founded on a basis of trust, we do not need to spend resources on time and money in perpetually monitoring our partner, to ensure the terms of the contract are fulfilled.

How we conduct our negotiations also relates to how we will treat our partnership. If a potential partner places little value on an ongoing relationship, while we perceive our interaction as a long-term partnership, then the negotiators involved in discussing terms, will also view their negotiations from completely different perspectives.

The negotiator who does not place any emphasis on a relationship, will be negotiating from a distributive perspective, or grabbing as much as they can. They will try to gain as much as possible from the distribution of available resources. The negotiator who desires to form a long-term relationship, will be seeking to add value that is beneficial to both sides.

    It is important to understand how we will frame our approach to negotiations. There are two prime questions that we need to ask ourselves, before we begin our negotiation    .
CLOSING



CONCLUSION

Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two people/parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise.
  
Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject is called negotiation theory. Professional negotiators are often specialized, such as union negotiators, leverage buyout negotiators, peace negotiators, hostage negotiators, or may work under other titles, such as diplomats, legislators or brokers.

  
ADVICE


    Negotiations can occur anywhere, and anytime, negotiations are intended to complete the deal or find a way out of the points of difference that happens, so it is expected that negotiations continue to occur in the positive, not done in fraud, violence, hurting others, or doing things the things that can harm others for personal gain.