Running head: BUSINESS NEGOTIATION SKILLS

m
er as
Business Negotiation Skills

co
eH w
Name of Student

o.
rs e Institution Affiliation
ou urc
Date of Submission
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000773610317 from CourseHero.com on 11-09-2021 07:14:03 GMT -06:00

https://www.coursehero.com/file/81730168/Business-Negotiation-Skills-1edited-1docx/
 BUSINESS NEGOTIATION SKILLS 2

Negotiation refers to the process in which two parties or more that have different needs,

goals, and interests get into a discussion on an issue to arrive at an acceptable solution mutually.

This means that, in a negotiation, more than the party has to be involved. Besides, there has to be

a subject of discussion. It could be buying an item, while the other party is willing to buy, or

could be asking for something. Therefore, business negotiation is discussing a subject that

pertains to anything to do with a business transaction. Engaging in good negotiations ensures that

a business is growing. It helps create better relationships, fostering mutual intelligibility and

understanding, which allows a company to make significant leaps in its bid to develop (Ferland

m
er as
et al, 1985). Therefore, it is essential to get acquainted with the strategies and models of

co
eH w
engaging in effective communication. The strategies that define the art of negotiating are

o.
negotiation skills. This essay will thus focus on creating a real-world that will help explore some
rs e
ou urc
of the challenges and the expectations for a fair negotiation process. It aims at developing a plan

to be used in an upcoming negotiation analyzing a strong real-world negotiation predicted to

o
aC s

happen in my life a month or six from now.

vi y re

Negotiation is classified into two; distributive negotiation and integrative negotiation.

The distributive negotiation involves a situation in which one party gets to benefit more than the
ed d
ar stu

other. This creates a win-lose problem. The integrative negotiation comes to a conclusion point

in which both parties that are involved in the negotiation process get to a win-win situation
is

(Master Class, 2020).

Th

To plan for a negotiation, we need first to understand the negotiation process. This will

help in outlaying important points before thinking on how to design the negotiation process. A
sh

fair and effective negotiation process is composed of the following five stages.

This study source was downloaded by 100000773610317 from CourseHero.com on 11-09-2021 07:14:03 GMT -06:00

https://www.coursehero.com/file/81730168/Business-Negotiation-Skills-1edited-1docx/
 BUSINESS NEGOTIATION SKILLS 3

The first stage is preparation. This stage can easily be ignored but proves to be a vital first

stage in any negotiation process. To prepare adequately, engage in research on both sides of the

negotiators. It is at this stage that an individual is expected to look out for any trade-offs that

exist. Besides, one is supposed to determine outcomes on both extremes. That is the least desired

and most desired possible results. This leads to where an individual is thus considered to make a

list of concessions they are willing to table on the bargaining table. Negotiation preparation also

includes the ground rules definition or awareness of constraints of the when, where, with whom,

among others.

m
er as
The second stage is the exchange Information. At this stage, parties involved exchange their

co
eH w
previous positions. Each side is given an allowance to share their concerns and interests without

o.
interruption.
rs e
ou urc
The other stage is clarification. The clarification stage involves continuing the discussion by

the two parties through finding justifications and bolstering their claims. If a misunderstanding
o
aC s

arises from either of the involved parties, they should discuss to solve disagreement to attain a
vi y re

point of agreement.

The bargain is the next stage after clarification stage. This step is viewed as the backbone of
ed d
ar stu

the whole process of negotiation. This stage involves a give-and-take discussion between the two

parties. While at this stage, it is advisable to check on your emotions. Simultaneously, use
is

healthy communication skills, which include listening actively, favorable feedback, and face-to-
Th

face negotiation.

Conclusion and implementation become the last stage in the negotiation process. After
sh

agreeing on an acceptable solution, the two sides should thank each other. Good negotiations

foster long-lasting relationships.

This study source was downloaded by 100000773610317 from CourseHero.com on 11-09-2021 07:14:03 GMT -06:00

https://www.coursehero.com/file/81730168/Business-Negotiation-Skills-1edited-1docx/
 BUSINESS NEGOTIATION SKILLS 4

With the above knowledge, it is now easier to plan for a negotiation. I have received an

invitation to a new job in a town a little bit far from my current residence. This means that I have

to relocate to another apartment. I also have to engage in a negotiation with the apartment owner

or the management to secure a nice room to live in. I received a recommendation for an

apartment from an old friend who has been living in the town. I should, therefore, plan for the

negotiation.

The parties involved in the negotiation are going to be the management of the rentals and

myself. Since I am not sure who I will find, I should be open-minded and ready for whoever I

m
er as
will meet.

co
eH w
In the negotiation, the rentals' management will offer me a room, and I will thus provide

o.
money in the form of a rental fee. Other values in play are commitment to follow the apartment's
rs e
ou urc
rules and regulations and duty to pay my monthly dues. For the management, they also have

more to offer apart from renting the room. They are obliged to make the apartments pavements
o
aC s

and surrounding clean, offer security, maintenance, among other services that I should enjoy as a
vi y re

client. This will ensure that we both get to a win-win situation since everyone will be satisfied

with the other person’s input. Parties can create value and achieve a win-win case if the two
ed d
ar stu

come to a consensus (Vevere, Sannikova, 2018). Parties should be patient while dealing with

each other. Negotiation of such weight will demand more time for it to reach an agreement or
is

non-contentious point.
Th

While engaging in this negotiation, there are rules to follow. These rules are derived from

communication skills. It is ethical that when the other party is communicating, I should remain
sh

silent and listen to what has to be said. Besides, another rule is that I should respect the ideas and

statements raised by the opposite party. Everyone has the right to speak out their mind.

This study source was downloaded by 100000773610317 from CourseHero.com on 11-09-2021 07:14:03 GMT -06:00

https://www.coursehero.com/file/81730168/Business-Negotiation-Skills-1edited-1docx/
 BUSINESS NEGOTIATION SKILLS 5

Therefore, it is an obligation that I should respect the other party’s opinions. In return, the other

party should respect my views. In the case of divergent or conflicting opinions, we should correct

or oppose each other more professionally. Negative criticism that has no solutions is just a waste

of time. Tactics of the negotiation are bound to change in case the management increases the rent

or tends to put me under duress to accept a rental expense.

BATNA is referred to as Best Alternative to a Negotiated Agreement. The BATNA is very

useful, especially when the parties are in conflict or fail to reach a mutual understanding (Ferland

et al, 1985). This, therefore, means that in case our negotiations go south and we cannot

m
er as
communicate effectively, we can apply BATNA. Through BATNA, there is an expected

co
eH w
agreement zone. My education background will be of great significance in employing a skillful

o.
negotiation.
rs e
ou urc
The Social Judgment Theory.

This theory states that people are responsive with an acceptance latitude, noncommitment, or
o
aC s

rejection. This represents the defendant on the type and level of ego in an individual that entails
vi y re

the importance of an individual issue. In this case, the client in the apartment is a significant

person. This means that it is most likely that the management would not like to lose a potential
ed d
ar stu

client.

The Social Judgment theory postulates that people respond to communication with latitude of
is

acceptance, rejection, or noncommitment (Vevere, Sannikova, 2018). Depending on ego-

Th

involvement (i.e., how important an issue is to them), people can be influenced along a certain

latitude. The theory alludes that people defendant can be judged depending on their behavior
sh

over specific issues. The approach works in my case since the house management team might

respect me based on the presentation. Through the exhibition, the management may make a

This study source was downloaded by 100000773610317 from CourseHero.com on 11-09-2021 07:14:03 GMT -06:00

https://www.coursehero.com/file/81730168/Business-Negotiation-Skills-1edited-1docx/
 BUSINESS NEGOTIATION SKILLS 6

social judgment that I might be wealthy or poor; hence I can pay for the rentals in good time or

cause problems during rent payment. These are judgments that could be made by my

communication skills and my dressing mode.

In conclusion, negotiation is when two parties with divergent ideas talk to find common

ground and benefit mutually from one another. The article stipulates the five steps for a good

negotiation and this is vital in learning negotiation skills (Master Class, 2020).

m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000773610317 from CourseHero.com on 11-09-2021 07:14:03 GMT -06:00

https://www.coursehero.com/file/81730168/Business-Negotiation-Skills-1edited-1docx/
 BUSINESS NEGOTIATION SKILLS 7

References

Ferland, G. Roy J. LEWICKI, Joseph A. Litterer, (1985): Negotiation: Readings, Exercices and

Cases. Homewood, Richard D. Irwin, 1985, 633 pp., ISBN 0-256-02634-3. Relations

Industrielles, 40(4), 895. doi: 10.7202/051389ar. Retrieved from:

https://www.erudit.org/en/journals/ri/1985-v40-n4-ri1141/051389ar/abstract/

m
er as
Master Class. (2020). Master Class: How to Negotiate: The 5 Stages of the Negotiation Process.

co
eH w
Retrieved from https://www.masterclass.com/articles/how-to-negotiate#the-2-types-of-

o.
negotiation
rs e
ou urc
Vevere, V., Sannikova, A., (2018). Developing Intercultural Negotiations Skills to Meet Current

Challenges of Diverse EU Business Environment As Part Of University Social

o
aC s

Responsibility. European Integration Studies, 0(12). doi: 10.5755/j01.eis.0.12.21232.

vi y re

Retrieved from: https://www.researchgate.net/publication/329967522_

ed d
ar stu
is
Th
sh

This study source was downloaded by 100000773610317 from CourseHero.com on 11-09-2021 07:14:03 GMT -06:00

https://www.coursehero.com/file/81730168/Business-Negotiation-Skills-1edited-1docx/
Powered by TCPDF (www.tcpdf.org)