Negotiation Strategies: Creating a Win-Win Situation

Negotiations have continued as an open means of settling conflicts. Negotiation has different elements which ensure the success of the process. Negotiations are used in solving disputes involving business transactions and in the contraction of work agreements among others (Aydogan, Marsa-Maestre, Klein & Jonker, 2018). It is normally used to create a win-win situation for parties involved in the negation process (Mnookin, Peppet & Tulumello, 2004). Thus, to ensure that the process is successful, there should be a set of developed metrics that should be used to guide the negotiations so that it can result in the anticipated objectives (Brett & Thompson, 2016). The metrics area means of measuring the success of negotiations that should be adhered to ensure that all the parties benefit from the negotiations. Negotiators should know when and when not to engage in creating negotiation agreements that provides surety for long term successful relationships and economic value.

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The Chosen Metrics

The following set of metrics can effectively help in the success of the negotiations; implementing and tracking the adopted negotiation strategies, analyzing the leverage, evaluating the outcomes about the objectives that were to be met. They provide the negotiators with proper guidelines that if properly observed then all the parties are likely to benefit from the negotiation process (Cameron et al., 2014). As such, negotiation aims at the benefit of all the parties in its intent to meet a given objective (Huse, 2007). Therefore, the outcomes of the negotiation can effectively be measured in relation to the objectives that were to be met. Moreover, terms of the deal can also be measured in terms of what the parties would have done if there they did not settle for negotiations. In general, the chosen metrics are evaluated in terms of the objectives, and therefore, measuring the success of the negotiations can easily be achieved.

Application in Three Situations

First Situation

One of the situations is the Chief Executive Officer negotiating for better terms of payment. Once the goal is identified both the employer and CEO are to restrict themselves on terms of payment in order not to miss out on the goal of the negotiations. The external party that might be invited to oversee the negotiation needs to make the terms clear by stating the terms of negotiations with regards to the information that each party in the negotiation needs to avail (Hindriks, Jonker & Tykhonov, 2007). At the end of the negotiations, the CEO can comfortably evaluate if his or her anticipated term of payments depending on the objectives that were set. This can happen alongside tracking whether the plans that were to be followed have effectively been adhered to. This happens because there is a given procedure that must be followed in conducting this kind of negotiations.

Second Situation

When bargaining for the price of the products the ultimate goals is to gain a profit from the sale of the product. Once the price has been evaluated, then negotiations are done to meet the price. For instance, assuming the price has been set as a hundred dollars, the buyer might bargain to have the price set at a slightly lower price, and as such, the success can be measured as the difference in the price of the product (Maaravi & Levy, 2017). The seller after training on how to conduct the negotiations, the business can also assess the success of the negotiations by looking at whether the steps in achieving the objectives of the negotiations were followed. The seller ought to follow the steps designed in arriving at the price that was agreed upon.

Third Situation

When board members are involved in the negotiations on how the objectives of the company can be met. It is usually is done to meet a certain set of objectives. All the plans that the board members adopt during the negotiation involving the company's employees can also involve external parties who are normally in charge of the negotiations (Maaravi & Levy, 2017). The success of the negotiation can be assessed by relating the outcomes and the objectives that the board had to meet. The team in charge of the negotiations can track the negotiation by assessing whether the different steps in the negotiation were followed in meeting the outcomes of the negotiation. The board members also negotiation negotiate for the terms depending on the financial position of the business and the objectives they are aiming. As a result, the negotiations must result in benefits for both the employee and the organization as a whole.

Success of Negotiations

The success in negotiations is not evaluated in terms of who wins or loses, but the ultimate goal of the negotiations is that the underlying issues in the negotiations are addressed. Therefore, measuring the success of the negotiations is usually in terms of meeting the interest of both parties in the negotiations (Denison & Spreitzer, 1991). Success in negotiations is achieved when all the parties in the negotiation leave the negotiation table contented that their interest has been met (Gunia, Brett & Gelfand, 2016). Negotiations can be derailed if either party aims at making one of the parties to appear to have lost. As a negotiator, the drive for the negotiation should be to achieve the best for all the parties in the negotiation. Effective negotiations mean fostering goodwill regardless of the existing differences in the parties' interests. Therefore, parties should not place their interests first but should create an environment that results in the success of all the parties in the negotiation (Maaravi & Levy, 2017). For instance, in business negotiations, each party should leave the negotiation party satisfied and ready to do business again.

Conclusion

The success of a negotiation can be determined by certain metrics which also guide the entire negotiation process. The objective of the negotiation is what guides the negotiations, and as such, its success can be measured by comparing the outcomes and the objectives that we to be achieved. The success of the negotiation lies in the satisfaction of all the parties in the negotiations. Therefore, the parties need to be guided by self-interest, but should also aim at creating an environment where all the parties in the negotiations fill that their interests are addressed. The metrics used in the measurement of the negotiation helps guide the negotiations because they provide guidelines that stipulate ways on how the negotiations need to be conducted. Parties normally resort to negotiations because they provide a means through which the parties their interests are effectively addressed, and therefore in any negotiation situation the ultimate goal is that all the parties can benefit.

References

Aydogan, R., Marsa-Maestre, I., Klein, M., & Jonker, C. M. (2018). A machine learning approach for mechanism selection in complex negotiations. Journal of Systems Science and Systems Engineering, 27(2), 134-155.

Brett, J., & Thompson, L. (2016). Negotiation. Organizational Behavior and Human Decision Processes, 136, 68-79.

Cameron, K. S., Quinn, R. E., DeGraff, J., & Thakor, A. V. (2014). Competing values leadership. Edward Elgar Publishing.

Denison, D. R., & Spreitzer, G. M. (1991). Organizational culture and organizational development: A competing values approach. Research in organizational change and development, 5(1), 1-21.

Gunia, B. C., Brett, J. M., & Gelfand, M. J. (2016). The science of culture and negotiation. Current Opinion in Psychology, 8, 78-83.

Hindriks, K., Jonker, C. M., & Tykhonov, D. (2007, November). Negotiation dynamics: Analysis, concession tactics, and outcomes. In 2007 IEEE/WIC/ACM International Conference on Intelligent Agent Technology (IAT'07) (pp. 427-433). IEEE.

Huse, M. (2007). Boards, governance and value creation: The human side of corporate governance. Cambridge University Press.

Maaravi, Y., & Levy, A. (2017). When your anchor sinks your boat: Information asymmetry in distributive negotiations and the disadvantage of making the first offer. Judgment & Decision Making, 12(5).

Mnookin, R. H., Peppet, S. R., & Tulumello, A. S. (2004). Beyond winning. Harvard University Press.