Improving the Effectiveness of Multilateral Trade Negotiations - Essay Example

Negotiation Student’s Name: Instructor’s Name: Course Code: Date of Submission: Introduction Negotiation is the process that brings the buyer and seller of an asset together. It involves discussing the various elements on the property till the agreement on the terms and conditions of the selling is achieved. Negotiation is important because it helps an organization to achieve its objectives through the acquisition of the right asset and at the right terms (Irwin 2005). In any organization, negotiation is important because it helps an organization to gain competitive advantage by acquiring competitive assets. This paper will discuss the benefits of face to face or non face to face negotiation and its disadvantages, best practice negotiation skills, strategies for negotiation and components of negotiation. Negotiation in face-to-face & Non face-to-face The benefits of face to face negotiation include the possibility of sincerity (Lum 2005). When the negotiation parties negotiate by face to face, there are high chances that one can be sure of what is being negotiated. Face to face negotiation can show the confidence with which each party negotiates through body language. Another advantage is that it gives the negotiation parties a chance to know their stands. Through facial expression, the reaction of your negotiator can be known and realize the weaknesses of the other party thus the other party can take advantage of that situation to win the negotiation. Furthermore, face to face negotiation enables the parties to present evidence of the items they are bargaining. For example, a lawyer can provide evidence in court in favor of his or her client and this evidence can prove to be more convincing unlike during non face to face negotiation. The disadvantage of face to face negotiation is that it exposes the weaknesses of the parties and therefore one party can take advantage and gain the negotiation advantage (Lum 2005). For example, governments would not want to expose their weaknesses during negotiation of purchasing on security equipment. Negotiation can also reach at a standstill if the negotiators are not experienced, especially if one party cannot understand the future value of money when negotiating for a property and can feel that his or her party is being exploited thus the negotiation can come to a stand still. Non face to face negotiation also has the benefits which include less stress being experienced or involved in the negotiation because the reaction of an issue is not instant. This gives both parties time to gather all the relevant data needed in the negotiation unlike the in face to face negotiation where one party can make a hurried response which may turn out later to be invalid and affect the negotiation process (Lum 2005). Further, non face to face negotiation reduces the costs of negotiation which includes transportation costs. This saves an organization extra expense of paying for the trips and accommodation of the negotiation team. On the other hand, the disadvantages of non face to face negotiation are that through emails, trust between the negotiation parties may become obstacles for trust. Emails for instance cannot enable the negotiators to develop confidence in the other party thus negotiation may not be successful. Communication may break down because through non face to face the parties may be rude to each other or some messages can be misinterpreted and received with bad reactions affecting the negotiation process. Best practice negotiation skills include effective analysis of the problems. Good negotiators should be able to know their objectives and the interests of the other party (Stark 2003). For instance in the negotiation between the employer and the employees, the interest is in the working conditions and the remunerations. This skill helps to consider the other party so that negotiation can be successful. Good communication skills will also help the negotiators to avoid ambiguity in communication. There should be good interpersonal skills among the negotiators to ensure that they maintain good relationship throughout the negotiation process and after (Stark 2003). The negotiators should also observe the moral ethics during negotiation to develop a favorable environment for negotiators. There are various negotiation strategies which can be developed based on the analysis of the situation and they include agreeing with the position to take during negotiation (Albin 2012). This will help the negotiators have basic facts and have one sense of direction. The negotiation team should also understand the skills they have in negotiation and if necessary hire expertise to help them in negotiation so that they cannot be won easily by the other party. The objectives of the negotiation should be realistic so that the negotiations do become impossible as a result of unrealistic demands by one party or both. There should be compromises to the interests on the other party and negotiation should not be left till the interests are exhausted (Cohen 2002). Finally, it is a team to agree to a suggestion and not the individual which implies that it is the team that agrees to a proposal and not an individual in the negotiation team. The components of negotiation include the recognition component, human behavior and win/win principles (Stark 2003). Cognitive components involve defining the relevant preparations for the negotiation including the venue, the interests of the parties and the negotiation structure. This helps the parties to prepare fully for the negotiation event. Human behaviors on the other hand, comprises of the abilities to follow instruction, accept criticisms and being able to negotiate. This component leads to successful negotiation. Finally, the win/win component is the situation where both parties take necessary steps to ensure that they benefit from the negotiation without one party feeling oppressed (Albin 2012). This component ensures that both parties in the negotiation are satisfied with the agreements in the negotiation process. Conclusion Negotiation can be face to face or non face to face negotiation. Face to face negotiation is preferred by many organizations because it is more convincing and can develop trust between the negotiation parties. However, it turns out to be expensive in terms of costs of travelling expenses (Cohen 2002). The negotiation skills include good communication skills, interpersonal skills, objectivity and the negotiators should consider the interests of the other party while the components of negotiation include cognition, human behavior and win/win principles. References Albin, C. (2012). Improving the Effectiveness of Multilateral Trade Negotiations. Special Issue of International Negotiation, A Journal of Theory and Practice, Vol. 17, No. 1, pp. 1- 211. Cohen, S.P. (2002). Negotiating Skills for Managers, London: McGraw-Hill Companies. Lum, G. (2005). The Negotiation Fieldbook: Simple Strategies to Help You Negotiate Everything, London: McGraw-Hill Companies. Irwin, R. (2005). Tips and Traps when Negotiating Real Estate. London: McGraw-Hill Companies. Stark, P. (2003). The Only Negotiating Guide you’ll Ever Need: 101 Ways to Win Every Time in Any Situation, New York: Broadway Books. Wheeler, M. (2013). Negotiation, Negotiation journal, Vol. 29, No. 1, p. 1-123. Read More