Different Phases in a Negotiation - Coursework Example

Does identifying different phases in a negotiation help us understand and develop the negotiation? Why or why not? Table of Contents Introduction 3 Main Argument 4 Case Analysis in Relation to the Argument 7 Conclusion 9 References 10 Bibliography 12 Introduction Negotiation is a skill that is learned through experience and practice. The person who has negotiated is more skilled than the person who has not participated in any formal negotiation (University of Colorado, 1998). Understanding of the negotiation phase will not always help in development of successful negotiation. There are situations when negotiation phases are not able to resolve the disputes or conflicts between the parties. To a certain extent these phases has helped the parties to resolve the conflicts. It is also important to identify the agents who would negotiate on matters of salary in the organization and who may not follow the various phases to resolve the matters. In the paragraphs below a complete understanding of the various theories has been described in detail in order to support the arguments. Main Argument There are various barriers that stand on the way of successful negotiation. There are three broad categories of barriers like tactical and strategic barrier where the effort is made from the side of the bargainer in order to maximize their short term and long term outcomes. Strategic barriers can cause rational disputants to act in such a manner that will prove to be disadvantageous for the organization. The second barrier is the psychological barrier which reflects the cognitive and motivational processes, where the person is biased in interpreting the information, setting of priorities. The third type of difficulty that arises is something like a grab bag. In this category the main problem is that they don’t relate to self interested calculations or individual processes but then they relate to organizational and other factors which are of great interest to the disputing parties (Ross & Et. Al, n.d.). There are two approaches to negotiation which are distributive approach and integrative approach. Distributive approach involves agreement on how to allocate the shares of scarce resources. In these case each party views the other as competitors and the parties at conflict argues on the differences exclusively in terms of who will get what and how much. The other factor is that each party tries to learn everything that it can about the other parties. Integrative negotiation is a non zero sum game where there is collaborative effort from the side of both the parties to find out a solution that is perceived as beneficial for both the parties. In this case the parties recognize the common interest and also believe that they will be benefited as a result of the joint efforts (Bigoness, 1984). It is important to plan before negotiating on matter as planning is critical to successful negotiation. It also helps to set the tone and direction of the negotiation. It is important from the part of the negotiator to know what the other parties needs and what his interest is. He must also have knowledge about the available resources, their abilities and authority to make agreements, strategies and techniques of the other party. It is also important that the negotiator identifies the concerns and must recognize that all the parties have some worries or concerns and if these are not identified in time then it will hinder the successful negotiation. The other most important fact is to identify the emotions as the individual may have become emotional and have been involved with the issues or positions. Failure to understand the emotions may again hinder the successful negotiation. It is equally important to identify the primary claims and develop the arguments with regards to the claims, data, and warrant. The negotiator must use the logical vocabulary like propositions, premise, conclusion, argument, induction and deduction. Negotiation passes through different stages and phases like beginning phase which is also called the initiation phase. The second phase is called the middle phase or problem solving phase and the final phase is the ending phase also called resolution phase. The first steps of negotiation starts with preparation where the negotiator tries to understand the goals of negotiation and also tries to identify how the work will proceed with other party. The second step is relationship building where the negotiator tries to identify the differences and similarities in both the parties. The third step is information gathering where the negotiator tries to find out as much as possible about the issues. In the fourth step he tries to use the information that has been gathered and then bidding is done where the parties states their offer and engages in give and take business. Finally the deal is closed by building up of commitment where the party comes to an agreement and tries to implement the agreement (Blair & Et. Al., n.d.). Pre-negotiation refers to the task and the times which will have the purpose of beginning, sustaining and nourishing a peace process by changing the relationship and making the way for negotiation in order to resolve the conflicts. This phase tries to get the parties to commit themselves in negotiating their differences and these can be easily achieved if the obstacles to negotiation are identified and removed (Saunders, 2005). Pre-negotiation phase is the most ignored process in the identification of the importance of how people plan and prepare for an encounter. These activities are referred to as pre-negotiation phase. The various activities involved in pre-negotiation process are intelligence gathering, formulation, strategy and preparation (Peterson, 2000). In this scenario the procedural questions like who will be involved, where and when the negotiation is likely to take place, how the overall negotiation will be structured is discussed. These decisions are made prior to the parties actually sitting for negotiation. At this point the mediator or facilitator helps the parties to negotiate procedural and structural questions at the initial stages of the formal negotiation process (University of Colorado, 1998). Understanding of the negotiation phase will not help in development of successful negotiation always. Though at times these phases are useful, but there are other parties that are involved to manage the difficult negotiation. As negotiation are very cumbersome which may lead to frustration thus there is requirement of third party intervention in order to bring the negotiation on track. The main benefit of their intervention is that they help in creation of the cooling off period and helps in the reestablishing or enhancement of the communication. The importance of these parties arises when there is absence of a clear, agreed on negotiation procedures and the established procedures are not being helpful. When negotiator believes that he can no longer solve the situation then these parties are involved. There is formal as well as informal third party intervention. Formal third party intervention is in the form of arbitration, mediation and process consultation. Alternative dispute resolution techniques are also used to resolve the disputes (Lewicki, 2010). Case Analysis in Relation to the Argument In the first case of Gtechnica–Accelmedia, the main problem is related with the supply of processors which MaxProc refused to supply to Accelmedia. After a talk with the G-Technica it agreed to supply the processors to Accelmedia with the agreement that the purchase has to be made shortly. At this point Accelmedia has to negotiate in term of cost and try to pay lowest possible price per unit to G-Technica (Week 2: GTechnica-AccelMedia, n.d.). In the Knight Engines-Excalibur Engine Parts case study the VP (Vice President) of sales of Excalibur will negotiate a contract with Knight for the sales of piston and will determine the contract price of pistons (Exercise 5: Knight Engines – Excalibur Engine Parts, n.d.). The third case study is about Broadside Paper Mills Company where negotiation will take place with regards to payment of loans and overall improvement of the water and air quality. The argument will take place in matters of payment of taxes and incurring of the cleanup cost. In all the three cases it can be found that usage of the procedure can not help in developing of the negotiation. All the three cases are related to negotiation with the client regarding price and tax consideration. Hence the three cases will follow different process which may not be same as the general phases that is used to resolve the disputes. In order to arrive at the agreement to the above case studies it is important to involve the stakeholders in the negotiation processes which would be beneficial to the negotiator as that will help in the clarification of the goals of the clients. It will also help in creation of the communication channels in order to resolve the issues when they arrive. In case of Broad paper mills the top management of both the town as well as the company has to compromise somewhere in order to come to an agreement. Both of them are right in their opinions. Payment of taxes has to be reduced as the road is public. In this case the use of mediator would be useful (3001EHR MortLake Negotiation Exercise, n.d.). In the knight case study dealing with the Swiss government will be beneficial as it would be able to reap huge benefits but then dealing with knight will also help it to gain benefit of free advertisements. In the third case it would be beneficial to buy GT7 as the negotiator can negotiate in terms of the product being less market tested components. Hence it can negotiate in terms of price with G-Technica. Though Max proc will supply the required amount of piston to Acceldemia but then it would take nine months which will not solve the urgent requirement. Hence it would be better to settle the deal with G-Technica. Conclusion Negotiation has certain phases which if followed will certainly help the negotiator to arrive at a decision but then it might not always be possible in the entire situation to follow these phases. In the process of negotiation along with these phases circumstances, scenario and presence of mind of the negotiator also plays a significant part in arriving at a fruitful decision. References 3001EHR MortLake Negotiation Exercise, No Date. Role Information for Broadside Paper Mills Company. 3001EHR MortLake Negotiation Exercise. Bigoness, W. J., 1984. Developments in Business Simulation & Experiential Exercises, Volume 11, 1984. University of Carolina. [Online] Available at: http://sbaweb.wayne.edu/~absel/bkl/vol11/11ao.pdf [Accessed September 30, 2010]. Blair, J. D. & Et. Al., No Date. Negotiation Preparing and Planning. Negotiation and Conflict Management. [Online] Available at: http://jblair.ba.ttu.edu/4384-5374/Class%205%202-20-06%20P1%201.ppt [Accessed September 30, 2010]. Exercise 5: Knight Engines – Excalibur Engine Parts, No Date. Role Information For Excalibur Engine Parts. Exercise 5: Knight Engines – Excalibur Engine Parts. Lewicki, R. J. & Et. Al., 2010. Negotiation. Third-Party Approaches to Managing Difficult Negotiations. [Online] Available at: http://facultywebs.sullivan.edu/kmoran/DRC403/PowerPoints/Chap019.ppt [Accessed September 30, 2010]. Peterson, R. M., 2000. Pre-Negotiation Planning And Preparation: What Is It? Do We Do It? Management. [Online] Available at: http://www.allbusiness.com/management/700575-1.html [Accessed September 30, 2010]. Ross, L. & Et. Al., No Date. Barriers to Conflict Resolution. Stanford University. [Online] Available at: http://www.law.stanford.edu/program/centers/scicn/papers/barriers.pdf [Accessed September 30, 2010]. Saunders, H., 2005. Prenegotiation and Circum-negotiation: Arenas of the Peace Process. University of Colorado. [Online] Available at: http://www.colorado.edu/conflict/peace/example/saun7270.htm [Accessed September 30, 2010]. University of Colorado, 1998. Pre-Negotiation/Negotiation of Process Issues. International Online Training Program on Intractable Conflict [Online] Available at: http://www.colorado.edu/conflict/peace/treatment/preneg.htm [Accessed September 30, 2010]. University of Colorado, 1998. Negotiation Skill Development. International Online Training Program on Intractable Conflict. [Online] Available at: http://www.colorado.edu/conflict/peace/treatment/negskill.htm [Accessed September 30, 2010]. Week 2: GTechnica-AccelMedia, No Date. Role Information for Accelmedia (Buyer). Week 2: GTechnica-AccelMedia. Bibliography Mullen, J., 2008. Rethinking Negotiation Strategy. Institute for Supply Management. [Online] Available at: http://faculty.elmira.edu/jmullen/articles/Rethinking_neg_strategy_Eside.pdf [Accessed September 30, 2010]. Rainey, M., 2010. Choosing Your Negotiation Site. Pepperdine University. [Online] Available at: http://gbr.pepperdine.edu/103/negotiation.html [Accessed September 30, 2010]. Read More