The Nature of Negotiations - Coursework Example

The nature of negotiation: A negotiation that happened Name Institution Preamble Negotiation entails a discussion between two or several parties in disagreement over an issue, who seek to come up with a solution. It is an intergroup or interpersonal process, which happens at a personal level, as well as international or corporate level. Essentially, negotiations have to happen as the parties look to come up with something new, which neither of the parties would make on their own nor resolve. At the same time, the parties recognize that some level of disagreement of interest exists, which they can apply some forms of influence to reach a better deal (Pistone, 2007). Last year, I had an opportunity to successfully negotiate for a fair salary as a blogger for EcoFriend.org, an online environmental company. The major disagreement was on pay and work hours. While I was looking for a higher pay for less hours, to create time for my studies, the company was offering lower pay for more hours at work. Step one: Investigation In the initial phase of negotiation, information was gathered to determine the goals of negotiation, or what should be achieved at the end of the negotiation process. I also asked myself what I would concede or not concede at all. At this stage, I was aware that to successfully gather information that would bring beneficial outcomes after the negotiation, I had to be honest with myself regarding my priorities. I was aware that during the negotiation, I would have to make critical choices. It was also significant to understand what I would want so that during the heat of the moment, I would make the best possible decision. For instance, while preparing to negotiate for job conditions at a new job as a social media manager, I asked myself what I valued most, whether it is higher salary, working with people I liked, being employed by a prestigious firm, being employed in a city I liked, whether the company would nurture my aspirations for future higher positions, or whether I would still want to change jobs while pursuing newer challenges elsewhere. I found out that I was mostly interested in a higher pay and career advancements in future. The rest were insignificant to me. Step two: Determine the BATNA An additional significant aspect of the phase of investigation and planning is determining BATNA, which is an acronym for “best alternative to a negotiated agreement.” The BATNA helped me to make a decision whether to agree to an offer brought on the table at the time of negotiation. Still, I needed to be aware of my alternatives. As I had various alternatives, I reviewed the proposed deal in a critical manner. Still, I had to ask myself whether I could get a better deal than the proposed one. It is for these reasons that my BATNA became useful, as it helped me reject a deal, which is unfavourable. I thought about it in terms of common sense. For instance, being aware that EcoFriend.org was desperate to strike a deal, I would demand much more. However, if it looked like the company had many other options, I would possible make a concession. It was critical that I remember that the reason I had to negotiate was in order to come up with a better deal than the outcome I would acquire without having to negotiate. I acknowledged that the individual with the best BATNA is often at the advantage point during a negotiation process. As a result, during my new job negotiation, I considered my alternatives to the offer I was being offered. I asked myself that if the pay would be lower, then what alternatives would I still have. The alternatives include looking for a job with Mother Nature Network, which had also invited me for an interview, continuing with my studies at the university or continuing with a job at my present employer. While I was thinking about my BATNA, I also took time to consider the BATNA of the other party. For instance, I asked myself whether they had a candidate with better negotiations, who would replace me. At any rate, once I had clarified my goals, I investigated the company I would be negotiating with, including what the company would want and the alternatives they would have. During the job negotiation, I considered that the company wanted a good candidate whom they would employ at a fair price. This compelled me to make some researches on their salary levels and the standard salaries for the industry. I established that the company’s key goals are safeguarding the environment by inviting larger corporations to embrace eco-friendly practices, including minimal use of plastic components. I established that the company has partnered with many international companies like Wal-Mart, and is therefore in stable financial position. I also established that the employees at the company are highly motivated while the company has one of the lowest job turnover rates in the industry. I also established that about 20 other candidates had been interviewed for the position I was seeking. Step three: Presentation At this stage, I collated information I had gathered in manner that is supportive of my position. During the salary negotiation stage at the time of hiring, I presented facts to show that I had made significant contributions directly to my previous employer by driving sales and creating blogs about the significance of going green on the company website that generated leads to the company’s website, which significantly contributed to sales and invited major partners, including Wal-Mart, whose representatives acknowledged they had been inspired by the blog. This was to demonstrate my value. Step four: Bargaining and determining the ZOPA At this stage, the parties discuss their goals in the hope of reaching an agreement. Concessions are also made at this stage, where something is given up in return for something else. I had to understand that making concession did not show I was weak. Rather, it showed that I was cooperative and willing to help in moving the negotiation to reach conclusion. It was specifically significant during the job interview, as I had to make concessions in the areas of responsibilities at work, salary, time to spend at work and the level of autonomy. While negotiating for the salary, I agreed to take the salary the company offered during the first six months in the hope that it would be increased after this period. However, at their fair price, I would not report for work during the weekends or work overtime. On the other hand, if the company agreed to my higher salary expectations, I would work overtime, report to work during the weekend and take more responsibilities. I tried to establish the reason the company may be experiencing constraints and realised that the company seriously needed a blogger with extensive social media following, who had attained national popularity, as well as who would actively engage customers across the nations. I had these qualifications and knew that the company desperately needed my talents. The company was in a stable financial position. At the time of the negotiations, my goal was to get a higher pay than what was offered by my former employer. After the negotiations stalled, I evaluated my alternatives to make a decision on what I would consider vital. By slightly lowering my salary expectations, I expected that my new employer would give me fewer responsibilities, yet this was not to be lower than what my previous employer offered. At this stage, it appeared disagreement was rife, as both sides were certain that they would not achieved what they aimed for from power struggle. Therefore, we arrived at a stalemate or impasse. When both parties realised that their expectations are not available and a likely settlement seems to be better compared to the other available options, then they have ZOPA, an acronym for Zone of Possible Agreement (Maiese, 2003). This implies that there is a potential agreement that is likely to benefit both sides compared to the alternatives. As we had identified our ZOPA, there was a good chance we would ultimately reach an agreement. While I was willing to compromise, I was also aware that the company was ready to compromise. I was willing to reduce my salary expectations by 15 percent, which was within the company’s standard salary range for the position. The company was willing to pay the amount, yet allow me to allocate sufficient time for my studies at the university. Step four: Conclusion At this stage, both parties negotiation reach an agreement regarding the terms. Either way, one of the parties may consider that the final offer is not acceptable, and therefore walks away. At this stage, I had made up my mind that if my best offer would be rejected, I would walk away and continue with my present employer. I had made my offer, and that was the best I would have done. I was willing to compromise to reduce my salary expectations by 15 percent, which was within the company’s standard salary range for the position. The company was willing to allow me to work for fewer hours to concentrate on my studies. After leaving the interview room, the company’s hiring manager told me they would get back to me in three days. I received a phone call from the hiring manager two days later. Eventually, the company agreed to my demands of a higher pay and asked me to report to work after one week. We closed the deal when I assigned an employment agreement form. References Pistone, R. (2007). Case studies: The ways to achieve more effective negotiations. Pepperdine Dispute Resolution Law Journal, 7(3), 1-50 Maiese, M. (2003.) What is Negotiation? Beyond Interactability. Retrieved: Read More