Negotiation

Negotiation is a skill and an art. “In the workplace your ability to negotiate is equal to your success and happiness on the job” (Landau, 2018). It involves two or more individuals with practical tips and techniques to come in to a favorable conclusion. It can be defined as “as the process of making joint decisions when the parties involved have different preferences” (Mehnert, 2008).

Negotiation not only benefits an individual but impacts the organization as a whole. When negotiating, it is essential to be prepared about the context as well as with whom the negotiation will take place. Listening is also vital to avoid any miscommunication that might backfire. Being an exceptional communicator facilitates that every message is conveyed with clarity. Being indecisive or delusive is unhealthy for negotiations, so the “skill of deciding when to stop is key to successfully closing negotiations” (Landau, 2018).

Workplace conflicts are natural and evident in every organization. It only takes openness and willingness to work together to resolve conflicts. There are three ways a negotiation can end namely win-win, compromise, and win-lose. Negotiation with a win-win outcome is agreeing on a mutually beneficial outcome that will positively impact both the parties. In compromising both the parties have to give something up for the greater good and to reach an agreement. In win-loss negotiation the solution is preferred only by one party.

Sometimes the negotiators can follow two policies namely open door policy and closed door policy. In open door policy the negotiation and the final outcome is both made public and accessible to everyone whereas in closed door policy only the final outcome is made available to the public. A well-known example of open door policy in negotiation is when “retailing giant Costco has cut off inbound shipments of beverages from the Coca Cola Co. due to unresolved price negotiations” (Dominick, 2009). On the other hand, closed door policy is being adapted when cases require higher sensitivity and secrecy such as “health care negotiations in the U.S. Congress that will aim to reconcile the differences between House and Senate health care reform bills” (Karrass.com, 2010).

References

Dominick, C. (2009). Costco Uses Hardball Negotiation Tactics With Coca-Cola. [online] NLPA. Available at: https://www.nextlevelpurchasing.com/blog/costco-uses-hardball-negotiation-tactics-with-coca-cola.html [Accessed 20 May 2019].

Karrass.com. (2010). Closed Door Policy vs Coca Cola/Costco Negotiation. [online] Available at: https://www.karrass.com/en/blog/closed-door-policy-vs-coca-colacostco-negotiation/ [Accessed 20 May 2019].

Landau, P. (2018). How to Negotiate in the Workplace: A Practical Guide. [online] ProjectManager.com. Available at: https://www.projectmanager.com/blog/how-to-negotiate-in-the-workplace [Accessed 20 May 2019].

Mehnert, M. (2008). GRIN - Negotiation: Definition and types, manager's issues in negotiation, cultural differences and the negotiation process. [online] Grin.com. Available at: https://www.grin.com/document/116275 [Accessed 20 May 2019].