Negotiation

Negotiation Negotiation is a dialogue between two or more parties that is intended to reach a consensus or an agreement. Negotiation is the most effective form of dispute resolution and, hence an essential pillar of management. The main element of negotiation is to reach an agreement that has a collective advantage for both parties involved in the negotiation. In addition, negotiations have to incorporate the interests of the organization as a passive party in the process. This essay focuses on the significance of negotiations in dispute resolution and management practices. According to Brad, development of negotiation skills is a two-step mastery process that involves bargaining and influencing (65). Development of negotiation skills is based on the roles and interests of an individual. For instance, a senior manager will require different negotiation skills compared to those of a customer or a business partner. In addition each of the parties have different interest on the organization and hence the need for differentiated negotiation skills. The degree of influence determines the negotiation ability of an individual and it requires timely adjustment depending on the parties involved in the negotiations. For instance, a manager will require different negotiation skill when dealing with the company’s employees and business partners respectively. However, each of the different negotiation tactics applied should consider the organization as a passive party in the negotiation. Dispute resolution is a significant element of management that utilizes the art of negotiation. Although most disputes do not end through negotiations, most amicable resolutions are achieved through negotiations. Disputes within a company can be both external and internal. In either case, the manager is duty bound to initiate negotiations on behalf of the company. Most dispute resolution applies the distributive policy. According to Brad, the distributive policy is based on the existence of fixed or limited value (43). The essence of fixed values requires the parties involved in the negotiation to distribute or divide the value according to the parties involved in the negotiation. This aspect is dependent on the negotiation skills of the respective parties. In negotiations, the manager represents the position of the company and, therefore he has to represent the interests of the company appropriately. Representing the interests of the company does not require the manager to be inequitable but he requires being considerate of other people’s welfare. For instance when a manager enters into a negotiation with the company’s employees, he is expected to represent the interests of both parties. This is because employee’s satisfaction implies the company’s success. On the other hand, the company cannot overpay its staff in order to achieve employee’s satisfaction. This indicates that managers should enter into a negotiation process with a non-partisan attitude. The distributive element of negotiation is not applicable in most negotiation. Most managers rely on integrative techniques to go through the negotiation process. Integrative negotiation involves upholding a common value among the different parties involved in a negotiation. The process involves assuming leadership of the negotiating panels. Managers usually apply integrative negotiation to convince the other parties on the need to have common values. Managers are the custodians of the company’s values and, therefore their negotiations should reflect the company’s mission and vision statements. Integrative negotiation is also applied in cases that might compromise the existence of the company. For instance, when a manager is negotiating with employees concerning the flexibility of their work schedule, he has to incorporate the goals and objectives of the company. In this case, the manager needs to convince the employees into his interests. Negotiations are dependent on the personality of individuals involved in the negotiations. Emotions play a significant role in the negotiation process. During negotiation, decision to settle a dispute are based on the emotional response of each of the parties involved in the negotiation. However, emotions should not be the main factor of decision making in negotiations. It is evident that decision or negotiations should not be based on emotions. According to Brad, best decisions are based on logical judgment (54). In most cases negations that are dependent on emotions leads to irrational decisions that may have negative impacts on the company. Conclusion Negotiations are significant aspect of management and dispute resolutions. Most management decisions are based on the ability of managers to achieve value for the company through negotiations. In the negotiation process, the organization acts as a passive party while the manager acts as a representative of the company’s interests. There are different forms of negotiations, which are dependent on several factors. The choice for a negotiation tactic is dependent on the company’s interest and the negotiation abilities of a company. Works Cited Brad, McRae. Negotiating and Influencing Skills, the Art of Creating and Claiming Value. Thousand Oaks: Sage Publications, 1998.