Negotiations are everywhere and at all times. In a negotiation it is expected to obtain benefits for both parties and maintain a good relationship. In business, you must take into account the negotiation with the other person, be aware of the conflicts that can occur and the agreements that can be reached.
Negotiation is a very broad topic, in some way we carry out this activity in our daily lives, although we are not experts in this. By taking an online diploma "The techniques of an excellent seller" I was struck by the issue of negotiation, which is one of the successful processes of many companies.
When having a business, not only do you have to know how to sell to sell, but you also have to know how to negotiate.
Introduction
This essay will deal with the issue of negotiation, which is a process that takes place in a sale or in business, and also represents the success of many companies.
Not only do businessmen or sales professionals negotiate, Peter Economy mentions that “ We all negotiate, every day, every hour and even every minute. We are, therefore, catalysts in the negotiating process ”. (two)
So negotiation is important to reach an agreement, through a process and techniques; to maintain good communication with both parties, that is, win-win. In order to carry out this essay, I appropriate the points of view of various authors who refer to the subject.
"Every business is founded on belief, judgment or probability, but not certainty." (1) Charles Eliot
Main concept: Negotiation
On the managerial issue, we can say that negotiation is the process by which two or more parties meet to discuss or establish a contract, define the guidelines of an employment relationship, buy or sell a product or service, resolve differences, establish costs, structure a work plan, formulate a schedule, among other activities. (3)
Negotiation: it can be defined as the relationship established by two or more people in relation to a certain matter with a view to bringing positions closer and being able to reach an agreement that is beneficial to all of them. (4)
Negotiation: It is reaching an agreement. (two)
Negotiate: conference, speak or discuss in order to reach an agreement. (two)
Types of negotiation: integrative and distributive
There are two types of negotiations:
- Integrative (win-win).Distributive (win-lose).
The best option is integrative negotiation (win-win) because here both parties win, both the seller and the buyer.
As Peter Economy says, " a win-win negotiation allows both parties to achieve their goals." In integrative negotiation both objectives are met and both parties are satisfied. (2)
Furthermore, integrative negotiation allows a good relationship between both parties, as well as solving problems instead of creating conflicts. Why do you solve problems? Because in this negotiation not only both parties are related but mutual trust and good communication are acquired. Trust is important in all types of business, it can be said that it is a fundamental base and this makes both parties have a good business relationship for a long time. (two)
Trust requires both parties to commit, because misunderstandings often occur when trust exists. For example:
I plan to sell breads: My goal is to sell whole grain breads and distribute to local customers. I offer you the best quality breads in the region. I use the best raw materials and give them an affordable price. It turns out that my client asks me for a large quantity of bread for the next day and he did not anticipate me before. But I have a problem, I do not have enough raw materials to fulfill that commitment and I buy low quality raw materials. But since I know that he is a customer who has always bought from me, surely he wouldn't say anything if I gave him low-quality breads or he just wouldn't notice. In this case it can be said that I am taking advantage of the trust of my client and he for not anticipating me loses his clients.
This example evidenced a communication failure between the two parties. Communication is essential in negotiation since through it the parties express their wishes and needs. Peter Economy says that “it is through communication that he exposes his position and manages to do it by reaching an agreement with other people. At the same time, your interlocutor can propose other demands to you as a condition to access what you demand ”. (two)
On the other hand there are the distributive negotiations (win-lose). In these types of negotiations, each party focuses more on obtaining results than on maintaining a good relationship with the counterparty. Here comes into play what are the competitions, to commit and to accommodate. Many authors recommend that you be careful with this negotiation because it creates conflicts and can generate enemies.
Peter Economy mentions that in the distributive negotiation only a part reaches its objectives. With this you can achieve very good results, but they are very short term. You can have a loser but at the same time an enemy.
In distributive negotiation there are competencies because only one wants to win, these desires to win drive people to create conflicts with others, many times they want to win at the expense of others, they are not interested in maintaining a relationship with people but their only objective is win.
Committing also enters into distributive negotiation because many times decisions or commitments are made quickly, without thinking about the consequences. It can also occur because of a difficult agreement, giving options to be able to reach an agreement for their own benefit and that in the end the other party comes to yield, but the agreement was not analyzed, with what the other party could win. For example:
In a bakery business loans are handled, it turns out that my client does not pay me on the agreed date. Time passes, he does not pay and he is a difficult person to negotiate. Before making a commercial lawsuit, I try to negotiate with him and he agrees because it suits him, to avoid the lawsuit
In this example, you can also say that you adapt to the situation or problem that is occurring, so as not to lose. In many occasions one of the parties to want to win has to accommodate, to the decision of the other party but there is never a relationship or an agreement on both sides.
conclusion
Although we all think differently about the theory of negotiation and its implications, we negotiate in one way or another every day. Perhaps many carry out distributive negotiation, I encourage you to make a change so that we all win, that is, to be participants in tax negotiation, win-win. I invite you to meditate on our current form of negotiation with this thought that says:
"There can be no progress except in the individual and by the individual." (1) Charles Boudelaire
Sources
- Negotiating with the Americans? Get to know them first and go safely. Garza Mouriño, Rosa M. Editorial Mc Graw Hill. Mexico 1995. The Art of Negotiation, Peter Economy. Mc Graw Hill Publishing. 1994.
