The word negotiation has acquired such a marked importance that it places it above other forms of conflict resolution, such as arbitration, judicial processes or the use of mediators, both in the international arena and in economic and commercial relations between countries, organizations and companies.
Since the mid-1970s, profound changes have been taking place in the environment in which organizations operate.
Currently, the rate of technological innovation is the fastest known to mankind. The time that elapses between a scientific discovery and its application to production, as well as the life cycle of products, is significantly reduced. On the other hand, the technologies of commercialization and financing of commercial operations are modified.
These great changes have had three characteristics: first, the extraordinary speed with which they have occurred; second, the depth and breadth of the spectrum of issues they cover; and, thirdly, their unpredictability, that is, the impossibility not only of foreseeing them, but of imagining them.
All of this has put many traditional managerial paradigms in crisis that, at present, are narrow or inoperative under the new management circumstances. Research conducted in the early 1990s found that the fundamental professional skills of managers in the 21st century should be: strategy formulation, human resource management, marketing and sales, financial management and negotiation skills and conflict resolution.
Research carried out by prestigious specialists in the field of management, on what successful managers do and how they do it, show that managers, rather than planning, organizing, coordinating, directing and controlling, spend most of the time time negotiating everything and with everyone. And it is that, probably, this is one of the characteristic features of contemporary management: management functions are developed, essentially, in a negotiating environment.
I. What is Negotiation
Most people, and especially businessmen, are constantly involved in negotiations of different kinds. For example, when they meet to establish a contract, buy or sell any product or service, resolve deficiencies, make collegial decisions, agree work plans, etc.
For this reason, negotiating, and negotiating well, acquires a fundamental importance in order to achieve better relationships in life and, as a consequence, more pleasant and solid positions. For all this, negotiating deserves to be studied.
In this sense, the first thing to understand is the essence and scope of the concept of negotiation. A set of definitions of the concept of negotiation by prestigious specialists on the subject are listed below in order to present the different edges and approaches that are perceived on it:
"Negotiations can practically be defined as the process that offers the contestants the opportunity to exchange promises and make formal commitments, trying to resolve their differences." (Colosi and Berkely, 1981)
«What is negotiation? Nothing can be so simple in its definition and so broad in its sense. Every desire that demands satisfaction (and everyone needs it) is ultimately a potential occasion for people to incite a negotiation process. Negotiation depends on communication. This occurs between individuals acting themselves, or as representatives. Every time people exchange ideas with the intention of relating, every time they try agreements, one of them is negotiating. (Nierenberg, 1981)
“To negotiate is to do business, that is, to exchange and bargain. This means that each wants what the other has, but obviously at the lowest possible price. It also involves satisfaction (getting what you want) and dissatisfaction (giving what you have), at the same time. On the other hand, it is only negotiated when each one wishes to obtain something at the expense of the other, which is a trap: the one that is feared, and in which one wants to make the other fall. (Desaunay, 1984)
“Negotiation is a process and a technique by which two or more parties build an agreement. The parties begin by discussing the matter in which they have interests, which generates varied feelings between them. The motives that assist each negotiator generate behaviors in them that are often expressed in verbal proposals. This exchange causes the parties to develop strong desires to control the issue that concerns them. (Monsalve, 1988)
"Negotiation is a process by which two or more parties - who have both common and opposing interests - exchange information over a period of time, with a view to reaching an agreement for their future relationships." (Villalba, 1989)
"Process of achieving acceptance of ideas, purposes and interests, seeking the best possible result, in such a way that all parties benefit." (Correa and Navarrete, 1997)
Whenever you try to influence a person or group of people through the exchange of ideas, or with something of material value, you are negotiating. Negotiation is the process you use to satisfy your own needs when someone else controls what you want. Every wish that you would like to fulfill or every need you are forced to satisfy are potential situations for negotiation.
Negotiation between companies, groups or individuals usually occurs because one has something that the other wants and is willing to negotiate to obtain it. Therefore, it is a process that includes two or more parties, with common interests, but at the same time in conflict, who voluntarily meet to present and discuss common proposals in order to reach an agreement.
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II. Types of Negotiations
Full knowledge of the type of negotiating process is vitally important for its proper preparation. That is why, before facing it, it is necessary to define as clearly as possible the type of negotiation in which you are going to participate. The negotiations can be classified as follows:
According to the people involved
Negotiations can take place between individuals, between individuals and groups, or between groups. As more people intervene, the process becomes more complex as a greater number of interests, points of view, behaviors, behaviors, expectations and levels of satisfaction come into play, which generates countless differences and demands greater preparation of the process.
According to stakeholder participation
They can be classified into direct and indirect negotiations (through mediators, arbitrators, lawyers, etc.). In the first case, the process is generally more expeditious and dynamic, while in the second case, the process can be delayed and, what can be more dangerous, be complicated by the lack of communication between the parties due to the entry of intermediaries.
According to matters being negotiated
There is a wide range of issues that can be negotiated, from political, commercial and technical, to personal and emotional. In each case, it is essential to have adequate knowledge of the object of the negotiation, as well as to create the right environment to achieve the desired effect.
According to the relative status of the negotiators
Under this criterion, negotiations can be classified horizontally, when the parties are at the same level of the hierarchical scale; vertical, when the negotiating parties are linked through a relationship of direct subordination; or diagonal, when the negotiation takes place between parties that are in different seats of the hierarchical pyramid.
According to the human climate
According to this criterion, negotiations can be friendly or controversial, as well as open and sincere or manipulated. Friendly, open and honest negotiations are much easier than the other extreme.
According to the triggers
According to these, negotiations can be classified as: free negotiations (between buyers and sellers); forced, when a specific fact provokes the negotiation, moral or affective, when the cause of the negotiation process has to do with behaviors, attitudes or values; and legal, when the cause that originates it is a specific legal claim.
According to communication channel
They can be classified as face-to-face, telephone, letter or on the basis of representatives. The fundamental difference between them lies in the degree to which the communication process established between the parties flows.
According to the trading mode
They can be classified into competitive negotiations and cooperative negotiations. These modes can be presented within the same negotiation. Understanding them and combining them properly in the process can help in the negotiation process.
III. Knowledge and Skills Needed for Effective Negotiations
"The quality of the negotiation is measured by the impact and influence we exert on the counterpart and not only by the intention we have in it"
Berlew and Moore (1987)
To be effective in a negotiation requires a series of essential knowledge and skills. Among which stand out:
1. Interpersonal relationship skills
Negotiations should not be a debate, the purpose of the negotiator should be to influence, persuade and convince the opposing party. For this, it is essential that the negotiator equips himself with a methodology that allows him to:
- Know and show your strengths Manage without showing your weaknesses Solve conflicts Know the other party and their needs Present arguments according to the behavioral characteristics of the other negotiator Behave in a way that builds trust Know how to listen, communicate Create a climate of cooperation between negotiators. Seek to increase their degree of flexibility, which implies the ability to put themselves in the place of the other and accept changes.
Socrates' dictum "know thyself" is ahead of any advice of this nature in the field of negotiations. Being successful in a negotiation does not necessarily mean pushing for more money or greater participation, but rather promoting interests as a whole, which can include, in addition to money and material goods, also the satisfaction of spiritual needs.
Among these skills, two are basic: the ability to persuade and the ability to argue in a profitable way. Both are invaluable personal tools in the successful negotiator. Being persuasive and capable of profitable discussion involves using a set of techniques, habits, and skills on a daily basis.
2. Knowledge of your own business
The negotiator must have as much knowledge as possible about the area of negotiation. For this you must develop and obtain:
- As much information as possible about the object of the negotiation. Data related to the market. Knowledge about the competitive structure of the sector. Knowledge about government policies, environmental factors and regulations, financial and legal aspects that may affect what is being negotiated.
3. Technology of the negotiator
It refers to the mastery of negotiation processes and techniques. It implies the knowledge and application of a methodology that allows the negotiator:
- Plan, execute and control the negotiation within a logical and predetermined sequence Use certain ideas that make your argument more attractive to the sensitization of the other party Develop the ability to make concessions and overcome obstacles.
Negotiation is an art and, therefore, negotiators cannot be pigeonholed into a single negotiation model, since each negotiation undoubtedly constitutes an act of creation. All this leads to the need to study the stages of the negotiation process.
IV. Stages of the Negotiation Process
The negotiation process can be analyzed in three stages:
- Planning: includes the diagnosis, strategy and tactics. Face-to-Face Negotiation: contains its own stages Post-analysis: includes the analysis of the process results
1. Planning
It is the most important part of the negotiation as it guarantees the preparation of the process. Good prior preparation is the surest way to reach a satisfactory negotiation. What is done or not done before reaching the negotiating table will be revealed as soon as it is reached.
A poorly prepared negotiator has to limit himself to reacting to events, he will never be able to direct them.
The art of leadership is knowing what to do and how to do it. The same can be said of the art of negotiation. And it is precisely the planning phase that is appropriate to define what needs to be achieved and how to achieve it.
Most managers are much more inclined to take action than to spend time reflecting on conditions and proper planning, perhaps due in part to time constraints and job pressures. For many, planning is boring and tedious so they are put aside to "jump into action" quickly, without thinking that not planning is planning failure.
In this sense, when planning a negotiation, stratifying the process into three phases is very helpful:
- Diagnosis Strategy Tactics
to. The diagnosis
It constitutes a phase of vital importance for the negotiation, since from it relevant information is obtained that supports the strategy and tactics to be used. The diagnosis focuses on three key aspects: analysis of the type of negotiation, analysis of bargaining power and SWOT analysis. Each of them will be analyzed below.
- Type of negotiation. The type of negotiation they face and its level of complexity are identified. On the basis of these assessments, the mode of negotiation can be defined, that is, cooperative or competitive. If the type of negotiation they are facing is fully known, they will be in a position to devise more coherent strategies and better tactics. The negotiating power. Facing a negotiating process presupposes, above all, evaluating the balance of negotiating power between the parties. There are many sources of power. Some are based on resources (financial strength), others on laws, regulations or precedents, while others - perhaps the most important and the least taken into account in the negotiation - are based on psychological factors. Karrass (1985) argues that “power is a strange thing.
It is the idea that we get of it, which does not mean that it is not real. It is very real, and it is capable of providing enormous energy in a negotiation. But, to a large extent, it resides in our mind. It is as strong or as weak as we think it is. ' The negotiating power passes through the analysis of a group of determining factors that are:
- Information: The more you know your strengths and weaknesses and those of your counterpart, as well as the object of negotiation and the environment, the more power you will have. Legitimacy: No source of power can hypnotize as much as the power of legitimacy. Power is invested by factors such as public opinion, a sense of righteousness, a good track record, a well-supported position. The use of printed model contracts, “official lists” of prices, previous negotiations, as well as established regulations can give more legitimacy to your positions. Commitment: Commitment, loyalty and friendship are bulwarks of power. People who are committed to their goals or the satisfaction of others have a hidden power. The commitment to your organization, your sincere belief in its values and what it does,It gives you credibility and a lot of strength to argue and defend your positions. Time: Time and patience are power. The person who is most restricted by the time limit provides the opponent with a power base. Knowing how to use it well to find more information, not to rush, to be more convincing, not to be pressured, not to give the feeling that you are "desperate" and, at the same time, not to miss opportunities by not reacting "on time". Knowing how to shut up: To not give more information than necessary and to listen properly and wait for the responses of the counterpart is important. Taking risks: Safety is a goal of humans. The person who is willing to accept a greater burden of insecurity with respect to a reward or punishment increases her power.The more your counterpart depends on you (or at least thinks that way), the more power you have. If you depend more on your counterpart (or your counterpart thinks so), you will have less power. Negotiation skills: To identify your needs and objectives and those of your counterpart; to argue their positions; find options; get out of conflict situations; be firm and flexible and, at the same time, to create a collaborative climate, to convince about your "power" Effort: Negotiating is hard work. In this sense, the desire to work is power. Perhaps the heaviest work is imposed by planning requirements. The part most willing to work hard wins in power. SWOT analysis.All the previous effort developed in the analysis of the type of negotiation and the negotiating power constitute important starting points to carry out a SWOT analysis (weaknesses, threats, strengths and opportunities) of the negotiation. As a result of this analysis, it will be possible to obtain information about the internal and external factors that favor the negotiating process and the possibility of reaching agreements.
b. The strategy
It is where the specialists expose the greatest diversity of positions. However, there is something in common between them and that is that the most sensitive part of a negotiation process is the determination of the strategy.
The negotiation strategy should focus on anticipating the other party's responses to proposals and suggestions, as well as the latter's ability and willingness to achieve its objectives.
The strategy begins with the knowledge of the negotiable critical situation, that is, those situations where it is important that the parties involved must be satisfied with the agreements that are reached, due to the importance of maintaining or creating a long-term relationship or where it is required. the need for commitment from one or both parties.
Once the critical negotiable situation has been identified, it is necessary to thoroughly analyze a group of basic categories that mark the common thread of the negotiation strategy:
- Needs They constitute the deficiencies, dissatisfactions or insufficiencies that motivate negotiators to go to negotiation in order to satisfy them. They are the most essential and stable of all the factors involved in a negotiation process. The needs are as multiple as the interests or scale of values that the individual possesses, their culture and conditions in which they live, so material and spiritual needs can be identified. Accurate identification of your own needs and those of your counterpart is the most important factor in achieving success in a negotiation. Generally, the needs are not stated or made explicit, but rather what emerge are the objects and objectives of the negotiation, two other basic categories of the strategy.
- Objects. They are the channels, the instruments through which negotiators try to satisfy their needs in a negotiation process. The same need can be satisfied through different objects, which can be modified in the negotiation process.
- Goals. They are the goals, the results that negotiators intend to achieve in the different negotiation objects. In negotiations they are also called positions.
c. The Tactic
While it was said earlier that strategy is essentially what negotiators think, tactic is what negotiators do. If you look only at strategy, you can run into obstacles that are in sight and never reach your goals.
There are no right tactics for the wrong strategy. If you don't know where you are going, what is the point of discussing how you can get there. Tactic refers to the formulation of short-term guidelines that allow you to achieve long-term goals. Therefore, in the tactic it is necessary to take into account how the negotiating process begins, how it is abandoned, what will be the first offer and what concessions can be made. This also includes organizing the negotiating team, that is, designating roles that team members will fulfill, how those roles will be coordinated, how information about the other party's needs and objectives will be distributed, and how they can be specifically met.
2. Negotiation face to face
Successful negotiators are very concerned about their "face to face" behavior. They carefully avoid using irritating phrases like "My offer is generous" or "My offer is fair or reasonable." To do this, it is necessary to have a clear idea about the face-to-face negotiation process, starting with knowing the stages of said process and how to channel your energies during it through the application of different styles of influence.
Stages of face-to-face negotiation
Face-to-face negotiation has five well-defined stages. These are:
- The opening. At this stage the process begins, so it is necessary to make formal presentations, expose and agree on the agenda, define the work rules to carry out the negotiation and specify the logistics of the process. Expectations. At this stage, the parties present their expectations, make the corresponding clarifications and make the necessary adjustments to the agenda as a result of this process. It is here where the previously defined strategies and tactics begin to be put into practice, initially a kind of comparison options vs. demands, in which the ways of matching them are evaluated to reach concrete results. Private meetings and lobbies develop, impasses begin and conflicts begin to manifest.The approach. It is, possibly, the most decisive stage for the achievement of concrete results and the most creative from the point of view of the decisions taken to achieve them. In it, the common areas of the parties are identified, new options are generated, concessions are raised, conflicts are resolved and a group of preliminary agreements are made. It includes the review of the agreements, the definition of the dates and those responsible, the follow-up and monitoring mechanisms of the agreements and the final approval.conflicts are resolved and a group of preliminary agreements are made. It includes the review of the agreements, the definition of the dates and those responsible, the follow-up and monitoring mechanisms of the agreements and the final approval.conflicts are resolved and a group of preliminary agreements are made. It includes the review of the agreements, the definition of the dates and those responsible, the follow-up and monitoring mechanisms of the agreements and the final approval.
3. Post analysis
In this stage, the results of the process, the experiences acquired, the future perspectives and the control or monitoring of the results are analyzed.
V. Tips to negotiate successfully
- Negotiation is not a competition. A better deal can be found for both parties. It has more power than you think. Look for the limits of your opponent's power. Write a plan. Never decide on any point unless you are prepared to do so. Never be afraid to negotiate. No matter how big the differences are. Do not speak. Listen without criticizing. Don't feel limited by position or authority. Once you do your homework, you must be willing to face them. Don't be limited by facts, averages, or statistics. A difficult negotiation has conflicts. The person who has a need to be liked is prone to giving in too much. Set higher goals. Prepare to take risks. Also be prepared to work hard and be patient. Test your opponent.You never know what he will be willing to give up. Take the time and be persistent.
…… many successes in the next negotiation!
Conclusions
The negotiation process can be defined as a human process between two or more parties, with common interests, but at the same time in conflict, who decide to exchange to satisfy their interests and needs and reach an agreement.
Negotiations can be classified taking into account the people involved, stakeholder participation, the issues being negotiated, the relative status of the negotiators, the human climate, the triggers, the channel of communication and the mode of negotiation.
To be effective, the negotiation requires a series of knowledge and skills such as: interpersonal relationship skills, knowledge of your own business and the technology of the negotiator.
The negotiation process can be analyzed in three stages:
- Planning: includes diagnosis, strategy and tactics Face-to-Face Negotiation: contains its own stages Post-analysis: includes analysis of the results of the process.
Bibliography
- Berlew, David E., and Alex B. More. "The Negotiation Process", 1987 Capote, Alberto and María E. Duarte. «Techniques in Negotiations», 1996.Carvajal, Acelia and Aida M. González. «The Negotiations», 1994.Codina, Alexis. "Negotiation Skills and Techniques Course", 1993.Colosi, Thomas and Arthur E. Berkely. "Collective Negotiation: The Art of Reconciling Conflicts", 1981.Correa, Juan C and María C. Navarrete. "Negotiation Techniques and Methods", 1997Desaunay, Gerard. "How to deal with subordinates", 1984. Fisher, Roger and William Ury. "Yes, okay: How to negotiate without giving in", 1985. Jandt, Edmundo. "Win-Win by negotiating", 1991. Karras, Garry. "Done deal! How to Negotiate Successfully ", 1985.Kartas, Chester I." Give and Take: The Negotiator's Guide, "1992. Kennedy, G., J. Benson and A. McMillan. "How to negotiate successfully", 1986. Monsalve, Tulio.«Strategies and Negotiation Techniques», 1988. Nierenberg, GI "Tha Art of Negotiating", 1981 Rodríguez Estrada, Mauro. "Negotiation Techniques", 1988.Schatzki, Michael. Negotiation. "The Art of Getting What you Want", 1989.Suárez, Demetrio and Luis Pérez. «Negotiation Course», 1992.Villalba, Julián. Is it possible to manage negotiations?, 1989
