Importance of negotiation in a business environment

This article discusses the importance of negotiation in a business environment and how it helps in resolving conflicts and maintaining healthy relationships. It also explores the features and use of different approaches to negotiation and the components of negotiation tactics. Additionally, it examines the benefits and limitations of different information systems and provides insights on how to monitor the use and effectiveness of information systems.

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Contents
QUESTIONS...................................................................................................................................1
Q.1 Importance of negotiation in a business environment.....................................................1
Q.2 Features and use of different approaches to negotiation.................................................1
Q.3 Components of negotiation tactics..................................................................................1
Q.4 The benefits and limitations of different information system.........................................2
Q.5 How to monitor the use of effectiveness of information system.....................................2

QUESTIONS
Q.1 Importance of negotiation in a business environment
There is a vital role of negotiation in organisational environment as it helps in making
strategies by analysing the perspective of other parties or entities (Eco, 2013). The key role of
negotiation is recognised in resolving conflicts or disputes by understating the cultural
differences. A mutual agreement or contract is tried to form among parties so that they
compromise a common point and adhere it consciously. It is considered as a fair give and take
process and it aims to maintain polite interaction which is known as win-win both the parties. It
is normally remaining one of the effective approach that establish a healthy and fair relation
between the party and resolve the conflicts without supporting any one sided decision.
Organisations use negotiation approach in disputes to resolve the conflicts not only to resolve
with possible solutions but also maintain the goodwill of business.
Q.2 Features and use of different approaches to negotiation
Selecting an appropriate approach to negotiation is a primary requirement of business in
terms of assisting the parties. Two key approaches are recognised effective as disruptive as
competitive approach (competitive approach) and integrative approach (collaborative approach).
Win-lose and interest of opposing is one of the key feature of disruptive negotiation in
terms of negotiating with parties. This approach is mainly recognised as dominant approach and
effective in terms of gaining competitive advantage.
Integrative approach of negotiation basically recognised as win-win approach that
justifies each of the associated parties. Its flexible nature, collaborative actions and mutual
problem solving technique is one of the key features of integrative approach. Through this
approach both the parties remain beneficial and assist in establishing trust in more effective and
efficient manner (Voigt, 2013).
Q.3 Components of negotiation tactics
Negotiation tactics represents the ways that how it can be fix in an organisational context.
key components are required to consider as;
Preparation: A well-structured timescale is required to build with accurate collected data.
The policies as ethical and legal considerations also remain on prime requirement. A fair and
transparent procedure of recognition is required to consider at initial stage.
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Negotiation style: this states the way of considering the matters in negotiation process.
Collaborative, accommodating and compromising are the negotiation styles used in negotiation
process.
Negotiation behaviours: under sting the body language is an essential part. Effective
listening and questioning skills are first condition and requirement for the associated parties to
maintain ethical behaviour during the entire process of negotiation.
Exchanging information: the reason and objectives are required to address at primary stage
form both of the parties.
Bargaining: this component retains a specific position in entire process of negotiation as in
relation to solving the problems and concessions with mutual understanding and agreements
(Bowles and Babcock, 2013).
Q.4 The benefits and limitations of different information system
Benefits of information systems
Manual information system reduces the overload of information to users. It does not
require high capital requirement and investment. It not only reduces the cost but also keep the
records accurate and update. The risk of data loss also remains low in manual handling.
Electronic information system is also one of the methods of storing information. the
system is beneficial in storing bulk of information at one time one place. The system presents
information in further more effective ways as strategic information, management information
and performance information. these data further help in business decision making (Jensen,
Sheller and Wind, 2015).
Limitations of information systems
Manual information system takes too much time to process and store the information at a
single point of view. It maintains efficiency and a physical space regarding conventions. There is
high risk of degradation of physical records in manual handling.
Electronic information system required high capital investment and security system.
Multiple access is one of the weak point of electronic information system. Risk of delete the data
and information remain high in electric information system.
Q.5 How to monitor the use of effectiveness of information system
An organisation can use systems to monitor the process by developing plan. The system
helps in controlling and monitoring the performance of organisation by covering all the required
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areas and it also assist in analysing the feedbacks and gains with appropriate format and
constraints. A proper time scale and usage of potential overload system is also required with
frequent use of system. Analysing the process time to set a standard utilisation of time period and
reviewing the overall system performance relatively to the attainable goals of an entity.
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REFERENCES
Books and Journals:
Eco, U., 2013. Mouse or rat?: Translation as negotiation. Hachette UK.
Voigt, J., 2013. Negotiation of mathematical meaning in classroom processes: Social interaction
and learning mathematics. In Theories of mathematical learning (pp. 33-62). Routledge.
Bowles, H. R. and Babcock, L., 2013. How can women escape the compensation negotiation
dilemma? Relational accounts are one answer. Psychology of Women Quarterly. 37(1).
pp.80-96.
Jensen, O. B., Sheller, M. and Wind, S., 2015. Together and apart: Affective ambiences and
negotiation in families’ everyday life and mobility. Mobilities. 10(3). pp.363-382.
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