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Negotiation

   

Added on  2021-06-17

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Running head: INTERNATIONAL BUSINESSInternational BusinessName of the Student:Name of the University:Author note:

INTERNATIONAL BUSINESS1Introduction Negotiation is a very obvious present in everyone’s life and whether people like it ornot, but it is true that they are negotiators. Everyone does negotiate in one or the othermanner. For example, negotiation with the employer regarding raising the salary ornegotiation with the customers regarding service or product purchasing or negotiation amongdifferent countries on the WTO accession or even negotiation in between couples about whatto eat and where to hang out. All these are negotiated. Hence, negotiating is a part of life andeach and everyone in this world, plays the role of a negotiators. Apart from the abovementioned examples, there are also many more situations that need to get negotiated,nevertheless, it is also true that not much importance is laid to negotiation in daily life as it isa routine affair (Greenwood and Jenkins 2015). Nevertheless, although negotiation takesplace daily, yet achieving effective negotiation is not an easy task. Especially, in the businesscontext, where the desire of each and every organisation is getting highest profit, diplomaticnegotiation of the entrepreneur on the market is the only thing in which they all depend a lot.The economic negotiations is the only diverse and rich discussion that promotes its crucialrole in the social production development at higher levels and it is more developed andcomplicated in terms of integration. Lewicki (1986) in this context has stated that-“Negotiation is not a process reserved only for the skilled diplomat, top salesperson, orardent advocate for an organized lobby; it is something that everyone does, almost daily”.According to him, negotiating is not a process that is reserved only for the ones who areskilled diplomats, ardent advocate or any salesperson. It in fact, is something which is doneby everyone and that too, almost on a daily basis. This paper is going to critically evaluate onthe act of negotiation as a multi-disciplinary practise. It would shed light on a wide range ofskills that negotiators need to draw upon, including styles and techniques, in the process ofconducting effective negotiations.

INTERNATIONAL BUSINESS2DiscussionThe process of negotiationAs discussed by Goodwin (2014), negotiation is a process through which two or moredifferent parties, each of whose goals and perspectives basically coordinates in the areas ofinterest through compromise and concessions in order to reach to an agreement. It ultimatelyends up in taking a joint decision regarding the areas of common concerns. In other words, itcan be said that negotiation is simply a process of discussion in between two or moreparticipants who tries to work out on a solution for their problem. Hoppe and Hisschemoller(2018) have further stated that the process of negotiation does not end up until and unless theproblem is resolved successfully. Furthermore, Bandura (2017) has argued in this context thatthe process of negotiation has been invented by the civilized people as they do not prefer theuse of violence. It is also demonstrated by Macaulay (2018) that it is a process in which twoor more people exchange their services in an attempt to agree upon the exchange rate forthem. Through means of negotiation, the common interests of two people are met and thesolutions of the most complex questions are achieved in a way that both the parties aresatisfied. Types of negotiationThere are two type of negotiation, namely, the integrative negotiation and distributivenegotiation (Barry, Lewicki and Saunders 2015). The integrative negotiation refers to thetype in which both the parties cooperate with each other in order to achieve the maximumbenefits through means of integrating their interests into a specific agreement whilecompeting with each other to divide the value. For example, it is a situation when a buyer ofmarble tiles is approaching the seller and both of them are sharing their requirements andinterests. The seller is offering a tacit knowledge about marble tiles that could assist the buyer

INTERNATIONAL BUSINESS3to enhance the beauty of the floor as well as catering his requirements too. On the other hand,distributive negotiation is the type of negotiation in which both the parties complete overdistribution of any fixed sum of value. It is sometimes also referred to as constant sum or zerosum negotiation (Lopes and Coelho 2014). For example, in a sale of clothes where both thebuyer and the seller do not know each other and there is no relationship in between them. Allthat matters is the product price and each of the side haggles for best deal.For most of the people, negotiation and bargaining mean the same thing but they twoare different. Bargaining is a sort of negotiation of price alone, while negotiation might applyto much more than just price and might not consist of price at all. All type of negotiationinvolves exchange of values, promises and agreement while bargaining often done verbally(Rubin and Brown 2013). Styles of NegotiationAccording to Richard Shell (2001), there are five styles of negotiation and they arethe competitive style, accommodating style, compromising style, avoiding style andcollaborating style. The competitive style, the negotiator is generally uncooperative, assertiveand he typically favours hard approach. The compromising negotiators are neither assertivenor unassertive. They just typically favours compromising. The negotiators who seek theaccommodating approach are unassertive, cooperative and they favours soft approach andunlike, them the collaborating style favours a principled approach while negotiating (Shell2001). Lastly, the negotiators possessing avoiding style of negotiating are uncooperative aswell and they avoids any kind of engagement (Schneider and Brown 2013). There are alsovarious, tactics, techniques and strategies involves in the process of negotiation. Hence, it isimportant for both the union and the management in this context to understand the

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