The Best Practices for Negotiation Techniques - Research Paper Example

The Best Practices for Negotiation Techniques A successful negotiation should be based on four fundamentals; these include mutual trust, positive relationship, shared goals and objectives, and Reasonable Zone of Possible Conflict. However, in order to attain an successful negotiation that would experience a win-win situation, a leader should focus on a number of best practices for the technique of negotiation, such as focusing on: a problem as opposed to an individual; long-term relationships and mutual satisfaction; considering the alternatives; emphasizing on the significance of a win-win situation; and, basing the results on objective standards. The strategies for high-performance contracts include separating people from the problem, emphasizing on shared interests, as well as providing more options. Table oContents Abstract 2 Table oContents 3 1.0 Introduction 4 2.0 The Fundamentals for a Successful Negotiation 4 3.0 The Best Practices for Negotiation Techniques in Ensuring a Win-Win Negotiation 5 4.0 The Best Practices for a High-Performance Negotiation and Methods to Approach Contract Modifications 7 1.0 Introduction Negotiation is a process via which two persons or institutions attempt to attain an agreement with respect to issues that are associated with different objectives, interest and values (Lock, 2013). The attainment of a common ground is associated with the same beliefs, objectives and values. The shared common goal normally persuades the two individuals or groups to attain the shared goals. The ability of the parties to a negotiation to make a decision normally differentiates a negotiation process from arbitration which demands an arbitrator. In most circumstances, businesses attempt to experience a win-win situation with a contractor while negotiating on various contracts; this ensures a long term relationship between the parties to a given contract. 2.0 The Fundamentals for a Successful Negotiation Mutual Trust Mutual trust between the contracting the parties is normally associated with the past relationship with respect to business aspects or in the negotiation process. In the event that a mutual trust does exist between the contracting parties, Zou (2011) provides that there is a need to build the trust. Trust normally exists in the event that the other party is likely to offer the promises that are pledged; additionally, the negotiator should be viewed as individual who is not likely to lead to surprises. Surprises that are likely to occur may include certain demands that were not mentioned in the original agreement; they also include threats or change of a party position as far as the original position is concerned. The establishment of a mutual trust is likely to see both parties reach an agreement that is associated with a win-win situation among the parties given that one party is careful not to hurt the other party. A Positive Relation between the Contracting Parties The parties can create a positive relationship by paying attention to common goals and values; this would mean that the parties should emphasis heavily about their individual’s positions. Additionally, there is a need for both parties to formulate a team that would negotiate about the differences as far as the contracting parties are concerned. This is likely to lead to a win-win negotiation among the parties to a given contract. Shared goals and objectives A successful negotiation that is aimed at a attaining a win-win negotiation among the parties to a given contract normally relies on shared interests and values. Both parties should attempt to find a common ground- the shared values and beliefs. This would ensure that both parties are able to experience a long term relationship that is based on a mutual satisfaction. Reasonable Zone of Possible Agreement The Zone of Possible Agreement entails the least you can accept in the light of a favorable agreement; it entails the most favorable agreement the other party can accept (Fogden, 2011). This zone may move to both positive and negative directions; the outer part of the zone refers to the regions that are deemed unacceptable by one party despite the acceptability with respect to the other party. The Zone of Possible Agreement ensures that both parties to a negotiation stand a chance to experience a win-win situation. 3.0 The Best Practices for Negotiation Techniques in Ensuring a Win-Win Negotiation In order to experience a successful negotiation, an individual needs to focus on a number of the best practices as far as negotiation techniques are concerned. The first strategy includes attacking the problem as opposed to the other party. As far as a win-win negotiation is concerned, the diversities that exist between the parties are considered a mutual problem. In this regard, there is a need for the two parties to find solutions with respect to the differences. The focus on a problem would ensure that both parties to resolve the differences cordially; this would help to attain a win-win situation. The second strategy would involve focusing on the long-term relationship and common goal. The attempt to focus on the long-term mutual satisfaction, both parties are more likely than not to reach an agreement that reflects fairness among the parties; in other words, the parties would be inclined to experience a mutually beneficial outcome. As a result, this would enhance a win-win situation among the negotiators. Thirdly, the parties to the contract should take into consideration the available alternatives. This is important when comparing an original solution offered by one party to a new solution. Marsa-Maestre, Lopez-Carmona, Carral and Ibanez (2013) argue that a different solution may prove to be the most effective among the contracting parties. It is established that when the parties are unlikely to reach a common agreement in the light of the original solution, the parties should consider an alternative solution. This may enhance a win-win situation given that the final solution is mutually agreed. Fourthly, an individual or group to a given contract should emphasize the significance of a win-win outcome. In order to judge whether negotiators reached a win-win or win-lose negotiation, it is majorly based on the outcome of a given agreement. In this regard, the future performance of a contractor is likely to be compromised in event that a certain outcome is associated with a win-lose negotiation as opposed to a win-win negotiation. As a result, the emphasis on a win-win negotiation can help the parties to attain a mutually and long-term satisfactory results. The fifth best practice as far as the negotiation techniques are concerned includes relating the outcomes of a negotiation to objective standards. The rule of negotiation provides that for an individual to reach an agreement that fosters a win-win situation there is a need to base the outcomes of a negotiation process to the objective standards. It is typically possible that the financing department did not base its recommendation on the objective standards. Among the objective standards that one should rely on when negotiating a contract should include the past experiences, the practice of an industry, as well as the projections that are based quantitative methods. 4.0 The Best Practices for a High-Performance Negotiation and Methods to Approach Contract Modifications Separating a Problem from the People It is not uncommon that a majority of inexperienced negotiators attack the other party amidst attacking the opposing position; this normally leads to unsuccessful negotiation. In the event that a negotiator attacks the other party, there is a possibility to bar an effective communication among the parties as far as the negotiation is concerned. In order to ensure people are separated from the negotiation it is imperative that to develop good relationship via several ways, such as having a friendly conversations over the breaks. Additionally, there is a need to avoid perceiving the other party as an enemy. This would help to facilitate an effectual negotiation process. In this regard, the issues at hand are likely to be negotiated in a rationale fashion. The management of emotions also helps to separate people from the problem. An effective leader should be able to turn off anger to facilitate an effective negotiation process. An effectual communication that enhances listening skills is crucial; additionally, the transmission of a message should be clear between the parties to a certain negotiation process. Interests It is important for the parties to understand their common interests to attain a common ground with respect to the negotiation process. The shared objectives and values are more likely than not to lead to a win-win negotiation between the contracting parties. However, it is difficult to establish the common interests among the parties. It is provided that there is a need to formulate a subset of interests for various groups that are parties to a given contract. The subsets of interests of both parties should then be compared; the negotiation should focus on similar interests to reach an agreement. Options Options are also among the key factors in a high-performing negotiation; options are associated with expanding the Zone of Possible Agreement. This process encourages the parties to an agreement to cultivate divergent views; in other words, it encourages creativity among the parties. The creativity among the parties can be enhanced by keeping the options open. The need to focus on the obstacles can deter the members from experience other possible other options that may lead to a mutual benefits. Modification to a contract, such as the direct cost with respect to an added or deleted work, and indirect cost due to adjustment, call for a number of approaches. The reasonable cost approach is recommended when the information provided is accurate; it is considered the best strategy for pricing modification. Net Change of cost to a contract modification (reasonable cost approach) = present estimate to finish added work – present estimate of the cost to finish the deleted work + the cost of performed work that has been deleted (Pickavance, 2013). The Jury Verdict Approach is also effective when costs are not identifiable for reasonable costs. The parties can attain an equitable modification through judgment. 5.0 Conclusion The best approaches to negotiations would ensure that individuals are able to experience a win-win situation. The win-win situation would be important for Brikis Corporation to attain a long-term relationship, as well as well a mutual satisfaction. However, the negotiation team should learn various skills, such as managing emotions and creating a mutual trust during and before negotiations, are important to enable the firm to attain the company obtain a win-win negotiation. References Fogden, F. (2011). Negotiation of Contracts. Planning for the Unknown with Boilerplate Clauses. Legal Information Management, 11(1), 27-31. Lock, D. (2013). Project management. Irvine: Palgrave Macmillan. Marsa-Maestre, I., Lopez-Carmona, M. A., Carral, J. A., & Ibanez, G. (2013). A Recursive Protocol for Negotiating Contracts under Non-monotonic Preference Structures. Group Decision and Negotiation, 22(1), 1-43. Pickavance, K. (2013). Construction Law and Management. Hoboken: Taylor and Francis. Zou, X. (2011). Dynamic Negotiation Model of Bilateral Contracts in Electricity Market. Applied Mechanics and Materials, 48-49, 466-469. Read More