Negotiation is something that we do all the time and is not only used for business purposes. For example, we use it in our social lives perhaps for deciding a time to meet, or where to go on a rainy day.
Negotiation is usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible.
Communication is always the link that will be used to negotiate the issue/argument whether it is face-to-face, on the telephone or in writing. Remember, negotiation is not always between two people: it can involve several members from two parties.
There are many reasons why you may want to negotiate and there are several ways to approach it. The following is a few things that you may want to consider.
Why Negotiate?
If your reason for negotiation is seen as ‘beating’ the opposition, it is known as ‘Distributive negotiation’. This way, you must be prepared to use persuasive tactics and you may not end up with maximum benefit. This is because your agreement is not being directed to a certain compromise and both parties are looking for a different outcome.
Should you feel your negotiation is much more ‘friendly’ with both parties aiming to reach agreement, it is known as ‘Integrative negotiation’. This way usually brings an outcome where you will both benefit highly.
Negotiation, in a business context, can be used for selling, purchasing, staff (e.g. contracts), borrowing (e.g. loans) and transactions, along with anything else that you feel are applicable for your business.
