How to negotiate effectively 1. What is negotiation
    Negotiation is an essential part of the every-day business life. It can take place at any time and in any place. Negotiation is a kind of meeting, but contrary to the latter it may be held in some unexpected and uncomfortable place such as the street or on the stairs.
    There are several definitions of negotiation. It is said to be "the process for resolving conflict between two or more parties whereby both or all modify their demands to achieve a mutually acceptable compromise". Thus, it is "the process of changing both parties' views of their ideal outcome into an attainable outcome".
    The need of negotiation arises when we are not fully in control of events. Negotiations take place to handle mutual differences or conflict of:
    interests(wages, hours, work conditions, prices: seller vs buyer)
    rights(different interpretations of an agreement)
    The aim of a negotiation is to come to an agreement which is acceptable to both sides, and to preserve the overall relationships. While specific issues are to be negotiated, common interest are yet still to be maintained. Negotiations do not mean "war". Negotiators can still be friends and partners. 2. The negotiation continuum
    Overlap
    The situations of negotiation can be shown diagrammatically in terms of ideals and limits.
    Ideal Limit
    HIM
    Bargaining area
    
    Limit Ideal YOU
    
    The limit may be the limit of negotiator's authority, such as a minimum (e.g. price) acceptable. If there is overlap it is possible to settle. The final position within the bargaining area, where settlement takes place, depends on the negotiators' relative strength and skill.
    No overlap
    The aim of the negotiator is to achieve a result, i.e. to find a solution, within the bargaining area. However, it is possible that both parties set limits which do not provide overlap. In this case the negotiators have to move their limits, otherwise the negotiation will be broken down.
    Ideal Limit
    
    HIM No deal
    
    YOU
    Limit Ideal
    
    Too much overlap
    The opposite case is also possible. When one is careless and settles for less than he could. In this case the limit of the opposite side should be found and the ideal should be revised.
    Ideal Limit
    HIM
    YOU
    Limit Ideal Revised Ideal
     3. The approach
    There are four main stages of negotiation:
    Preparing objectives, information, strategy
    Discussing (argue) and signalling willingness to move
    Propose and bargain
    Close and agree
    While preparing to the negotiation it is important not only to prepare supporting arguments but also to define objectives. Objectives should be realistic and attainable and have certain priorities. It is also necessary to investigate the opponent's plans and priorities, which can be rather difficult.
    The objectives should be classified basically as follows:
    LikeIdeal but least important
    Intend Achievable, a range of possibilities
    Must The real limit
    
    Ideal Limit
    AREA OF NO DEAL
    Like
    
    Intend
    Must
    
    The general strategy for negotiation is to have a negotiating team of three people, who will also be involved in the preparation.
    LeaderThe person who will do the talking and conduct the negotiations
    SummariserThe person who will ask questions and summarise for control
    ObserverThe person not involved in the actual negotiations, whose role is to watch, listen and record
    80 % of the negotiating time is spent arguing. If it equals 100 % the negotiation will break down. There are two kinds of arguing:
    Reasonable and constructiveDebates, discussions
    Unreasonable and destructiveEmotional quarrels
    The opponent may try to divert you by escaping into destructive behaviour. In this case, your behaviour should be not to interrupt, but to listen and control your feelings. Even if the battle is won, the war can be lost.
    A negotiator should be constructive in arguments and try to get information by asking open questions or even leading questions. One thing should be tackled at a time and the opponent should be made justify his case item by item.
    It is important to be non-committal and to state only ideals at first. ............