In various communication activities, especially those aimed at business, of course you often hear the word negotiation. Yes, negotiation or bargaining is often done to reach an agreement between two or more people.
Bargaining is usually done because there is something that can not be accepted by both parties. So there is a need for bargaining so that both parties can accept a good decision.
It turns out that in order for this negotiating process to run smoothly there must also be certain stages. If you want to learn more about it, try to listen to this article until it’s finished.
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Definition of Negotiation According to Expert Figures
Negotiation is a bargaining process carried out by several people in order to reach a joint decision. This process is a good way of negotiating to talk about something in a good way, it can be to negotiate the price, quantity, terms, or quality of a thing.
In some cases, this bargaining process can also be mediated by a third party called a negotiator. It is this party who will mediate between the negotiating parties, and usually these third parties already have special skills in the field of negotiation. The definition of negotiation according to experts is as follows:
1. According to Oliver
Furthermore, the definition of negotiation according to Oliver is a transaction in which both parties will accept the decision and have the right to the final result agreed upon. So from the need for a process of mutual give and take so that both can produce conclusions that are mutually beneficial and agreed upon.
2. According to Robbins
Then according to Robbins, negotiation is a process in which two or more parties will exchange goods or services and try to make a cooperation agreement between the two.
4. According to McGuire
According to McGuire, the notion of negotiation is an interactive process carried out to reach an agreement. The process will involve two or more parties who have different views but want to unite them and reach a common resolution.
5. According to Casse
Then according to Casse, the notion of negotiation is a process that involves at least two parties with different perceptions, motivations, and needs and tries to agree on something in the common interest.
6. According to Henry Kissinger
Finally, there is the notion of negotiation according to Henry, which states that negotiation is a process of combining conflicting positions into general positions, and is under a unanimous decision.
That was the definition of negotiation according to some experts. So it can be concluded that negotiation is an interaction process carried out by two or more people with different thoughts and trying to reach a fair agreement for both.
Usually negotiations are carried out by those who are contradictory and have different views, but want to solve common problems. So bargaining is done in order to get an agreement that can be agreed by both.
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Negotiation Terms and Characteristics
When carrying out a bid, there are several conditions that must be met. This condition will determine whether the activity carried out by a person can be called a negotiation or not. The first condition is that the negotiation process must be carried out by two or more people. If it is only done by one person or one party, then negotiations cannot take place. So, negotiations must be carried out by two parties with a minimum of two people.
As carried out by two business parties, negotiations between traders, between sellers, or negotiations between institutions. To be sure, the bargaining must be done by at least two parties.
Then the second negotiation condition is carried out if the two related parties do not find a match for something that must be agreed upon. Therefore, this bargaining is carried out in order to find an agreement on the existing problem. The result to be achieved is an agreement that is mutually beneficial and acceptable to both.
In addition to the conditions that must be met, the negotiation process can also be identified by the following characteristics:
- Involve two parties, for example the seller and the buyer.
- The issues to be negotiated have the same theme.
- There is cooperation between the two parties who want to negotiate.
- Both parties have the same goal, namely to concretize a problem that is still abstract.
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Purpose and Benefits of Conducting Negotiations
Bargaining or negotiation is certainly done with a specific purpose. Without a clear goal, the conversation will have no end. So, both parties must have the same goal before negotiations begin. That way, it will be clear where the discussion is going. The objectives of the negotiations in general are:
- To obtain a mutually agreed upon agreement
- Reducing and explaining the differences in portions and also conflicts that occur between two or more parties
- Bringing together the opinions of all parties involved so that the final decision can be mutually beneficial (known as a win-win solution).
- Solve problems and find solutions to problems experienced by both or more negotiating parties
- Overcoming and adjusting the differences between the two negotiating parties so as to obtain something from the other party without coercion.
Besides having clear goals, negotiating also has benefits. Especially for business people who need a mutually beneficial agreement. So that when something is not in accordance with personal wishes and also the company, it can be resolved immediately by negotiating.
This method is very powerful and important to do, so that the business continues according to the plans that have been made before. The following are some of the benefits that can be obtained from negotiating:
- Creating cooperation between parties and achieving their respective goals.
- Provide an opportunity for both parties to understand each other’s needs and desires, so that there are no misunderstandings or suspicions about the goals of the other party
- Create an agreement that will be mutually beneficial and has been approved by both parties without coercion from any direction
- Generate positive interaction between the two negotiating parties, so that the network of cooperation that is carried out can continue to run and even reach a wider network.
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Stages in Conducting Negotiations
It would be better if the negotiations were carried out with various preparations. When the activity takes place, of course you have to speak convincingly and confidently. So that the second party can accept any opinion conveyed properly.
In addition, it is also important to consider what the other party’s intent is in negotiating. So that it is easier for you to give advice and make decisions that are mutually beneficial. Then what are the stages that need to be passed to negotiate properly, the following are the stages:
1. Preparation with careful planning
The first stage in negotiations that is important to do is preparation and planning. Preparation is important, especially preparing the various data needed. Both the company’s own data and data that can be obtained from a second party. This data will be needed to convey various arguments during the bidding process. It also includes considering the arguments to be conveyed.
2. Determine the rules in negotiations
The rules here are important so that the negotiation process does not become complicated, let alone go off track. Rules set limits on which parties will be involved in a negotiation, and what issues will be discussed. With rules, all parties will be more flexible in arguing and will convey something according to what has been agreed upon.
3. Expressing explanations
After the rules have been made, then the negotiation process will take place. Here, all parties need to explain their respective wishes. In order to support each side’s position, they will be given the opportunity to make things as clear as possible. So that there will be no misunderstanding between the two when the decision is to be implemented.
4. The process of bargaining and problem solving
Fourth is the process of bargaining and problem solving. This is where the essence of negotiation is to find solutions to problems that are an obstacle for both parties. Here both parties must be asked to focus on problems and interests, not on people or positions, in order to find the right solution for both. Seriousness is also needed here, so that the negotiation process goes well and finds common ground or solutions that are mutually beneficial to both parties.
5. Closure and implementation
Lastly is the closure and implementation process. At this stage everything will be decided together. So, in making this final decision, you should pay attention to the following points:
- All documents have been agreed upon by all parties involved
- re-examine the points of agreement to be decided
- all stipulations and agreements must be clearly stated again
- both parties are obliged to re-read before signing all the documents which are the agreement of all parties who have negotiated.
These are the stages of negotiations that are important to note. Every step in the negotiation needs to be done with the utmost care and consideration. So the result will be much better for both parties. If the negotiations go well, then the outcome of a mutual agreement that is mutually beneficial will make both parties feel happy.
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Important Things to Look For During Negotiations
Bargaining or negotiation is something important. Because the results will determine the direction in which decisions and agreements will be taken. Therefore, when you want to negotiate, you need careful preparation. Likewise, when negotiating takes place, you need to pay attention to the following rules and important things so that negotiations run smoothly.
If both parties to the bargain respect and respect each other, then the final decision will be mutually beneficial for both. Well, the important things that you need to pay attention to when negotiating are as follows:
1. Make sure the preparations are complete
Preparations must be made to deal with various situations in the negotiation process. This includes our knowledge of each issue to be discussed. Don’t let the process take place, you don’t even know where the conversation is going.
For example, when there is an event and you want to negotiate with the sponsorship party. Then you have to understand very well what the event will be sponsored and the ins and outs and details of the event. So that clients also will not hesitate if they will accept an offer to work together.
2. Understand the target type
The second thing is to understand the type of target to negotiate with. You have to understand who will be the other person in the negotiating room. Find out where he’s from, what his position is, what type of person he is, what his traits are, or what his preferences are. If you want to attract your opponent, then you need to understand it first.
So before starting negotiations, you can seek knowledge about the target through various platforms, especially through social media. Your knowledge of this type of target will be very helpful in dealing with everything.
In addition, you can also get closer personally so that the conversation is more fluid and easy to do. If the other party feels comfortable with you, of course the negotiation process will have a much higher chance of success.
3. Have discussions, not sales
In accordance with the definition of negotiation above, this process is a time for bargaining and making decisions together. So, when negotiating, you must be able to position yourself for discussion. Listen to what the other party has to say and digest it.
Then adjust their opinions to the desires and goals to be achieved. So, not selling, but discussion. Negotiate something that is not pleasing to both parties, and don’t indoctrinate the other party so that the agreed outcome will be profitable for both parties.
4. Win-win Solution
The four results of the agreement must be a win-win solution, meaning getting a solution that is mutually beneficial for both parties. So have a good discussion, convey your opinion politely so that other parties can accept it. Try to find other alternatives when that opinion conflicts with the other party’s opinion. Then discuss it. That way the results of the agreement will be mutually beneficial to both parties.
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5. Be a good listener
During the bargaining process, you must be a good listener. Lots of listening to what the other party has to say. Because clients will be happy if they are heard.
This means that by listening to the other party, they will feel more valued. Apart from that, by listening, you will also understand better what the client really wants. So when talking, you already understand in which direction the conversation should be taken, in order to get an agreement that benefits both of you.
Apart from the important things above, you should also know that negotiations have several types. There are formal negotiations that are conducted to reach an agreement through legal channels, then informal negotiations that are carried out without the need for legal channels. Then there are negotiations with intermediaries and negotiations without intermediaries.
The middleman will be tasked with being a neutral party during the negotiation. Then there are collaboration negotiations, domination negotiations, accommodation negotiations, and also lose-lose negotiations. For the latter, namely lose-lose negotiations are negotiating processes that are carried out not to continue conflicts or new conflicts. So all parties will agree to solve the problem with a cool head.