QandAs: Business

What Is Negotiation?

Answer:
In its most simple form, negotiation is a discussion between two or more individuals or groups in order to come together to create a solution for a problem or an agreement.

These negotiations can occur within individuals, or at the corporate level, or even between governments.

Typically, negotiations take place in order to create something new, or in order to solve a conflict. Rather than openly fighting or giving in to the other party, they will negotiate in order to come up with a compromise that will solve the problem amicably or will benefit both parties. While negotiating, both parties will expect there to be some give and take between them. They will both have goals that they cannot reach independently. During negotiation, they will attempt one of the following techniques: force the other side to comply with their demands, to modify the other side’s demands in order to move them for compromise, or to invent a new solution that meets the demands of both sides.

Mutual adjustments of each side’s goals are the main cause of changes that occur during a negotiation. Both sides know that they are dependent upon the other side in reaching a mutually agreeable compromise. A skilled negotiator will attempt to understand both the needs and motivation of both sides, in order to move them toward compromise. In an effort to influence the other side, both parties must exchange information. During the process, each side will propose changes to the other side’s position, as well as changes to their own. This “give and take” process of making concessions is the key to a successful negotiation process.

The best negotiation process will work toward a solution that takes each party’s requirements into account and will try to optimize the outcomes for both. They will use a cooperative and/or competitive process in order to come to an agreement.