The negotiation is a process where two parts make a deal to satisfy the interests or needs of each other.
We are going to analyze how and when to negotiate.
To guide ourselves with this topic, we are going to use the method of Harvard that consists in seven steps.
We are going to analyze the seven steps and also we are going to show the importance of generating confidence space with the locator, understand other points of view, look for points in common and why the negotiation benefits both sides, we are also going to see examples of the characteristics of the personality of the negotiator.
After we evaluate all this, we are going to see the importance of a leader to be able to negotiate.
We human beings unconsciously and consciously negotiate every day, an example of unconsciously if you are walking to a building and someone else is walking next to you, we unconsciously react depending on the situation to make the decision of who walks in first.
As mentioned before the negotiation is to make a deal between each other to satisfy our interests, that’s why we can say that the negotiation rises when we or other want to satisfy needs.
The method of Harvard consists in seven basic steps that leads you to affront situations during a negotiation with the objective of reaching a win win situation, we can say that this is the best style of negotiation because both parts are happy and if the compromises are completed, the relationship between each other is very good and this helps you to increase your image.
The seven Harvard steps
1) Interests: this step means that you must know your needs and how to satisfy them, in a negotiation it is very important to know or find out the interests of the other part, this can be done by having an effective communication (open questions).
In the Harvard method, they use the Maslow Theory about need, that consists in five steps of necessities; the first step is Physiologic, the second its Security, the third its Social, the fourth is Esteem, and the last Self Actualization.
2) Alternatives: This is very important because when you identify your needs to satisfy the first thing you have to do is to consider all the different options that you have to satisfy them.
Example: if your need is to find shoes to walk comfortably, your alternative would be to go to a lot of shoe shops to decide which one is better.
The meaning of this step in the negotiation is the opportunity costs that are the things you leave behind to do your negotiation.
Here also we have the M.A.A.N: (Mejor Alternativa a un Acuerdo Negociado) (The Best Alternative to a Negotiated Agreement)
When a negotiator has worked on his alternatives and those of his counterpart, he has identified the M.A.A.N of both and has done that his better alternative will be possible, that will be the moment that it will be in better conditions to negotiate. This is because it will have the Intention very clear in the negotiation, but in addition, because it will know really what to do if it does not reach an agreement.
The level of the best of our alternatives satisfies our interests, will help us to determine when an agreement can or not be accepted. Definitively, the MAAN will be an effective guide to know if it convenes for us or not. On the contrary, if it was a question our MAAN as a poor option with relation, it doesn’t have sense accept it. Is there all the power of the negotiation.
3) Options: when you realize which was the shoe shop that satisfy your needs, this shoe shop will be your option, when you realize this you must go and establish a conversation, the idea of this is to generate better options to negotiate.
You can also add to your option ideas of other alternatives that you have seen and you realize that can make your objectives better.
Example: in one shoe shop they give you a pair of socks but I didn’t like the shoes, I went to a different shop and I liked the shoes so I asked the men if he could give me a pair of socks for free, this example is about generating more options inside your best Alternative (your option)
The number of alternatives and options don’t create by themselves, it is very important to say that this are generated by your motivation and actions, if you don’t have a good motivation your number of alternatives and options will be very low, with this conformism you don’t maximize the possibilities of increasing your goals.
After we talk about these steps, it is important to mention that by using them we are going to increase the benefits of the negotiation.
4) Legitimacy: The importance of this point is to accept or recognize the value of the issue at hand.
The way of doing this is through the Judgment: the judgment consists on a feeling of being treated fairly in a negotiation. Often an interest in legitimacy and feeling fairly treated is the main driver in a dispute. However, parties with differing views on what is fair may fail to realize that beneath their conflicting positions is the same underlying interest.
A few judgments that you can make at the time you buy a car are:
-Price in the market
– Review the car with a mechanic
– Review a forum.
5) Communication: The form that is in use for reporting has a critical impact in the result of the negotiation, specially when both parts are not known ” the benefit can be very much major for both when it is negotiated face to face because only of this form it is possible to share vital information.
If the volume of the transactions to realizing is important, it is worth a sorrow being going to know personally the person with whom then we will have to negotiate for telephone or e-mail. We have verified that if both parts have jointly a personal positive, at the time knowledge the method of communication (telephone, e-mail, etc.) it must have importance for the good result. If the negotiators, on the contrary do not know them selves or are strange the way turns into critic and marks the difference.
The confidence and the contribution establish much easier when the parts are known, which would be impossible to do for telephone or e-mail between strangers.
If the contrapart don’t want to tell you what are their interest, a good way to discovered is Open Questions, the main idea of the open questions is to get information, this are not yes or no answers, the purpose of this is get the most information you can have.
6) Relationship: The most important negotiations are done by the persons or institutions with which we have negotiated before and we will negotiate again. For a good relation you must not mix problems of personal relation with essential problems of the negotiation.
With a good communication, and confidence, the relationship will stay in time; and also will be able to do more negotiation in the future.
7) Commitments: The commitments are verbal or written expositions that specify what a part will do or do. We might be calling them the ” draft of the contract “. They can be done in the course of a negotiation. In general, an agreement will be better in the measure in which the promises have had: exposition, structure and they have been designed in order that they turn into lasting agreements, of easy comprehension and verifiable.
The idea of the commitments is also being clear whit problems that could happens in future, for example if I made a deal with a japanes, in which I export Fruit to Japan; we must be clear in situations like bad time that could close the marine, so the fruits will no be able to get out of Chile, the idea of this when me made de commitments we must be clear who is going to be responsible for this, who is going to pay that fruit, or pay to get freezer to main the fruit.
Negotiate by position, is not good, because the men in position don’t want to give up their expectative.
Two examples of Negotiate by position are:
– Hard Ones: they a are rude, strict, they don’t have good communication, don’t respect the other, he is only interested on complete their goal, he will never change her price; so we can said; he don’t care having a good negotiation.
– Soft Ones: They don’t respect they self’s, they usually change the price to continues in the negotiation, the problem in this position is that the men in this position and de other part in the negotiation, don’t respect de soft man.
The importance of negotiation in leadership
First of all we agree with this statement and believe that only a very authoritarian leadership works without negotiation.
To explain this very important issue we are going to compare two fundamental definitions, in this case “negotiation” and “leadership”.
“Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, etc.” Wikipedia
“Leadership is organizing a group of people to achieve a common goal.” Wikipedia
As you can notice both of the definitions have the same aim, which is to reach an agreement between people. This leaves clear that negotiation is essential for a good leadership. You can not be a leader without being a negotiator.
As we learned in class, there are three different types of leaders (authoritharian, democratic and liberal). The last two are considered to be the best because they leave place to work on your own and most importantly to discuss. And that offers a place of confidence between the leader and the followers. That confidence is generated by the negotiations that take place and make both parties reach their common interests.
Our second and fundamental hypothesis, besides the definitions, is that leadership and negotiation take place everywhere and at any time in our lives. For example there are different types of temperaments in our society, sanguine, choleric, melancholic and phlegmatic. In a job selection it is not possible to hire a perfect combination of these temperaments, so you have to negotiate your flaws and pros so both of you can reach the common goal. Another example is a situation in a team-work session, where we know that everyone is supposed to help to reach an objective. If the leader is not able to handle the different types of personalities the project is most likely to fail. And in this process he has to negotiate several terms with the different parts of the team.
As you can see none of the two areas are more important than the other, they are intertwined. It is necessary to have negotiation skills as a leader, because without them you cannot lead properly. Both of them have the exact same objective, which is to reach a common goal. And negotiation as leadership take place in our daily live just we don’t often notice it.
The negotiation is a very important aspect in ours lives, knowing the best way to do it is a great opportunity to increase our leader and personals abilities.
In the future this will us to increase our utilities in a negotiation, in ours job, live, and others.
Being a responsible man the opportunities of have more successful negotiations.
In this work demonstrate the importance of negotiation in a leader.