Understanding Negotiation, Structure, and Its Objectives
Created on 5 July, 2024 • Marketing & Business Communication • 70 views • 3 minutes read
In business, you've likely encountered social interactions involving bargaining to reach an agreement between parties. This process is called negotiation.
Understanding Negotiation, Structure, and Its Objectives
In business, you've likely encountered social interactions involving bargaining to reach an agreement between parties. This process is called negotiation.
According to the Indonesian dictionary (KBBI), negotiation is a discussion through a bargaining process to reach an agreement between one party and another (it can be groups or organizations). In some cases, a third party might be involved as a mediator, called a negotiator.
When negotiating, whether you do it yourself or with a negotiator, good negotiation skills and business ethics are essential. Let's dive deeper into negotiation, its structure, and its objectives.
Table of Contents
- Definition of Negotiation According to Experts
- Why Business People Need to Negotiate
- Structure of Negotiation
- Objectives of Negotiation
Definition of Negotiation According to Experts
Here are some expert definitions of negotiation:
- Jackman (2005): Negotiation is a process of reaching an agreement between two or more parties who have different perspectives.
- Runtung Sitepu: Negotiation is a step taken to resolve disputes and reach a mutually beneficial agreement.
- Mcguire: Negotiation is an interactive process involving two or more people with different viewpoints, aiming to achieve a common goal.
- Oliver (2006): Negotiation is a transaction or a process of give and take to reach a mutual agreement. Both parties need to agree because they have rights over the negotiation results.
- Rustono: Negotiation is a skill to reach an agreement that anyone can learn.
- Hartman: Negotiation is a communication process between two parties to reach a mutually satisfying agreement, despite having different goals and perspectives.
Why Business People Need to Negotiate
As a business person, you interact with many parties. These interactions may lead to differences in opinions and goals. Therefore, having negotiation skills is essential to find solutions without compromising each party's principles.
Good negotiation skills also help create cooperation with various parties, expanding your business reach and increasing trust with business partners.
Structure of Negotiation
Here's a negotiation structure you should apply in business:
- Planning and Preparation: The first step is planning and preparation. Gather data about the negotiation subject to present your arguments accurately and wisely.
- Setting Rules: All involved parties should set the rules and outline the negotiation. This ensures the negotiation points are conveyed correctly.
- Explaining Each Party's Position: Each party explains their desires and goals. This can be done directly or through documents supporting each party's stance.
- Bargaining Process: After explanations, the next step is bargaining to solve the issues. Focus on your interests while considering mutually beneficial solutions.
- Closure and Implementation: The final stage is reaching an agreement and closing the negotiation. Ensure the following:
- All agreed documents are reviewed.
- Avoid misunderstandings by rechecking all agreed points.
- Clearly outline all stipulations.
- Document and sign the agreement.
After the agreement is reached, the next task is implementing the agreed terms.
Objectives of Negotiation
Negotiation aims to achieve several objectives:
- Reaching Agreement Without Coercion: The primary goal is to reach an agreement without any party being forced. All parties should openly express their opinions to understand each other's needs and find a mutual solution.
- Minimizing Differences and Conflicts: Differences in opinions are common in negotiations. One objective is to minimize these differences and potential conflicts by understanding each party's position and clearly communicating your opinions while maintaining politeness and being open to feedback.
- Mutual Benefit: Negotiation aims to reach an agreement that benefits all parties involved. This requires trust, openness, cooperation, and consideration of each party's interests to achieve a fair agreement.
Conclusion
In summary, negotiation in business involves reaching agreements through discussions and bargaining. Key steps include planning, setting rules, explaining positions, bargaining, and closing with a clear implementation plan. The main objectives are to reach a voluntary agreement, minimize conflicts, and ensure mutual benefits. Developing strong negotiation skills is essential for achieving win-win solutions in business.