Negotiation Skills

NEGOTIATION SKILLS

BY PROF. M.SRINIVASA RAO

Negotiation can be defined as the process of involving the different groups with different interests across the negotiating table through dialogue and discussion in order to resolve conflicts amicably. Great nations resolve their long standing issues by way of effective negotiations. Many an industrial dispute is resolved amicably through these means so as to achieve their goals and objectives which would have been hampered otherwise. It is the process which takes place in our day to day life in the families, at the work places, at all places either consciously or unconsciously.

Negotiations are of three types such as integrative process, distribution process or lose –win process. Integrative process is the one where both the parties sit together and negotiate amicably by finding out many new solutions to a particular problem and agreeing to it. It is also known as win-win situation because both the parties are getting benefit by resolving their conflicts amicably. The world’s fifth richest man, Mr.Lakshmi Niwas Mittal is a great negotiator as he acquired Arcelator another steel giant across the globe by this integration process. Initially he failed to integrate horizontally but due to his patience, perseverance and persistence, he succeeded in integrating and made Arcelator Mittal a global steel giant. On the other hand, distributive process is the one where one party wants to win at the cost of the other party by inflicting maximum losses which is also popularly known as win-lose situation or zero sum situation. It is like the proverb, ‘One man’s food is another man’s poison’. The third one is the lose-win situation where one party loses and the other wins.

Negotiator is a person who takes active part in the negotiation process and it is a great trait to be a successful negotiator. Any one who is good at negotiation skills can succeed in any field of life. There are many characteristics a successful negotiator must possess:

He should be a good learner and observer.
Should know the body language of the people at the negotiation process.
Should be open and flexible and yet firm.
Exercise great patience, coolness and maturity.
Should possess leadership qualities.
Should radiate energy and enthusiasm and must be in a position to empathize with his opponents.
Should build trust and confidence.
Should be confident and optimist.
Should have clear cut goals and objectives.
If necessary, he should provide a face saving formula for his counter party.
Should be able to grasp the situation from many dimensions.
Should know human psychology and face reading.
Should control emotions and not show his weaknesses.
Should bargain from the position of strength.
Should know and anticipate the pros and cons of his each move and its repercussions.
Should be a patient listener.
Should know how to create the momentum for the negotiations and must know when to exit and where to exit by closing the talks successfully.
Should not be a doubting Thomas.
Should plan and prepare thoroughly with relevant data and information to avoid blank mind in the process.

A skilled negotiator is born through continuous preparation and series of strenuous efforts which may culminate either in success or failure of talks. It is aptly said, “ A smooth sea never made a skillful mariner”. If required, a skilled negotiator may apply all types of tact ness and diplomacy so as to make the negotiation process a successful one.

Negotiation process is involved in all walks of life everyday. When a principal of a college engages extra coaching classes to teaching staff on holidays, the teaching staff requesting him to consider for a compensatory casual leave is a type of negotiation. Right at home, children ask their parents certain things and parents in turn ask them to perform academically well so that their wishes could be fulfilled are also a type of negotiation. When unemployed youth goes for an interview he negotiates his salary for which he fixes a lower and upper cut off amount in his mind. He puts his best to bargain from the position of strength, provided, he possesses requisite eligibility conditions and skills and abilities. If he reaches top of his own cut off amount framed in his mind then he becomes a successful negotiator. In case if he gets the salary between the upper and the lower cut off amount then it is quite reasonable and he can conclude that he managed to gain somehow. In case, if he gets the salary below the lower cut off amount then he failed to negotiate effectively. One can judge oneself at the end of the negations process whether one has come out successful or not.

As a skill, negotiation in the industrial level plays a pivotal role at the purchase level. If the purchase manager negotiates effectively and purchases the raw material then the cost of the production can be brought down. When the input cost is reduced then the cost of the production comes down resulting in higher profits for the company. One who goes for a placement as a purchase manager, this ability is tested vigorously or else the purchase manager may prove to be counter productive.

Many industrial disputes are settled by effective negotiations as any lax in their approach proves to be very costly for the company. Either the conflicts between the management and the employees or amongst the employees is to be nipped in the bud for sound and healthy industrial relations.

United Nations played a major role, as a negotiator, in averting many conflicts by effective intervention and negotiation in order to ensure global peace and harmony. As we all know how costly the wars are! Although the UN failed to negotiate in resolving some conflicts but overall it played a successful role in averting conflicts at the global level.

Failure of Sino-Indian talks resulted into 1962 war with Chinese aggression. Failure to follow it up effectively proved costly for India. Pundit Nehru failed miserably in averting 1962 war. Again the failure of Indo-Pak talks resulted in three wars in 1948, 1965 and in1971 which highlights the importance of negotiating skills at the diplomatic levels. At times, it requires a lot of patience to resolve long pending boarder issues.

In Mahabharata epic, Kurukshetra battle broke out as a result of failure of negotiations between Pandavas and Kauravas. All this signifies tremendous importance attached to negotiation skills.

The job seekers need to possess soft skills so as to work smoothly at their work place. Negotiation skill is one of the greatest soft skills treated to be the most powerful and is a sine quo non. The interviewing officer lays emphasis on this trait along with communication skills indicates its growing significance.

Everyone must get equipped with the negotiation skills and it is not inborn but can be cultivated over a period of time by way of training and continuous practice. It is imperative to possess the skill to succeed in this cut-throat competitive world.

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