Why negotiation skills required

For example, positive emotions have been shown to increase feelings of trust at the bargaining table, while feelings of anxiety or nervousness can be channeled into excitement. In addition to understanding what you and others are experiencing throughout a negotiation, emotional intelligence can help you advantageously manage and use emotions.

Related: The Impact of Emotions in Negotiation. Planning ahead with a clear idea of what you hope to achieve and where your boundaries lie is an essential step in any negotiation. First, consider the zone of possible agreement ZOPA between you and the other negotiating parties. ZOPA, sometimes called the bargaining zone, refers to the range in a negotiation in which two or more parties can find common ground.

A positive bargaining zone exists when the terms that both parties are willing to agree to overlap. If your discussion lands in a negative bargaining zone, your BATNA is the course of action you plan to take if the negotiation is unsuccessful.

Creating value in a negotiation is one of the most powerful skills you can add to your toolkit. With each party vying to maximize their slice, this inherently means some will be forced to leave with a much smaller piece. To break free of this traditional idea of negotiation, experts suggest shifting your goals from growing your slice to growing the whole pie. The benefits are twofold: First, each party can realize greater value; second, a sense of rapport and trust is established, which can benefit future discussions.

In addition to thorough preparation and the ability to create value, you need a clear understanding of effective negotiation tactics. There is no question that negotiation skills are an important part of doing business. Clearly, negotiating skills are important in business.

The following are five specific reasons why negotiation skills are absolutely imperative in the business world:. While the ability to negotiate is certainly an important part of boardroom meetings and hammering out contracts, the benefits actually extend far beyond those better-known applications.

For example, negotiation skills can be invaluable when discussing the responsibilities an employee or new hire will have, and can ensure that both parties understand exactly what is expected of the other. Contrary to what some believe, negotiation skills are not about beating the opposition out of the other party. In fact, the best negotiators are ones who are able to create win-win situations, in which everyone walks out thinking that the deal is a good one. While the ability to aggressively get what one wants might seem like a victory in the moment, the reality is that the lack of goodwill generated by this can cause problems down the road.

There is no question that finding a deal which makes everyone happy is difficult, but this is exactly why it is so highly valued. Clarification is an essential part of the negotiation process, without it misunderstandings are likely to occur which may cause problems and barriers to reaching a beneficial outcome.

This stage focuses on what is termed a 'win-win' outcome where both sides feel they have gained something positive through the process of negotiation and both sides feel their point of view has been taken into consideration. A win-win outcome is usually the best result. Although this may not always be possible, through negotiation, it should be the ultimate goal. Suggestions of alternative strategies and compromises need to be considered at this point.

Compromises are often positive alternatives which can often achieve greater benefit for all concerned compared to holding to the original positions. It is essential to for everybody involved to keep an open mind in order to achieve an acceptable solution. Any agreement needs to be made perfectly clear so that both sides know what has been decided. From the agreement, a course of action has to be implemented to carry through the decision. See our pages: Strategic Thinking and Action Planning for more information.

If the process of negotiation breaks down and agreement cannot be reached, then re-scheduling a further meeting is called for. This avoids all parties becoming embroiled in heated discussion or argument, which not only wastes time but can also damage future relationships.

At the subsequent meeting, the stages of negotiation should be repeated. Any new ideas or interests should be taken into account and the situation looked at afresh.

See our page on Mediation Skills for more information. There are times when there is a need to negotiate more informally. At such times, when a difference of opinion arises, it might not be possible or appropriate to go through the stages set out above in a formal manner.

Nevertheless, remembering the key points in the stages of formal negotiation may be very helpful in a variety of informal situations. In any negotiation, the following three elements are important and likely to affect the ultimate outcome of the negotiation:. All negotiation is strongly influenced by underlying attitudes to the process itself, for example attitudes to the issues and personalities involved in the particular case or attitudes linked to personal needs for recognition.

The more knowledge you possess of the issues in question, the greater your participation in the process of negotiation. In other words, good preparation is essential.

Furthermore, the way issues are negotiated must be understood as negotiating will require different methods in different situations. Good interpersonal skills are essential for effective negotiations, both in formal situations and in less formal or one-to-one negotiations.