Negotiation and Decision Making
Assignment 1
By: Bharath Selvam (21BBH1031)
How can individuals and Organisations harness their negotiation skills
to improve harmony?
Negotiation
Negotiation in business refers to the process of reaching an agreement between two or more
parties who have conflicting interests or objectives. It is a crucial aspect of business
transactions, partnerships, contracts, and various other interactions where parties seek to find
common ground while protecting their own interests.
Why is Negotiation necessary
Negotiation is of paramount importance for both individuals and organizations as it serves as a
fundamental tool for navigating the complex landscape of interpersonal relationships, business
transactions, and organizational dynamics.
­ For individuals, honing negotiation skills is crucial for personal and professional growth.
It empowers individuals to effectively communicate their needs and aspirations,
fostering understanding and cooperation with others.
­ For an organization, it could even be said that success hinges on the ability to forge
beneficial partnerships, secure favorable deals, and resolve conflicts amicably.
Negotiations play an important role in areas such as the effective procurement of assets
and raw materials, the creation of profitable vendor contracts, and the development of
client relationships. The capacity to secure favorable terms and build mutually beneficial
agreements directly impacts an organization's financial health and competitive
advantage.
Methods of harnessing
For individuals
­ Develop Active Listening Skills: Actively listen to others' perspectives, demonstrating
empathy for a collaborative atmosphere.
­ Communicate Clearly and Effectively: Articulate thoughts with clarity, using concise
language to avoid misunderstandings.
­ Cultivate Emotional Intelligence: Be aware of emotions, manage them effectively, and
recognize others' emotional cues.
­ Focus on Win-Win Solutions: Aim for outcomes benefiting all parties, avoiding
adversarial approaches.
­ Be Flexible and Open to Compromise: Adjust positions and explore alternatives,
fostering adaptability in negotiations.
­ Establish Common Goals: Identify shared objectives for a collaborative foundation and
emphasize common interests.
­ Learn from Past Experiences: Reflect on past negotiations, identify strengths, and apply
lessons for continuous improvement.
Real life personal example
In a previous semester group project, my team negotiated roles and responsibilities to ensure a
balanced workload. Recognizing the significance of the person integrating our work, we agreed
to assign minimal individual research tasks to facilitate their role. We established a pre-deadline
for individual contributions, providing ample time for the integration process. Throughout the
negotiation, effective communication and active listening played an important role. By focusing
on a win-win solution, where each member played to their strengths, we created a harmonious
collaboration. We compromise and were flexible by adjusting initial task allocated according to
accommodate the unique responsibilities of the person who combines the individual work.
For Organizations
­ Invest in Training and Development: Provide negotiation training for enhanced skills and
equip teams with tools for effective and collaborative negotiations.
­ Establish Clear Communication Channels: Foster open, transparent communication and
ensure smooth information flow between teams and leadership.
­ Promote a Collaborative Culture: Encourage a culture valuing collaboration,
emphasizing teamwork and mutual support.
­ Define Organizational Values and Objectives: Clearly articulate organizational values
and objectives, aligning negotiations with the company's mission and vision.
­ Encourage Cross-Functional Collaboration: Promote collaboration between
departments and create opportunities for cross-functional teamwork in negotiations.
­ Recognize and Reward Collaborative Efforts: Acknowledge and reward teams for
positive negotiation outcomes, motivating a collaborative mindset through recognition.
­ Diversify Negotiation Teams: Build diverse negotiation teams for varied perspectives,
enhancing negotiation capabilities through diversity.
­ Utilize Technology for Collaboration: Embrace technology for collaborative
communication and enhance remote negotiations with virtual platforms.
­ Seek Feedback and Continuous Improvement: Solicit feedback from negotiating
employees and use feedback for continuous refinement of strategies.
Real life example
Microsoft's Acquisition of LinkedIn (2016) - In 2016, Microsoft successfully negotiated the
acquisition of LinkedIn for approximately $26.2 billion. Microsoft's negotiation strategy was
marked by effective communication, collaboration, and a focus on creating a win-win outcome.
Both companies recognized the potential synergies in integrating Microsoft's productivity tools
with LinkedIn's professional networking platform. The negotiation process involved open
discussions on how the combined strengths could benefit users, enhance productivity, and
create a more comprehensive suite of services. Microsoft's emphasis on aligning values and
objectives contributed to a smooth negotiation process, ultimately resulting in a mutually
beneficial agreement that leveraged the strengths of both organizations.