Effective Negotiation: Factors, Stages, and Strategies

Posted on Apr 3, 2025 in Business Administration and Innovation Management

Internal Factors of Negotiators

Internal factors of the negotiators:

  • Training and knowledge of the subject: A subject will be a good negotiator if, besides being well trained in their field, they possess negotiating skills.
  • Ability to dialogue: A good negotiator will have to present their position convincingly, yet must be able to understand the positions of the opposing party.
  • Intuition: The negotiator must possess a certain dose of intuition to anticipate situations that may occur in the process.

External Factors Affecting Negotiation

External factors negotiators:

  • Information to be holding: Interested in the party, and the subject matter.
  • Degree of dominance or power over the other side: It can cause the most powerful to attempt to impose their ideas or their envisaged solutions.
  • The need to achieve the objective: Whether the negotiator influence can be felt with a high level of pressure, it will be more tense, and sometimes optimal solutions are reached.
  • Environment surrounding the negotiation: Includes the social, political, economic, or legislative measures which may affect many processes.
  • Time available for trade: We must try to negotiate peace without unnecessarily prolonging the process.

Stages of the Negotiation Process

Stages of the negotiation process:

  1. Preparation phase of demands: At this stage, discuss what we want to achieve and the means at our disposal. The study requires a focus on:
    • The objective we want to achieve, its viability, and difficulty.
    • The means with which to develop the process successfully.
    • The strategy and tactics that can be used in the negotiation at this stage.
    • Both parties must agree to set the meeting schedule and the physical place where the process was developed.
  2. Phase of discussion:
    • Knowledge of the parties: Each sets their objectives and their positions, which helps us understand the counterparty and take note of the objectives.
    • Discussion stage itself: In this phase, the parties exchange views and ideas on their demands and try to bring positions to reach an agreement.
  3. Approach phase of postures or exchange: At this stage, the parties must align our positions, because you know you’re attempting to get each negotiator to try to reach an agreement that satisfies everyone.
  4. Closing: Means that both parties feel benefit.

Distributive vs. Integrative Strategies

Distributive strategy or competitive: Attitude is completely defensive, with the following features:

  • The subjects who live in a negotiation process as a struggle.
  • Each party tried to achieve maximum success, without worrying about the outcome of other participants, the consequence will be that some feel a triumph, and the rest, the opposite is derrota.

Integrating strategy and cooperation: In which you try to win-win and are satisfied equally.

Negotiation Tactics

  1. The secondary point: Is to fix the attention of the other party in a supply point for him is important, but for us, secondary. For example: we want a person to work with the disadvantage that it is nocturnal, but we see that the candidate focuses on the opportunities for internal promotion of the company. Since then we focus on that point, which for us is less important than the night.
  2. Conflict of interest or economically: Appropriate to lower the bar than the opponent, to tell him not authorized to accept these proposals (though yes indeed you have) with the objective of the other party lower his demands. For example, a den chief sales demand increasing by five points discount, and the other party responds that is only authorized for up to three points.