Introduction
Negotiation is an art of human communication that is evident whenever people make conversations. People often negotiate with friends or family for favors, contractors to receive services, and medical practitioners while seeking the most effective treatment solutions. However, business or contract negotiations take a formal approach, obligating the parties involved to adhere to strict rules regarding the business terms and pay increased attention to detail. Otherwise, rushing into a contract can result in severe outcomes like damaged relationships, tarnished portfolio, lawsuits, and voided contracts. Thus, this essay explains and analyzes the critical factors of a negotiation that are ethical and conducive to the goals of procuring twelve-cell computer batteries for the organization.
The Factors That Can Influence Negotiation Outcomes
Negotiation is a complex process because the outcomes must meet the interests of all parties involved in the negotiation. Therefore, several factors can interfere with the results of contract negotiation, obligating administrators and managers to acknowledge all potential facilitators and inhibitors of effective negotiation to ensure benefits. Nonetheless, the crucial aspects of negotiation include the context, individual interests, negotiators’ cognition, trust, communication, ethics, intermediaries, the negotiation process, and the medium of communication (Galluccio, 2021). The context of a negotiation refers to the conditions or situations that bring about the negotiation process. In this case, the organization seeks to procure twelve-cell computer batteries. The main objective is to obtain high-quality batteries at a favorable price and ensure fast delivery. Subsequently, the negotiators’ cognition refers to the mental processes that shape the negotiation process. On that account, positive perceptions and a good understanding of the benefits of these batteries to the organization can encourage administrators to put in more effort in the process.
The negotiators’ creativity also plays a critical role in allowing parties to agree on a long-term business arrangement that will bear fruit. Creativity refers to the willingness to develop and search for alternatives and solutions to inhibit challenges. The negotiation process, describing the communication tactics, negotiation style, presence of intermediaries, and the tools applied in negotiation also influence outcomes since a streamlined and efficient process focuses on the most critical issues of the contract (Yoon-Flannery & Nguyen, 2018). Finally, trust, ethics, and effective communication also determine negotiation outcomes because they facilitate understanding and mutual agreement. Negotiators who can communicate their needs and plans show high levels of organization, thus encouraging parties to acknowledge their demands. Subsequently, ethical negotiation practices like integrity and fairness play a major role in sustaining positive relationships between negotiators. Thus, the procurement teams should familiarize themselves with these tenets and their effective application and practice to avoid limitations.
Critical Elements of a Successful Negotiation
Successful negotiations comprise five basic elements, including preparation, information exchange, bargaining, concluding, and execution. Preparation is the most crucial element of a contract negotiation process because it allows both parties to familiarize themselves with each other’s values, business tactics, and cultures (Jung & Krebs, 2019). For instance, preparation before negotiating on the twelve-cell battery procurement will involve comprehensive market research of the chosen suppliers’ background, reliability, quality, and pricing. Moreover, it will allow for comparison to determine the supplier offering the most benefits. Subsequently, information exchange involves informing all parties of the contract’s requirements and soliciting their contributions, and opinions. Therefore, the plan to procure the twelve-cell batteries will include the input of parties involved in the negotiation process.
Afterward, the negotiation may move into the bargaining state, where all parties present their suggestions and demands toward closing the contract and any changes that would increase the contract’s effectiveness and viability. Consequently, this stage involves complicated processes, requiring effective communication between all parties and clear guidelines on how to proceed with the contract negotiation (Galluccio, 2021). Therefore, the organization will provide its suppliers with a detailed list of demands and rules they should adhere to when delivering on their responsibilities. Consequently, the suppliers will respond according to their capabilities, thus allowing the negotiation to move into the conclusion and execution process. In the conclusion and execution stages, all parties preview the contract’s demands and commit themselves to meet its requirements. Eventually, the procurement process will begin, and all parties will be required to meet their end of the bargain.
Applying Aspects of Negotiation to Business or Personal Life
Negotiation is an art that demands high ethical standards and interpersonal collaborations to ensure that initiatives are effective and efficient. Therefore, it is crucial to observe moral and ethical guidelines when engaging in contract negotiations to avoid negative outcomes like litigation and a voided contract (Jung & Krebs, 2019). On that account, truthfulness, trustworthiness, and integrity should be a priority when getting into legally binding contracts to ensure the sustainability of the business. On that account, administrators and individuals in charge of the twelve-cell battery procurement process will be warned against any actions that might jeopardize the viability of the contract. Additionally, the project will be designed to meet the demands of both parties and assure benefits (Yoon-Flannery & Nguyen, 2018). Thus, the process will observe all the stipulated guidelines and spearhead effective communication and positive relationships through all processes for fruitful cooperation.
Although a win-win outcome is often the best resolution in contract negotiation, sometimes it is impossible for both parties to benefit, especially in a contract regarding the procurement of products or services, because of the processes associated with closing the deal and executing the contract. For example, although the twelve-cell battery procurement negotiation aims to realize positive outcomes for both parties, the organization’s interest lies in driving down the pricing to achieve higher value, which might obligate the suppliers to sacrifice, thus facilitating a win-lose outcome. However, a win-lose negotiation can quickly escalate and become adversarial, as one of the parties may not be satisfied with the outcomes. As a result, it may contribute to occasional conflicts, workflow disruptions, inefficiencies, and poor service delivery due to budget cuts. Thus, a win-lose outcome or zero-sum approach to contract negotiation might be beneficial for one party but might not always yield positive results.
Conclusion
Contract negotiation requires dedication and commitment toward set goals to achieve program initiatives. Moreover, it is crucial to know the potential ethical, legal, social, and interpersonal factors that can impact the negotiation outcomes. However, it is advisable to observe all the elements of successful negotiation and incorporate moral and ethical values into the negotiation process to limit errors and foster sustainable relationships. Moreover, effective communication and information exchange between involved parties can serve a major role in streamlining processes. Hence, although the twelve-cell battery procurement negotiation process may benefit from a win-lose negotiation approach and outcome, observing all the tenets of successful contract negotiations will enable the initiatives to be efficient.
References
Galluccio, M. (2021). Science and Diplomacy: Negotiating Essential Alliances. Springer Nature.
Jung, S., & Krebs, P. (2019). Preparation and Negotiation Process. In The Essentials of Contract Negotiation (pp. 7-19). Springer, Cham.
Yoon-Flannery, K., & Nguyen, J. (2018). Contract Negotiation. In A Surgeon’s Path (pp. 75-80). Springer, Cham.