Introduction
Singh defines negotiation as the “art of creating an agreement on specific issues amongst parties with differing views” (39). Negotiations occur at different levels, for instance, in the workplace and at a personal level. However, negotiation constitutes a vital component in achieving optimal performance. Thus, it is essential for entrepreneurs and organisational managers to develop effective negotiation skills. Poor negotiation skills can affect an entity’s long-term performance. Business leaders should not perceive negotiation as a matter of common sense. The need to develop negotiation skills arises from the view that most individuals become emotional during business negotiations, hence ignoring the basic instincts and techniques. Such occurrences can lead to negative negotiation outcomes. In an effort to develop adequate information on business negotiation, this paper entails of a video analysis involving a negotiation between Miles and Freddy.
Overview of the negotiation vignette
The video shows two sides on a negotiation table. On one side, Miles Massey is representing Rex in a divorce settlement. On the other side, Freddy Bender is representing Rex’s wife, Marylin. The objective of the meeting is to settle the matter of Rex’s divorce outside the court. Miles states that his client would want to reconcile with his wife. However, Freddy declines the offer with instructions from Marylin. Miles states that Rex is ready to dissolve the marriage without conditions, but Freddy declines the offer. Miles again notes that Rex would want to request a 30-day cooling off period, but Freddie and his client are not interested. Miles does not give up and he requests Freddy to delay initiating the divorce proceedings, but Marylin breaks into laughter. Miles finally asks Freddy to state his terms and he asks for 50 percent of Rex’s wealth. However, Miles is a highly experienced lawyer and he makes fun of it by wondering why Marylin is not asking for 100 or 150 percent. Miles dominates the negotiation process and ultimately he irritates Freddy who storms out of the office without any settlement.
Analysis
Preparing for negotiations
In order to succeed in conducting negotiations, it is important to undertake adequate preparations. Negotiators should take into account a number of aspects during the preparation phase. First, negotiators should think ahead regarding the intended negotiations. Clear objectives regarding the upcoming negotiations should be set. The objectives should be SMART, viz. specific, measurable, achievable, realistic, and time-bound. Developing clear objectives plays a remarkable role in establishing the bottom-line of the discussion.
In the video, it is clear that Freddy has set clear objectives, viz. to get at least 30 percent of Rex’s wealth for Marylin. Additionally, it is imperative for the parties to anticipate possible reactions during the negotiation process. These aspects form the basis on which effective workout strategies are developed. All the parties involved in the negotiation process should be involved in the preparation of the negotiations in order to understand their role and responsibilities during the negotiations. Preparing for negotiations leads to the development of an effective roadmap. Subsequently, all the negotiation participants speak the same language. Teams are usually comprised of different team members, for instance, stabilisers, de-stabilisers, and assertive negotiators. In the video, Miles’ team is comprised of three members, while Freddy’s team has two individuals.
Despite the diversity within a particular team, it is imperative for the differences amongst the various participants to be managed adequately. A leader to guide the negotiation process should be selected through consensus. This move ensures that all the participants are comfortable with the leader. According to the video, it is clear that each team has selected a negotiator. Marylin has selected Freddy as the negotiator, while Rex has selected Miles.
The negotiators should be prepared to face any outcome of the negotiation process. However, in the video, Freddy is not prepared to accept any outcome amicably. Therefore, when Miles resorts to mind games, Freddy storms out of the office, and thus he does not achieve his objectives.
Getting started in the negotiation
In an effort to succeed in the negotiation process, it is important for a good start to be adopted. One of the aspects that should be considered entails the negotiation environment. Singh asserts that the “negotiation environment greatly affects the prevailing level of tension and openness” (45). On this note, Miles chooses a very conducive environment, viz. an office where the negotiating teams are seated facing each other. Miles understands the importance of an enabling environment, and thus he avails water and snacks on the table to ease any form of tension that may develop during the process.
Developing a strong rapport is vital in establishing trust during negotiations. Participants in the negotiation process can adopt different approaches in an effort to establish rapport. One of these approaches entails developing mutual attention and involvement, which can be attained by engaging in “nonverbal behaviours such as smiling, maintaining eye contact, leaning forward, and gestures” (Singh 81). Marylin utilises these gestures during the negotiations. In addition, Miles uses these communication cues when urging his client, Rex, to calm down.
In an effort to develop a strong rapport with the client, Miles recognises the importance of integrating small talk during the negotiation process. Subsequently, he uses a joke by wondering why Freddy and his client are only asking for 50 percent instead of 150 percent of Rex’s wealth. Miles knows that Freddy and Marylin cannot win this case even in the court. Singh affirms that using “small talk lowers peoples’ natural defence, hence commencing the process of building relationships” (45). Moreover, small talk plays a fundamental role in determining the degree of truthfulness amongst the participants involved in the negotiation process. Engaging in small talk increases the probability with which integrative agreements are reached. The small talk that Miles introduces in the negotiation works to his advantage. Freddy storms out of the office without reaching an agreement, which means he will take the case to full trial in a court of law. Miles wants the case to go to full trial because he knows he will win it. Apparently, Miles has a witness who is ready to testify against Marylin.
Despite the significance of small talk in establishing rapport, it is essential for one to assess the degree to which the other participant involved in the negotiations appreciates informal and informal communication. Singh corroborates that if some of the negotiators do not appreciate informal negotiations, it is essential for one to refrain from speaking too casually because the negotiators might perceive such a move as an indicator of lack of seriousness in the negotiations (45). Miles knows this principle and he uses it to irritate Freddy to a point of abandoning the negotiations.
The negotiation process
Negotiations are aimed at attaining a particular objective. Consequently, the participants involved in the negotiation process tend to “move from their ideal position to a settlement point, which is mutually acceptable” (Singh 45). The extent to which the settlement point is achieved depends on the negotiators’ bargaining skills. Consequently, it is essential for negotiators to leverage on their negotiating skills. Thus, the participants must agree to adjust their position, hence making the negotiation process a considerably flexible exercise.
Negotiators must ensure that they adjust towards their ideal point. However, the ideal point is subject to change due to new information that might emerge during the negotiation process. Singh contends that the degree of movement during the negotiation process is limited by the ‘breaking point’ (47). The breaking point entails the point at which either of the parties prefers breaking off the negotiations as the most appropriate option. The negotiation video illustrates a relatively high degree of inflexibility from the two sides. Miles and Freddy are unwilling to reconsider their offers in a bid to reach a settlement. Miles does not give any monetary offer, while Freddy cannot accept anything less than 30 percent of Rex’s wealth.
Offer
Negotiations are characterised by offers, which may arise from either party. Singh asserts that the offer forms the basis of contractual agreement between negotiators (51). In order for negotiations to culminate in an offer, it is essential for the parties involved to outline all the specifics associated with the negotiation. Some of the aspects that should be considered include the offer price, scope of the job, and the expected duration within which the intended task should be delivered among other aspects depending on the nature of the negotiations. Different components such as terms and conditions of the offer should be considered. However, Miles and Freddy fail to reach an agreement.
Closing the deal
The final stage in the negotiation stage entails closing the deal. The effectiveness with which the deal is closed affects the degree of success or failure of the negotiation process. The process of closing the deal should involve “eliminating the remaining differences between the negotiators” (Singh 52). Unfortunately, Miles and Freddy do not solve their differences, and thus they do not close the deal.
Barriers in the negotiation process
A number of barriers may hamper negotiations, and thus they must be eliminated in order to achieve the desired outcomes. Some of the common barriers evident in the negotiation vignette relate to prejudice. In the video, Miles is acting arrogantly because he is sure of winning the case if it goes to the court. In essence, Miles is not prepared to strike a deal with Freddy. Miles resorts to mind games in a bid to scuttle the negotiation process and he succeeds. On the other side, impatience can hinder negotiations. Freddy is very impatient and he gives up easily without pushing for a settlement.
Conclusion
Negotiations are essential in promoting business performance. Consequently, individuals should not underestimate the importance of developing effective negotiation skills. The outcome of the negotiation process is greatly impacted by the behaviour of the negotiation facilitator. One of the most important aspects that should be considered in enhancing the outcome of the negotiation process includes effective preparation. Clear objectives should be set in order to direct the negotiation process. Moreover, developing a strong rapport with all the participants is fundamental. This goal can be achieved by integrating effective communication and mutual trust between the participants. In addition to the above aspects, it is essential to incorporate a high degree of flexibility during the negotiation process in order to reach the ideal agreement.
Works Cited
Singh, Balraj. Negotiation and counselling; text and cases, New Delhi: Excel Books, 2013. Print.