Negotiation in Bussiness

INTRODUCTION

Whether people like it or not, they are negotiators. Negotiation is an obvious thing in life such as: a negotiation with boss about raising salary, a negotiation with customers about products, services which the desired price or a group of oil and mining companies make a plan to found joint venture in offshore oil exploration, Minister of Foreign Affairs of United States met the Soviet Union to seek agreement on nuclear weapons, a negotiation among countries on WTO accession, or simply lovers negotiate with each other the place to hang out and what to eat. All these are negotiated.

Negotiation is not a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for an organized lobby; it is something that everyone does, almost daily (Lewicki et al 2011:2). There are existed more situations which need to negotiate, however not much of importance is attached to negotiation in day-to-day life, because it is almost a routine affair (Singh, 2010). Although negotiation happens daily, however how to achieve effective negotiation is not easy. Especially in business, the desire of every enterprise is to get highest profit. This depends a lot on diplomatic, negotiation of entrepreneur on market.

Economic negotiations is only really rich, diverse and promote its important role as social production development at high levels, commodity producing more and more, the production and business activities, exchanges take place not only on strong national scope, but also in the whole world. In term of integration, negotiation is more developed, more complicated.

MAIN BODY

1.1 DEFINITION OF NEGOTIATION

Mentioned about negotiation, perhaps many people know; but the true meaning of what it is, reflects what specific concepts then there are very few perfect answers.  Negotiation is a process by which two or more parties each which its own goals & perspectives coordinate areas of interest through concessions & compromise to reach an agreement and take the joint decision about areas of common concerns in a situation in which neither side has nor wants to use power (Kavita Singh, 2010). In simplest terms, negotiation is a discussion between two or more disputants who are trying to work out a solution to their problem^[1]. That means if the problem has not been resolved successfully in fact, the negotiation process has not ended. It is like when two or a group of people want to share a basket of oranges which are very precious and rare, but who also want to share more, civilized people do not support the use of violence, thus invented negotiation. It is also demonstrated by Robbins SP., et al (2001) that  negotiation is a process in which two or more parties exchange goods and services and attempt to agree upon the exchange rate for them. By negotiation, common interest will be met and the solution will achieve the most satisfied. If done well, negotiations could sight the relationship between the parties and lead to understanding and respecting each other deeply, if both parties desire to maintain long-term relationships.          

According to Fisher & Ury (1991), negotiation is basic method to achieve what we want from others. It is communication process designed to reach an agreement between us and the other party which has the right to share and countervailing benefits. Negotiation situations have fundamentally the same objectives whether negotiation of countries at war, they negotiate for business contract between buyer and seller or labour conditions between management and labour, negotiation in finding sponsor organization for huge event which is including to apportion benefits and to resolve conflict.

The terminology and different expressions used in conflict resolution to describe the needs and desires. Corresponding to the desired position in which parties want to win the conflict whereas the need corresponds to the fundamental benefits of their own. The negotiators expressed variety of different desires depending on perspective distribution of benefits. In international business, negotiation is an indispensable activity and is particularly important.    

1.2 NEGOTIATION AND CASES

Whenever the need, the desire of a personal conflicts with the others, this is a start for negotiation in order to satisfy all the demands, maintain the relationships and achieve agreement. Everyone wants to participate in the decisions that affect themselves, very few people accept a decision to be ruled by others. People who do not like someone, they negotiate to resolve these differences. The real world is a huge negotiating table and the negotiations may occur in the conference, on the table, the light and the darkness. Negotiations are on political, diplomatic, military, business as well as other subtle.