Self Help

There are many reasons for us to negotiate. All we have to do is look around us to see the many different kinds of negotiations we are involved in on a day-to-day basis. Negotiations are not limited only to people who bargain to purchase an asset or to mediate a labor dispute. In fact, managers will find that almost every situation they face involves some element of the principles of learning how to communicate when getting what they want.

Delegation, which is so important to the ultimate success of any effective manager, is accomplished through direct negotiation with employees. So, too, are the implementation of new ideas, requests for exemptions to company policies, new financing from the bank, and many other things that managers do as a matter of course.

Because negotiation is so much a part of the manager’s life, it is easy to understand why managers who have not sharpened their skills are at a definite disadvantage to those who have. The mastering of basic negotiation skills can therefore be a very positive step in increasing managerial effectiveness. The techniques are easy to learn and, through practice, can be applied in a wide variety of circumstances.

Ultimately, it is the development of trust and confidence that forms the glue to hold an agreement together. No amount of technique will bind two people to an agreement if these basic elements are missing. It is vital that we look at negotiations as supporting long-term goals of developing business relationships that will grow stronger with each passing year and not just as a one-time activity. To try to take advantage of the other party is a very short sighted tactic. In time, it will undermine, and eventually destroy, a business relationship.

Competition for scarce resources drives many business negotiations. As a manager, you are expected to plan for, request, defend, and eventually implement business requirements. Competition of this nature is a vital and positive process in any business. If you are a competent negotiator, as well as a capable manager, you will maximize your ability to defend your needs for staffing or funding or any other requirements you might have.

It is clear that, for both parties to feel satisfied with the outcome of a bargain, each must have achieved a majority of its goals. Win-win is the operative concept. If you have put another person into a losing situation, be assured that there is a much greater chance the agreement will not be upheld, even if your agreement is in writing.

Ultimately, negotiation is simply another form of communication. As with any other form of communication, it is critical that both participants fully understand each other. If we expect to achieve our goals, we should make certain that we have communicated our positions effectively to our counterpart, and that he or she has understood them. Otherwise, we may have a very difficult time bringing our deliberations to successful resolution. And that is, after all, the thing that all managers desire.