Wednesday, 19 May 2021

Stress of Negotiations

 

                           Stress of Negotiations

 

Let us never negotiate out of fear,

                        but let us never fear to negotiate.        

John F. Kennedy  

 

Negotiations - the discussions, deliberations, debates, presentations, differences sorted out, that lead to understanding and settlement, agreement reached - is a method by which people settle their differences. They are referred to as talks in the diplomatic parlance. It is the process that causes lot of stress, anxiety, confusion, worry, fear and sometimes the mood swings too, to those who have to participate in negotiations the next day, because the outcome depends on the skill, experience, knowledge, reasoning, logic, tricks of the trade and application thereof by the other party to the issue and the spontaneous response one gives to guard ones on interest without harming the continuation of the negotiations. One can also say that negotiations represents the degree of compromise each party can make to settle the issues. Accommodation and collaboration are also negotiations, where sense of co-operation is more on the part of the participants.

 

Life itself is more or less is a process of compromises, some short term others lifelong. We seldom get in full what we desire, because what we deserve is always measured with bias in one’s favour and what we get is always either a compromise by someone else or it needs approval of someone else. The biggest event of human life getting one’s life partner whether by marriage or otherwise, may be as a result of love or arranged is the biggest example of compromise in life. Honour religiously the compromise made, agreement reached it would become source of peace like in marriage a wonderful wife, smiling children and love all-round, if you are not happy with the compromise made by spouses the situation may lead to divorce even otherwise it is a nagging worry. Choice lies with you.

 

Compromise is based on the concept that no human being, situation, circumstances, environment is perfect to the last point. It is common saying that one can’t please everybody. Remember that negotiating means compromise - need to look out for yourself, but also be willing to budge in order to satisfy the other parties. Negotiating is to build professional relationships rather than burning bridges on your way out of the conference room. Compromise is universal and a part and parcel of human existence on this planet.

 

Victories, defeats, strikes, lockouts, surrenders, withdrawals, end of wars, takeovers, amalgamations, settlements, mergers, compromises, are all ultimately the result of table talks, the negotiations the compromises between the parties involved. Negotiated settlements say agreements are result of multiple sittings, however sometimes single sitting do yields wonderful results. However, when vital interests are involved and nobody is ready to budge, even to carry on talking for long time is a big achievement

 

Negotiations are between the warring groups sometimes when one has been brought to his knees like military surrenders and sometimes to settle the issue amicably. Negotiations, are also termed as consultations in business organizations and other employing sufficient number of employees like Govt where it is a regular process to address the issues as they arise so that the organizations work smooth for all round development of the institution. In India, Govt has a set up and calls it Joint Consultative Machinery where Govt and employees representative meet regularly.

 

No negotiations can yield positive results unless both the parties go to the negotiation table with open mind, deep study of the issues involved, authentic facts and figures known to both the parties and their factual and financial consequences accepted gracefully. In fact, before the discussions start both parties should have identical set of documents even if it involves exchange of some documents, fundamental is authenticity of documents should be logically proved. Respect for the rights, privileges and genuineness of the claims of the other party appreciated thoughtfully is another essential to make the negotiations fruitful.

 

Venue of negotiations has its own importance: it should be conducive to long hours of sitting: people should otherwise love to stay in such surroundings. Conducive surroundings keeps one in positive and contributing mood and on the side of solutions.

Similarly the refreshment served during the proceedings should be attractive to both eyes and taste: I recollect of a purview meeting was to be held with print and electronic media when my boss told me that the participants at no point should be left alone and idle  and also that the refreshment served should pleasing to the eyes, taste and sufficient, his intention was to keep the people engaged for sufficient time to build their interest in the event and its importance and to explain them why the publicity is essential. Next day we were too happy to find our story covered by every newspaper.

 

“Negotiation in the classic diplomatic sense assumes parties more anxious to agree than to disagree.”

                                                                               – Dean Acheson

 

Only those persons who are competent, on behalf of their organization, to take decision, agree or disagree,  on the spot should be part of the negotiations otherwise they are always inconclusive and irritating. Concepts of ratification should be kept away from the decisions taken at the negotiating table as that keep everything said and done at tender hooks.

Negotiations are an impersonal process carried out by the individuals on behalf of their organizations as such nothing said and done should be taken as personal otherwise they are likely to breakdown without any serious cause. We should be respectful, polite, polished and well behaved with all those present on the negotiation table irrespective of the individual status or position in the respective organization. Table is a meeting point and all are equal. Negotiating place should look like a family gathering instead of warring groups meeting each other to gain maximum. Some organizations employ outsiders as negotiators on their behalf but this has seldom given encouraging results that is why now most of institutions has barred the entry of outsiders in the negotiation process. Negotiators should always be insiders who have stakes in the success of the institution and the agenda.  

“During a negotiation, it would be wise not to take anything personally. If you leave personalities out of it, you will be able to see opportunities more objectively.”

                                                                                   – Brian Koslow

Conduct of negotiations is a very special skill to learn. It is skill which has to be developed and not inherited. In fact, it is cumulative experience, learning, knowledge, skills and wisdom of decades together brought on the negotiating table. It requires a special temperament, those who are hot headed or lose their temper quickly are not fit for this type of responsibilities. Negotiators have nerves of steel and they do not bow down under pressure. They are positive and active people always in mood to carry on and not to break. They assess the other party from the few words spoken, their body language and the emotions on the face, at the same time go only by facts and not by emotions. They go to the table well prepared not only about the details, depths and consequences of their own case but usually knowing more than the other party knows about their own case and its implications. They are always fresh and updated about the agenda for the negotiations. They are good listener a skill which very few learn in their life. Silence at appropriate time can force the other party to reconsider its stand. They are effective communicators and know how to make their voice heard when needed. They do not hesitate to use their trump cards that is normally known to them and to very few others only, at appropriate time when it happens to be useful. They are masters of the show. They are imaginative and to act purposefully on the spur of moment is their quality. However nobody can predict the outcome of the negotiations.

 

There will be dark and tangled stretches in decision making process – mysterious even to those who may be most intimately involved.                                    

                                                                                   John F. Kennedy

There is no set pattern as to how the negotiation should move. However there is no reason as to why or why not parties should move as per the agenda. The best course as to build the confidence of both sides is to short list those items which are of least importance and of quick agreement that help to exchange pleasantries and move further with hope and satisfaction.

However war treaties are as dictated by the Victor only; the mercy or foolishness of the victor may give something to the loser: but in a commercial or Union Management agreement both parties must share the fruit of negotiations and it should be win-win situation where both sides feel they have gained something positive through the process of negotiation and both sides feel their point of view has been taken into consideration.

 

“You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.”

                                                                                       – J. Paul Getty

Real negotiations are always between the opposite parties like management and Unions, a seller and a purchaser or any other parties where gain of one is loss of the other. In such situations both have the limitations, that is how far one can go or how far one can reduce his own margin and if stretched beyond that point the negotiations break. This gap between the interests of the warring groups is the real playing field for the negotiators. For example a workers Union may demand to have 20% increase in their wages whereas the management is ready to give 10% however if stretched a little they can go up 13%. This difference between 10% and 20% is the real playing field, it is upto the Unions to negotiate and claim as much as they can convince but not beyond 13% where the negotiations would perhaps break: so avoid the breaking of negotiations and claim the maximum that is the skill of the negotiators. This is the Zone of Potential Agreement (ZOPA).

Negotiations end with signing of an Agreement in the language understood by both the parties: that should be clear concise, easily to interpret and progress measure able on time to time basis with an implementation schedule and a procedure to eliminate confusion and misunderstandings, if any.

 

“If you come to a negotiation table saying you have the final truth, that you know nothing but the truth and that is final, you will get nothing.”

                                                                                   – Harri Holkeri

 

Is it always essential to have a negotiated settlement: the positive answer is absolutely not. Both parties must understand each other and take care of others problems and weaknesses - the weak points and help to maximum use his strengths. Such behavior is always satisfying and builds relationships. Such an approach provides one greater independence from the other side and gives time to evaluate other sides proposals and position vis-à-vis your own position and proposal and certainly is more peaceful and stress free. This type of understand can save many marriages in personal life and many strikes and lockouts in business organizations. In fact the best employer is one who can take care his employees without having a formal meeting with the Union. In fact, Union or No Union employer takes care of all genuine demands and requirements of the employees.  Such a behaviour can be termed as an Alternative to a Negotiated Agreement rather Best Alternative to a Negotiated agreement.

 

Agreements, pacts, treaties, settlements, memorandums of understanding call by whatever name, the occasion demands, they are the instruments of peace, tranquility and development for the parties concerned and the organizations. 

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