Negotiation is a daily business practice which involves daily negotiation with clients, suppliers, shareholders, potential partners, employees and others. The majority of tasks in negotiation demand accurate and a pleasant decision making process by which two or more people agree on how to distribute information and resources.
Business is negotiation; those with good negotiating skills tend to rise to the top no matter the competition and the economic downfalls. Therefore, entrepreneurs require to negotiate deals that fulfill the interests and needs of both parties. Thus, for any successful business a study of developing negotiating skills should be at the fore front.
Effective business negotiation begins with an assessment of where your companys strengths and weaknesses lie in terms of negotiation skills and outcomes. Therefore effective negotiation skills are increasingly important for top management leaders in the business world. The key reasons why negotiation is vital for any top management include but not limited to:
Interdependence in business
With globalization business practices are becoming similar across the globe in terms of target markets and marketing strategies. This implies that business leaders must learn to integrate their interests and work together across business units. This does not mean barely integration of products and services, furthermore manpower integration where exchange of ideas between individuals or organisations to increase expertise and specialization is becoming necessary. Negotiation therefore comes in where managers have to expound on their networks while at the same time, try to add value to their organisations.
Era of information and technology
Communication has been made easier with technology, connecting with people all over the world has become simple and direct. Computer technology, video conferencing, mobile phones, social networks are just but a few of the technologies that can be used to add value to customers. It can also be use to add value to an organization in various perspectives such as marketing and branding. As a result, managers must adapt to new technologies in the market in terms of implementing them to suit their organizational needs. Moreover, being in a position to communicate with people globally calls for managers to be able to have negotiating skills to avoid compromising situations where they need to negotiate at an instant notice. Hence, the manager as a negotiator has to have the ability to determine relevant from irrelevant information in order to have a successful negotiation, especially in this era of massive information from various corners.
Business is diverse
Diversity in business means that managers need to develop negotiation skills that can be successfully employed with people of different nationalities, backgrounds and styles of communication. Diversity in business management is a source of creativity and innovation that can provide the potential for future development and competitive advantage in an organisation. Thus, the top management team should polish their negotiation skills to suit the needs of the diverse nature of their organisation and business market at large.
Competition is becoming the central focus for many businesses. Strategies on how to deal with competitors in addition to trying to increase expertise in the vast field of competition is becoming more widespread and imperative in top business management. As a result managers need to up their game in terms of acting as promoters of their products and services. They must also recognize the competition that is inevitable between companies. Understanding how to plot a course in this competitive environment is fundamental for a successful negotiation.
Dynamic nature of business
The dynamism of current business environment, with its rapid and recurrent changes, requires a long term and short term visionary plan. Any business management is aware of competition within and outside the organisation. Inside the organisation, people will progress professional and move on to better paying jobs and/ or be promoted. To a manager this calls for negotiating and renegotiating skills that will need to be adopted to safeguard the interest and position of the organisation when faced with such dynamism.
The key issues discussed above are significant to the success of any business. Consequently, managers need to learn how to use their negotiation skills to suit their organisation advantage. There are many primary benefits when an organisation has qualified negotiators therefore, they should fully invest in negotiation skills.