Management
Contract Negotiation
It is the business term which means that two or more parties provide knowledge to each other in order to achieve a possible arrangement of partnership. In the contract negotiation process, each party’s objective is to reach an agreement that is to be favorable to both the parties of the contract negotiation.
Labor contract negotiation process is one of the famous types of the contract negotiation and this is getting a great deal of the media attention in these days. Collective bargaining agreements are the most common outcome of the labor contract negotiation because this agreement provides win-win solution to the parties of the labor contract negotiation. This type of agreement promotes long term relations between the parties of the labor contract negotiation.
Skills for the success of contract negotiator
Each negotiating party wants to get more benefits than the other correspondent party. In order to get more benefits from the negotiation, negotiator should possess some skills.
These skills are provided below which a contract negotiator must have in order to get more success than the other party.
- Negotiator should not force the corresponding party to make a fast decision
- Negotiator should make it clear to the other party that he is quite interesting to do a trade which is going to be helping to both the parties of the contract negotiation
- Judge the behavior of the other party professionally which will surely help to gain more benefit from the contract negotiation than the other party
- Do SWOT and PEST analysis in order to judge the other party
- Negotiator should start the negotiation process with some positive attitude
- Negotiator should also pay little attention to the initial offers
- Negotiator should also be flexible for getting the 3rd party assistance
- Negotiator should avoid point scoring which means that he should address the problems not the person of the contract negotiation
- Possessing and applying the effective communication skills also plays a very important role in getting more benefits than the other party
- Maintaining the pleasant environment by the negotiator can also prove to be very helpful for achieving his target from the contract negotiation process
- Negotiator should also try to improve his existing condition by converting weaknesses into strengths
- Negotiator should also set his highest and lowest targets
- Negotiator should also consider contingency plans in case of the situation where contract negotiation breaks down
- Keep bargaining and do not give up
One strategy for an effective negotiator
Preparation for the negotiation is the key strategy that a negotiator should develop it in order to get a more favorable contract. Preparation includes setting the objectives that a negotiator should achieve in the contract negotiation. It also includes the selection of the win-win approach by the negotiator.
That above mentioned strategy plays a very significant role for a negotiator to get more favorable results from the contact negotiation process.
Bibliography
BAZERMAN, M. (2013, 08 14). Beware Your Counterpart’s Biases. Retrieved 11 14, 2013, from pon.harvard.edu/daily/conflict-management/beware-your-counterparts-biases/: http://www.pon.harvard.edu/daily/conflict-management/beware-your-counterparts-biases/
CATHERWOOD, M. P. (2012, 10). Collective Bargaining Agreements - U.S. Department of Labor. Retrieved 11 14, 2013, from digitalcommons.ilr.cornell.edu/blscontracts/: http://digitalcommons.ilr.cornell.edu/blscontracts/
EGAN, B. (2008, 10 01). Effective Negotiation Strategies: Being Prepared. Retrieved 11 14, 2013, from biznik.com/articles/effective-negotiation-strategies-being-prepared: http://biznik.com/articles/effective-negotiation-strategies-being-prepared
WISEGEEK. (2012, 09). What Is Contract Negotiation? Retrieved 11 14, 2013, from wisegeek.com/what-is-contract-negotiation.htm: http://www.wisegeek.com/what-is-contract-negotiation.htm
