Business Negotiations: Basic Concepts of Psychology of Communication

Negotiation is a business-style communication aimed at working out a joint decision. A person his life enters into negotiations to solve certain issues and makes commitments and promises. When two parties want to find an option that suits them both, they have to resort to negotiation.

📌 Negotiations

The transactional analysis says that it is possible to agree only if both parties are “adults”. If one participant takes an “adult” position in workplace negotiation, their partner’s transition from the position of a “child” or “parent” to an “adult” is inevitable. This is extremely important because otherwise he or she will try to either manipulate or pressure. Effective resistance to manipulation is possible only from the adult position. The duration of caprices cannot be long due to the “child’s” limited strength and patience. Manifestation of the “parent’s” dictatorial tendencies in negotiations is inappropriate.

📌 Negotiating process

It is possible to obtain a positive result from negotiations only if the goal and the criteria for achieving it are clearly defined. If there is no goal, the agreement is very likely to be signed on the terms of the opponent. It is always necessary to work out a plan B in case something goes wrong. This is necessary to defend at least part of their interests and allows you to be confident. A partner’s uncertainty is always very noticeable and can be very costly.

It is also recommended to carefully work out the scenario of negotiations and distribute the roles of participants in them, then the team will have fewer doubts about success, and the process will go more dynamically. The distribution of functions is also important.

📌 Negotiation table

It is necessary to clarify in advance where the negotiations will take place. Arrive early to mark out the territory. Already on the spot, it is necessary to finalize the scenario, to decide where the team members will sit. This includes psychogeography. Those who have extensive experience in negotiating tend to take the right seat at the table because they know how important it is. Such a move gives you an added advantage and makes you feel more confident.

📌 Negotiation Status

In the planning and preparation phase of negotiations, the statuses of participants on both sides need to be clarified and agreed upon. If one company is represented by the first person, and the other sends a deputy or just a specialist, the balance of the process will be out of balance. In that case, only intermediate results can be achieved, or it’s a different scenario altogether.

It will not be possible to solve if the representatives of one of the parties do not have enough authority. As the status of negotiations increases, so does the amount of formalities in them: it is required to make nameplates for seating, to comply with regulations, to keep minutes, and to sign a contract or an agreement of intent.

📌 The power of the negotiating position

Power here is a figurative expression. In reality, a strong negotiating position means allowing the partner to maximize his or her advantage in accepting the offer. However, the strength of bargaining power can also be expressed in the ability to cut and walk away from negotiations if the other party has made an unacceptable offer or violated business ethics.