INTRODUCTION

Whether people like it or not, they are negotiators. Negotiation is an obvious thing in life such as: a
negotiation with boss about raising salary, a negotiation with customers about products, services
which the desired price or a group of oil and mining companies make a plan to found joint venture
in offshore oil exploration, Minister of Foreign Affairs of United States met the Soviet Union to seek
agreement on nuclear weapons, a negotiation among countries on WTO accession, or simply lovers
negotiate with each other the place to hang out and what to eat. All these are negotiated.
Negotiation is not a process reserved only for the skilled diplomat, top salesperson, or ardent
advocate for an organized lobby; it is something that everyone does, almost daily (Lewicki et al
2011:2). There are existed more situations which need to negotiate, however not much of
importance is attached to negotiation in day-to-day life, because it is almost a routine affair (Singh,
2010). Although negotiation happens daily, however how to achieve effective negotiation is not
easy. Especially in business, the desire of every enterprise is to get highest profit. This depends a lot
on diplomatic, negotiation of entrepreneur on market.
Economic negotiations is only really rich, diverse and promote its important role as social
production development at high levels, commodity producing more and more, the production and
business activities, exchanges take place not only on strong national scope, but also in the whole
world. In term of integration, negotiation is more developed, more complicated.

MAIN BODY
1.1 DEFINITION OF NEGOTIATION
Mentioned about negotiation, perhaps many people know; but the true meaning of what it is, reflects
what specific concepts then there are very few perfect answers. Negotiation is a process by which
two or more parties each which its own goals & perspectives coordinate areas of interest through
concessions & compromise to reach an agreement and take the joint decision about areas of
common concerns in a situation in which neither side has nor wants to use power (Kavita Singh,
2010). In simplest terms, negotiation is a discussion between two or more disputants who are trying
to work out a solution to their problem1. That means if the problem has not been resolved
1 "Negotiation," International Online Training Program on Intractable Conflict, Conflict Research Consortium, University
of Colorado, [available at: http://www.colorado.edu/conflict/peace/treatment/negotn.htm]

successfully in fact, the negotiation process has not ended. It is like when two or a group of people
want to share a basket of oranges which are very precious and rare, but who also want to share more,
civilized people do not support the use of violence, thus invented negotiation. It is also demonstrated
by Robbins SP., et al (2001) that negotiation is a process in which two or more parties exchange
goods and services and attempt to agree upon the exchange rate for them. By negotiation, common
interest will be met and the solution will achieve the most satisfied. If done well, negotiations could
sight the relationship between the parties and lead to understanding and respecting each other
deeply, if both parties desire to maintain long-term relationships.
According to Fisher & Ury (1991), negotiation is basic method to achieve what we want from
others. It is communication process designed to reach an agreement between us and the other party
which has the right to share and countervailing benefits. Negotiation situations have fundamentally
the same objectives whether negotiation of countries at war, they negotiate for business contract
between buyer and seller or labour conditions between management and labour, negotiation in
finding sponsor organization for huge event which is including to apportion benefits and to resolve
conflict.
The terminology and different expressions used in conflict resolution to describe the needs and
desires. Corresponding to the desired position in which parties want to win the conflict whereas the
need corresponds to the fundamental benefits of their own. The negotiators expressed variety of
different desires depending on perspective distribution of benefits. In international business,
negotiation is an indispensable activity and is particularly important.
1.2 NEGOTIATION AND CASES
Whenever the need, the desire of a personal conflicts with the others, this is a start for negotiation in
order to satisfy all the demands, maintain the relationships and achieve agreement. Everyone wants
to participate in the decisions that affect themselves, very few people accept a decision to be ruled
by others. People who do not like someone, they negotiate to resolve these differences. The real
world is a huge negotiating table and the negotiations may occur in the conference, on the table, the
light and the darkness. Negotiations are on political, diplomatic, military, business as well as other
subtle.
Gosselin (2007) affirmed that when considering about negotiation, there should be addressed in term
of a workflow rather than a game. There are numerous situations which can be handled by
negotiation. Three main aspects of negotiation are mentioned:

Personal situation: the individual client has large negotiation enough to allow negotiating

such as buying a car, house or other valuable assets.

Organizational situation: there is internal aspect where management and staffs represent
basic business functions such as setting goals, negotiation in company, negotiating about
resources or external aspect such as the meeting between two or more parties in business

contract
Client situation: appropriate to the sale of products or services with long-term relationship to
different customers.

The negotiation in business is price. The desire of buyers and sellers are different. Seller wants to
increase price while the desire of buyer is reducing price (or unchanged). It is reason for a
negotiation occurs in every purchase process.
The negotiation is in management of an organization. Management has always happened in the
negotiations both internal and external affairs. A typical case describes the contrary between two
sides labour and management. For the vast majority of organizations, the cost of the people who
do the work is the largest single item of operating costs (Brewster C., et al, 2011). An industrial
manufacturing firm, income depends on many factors, including the cost of inputs. In many years of
rising profits, unions and organizations representing the interests of workers stand up to require
redistributing profits by increasing the auxiliary bonuses and threatened to strike if their demands
were not met. And the relationship between worker management changes depending on
circumstances which can be stressful and suspect each other despite the financial situation of
enterprise is still bright. The firm continue efforts to increase the production according to the
program orientation for years.
The negotiation will certainly happen when leaders intend to set up improvements payment system,
which will apply a change of increase rate wage associated with the production results, however to
reduce minimum the wage. The discussion will focus on the rate of wage increases. When
discussing about the increasing rate of wage, as usual every year, both sides get 5% as a basis for
discussion, but the process is quite tough debate, both sides come to an agreement at the level of 2%
- 3%. The two sides exchanged views of each other and the familiar tricks of the Trade Union are
threatening to strike. Leaders of enterprise do not avoid discussion, proposed a new wage policy,
implemented in many years, and is to determine the income of all workers in accordance with the
results produced of enterprise. Applying this principle, the board gave the Union to discuss a
fundamental change in the way paid in the period of transition, with some assurance. Changing the

negotiating positions of the annual salary rate by introducing a new wage policy initiative by the
leader led discussion on how to apply the new payment period which extend to over a number of
years. The change of negotiation content led to the parties expressed satisfaction at the higher level
than an initial. So to avoid a conflict, people do turn things around in many ways in order to
facilitate cooperation between the negotiating parties.
Negotiation is not only just related to business activity, it is a basic human activity (Ghauri &
Usunier, 2003, p.3). You have been driving your motorbike for many years, and spent a lot of money
to repair and now it doesnt work anymore. And now you are attracted by the new vehicle
advertisement and the program of exchanging new motorbike. At this time, you also discover that
you have not been able to pay the difference when changing vehicles. Therefore, you decide to go
into negotiations with shop owners in order to get the new car.
1.3 NEGOTIATION AND SKILLS
From the above cases, it can be seen that although staying in different situations, the objective of
negotiations is still to go to the agreement, therefore it is also has certain basic rules and skills in
negotiation.
The globalization of economic and business activity, now more than ever before, requires people
from all disciplines and professions to make deals with companies and organizations throughout the
world (Salacuse, 2003, p.viii). Therefore, in order to be successful in negotiation, negotiators must
be steadfast, prudently protect their rights, and must know how to respond flexibly, creatively in
each particular case. Negotiation is a process of discussion, agreement between the parties to come
to consensus, so negotiation is process of making the request, accept concessions if successful, each
party will achieve the purpose for each side, rather than the process of insisting on protecting their
rights. Therefore, moreover, they must prepare carefully, thoroughly, building negotiation objectives
in science way, prepare solid argument to convince partners, steadfastly defend goals. At the same
time, negotiators must be quick, flexible, analyse and discover the plan of partners, bringing greater
benefits to the parties, in some case should be subtle changes, accept the partners plan to achieve
the ultimate goal is the successful negotiation.
Negotiators must know to harmonize the protection of interests in maintaining and developing
relationships with partners. Negotiation is a process of exchange and discussion between the parties
convinced that between them have in common, but also have point of disagreement, to expand
common the mutual and narrow section of disagreement to go to unified comments. Successful

negotiation is just to keep relationship as well as keep the benefit of the parties; therefore
negotiation is agreed process between collaboration and conflict. In negotiation, must be
avoided: negotiating style is too soft, just keeps focused relationship of the two sides without
regard to their position, leading to an opponent being pinched, from this concession to the others,
eventually suffer despite of was going to agreement. On the contrary, it should not be hard,
insisted protect its position as the talks broke; the corporation was too pressed to perform well.
In international business, the negotiators need to ensure the role mutually benefits. According to
Nierenberg (1990), negotiation is not a game of chess, not to fight a treasure winner, nor a battle to
destroy or put the opponent until die, which is negotiating a mutually career benefits. Negotiators
need to protect their own interests, in the identified range which can be found the most benefits, on
the other hands, any one always satisfy the lowest needs of the enemy.
Particularly in international business, negotiation is an international exchange activity, so it depends
much on the political relations and diplomacy of the countries concerned. When negotiating with
foreign companies, you need to abide by good way, foreign policy related to the country. At the
same time, to learn the ways, policies, legislation and regulations regarding to import of partner
countries, so as not to violate, to prevent risks.
In order to be successful in negotiation, negotiators need to know how to apply the strategy in
different situation and use basic skills to achieve the goal depending on different negotiation
situation that was showed by Nierenberg (1990)
-

Cooperative strategy: the approach of the negotiations for the conflict is resolved it but
retains personal relationships and ensure the two sides to achieve their gals. Here is the

cooperative solution that requires the two sides hold the view win win.
Compromise strategy: To find a solution to achieve win win is impossible, the
negotiators towards an outcome includes a small victory and a small portion of losses.
Persuasion and influence to pull this style. Compromise situation means that two sides

accept and make a point of win less lose less

Mediation strategy: The approach of negotiators to conflict is to maintain the personal
relationship by anyways, less related or no relation to purpose of the parties. Concession,
compromises principle and avoid conflict is seen as a way to protect relationships. Here is

the unyielding or lose win when the opinion of negotiators is allowing the others to win.
Control strategy: the negotiators approach conflict is to understand the steps necessary to
ensure satisfying personal purposes, even spend the relationship. Conflict is seen as a
statement win, must be win in any ways. This is a negotiated settlement that use any physical
force as appropriate to defend a point of view that they believe is right or trying to win.

Avoiding strategy: the negotiators consider avoiding conflict. Central theme of this style is
elusive, it produces disappointing results is entirely for the parties involved. The purpose of
the party is not met, nor maintains relationships. Here is the point of withdrawal, in which
the views of the negotiators is to retreat, accept defeat, allowing the other side to win the
honour

An emphasis on strategic behavior is central to the micro-political approach (Edward, et.al, 2007).
Depending on place, time and behaviour of the other party, as well as how the negotiators protect
their own interests, they choose the suitable strategy, the resource and the resolution of conflicts to
ensure the right and success negotiation. And the result is successful or not, it also depends on the
skill of negotiators during doing the negotiation. The negotiators should master the art of negotiation
in fluent speak, natural intonation, volume matching. Secondly, the negotiators should create
understanding by concentrating to listen, take notes, creating rational space for negotiation and
especially do not despise enemy. Moreover, the negotiators should pay attention in body language
including to build relationships first, judge the perceived of enemy, observe the change of opponent
and learn the culture of negotiation in different countries.
CONCLUSION
In summary, everybody in life is negotiators, however to become a leading in negotiation, it is
needed to determine certainly the elements which affect to negotiating process and apply well the
rules of negotiation then achieve the success in negotiation. Essentially negotiation is behaviour and
process in which the parties will jointly conduct exchanges, discuss the conditions and measure to
jointly deal and agreed the problem, situation that they are as close to their expected benefits as well.
And reached agreement is the success of the parties. Negotiation is indispensable in life, including
career, business, and politics, social or even personal life whereas people face to negotiation every
day. The results affect directly to the benefits of negotiators and others around. Therefore the study,
master the art of negotiation is extremely important. It helps negotiators enter negotiations with
confidence, grasp every opportunity to win and avoid the mistakes leading up to the failure. The
success of negotiation depends largely on preparation, bravery and experience. Through the above
analysis, in order to achieve success, negotiators need to capture the essence of negotiation, clearly
define objectives and outcome to be achieved, which sets up the science negotiation process,
efficient and flexibly use of skills support. There is a rational process with good skills to help the
negotiators are carried out quickly, accurately and promptly remedy the problem, bad situation occur
which affect the negotiation process.

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