The European Union

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The negotiations are part of our daily life. This is required by these emerging realities in our lives, like multiparty politics and a market economy. Nowadays most of the decisions reached through negotiation, which are assigned to certain hopes, that they will lead to a reasonable agreement.
Modern ways of communication make it possible to solve many business problems, even not meeting with partners. But it is effective only when the understanding has been reached and agreed on the main terms and conditions. In addressing fundamental issues the main role played by personal contacts.

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The negotiations are part of our daily life. This is required by these emerging realities in our lives, like multiparty politics and a market economy. Nowadays most of the decisions reached through negotiation, which are assigned to certain hopes, that they will lead to a reasonable agreement.

Modern ways of communication make it possible to solve many business problems, even not meeting  with  partners. But it is effective only when the understanding has been reached and agreed on the main terms and conditions. In addressing fundamental issues the main role played by personal contacts.

It can be implemented in a variety of forms, from informal discussions to formal negotiations with the pre-arranged agenda. The success of the personal contacts depends on whether it was possible to achieve mutual understanding, and this requires careful preparation of any meeting, even if it is informal.

Although negotiations with business partners are quite often conduct them properly is not easy.

  1. Preparation and negotiation

Preparing for negotiations is usually divided into three stages: on the first stage should be collected all the necessary information to understand the problems faced by participants, identify possible solutions. In the second phase you should consider different options to negotiate and choose acceptable. The third step is to identify the differences in the approaches to the issues discussed and try to understand it.

Practice shows, that when you planning the negotiations, it is important to predict possible response of your partner on suggestions and take into account his own expectations from the negotiations. Therefore, the plan must be sufficiently flexible, but provide answer to all your questions. We know that an unexpected situation can lead to the breakdown of negotiations. To avoid this, you can only prepare alternative proposals in advance.

Any negotiations must be limited in time. No limit on the duration of the negotiations can leave bad impression. It indicates lack of training and formal attitude of the initiator, also it shows professional unpreparedness and inability to make responsible decisions and disrespect to the partner.

One of the conditions that are not acceptable when you contact with representatives of other organizations (companies) is a preliminary agreement on the time and place of the meeting. The negotiations are not always held in the offices. Meetings with business partners in the not official form, are possible in the theatre, a cafe, a sports event, a picnic, etc. The negotiations in an informal setting requires especially careful preparation. It is desirable not to have a plan and documents which confirm your arguments. It is possible that the witness may be representatives of competing companies.

Let’s talk about plan of negotiations. 
It must be consist of:

  • Place, date and time
  • List of participants
  • Issues to discuss
  • Alternatives in case of counterproposals
  • Person responsible for preparation of background materials(example of product, catalogues, advertisements)
  • Person responsible for arrival and departure of other side
  • Person responsible for refreshments.

  In preparation for the negotiations it is crucial the correct choice of language of communication. If business partners are fluent in the same language, no problem. But if the language environment is different, as a rule, negotiations are conducted in the language of the host country with the participation of an interpreter. Sometimes people hide their knowledge in host language in order to hear some phrases which can give useful information or change a solution.

  1. Negotiations

Negotiations should be held in a separate room. Participants of the host side should take their places before coming of representatives of the other side.

Host must present his colleagues by name and position, including invited representatives of another organization. Then the head of other side should present his colleagues as well. If participants of negotiations don’t know each other or met for the first time then they should give each other their business cards. It’s easy to have a conversation when you know who you talking to and know his power and level of influence on the solution.

Regardless of the importance of the negotiations, it should start with informal phrases that emphasize the attention to interlocutors of the host, his personal interest in them. The effectiveness of the conversation depends on the style of it, the content of the questions and the correct sequence of their production. Although the negotiations on both sides can take part several people but usually the conversation must be conducted between the leaders. It is unacceptable, if during the negotiations the head interrupted by his colleagues. Of course, he may give the word to one of them, especially on specific issues, but most of the conversation on a whole range of issues discussed, the master must take on.

 Negotiations must begin from main issues of agenda, trying to gradually reach a consensus on matters of principle. Then we discuss the issues on which agreement can be reached easily and without spending much time, and only then move on to the key issues requiring detailed analysis.

There is a negotiation tactic proven by time:

 - Explain your proposal;

 - Do not promise impossible things;

- Learn to reject impossible demands ;

- Note all what you agree and what you promise;

 - Don't believe the reason for refusal if it is not justified clearly;

 - Don't go to direct confrontation;

 - Hard issues are discussed at the end.

 The method of principled negotiation.

This method involves the desire to find mutual benefit wherever possible, in case when interests do not coincide, it is necessary to insist on the result that would justified by some fair standards independent of the will of each party. This method includes four elements:

1. People. Demarcate the participants and the subject of negotiations. If not directly, then indirectly negotiators must come to understand that they need to work side by side and deal with the problem, not each other.

2. Interests. Focus on interests, not positions. Adopted at the negotiations position often hides what you really want, and hinders the achievement of your true interests.

3. Options. Select the range of possibilities, before you decide what to do. Shortage of time and the desire to find the only one right decision often prevents success of the negotiations. Therefore, it is important to find time to think about wide range of possible solutions that would take into account the common interests and creatively reconcile divergent interests.

4. Criteria. Insist that the result should be based on some objective standard. When the interests of participants in the negotiations are not satisfied, he or she can achieve a favorable result, showing a stubbornness. However, you can cope with such pressure that stubbornness is not a sufficient argument, and that the agreement must reflect some fair rules and not depend on the "Iron" will of each of the parties.

These standards, adopted by all the contracting parties playing the role of the foundation on which to build a mutually acceptable agreement. These standards or objective criteria, may be a common approach, common values, customs, rules, regulations, laws, expert assessments, similar examples and so forth.

These four elements of principled negotiations could be used when u start planning your talks and could be useful till the end of it. This period can be divided into three stages:

  • Analysis ( collecting of information, thinking about it )
  • Planning ( creating of the plan, sequence of offer statements, arguments and counterargument )
  • Discussion
  1. Disadvantages when negotiating

Partner enters into negotiations, without thinking beforehand sufficiently its necessity and purpose, complexity and potential consequences. In this case, he will only react rather than act. Initiative won’t come from him.

The absence of the program. The partner do not have a clear plan of action within the maximum and minimum requirements. It is easier to negotiate, bearing in mind or on paper various options.

Partner is pushing only own interests so that does not leave you any benefits. This divergence of interests is often caused by selfish considerations, blocks him to negotiate at all.

Insufficient preparedness before negotiations. The effectiveness of the talks is reduced when the partner does not have a clear idea of his specific proposals and arguments, detailed requirements and criteria for the evaluation of the subject of negotiations, the positions and the expected reaction of the opposing party

Improper behaviour of one of the partners cause negative impact on the atmosphere of the negotiations, prevents the achievement of their goals.

Partner forgot how to listen or have never owned this skill. This is a condition for the effectiveness of any negotiations.

  1. National characteristics negotiation

Difficulties in negotiations caused frequently by differences in culture.  We can distinguish types of culture in which spoken words perceived without any implication, so called cultures with low level of context (for example American and German). In other cultures, particularly French, Japanese, meaning of context is very important.

 You need to take into account, where participant was born, been educated, living and working now.

Americans not only seek to discuss common approaches in solving problems, but also details related to the implementation of the agreements. They appreciate the openness and honesty of the people, Americans are rapidly moving to the point, without wasting time on formalities.

The British don’t pay special attention to the careful preparation of the negotiation process. Approach to any problem with a fair amount of pragmatism. They think that you can find an optimal solution during negotiations.

The Arabs are trying to establish in the negotiations the atmosphere of mutual trust. At the first meeting they will show partner hospitality and courtesy. They prefer to bargain at the negotiating table to all other forms of cooperation with business partners.

The Irish are the most difficult negotiators throughout Western Europe. Due to historical reasons, they have developed a special model of conduct against foreigners - to do so that not to meet twice.

The Spaniards are sincere, warm-hearted, open, have a sense of humor and the ability to work in a team. Talks with Spanish entrepreneurs usually occur less rapidly than American or Korean.

The Chinese during business meetings are very attentive to two things: the collection of information relating to the subject of negotiation, and the creation of "a spirit of friendship." In fact it's just a good personal relationship between negotiating partners.

 

Koreans appreciate personal contact, direct contact, so without them in Korea can not be solved any major problem. Strike up contact with them in writing is simply not possible.

Germans prefer to start negotiations if they are firmly confident that will come to some agreement with partner. Appreciate punctuality, known for their pedantry; therefore, leading negotiations with them, you must strictly adhere to the protocol.

The French, unlike Americans, are trying to avoid formal discussions of any issues face to face. They like to thoroughly examine all the aspects and implications of the proposals received, so the negotiations with them are in a much slower pace.

Swedes are accuracy, punctual, honest and reliable in all aspects. As a rule, speak several European languages. They like to plan things in advance, so the best business meetings which were negotiated in advance.

The Japanese are hardworking people, committed to tradition, disciplined and polite. Japanese businessmen are used to judge the partner primarily for his membership in a particular group or groups.

Starting negotiations with any representatives of the West or the East and trying to change trying to change in your favor their interests, you should never use tricks that sometimes allow Russians: they say that someone offers them more favorable terms of the transaction. Among respectable people it is considered blackmail and tactlessness. It is assumed that everyone is free to choose their most profitable partner, but to do it with dignity, without offending others.

  All in all, preparations for new deal can take plenty of time, but the decision itself must be taken quickly and immediately implemented.  What is more, one of the Japanese business postulates says that you should respond quickly and act with lightning speed. It is great responsibility because in case of failure you can you can only accuse yourself. That’s why planning of negotiations is the most important stage of it’s preparing. Plan should take into account all issues and problems in which you are interested. It cannot be limited only to a certain date, time and place of negotiations. It generally outlines the main challenges to be addressed, and participants. Having a plan gives artists the confidence in the success of any business.


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