The Art of Negotiation | Golden Rules | Relation to Cost Accounting

Negotiation is a learned art, and with practice, the individual who has no skill and learn it becomes as good as the people born with this gift.

   In the course of our lives we all have, someway or another, to negotiate. From a baby that cries to be negotiated to buy him a toy, the housewife who "bargains" in the market, the unemployed who negotiate a settlement, up to two countries negotiating trade agreements between them.
       There is a lot of what is called a "born negotiator", who knows how to get away with a so charming manner, that not only he is happy, but also the other parties. There are persons that do not know how to negotiate, they only annoy the other participants, and all they achieve is to spoil what little they had.
       People who know how to negotiate their way through life are generally happier and more successful, otherwise those who do not know and always allow abuses of others.
       Negotiation is a learned art, and with practice, the individual who does not have much skill and learn it, becomes as good as the people born with this gift.

For there to be negotiation there must be:

            One: the parties concerned.
            Two: the object or issue that causes the negotiation.
            Three: a final agreement.

       In a negotiation, each party is looking for their own benefit at the time of the dialog to close the deal, this may be a salary negotiation to get a job offer, a negotiation of a dad with his teenage daughter about the time of return of the party, or a negotiation about the benefits that will receive the companies involved in an alliance.
       In every negotiation, each party takes a position and advocates it, the important thing is to make concessions to reach a mutual agreement.

       Broadly speaking there are two types of negotiation: the friendly and intransigent. The friendly way to negotiate is one in which participants are friends, or at least treated in a friendly way. In the intransigent way, participants are adversaries, rivals, or worse, enemies. In a friendly way to negotiate, the goal of each participant is to reach an agreement. In the intransigent way, the ultimate goal is victory over the other parties. In a friendly way to negotiate, the parties rely on the bargaining parties. In the intransigent way the parties are wary of opposing parties. In a friendly way, the parties change their position easily, and in the intransigent way, parties remain firm and immovable in its position. In the friendly way, parties make offers, as intransigent parties threaten. The friendly parties seek the answer that "others" accept, as intransigent parties seek answers to "just accept us." The friendly parties yield to avoid the pressure, as the intransigent parties seek to pressure others. To reach a fair deal for all parties and a successful negotiation, they must take into account that there are only two exits from the mine and the other, we use a lot of creativity to a problem because usually there are many solutions.
       By listening to other participants with attention their needs or likes, in some way we can meet those needs, perhaps we do not involve a great sacrifice, and thus obtain the other party in situations that yield is up to us more so.

The golden rules for negotiating

     One: We must negotiate before closing the deal. If one accepts to purchase a product and after paying you tell the seller "could you make me a discount"? We obviously know already the answer.

     Two: We must seek the common good and not being intransigent, because we ussually have a greater affection for the opposing party than by what is being negotiated, and if not, we must strive to be as fair as possible.

     Three: The trading methods are to carry out a smart and fair agreement for both parties.

     Four: An effective negotiation should improve the relationship between the parties, namely that there should be no resentment because one person felt the other abused his position.

     Five: A grand bargain must be lasting, by this we mean that the negotiations should cover and provide at its most all new items to appear in the future to reach agreement even if the situation happens in either situation A or B. Do not expect to come to new situations to seek new agreements. Yet so many times you can not anticipate all future situations that may come to submit, then you better expect to happen and negotiate again.

     Six: We should seek the common good, is very common for people in negotiations to assume positions and be unwilling to modify even for the common good because it involves a blow to his sagging ego. We must seek the common good and not take general positions for the pride that only cause the failure to reach an agreement fair to anyone, and it damages the relationship. (Not even for the one taking the position).

Relation to the Cost Accounting

       - Negotiation of the cost of raw materials and services to suppliers.
       - Negotiation of price increases of raw materials and services suppliers.
       - Negotiation of wages to employees.
       - Negotiating wage increases for each employee.
       - Negotiation of settlement of an employee
       - Other

     Source:
       Business and Industry Magazine
       Year 9, No. 108, June 15, 2008

THE COSTS	THE ART OF NEGOTIATION

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From a baby that cries to be negotiated to buy him a toy, the housewife who "bargains" in the market, the unemployed who negotiate a settlement, up to two countries negotiating trade agreements between them. There is a lot of what is called a "born negotiator", who knows how to get away with a so charming manner, that not only he is happy, but also the other parties. There are persons that do not know how to negotiate, they only annoy the other participants, and all they achieve is to spoil what little they had. People who know how to negotiate their way through life are generally happier and more successful, otherwise those who do not know and always allow abuses of others. Negotiation is a learned art, and with practice, the individual who does not have much skill and learn it, becomes as good as the people born with this gift. For there to be negotiation there must be: One: the parties concerned. Two: the object or issue that causes the negotiation. Three: a final agreement. In a negotiation, each party is looking for their own benefit at the time of the dialog to close the deal, this may be a salary negotiation to get a job offer, a negotiation of a dad with his teenage daughter about the time of return of the party, or a negotiation about the benefits that will receive the companies involved in an alliance. In every negotiation, each party takes a position and advocates it, the important thing is to make concessions to reach a mutual agreement. Broadly speaking there are two types of negotiation: the friendly and intransigent. The friendly way to negotiate is one in which participants are friends, or at least treated in a friendly way. In the intransigent way, participants are adversaries, rivals, or worse, enemies. In a friendly way to negotiate, the goal of each participant is to reach an agreement. In the intransigent way, the ultimate goal is victory over the other parties. In a friendly way to negotiate, the parties rely on the bargaining parties. In the intransigent way the parties are wary of opposing parties. In a friendly way, the parties change their position easily, and in the intransigent way, parties remain firm and immovable in its position. In the friendly way, parties make offers, as intransigent parties threaten. The friendly parties seek the answer that "others" accept, as intransigent parties seek answers to "just accept us." The friendly parties yield to avoid the pressure, as the intransigent parties seek to pressure others. To reach a fair deal for all parties and a successful negotiation, they must take into account that there are only two exits from the mine and the other, we use a lot of creativity to a problem because usually there are many solutions. By listening to other participants with attention their needs or likes, in some way we can meet those needs, perhaps we do not involve a great sacrifice, and thus obtain the other party in situations that yield is up to us more so. The golden rules for negotiating One: We must negotiate before closing the deal. If one accepts to purchase a product and after paying you tell the seller "could you make me a discount"? We obviously know already the answer. Two: We must seek the common good and not being intransigent, because we ussually have a greater affection for the opposing party than by what is being negotiated, and if not, we must strive to be as fair as possible. Three: The trading methods are to carry out a smart and fair agreement for both parties. Four: An effective negotiation should improve the relationship between the parties, namely that there should be no resentment because one person felt the other abused his position. Five: A grand bargain must be lasting, by this we mean that the negotiations should cover and provide at its most all new items to appear in the future to reach agreement even if the situation happens in either situation A or B. Do not expect to come to new situations to seek new agreements. Yet so many times you can not anticipate all future situations that may come to submit, then you better expect to happen and negotiate again. Six: We should seek the common good, is very common for people in negotiations to assume positions and be unwilling to modify even for the common good because it involves a blow to his sagging ego. We must seek the common good and not take general positions for the pride that only cause the failure to reach an agreement fair to anyone, and it damages the relationship. (Not even for the one taking the position). Relation to the Cost Accounting - Negotiation of the cost of raw materials and services to suppliers. - Negotiation of price increases of raw materials and services suppliers. - Negotiation of wages to employees. - Negotiating wage increases for each employee. - Negotiation of settlement of an employee - Other Source: Business and Industry Magazine Year 9, No. 108, June 15, 2008