Negotiation of Order

Posted in Human Resource Terms, Total Reads: 241
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Definition: Negotiation of Order

The negotiation of order is a procedure by which 2 parties try to put their best options forward & try to arrive at a bargained situation, which is beneficial for both the parties in the negotiation.


Structure for a negotiated approach

1. Understanding the objective of the negotiated situation

2. Understand the other party’s point of view, helps in understanding what the opposite person wants from the deal

3. Besides that reacting sensibly, being patient & confident helps in negotiations

4. Also understanding where my situation stands, compared to other party is crucial


Approaches for Negotiations

1. Sharing information/Explaining my stand

2. Knowing the priority list as it stands

3. Knowing the BATNA of the other person as well as yourself

4. Keeping the offer price High & then going for a counter price.


Advantages

1. Often negotiating on an offer gives the best value out of it, for there is resistance on both the sides

2. In many cases it may prevent a future conflict that may arise

3. Preventing oneself from making a bad deal, without any idea or taking anything on the face value.


Disadvantages

1. It may sometimes lead to a deadlocked situation

2. In many cases negotiations doesn’t work, just because of the parties involved in the decision making process.

Thus, while negotiating on any offer or for better deals it is imperative to understand where you stand & to what extent you can negotiate that order.

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