Negotiation refers to a dialogue between two or more parties that is intended to bring about a particular outcome or reach a point of agreement. The outcomes from negotiations are always aimed at satisfying particular interests between the negotiating parties through a mutual agreement. According to Davis, Fanning, and McKay (2009), negotiations commonly occur in business organizations, legal proceedings, and even among countries. Therefore, individuals are supposed to develop and uphold the best negotiation skills, which will ensure that they succeed in achieving their interests. More so, companies must be careful enough to select individuals whom they believe would be the best negotiators in the pursuit of their interests. For instance, the financial institution appointed Sandra due to the belief that she was the best negotiator.
This essay explicates the case study relating to Sandra’s negotiations with an independent agent on behalf of her financial institution.
The key problem that can be identified from the case study is that the financial institution in which Sandra works is experiencing an immense shortage of investors. This has led to consistent poor performance by the institution as it lacks the boost from investors. The main facts of the case study begin with the shortage of investors at the financial institution. The shortage of investors necessitated the promotion of Sandra to a managerial position, which entails engagement in major negotiations. Unsuccessful negotiations would lead to a greater loss of investors by the financial institution. Sandra’s negotiations involve an independent agent who recommends the institution to many international investors. On the other hand, the agent threatens to stop recommending the institution in case it does not improve its customer service. Sandra believes that she is an excellent negotiator prior to meeting the agent. During the negotiations, she is a bit shocked because the agent is not Australian and she was skeptical about the treatment of women in other societies. They start the negotiation, but Sandra is disappointed when the agent walks away claiming that she is not negotiating. Sandra is left confused and does not understand what the independent agent meant that she was not negotiating but pursuing personal interests. Dwyer (2004) reiterates that the misunderstanding could have been caused by the independent agent’s misinterpretation of Sandra’s negotiation skills. The impact of this failed negotiation is that Sandra’s financial institution would lose many key investors that were supposed to boost it in terms of finances. This could lead to increased losses by the Company. Fells (2012) is of the opinion that the Company may decide to fire Sandra if it will be alleged that she talked rudely to the agent whom she was negotiating with. The independent agent, on the other hand, may end up losing many investors. Most of them may lose interest in further representations that the agent may be willing to make because of the failed deal. Thus, both parties may end up with negative results.
Dwyer (1993) asserts that some of the key solutions to the problem include upholding of the relevant negotiation skills such as accommodativeness, improving disclosure of the institution’s data, and eliminating any gender or cultural differences for neutrality. These solutions could play an instrumental role in solving the negotiation problems witnessed between Sandra and the independent agent. Gates (2011) observes that the upholding of the relevant negotiation skills such as accommodativeness is advantageous because it would ensure that there is easier understandability among all individuals. It is disadvantageous in the sense that it may not be easily adhered to, especially where one is not a patient. The improvement of the disclosure of the institution’s data is also an advantageous solution because it would have boosted the agent’s confidence in the institution. On the other hand, it is a disadvantageous solution because it may expose the institution to the threat of rejection of investors and increased competition. The elimination of gender and cultural values is advantageous because it ensures that there is neutrality in the negotiations. Each party is able to appreciate the other without any problem. It is disadvantageous as it could lead to the favored party taking more advantage over the party considered minority.
According to Hastings (2000), the best solution to the problem could have been full disclosure of the institution’s information to the independent agent. This is the best solution because it could have satisfied the agent’s desire to understand the institution better. These details could have prevented the institution from losing other potential investors that could have played an instrumental role in boosting its financial position. This solution can be implemented through enhancing trust between the agent and the Company. Lyons (2007) affirms that the lack of trust in preserving the confidentiality of the Company’s information would lead to the loss of vital details. The key course of action for implementation would entail upholding the truthfulness of the solution and being fair in its implementation.
In conclusion, negotiation is the process of trying to reach an agreement relating to a particular issue. Negotiations are usually aimed at satisfying particular interests of the negotiating parties through reaching a mutual agreement. Schiffman (2010) holds that companies must ensure that they adhere to the principles of an effective negotiation, as this would enhance their success. Therefore, individuals are supposed to develop and uphold the best negotiation skills, which will ensure that they succeed in achieving their interests. More so, companies must be careful when selecting their representatives in negotiations. Proper negotiations must entail accommodativeness and appreciation of each individual of the agreement.