1.0 Introduction

Organisational issues, including conflicts and transactions, require a profound approach that ensures the most suitable decision has been made. The strategy should draw from broad evidence and critical thinking, among other skills and competencies (Agndal et al., 2017). For instance, during the procurement and supply process, the interaction between the marketing manager and the supplier should be structured and supported by facts. This ensures that the company works with the most suitable individual for the product or service. In conflict management, the exchange between the disagreeing parties should be founded on sufficient evidence and effective communication that ensures proper understanding of each party for an informed decision. The engagement and interactive approach introduce the negotiation concept, which broadly entails the decision-making approach between at least two parties with opposing expectations. Negotiation is widely applied in organisations and personal encounters to address differences. Another example where negotiation is used is collective bargaining.

1.1 Purpose of the Report

This report entails an individual portfolio and is based on the fundamental elements of negotiation. Experience, theories, and case studies are used to support the findings. The insights drawn from the reflection are described in how they can be transferred into practice and personal development in the field. Critical areas of the portfolio include the meaning of negotiation, fundamental skills, theories, culture and negotiation, and case studies.

2.0 Definition of Negotiation

Negotiation is a broad concept, but the basic tenets are presenting individual interests and perspectives to arrive at a suitable decision that meets all the parties’ needs. A critical insight from learning and experience is that negotiation is anchored on effective communication, critical thinking, and informed decision-making (Li et al., 2018). This ensures that the developed solution is beneficial to every party. The description of the term by Laubert and Geiger (2018) is centred on the outcomes, where each stakeholder’s interests are achieved. However, a key aspect that I have learned is that not all negotiations result in meeting the parties’ needs. Instead, there are situations where one party loses, as described in the win-lose concept in conflict resolution. An example is when an employee engages in malpractice and requests a second chance to continue working in the organisation. Such a request may completely be denied, particularly if another individual needs the position. Also, during the procurement and engagement with the suppliers, I have realised that the company can take a stand and stick by the position, resulting in the supplier lowering the price or establishing new negotiation terms. These two situations counter the assertion that negotiation results in achieving both parties’ goals. The concept supported by the descriptions is that the final decision is arrived after an interactive approach.

Another important insight from experience and literature is that all negotiation situations share a few key aspects. Primarily, the parties are interdependent. This implies that the stakeholders partly share interests. Another characteristic is that every party aims at achieving the most suitable result during the interaction (Enamul and Nilufar, 2018). Also, the stakeholders are individually motivated by their goals and interests and have the capability of influencing each other. From experience, a party’s drive may influence the other stakeholder. An essential aspect of each negotiation is that every party believes that an agreement can be reached. Lacking these conditions mean that negotiation cannot take place. For instance, if the parties do not hope and believe that there is a solution, their commitment and drive towards the negotiation process is impaired.

2.1 Negotiation Skills

Enhancing the negotiation skills has a significant payoff. It allows the parties to arrive at key agreements that can create value and achieve more benefits. In conflict management, these skills are essential in resolving small conflicts before escalating into bigger disagreements. Key skills in negotiation include are summarised in figure 1 below.

Figure 1: Negotiation Skills

An ideal outcome is centred on clear communication between the parties to present one’s concerns, interests, and determine where the boundaries are. Effective communication is central in engaging in informed discussions with the other parties and working towards a suitable solution. From experience, the negotiation process is a give and take approach. As described by Fatehi and Choi (2019), it is essential to articulate thoughts and actively listen to others’ needs and ideas. Without such a skill, key elements in the discussion process can be overlooked, affecting the achievement of the set goals. Another key skill is emotional intelligence, described as the individual’s ability to manage and use emotions positively to avert stress, emphasize with other parties, defuse disagreements, and overcome issues (Schlegel et al., 2018). Emotional intelligence skills foster trust during the bargaining process. The emotional intelligence skill also helps in reading the other stakeholders’ emotions. This helps pick what one is saying besides what is explicitly stated.

Effective negotiations are further based on planning. From experience, planning is essential in providing an idea of what the negotiating parties hope for and the boundaries. The role of planning is to avoid overlooking and assuming the key elements of the negotiation process. Aspects such as influencing are vital in the negotiation process and cannot be achieved without adequate planning, describing the approach, goals, and monitoring and evaluation. The impact of value creation during negotiation is centred on ensuring that the final decision meets the requirements and preferences of the majority. During the negotiation process, each party aims at gaining the most from the relationship (Baranova et al., 2020). This may significantly affect the other party since they will benefit less from the final decision. To avert such a situation, the negotiating parties need to shift the objectives and consider creating value to the other parties. A twofold benefit can be achieved. On the one hand, every party will realise a significant value. There will be trust and rapport with the other party, which can benefit the future discussions.

The role of critical thinking in the negotiation process involves the individual’s ability to analyse the situation, potential alternatives and be open-minded to make the right decision. The negotiating parties have conflicting interests and prefer getting more from the interaction. However, it is important to recognise that there are several possibilities and determining the best alternative is critical. Critical thinking skills help in distinguishing these alternatives in terms of their strengths and weaknesses to select the most appropriate. Critical thinking skills also help in identifying potential biases and determining the relevance of choice (Shonk, 2021). During negotiation, this ensures a fair decision. An important foundation of critical thinking is evidence-based practice (EBP). This involves the use of supporting data and information to make the decision. The final decision in the negotiating process further involves the use of previous experience to ensure the right choice that has been proved to be effective in relation to the specific context.

3.0 Negotiation Theories

Negotiation theories consider the role of the parties’ interests rather than the positions. They help in separating committing and inventing. Among the most significant theories that I have witnessed being applied and effective in the negotiation process is the prisoner’s dilemma, which is drawn from the game theory. According to Helmold (2020),,……………

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