Life is a series of negotiations because we go through a series of natural and spontaneous changes of which success is not always an outcome.  An average adult makes about 35,000 conscious decisions each day. Each decision, of course, carries certain consequences with it that are both good and bad. We encounter several negotiation situations each day, each moment/each hour. Yet, most people misunderstand a negotiator as someone who can manipulate people into getting what he wants. 

What we don’t realize is that almost every conversation we have, each day, is some kind of negotiation. We all use our strength to tackle all kinds of situations, we go through ‘highs and lows.’ We go through moments when we feel a sense of loss, confusion and self-doubt. In times like these it is only our determination that comes to our rescue and helps us to stand tall and save our self-worth.

Negotiation is a dialogue between two or more parties to resolve points of difference, gain an advantage for an individual or group of people for positive outcomes to satisfy various interests. The parties aspire to agree on matters. Whenever there is a want, desire or a need present on either side, we are in a negotiation. And we every day have wants, desires and  needs. The thing that trip up people is they knowingly or unknowingly get into action of negotiation as bargaining. For example, buying vegetables, fruits, milk, eggs, bread, what to cook for meal, getting the house cleaned from maids, getting the garden watered, which mattresses to use on bed, when to change curtains of windows, whether to attend a function or not, planning a holiday, planning a function ….so many negotiations we conclude before making decisions.   

There are bigger negotiations we go for such as: buying a car, negotiating a salary, buying a home, renegotiating rent, choosing a life partner, investment decisions, health related decisions etc. As we mature in life, we take emotional intelligence and intuition to the next level, before negotiating.  Emotional intelligence is critical for mastering negotiation skill. Emotional Intelligence is the ability to manage both your own emotions and understand the emotions of people around you.

We learn to negotiate better when we go with an open mind, we think and plan, when we articulate our thoughts, we succeed. Perseverance is most important requirement while negotiating. When we detach ourselves from the result negotiation works out better. Also, any negotiation is not one sided, we should think about other side too. A very important point is at times we get confused with want exactly we want. knowledge of the subject matter being negotiated, ability to think clearly and rapidly under pressure and uncertainty also matters. Most important skill in negotiation is listening skill.

In business negotiations most negotiations are sharp but need to be dealt with calm and composed mind, carrying the figures in head, quantifying every trade-off is fundamental to the deal. Or that’s what the science of game theory says. In real life however, people are not always rational under pressure, when time is short, and the stakes are high. In business, the biggest challenge in a negotiation is to stop emotions from overtaking logic.

Warren Buffett is one of the world’s most successful investors and has built an impressive, estimated wealth of $85.3 billion. He has also earned a strong reputation as one of the world’s most skilled negotiators. Buffet is known for doing his research and preparing for negotiations with meticulous detail. His ability to identify value, negotiate favourable terms, and build strong relationships has been key to his incredible success in the business world. He keeps his ego out of the door. He is ruthlessly unemotional while negotiating.

Indira Nooyi, CEO of PepsiCo is known for her flexibility during negotiations. She always was open to alternative solutions and willing to adjust her stance based on new information or changing circumstances. This adaptability allowed her to navigate complex deals successfully and overcome unexpected challenges.

Nooyi believed in thorough preparation before entering any negotiation. Whether it was a merger deal or a supplier contract, she ensured that she and her team were well-informed about the industry landscape, the counterpart’s interests, and potential areas of compromise. She always built strong relationships with stakeholders.  She looked at alternative solutions willingness to adjust her decisions based on new information or changing circumstances. Also, her communication skills made her a popular leader.

When we look at negotiation, it’s basically discovering what the other side wants, we must try to uncover their reasoning and motives. Nelson Mandela is remembered for being one of the most talented negotiators in history. He served as the first president of South Africa from 1994 to 1999 and used his strong negotiation skills to fight apartheid and secure a more peaceful society for millions of South African people. Mandela is well known for his resilience, patience, and strategic thinking. It took him decades to achieve his goals, and his focus on the greater good played a crucial role in ensuring a peaceful transition to democracy.

When we don’t recognize a negotiation as a negotiation, it’s much harder to be successful in it. In both personal and professional realms, the ability to negotiate effectively is an art and science. Science as a metaphor for negotiation emphasizes the strategic, analytical, and data-driven aspects of negotiation. It highlights the importance of preparation, research, and understanding the underlying dynamics of negotiation that can make the difference between success and failed opportunities.

Life is a chain of negotiations. Negotiation begins from the morning we get up till we go off to sleep. We are negotiating every day; from buying vegetables, fruit, groceries, hiring domestic help, buying gadgets, clothes, entertainment, accessories, car, home, taking a job, marriage, child’s admission in school/college, tuitions, you name any matter in life, we are busy negotiating. Negotiation is one of the most common activities in the history of mankind and it is important for our survival. Negotiations don’t always happen as per our information, determination, our opinions and perceptions. It is always better to frame the negotiation around mutual interests. Negotiation is a skill. Exposure and experience help in enhancing the skill of negotiation.

Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding arguments as much as possible. In any disagreement, individuals justifiably aim to achieve the best possible outcome for their position (or an organization they represent). However, the principles of fairness, justice to seek mutual benefit and maintaining a relationship are the keys to a successful outcome.

Children from age three start understanding the art of negotiating. I don’t want to go to school, I don’t want to get up now, my friend is nasty, and my brother is not good, I will not drink milk if you want me to do this – first do so and so for me. The reality is that every individual is different and has different needs and wants. And, every individual responds, agrees and disagrees differently. Each person negotiates in a different way.

The simple fact is that we negotiate each day at every level in life from our childhood till we die. From talking to the gardener to water the plant for five minutes extra, at the airport bypassing the security line, at the cinema hall asking a stranger to buy tickets because he’s slightly ahead of you, asking ten more questions to doctor after basic problem resolved, talking to the housing society secretary about giving few more services in the maintenance charges – we use methods and tactics to get what we want and how we want things. Hence our life is full of events from small to big that require us to negotiate. Be it our personal life, social life, and professional life – everywhere we want the best!

So what do negotiate all through our lives? We negotiate happiness. We try our best to get things that will make us happy. We all know that we do need to stand up for our own advantage and rights. Hence we negotiate to survive during all good and bad times in our life.

A good negotiator is open-minded, charming, articulate, experienced, patient but assertive, flexible and understands the other side well. A good negotiator is the one who does his homework well before discussions. He knows when to close the negotiation because it cannot be a continuing process. Any negotiator has its limits. A good negotiator is empathetic, he responds by acknowledging the behaviors, values, and goals of others. While he respects himself, he respects other’s feelings also. Knowing how to negotiate lessens the chances of others taking you for a ride. Remember, negotiating a fair solution makes you feel good about yourself and increases others’ respect for you.

A rational negotiation is often optimal for both parties. It is presumed that both parties will act in balanced manner. But, from the history of mankind we have seen that people frequently act irrationally when they negotiate and it is difficult, if not impossible, to quantify human emotions with any formula. We wonder at times why few people change or abandon their ideas and principals easily – they talk something and do exactly different.

Assumptions, reasoning, beliefs and uncertainties make negations trickier. Even with the best preparation, you may not always be able to negotiate a successful outcome. Having an alternative plan always helps. It reduces your own internal pressures. I always have liked this quote by John F. Kennedy “We cannot negotiate with people who say what’s mine is mine and what’s yours is negotiable.”

And, a worst alternative to a negotiation is canceling or delaying an activity. Therefore, master the art of negotiation.

Since the 60s the idea of single monoculture is on a slow extinction.  It has given way to pluralistic society that continues to evolve through cultural integration and influence.  These changes are evident in fashions, dietary habit, entertainment, music, literature and sports.  Diversity adds spice to life.

Distinguished management experts have asserted that diversity in organization is a good thing because it forces teamwork, because people know that they must cooperate with each-other to get results, and for a cohesive work culture. Designing and maintaining a consistent workforce with diverse features is a tough managerial task.  Diversity in organization occurs when the organization hires people who have a broad range of background, when the demographics vary on a large scale with difference in age sex, culture and physical challenges.  Cultural ethnicity is one major issue, which needs to be handled with care.  When the pool of resource is large and diverse in nature maintaining equality is a hurricane task.  The reality of globalization is that the boundaries of nations have shrunk, communication speed has increased and the entire world has become a global village.  It is important therefore we respect, accept and celebrate diversity.

Chester Bernard, author of the management classic ‘The functions of the executive’ has described informal organization as any joint personal activity without conscious joint purpose, even though contributing to joint result.  Thus the informal relationships established in-group of people during various celebrations like a dance party, a birthday celebration or a wedding anniversary may aid in achievement of the organizational goals. Globalization, migration and communication challenge organizations to develop broad perspectives of management.  Organizations have to mix and merge people from different parts of world for various operations.  People accept change in cultural diversity if it is a non-issue.  Organizations should constantly but subtly   coach its people to accept change in and around them.

Progressive companies all over the world recognize the advantages of integrating worker from culturally diverse backgrounds. These companies view diversity as a business plan as in today’s global marketplace companies interact with different clients with cultures and different code of conduct.  In the early stages, International business was conducted with an ethnocentric outlook that means the orientation and type of operation was based on the parent company.  The modern multinational corporations have geocentric orientation. The total organization is viewed as an independent system operating in many courtiers.  The relationships between headquarters and subsidiaries are collaborative.  Communication flowing from both directions encourages viewpoints of workers at all levels.  Furthermore, managers of different nationals occupy key positions.

In short, the orientation of multi-national corporations is truly international and goes beyond a narrow nationalistic viewpoint. MNCs have recognized the business opportunities in many different countries.  It can raise money for its operations throughout the world.  Moreover, multinationals firms benefit by being able to establish production facilities in countries where their products can be manufactured more effectively and efficiently.  Companies with worldwide operations sometimes have access to natural resources and materials that may be available to domestic firms only.  Also a large MNC can recruit management and other professionals from a worldwide labor pool.   Companies have recognized the various pros of diversity.

 Increase in Creativity: When different people are put together towards a common solution there is no one best answer to any question because the organization can obtain more and more ideas.  Different cultures of the employees can offer insightful alternatives to a problem.

 Increase in Productivity: When people of variety of culture and variety of backgrounds are made to work together it increases their productivity exponentially. This happens because it kills monotony of work culture, brings freshness in work atmosphere.  Different people have different styles of performing work.  Every employee motivates the other with his difference of style.

Negotiation skills: Negotiating is a part and parcel of life.  Everyone is busy negotiating on some or the other matter.  Every culture has it own philosophy on negotiation.  Americans hate negotiating, they rarely negotiate; you will find them negotiating except for buying a car or a home.  But when Americans have to work with different cultural backgrounds of co-workers they realize the art of negotiation.  Negotiation should always be a win-win situation.  There should be a common ground for negotiation; it should not leave a feeling of hurt on any party.  Germans are called tactful negotiators.  So this can be learnt when diverse people come together to work.

New Business Processes:  Diverse people have diverse attitudes to business.  Companies need to adapt newer business skills and newer processes.  The cross-cultural workforce can bring in better and newer work processes.

New language skills: People can learn new languages while working in organization from their co-workers.  By learning each other’s language the barriers can be reduced.  The companies pay a high sum to language interpreters.  By motivating people who love to learn new languages, companies can curtail expenses.  By learning new languages people can get insight of other countries.  They can improve their communication skills.  After all multi linguistics are always preferred by an organization.

But, Prof.Stephen Bainbridge of University of Illinois Law School argues that homogeneity should be maintained at the workplace as it increases productivity and profitability.  He further states that people feel at home while working with people like them therefore they work more effectively.   He recognizes that people have problem communicating their idea and emotions to people from diverse cultures and backgrounds.   It is a waste of time and energy to work on diverse workforce he comments.

 Prof.Ron Burn a Professor of Sociology and Strategy at the Chicago Graduate School of Business has published several papers on diversity.  He is of the opinion that diverse workgroups are more innovative as they not only have more variety in experience but they are also connected to different source of information in their environment.

Kent State University located in the heartland of America allows students, faculties and staff to learn about variety of cultures from around the world.  Dr.Sheryl Smith – an Associate Dean of students and Director of Campus Life says that the university environment encourages students to explore and understand and appreciate the difference and similarities among cultures especially with diverse student organizations   through events sponsored by these groups.  Students, faculties and staff can experience food, music, dance and sports from wide variety of culture.  The philosophy is simple: students will have to work some day with people of different culture and they will encounter differences.  They should feel at ease and poise when they enter their professions.

Managing cultural diversity is simple.  We all need to address the myths, stereotypes and cultural differences that interfere with our daily chores.  The age-old gender fact that only male and females exist in organizational workforce has lost ground; today we have gay and transgender individuals making vital contributions to our economy. Nations and workforce are both becoming more diverse. The share of people of different color, cast, creed, religion, tradition, language, diction, practice, and ethnicity is part of organizational workforce.

 We are witnessing more women entering the labor force; while taking increasingly the forefront. They are occupying vital roles and are the decision makers in more organizations. It is an open fact that businesses that embrace diversity have a more solid footing in the marketplace than others. Whatever color, black or brown or white.  That is it.   The word “global village” may appropriately describe the world we live in today.  The fiber optics, aerospace and computers link all that exists is a part of our lives. The geographical boundaries are shrinking day by day.   Let’s give up obsolescence and move on to improve productivity.