Psychological Aspects of Negotiation

Abstract

Negotiation in business is a process of communication between two or more parties to a transaction with the aim of reaching an agreement on predetermined important issues of mutual interest to all participants. Michael Porter, an American economist and professor in the Department of Business Administration at Harvard Business School, noted that bargaining power is one of the strongest competitive advantages for both buyer and seller [1].Business negotiations involve diverging or even conflicting interests between the parties and require the parties to reach a reasonable agreement. It is difficult to reach a reasonable solution, this requires cooperation of the parties, when there is a convergence of interests and mutual benefit is sought on the basis of a mutually acceptable option for resolving a controversial issue.Possession of negotiation skills based on psychology helps to achieve positive results in the professional activities of individuals, organizations and in personal life. It is important for negotiators to understand the negotiation process, possess the skills of persuasion, goal setting and building trust with partners [2].In any negotiation, the following three elements are important, which can affect their final result [3]: attitude (to the negotiation process itself, to the problems under consideration, to the persons participating in the conversation), knowledge (the more knowledge, the interlocutor has on the issues under consideration the greater his participation in the negotiation process), interpersonal skills (including verbal communication, listening skills, politeness, problem solving, decision making, assertiveness). There are many psychological techniques used in the negotiation process at different stages. To conduct effective negotiations, the following psychological rules are observed:-containment of emotions: during negotiations, one should not succumb to emotions, let them dictate their approach to issues, since this not only prevents the formation of a correct judgment, but can also complicate the negotiation process or completely interrupt it; it is necessary to remain calm, to maintain a benevolent, polite, respectful attitude towards the interlocutor, even if he does not; harshness, aggression repel people and make negotiations difficult. Understanding the psychology of communication, the ability to manage emotions and behavior can help assess the needs of another negotiator, set the emotional tone of the discussion, satisfy the interests of the participants, build relationships with partners and come to a mutually acceptable agreement;-observation: it is important to perceive the behavior, mood, feelings of the interlocutor, therefore it is necessary to observe the opponent's body language, tone of voice, choice of words. In case of discrepancy between verbal and non-verbal