Negotiations take place every day in the business world because entrepreneurs have different opinions. The primary condition for a negotiation to take place is that there must be conflicting interests on both sides of the contract. The mutual gain technique involves agreements between parties where their interests have to be equally met. The negotiations aim to establish the context and the relationship between the parties involved. The mutual gain method takes into account the needs of each party which increases efficiency and protects their relationships as well as their reputation because they have to be satisfied after the negotiations.
The first section of the paper gives the background information on the aspects of negotiations and the stages of the mutual gain approach. The second section will focus on the literature views of the different scholars on the application of the MGA in various instances. This research will be supported by the theoretical concept of the MGA model concerning the integrative analysis. The fourth section of the paper will be an outline of the significant discussions and findings of the paper. The final section will be the conclusions drawn from the research work.
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Research Question
How does the MGA approach improve efficiency, relationships, and reputation in negotiations?
Objective
The objective is to analyze the application of mutual gains approach in negotiations. The thesis seeks to cover outcomes of the implementation of MGA in negotiations including efficiency, relationships, and reputation.
Background Information
The negotiation process consists of negotiators' conduct, cognition, desires, and interests. The primary purpose of establishing a negotiation is to make sure the goals are met after incorporating communication and cooperation among the parties to a contract. The team has to build trust through stabling relation for them to solve urgent problems when undertaking the contract. The results of negotiation take the disruptive and integrative approach (Siedel, 2014) .
The integrative approach takes into account the issues of each party, but the disruptive approach meet the needs of a respective side. In the integrative approach, all parties equally benefit from the contract. It has various stages that must be followed to meet the needs of the negotiators (Gunia, Brett & Nandkeolyar, 2014) .
The first stage of the mutual gain technique is the preparation process where the parties have to determine their BATNA (Best Alternative to the Negotiated Agreement). The preparation process also focuses on defining the interests of both sides. The stage is essential in identifying the different areas and setting a common goal. The interests of the parties have to be established to make sure that the negation process is successful (Susskind and Movious, 2009).
The second stage is the opening session which involves understanding and analyzing the concerns of each party. The team has to develop useful options for the involved parties which will lead to their satisfaction. The negotiators take into account the advantages and disadvantages of every opportunity in the case. The team establishes communication using neutrals and cooperation for all the players to address their issues. The needs of the individuals have to be met by the parties to get satisfaction (Susskind and Movious, 2009).
The third stage is the bargaining step which focuses on building trust among the negotiators through open communication and cooperation. The standards of each party have to be taken into account for the opportunities to be divided equally. The party that is not satisfied is given a chance to bargain for their stake (Susskind and Movious, 2009).
The final stage is the settlement step where the team agrees on handling the plans to enhance commitment among the members. The parties must embrace the responsibility for them to meet their goals. In case conflicts arise during the contract, the team has to make agreements on utilizing the neutrals to solve the disputes. The parties must make sure they improve their relationships to establish unity and trust. The conditions of this stage have to be met for the team to succeed in their contract (Susskind and Movious, 2009).
Methodology
This research paper uses literature review as the primary source of data and research methodology where the conclusions will be drawn. The works of various scholars are explored to give evidence on the thesis. The aim is to make an analysis of mutual gain model in its application to negotiations. The structure of the thesis is based on the theoretical concept of the effectiveness of the MGA in negotiations. The literature review is analyzed, and conclusions are made.
Literature Review
The MGA is useful in meeting the needs of the parties in a contract. The approach focuses on the value of every individual through formulating options that match their interests. The other goal of the model is to make sure all the parties mutually benefit from the contract. The approach holds that the negotiation should not involve deceit or aggression for the team to meet the goals. The MGA is tailored to improve the relationship which fosters trust and unity for the entrepreneurs to achieve their business goals (Myrers, Smith & Ostergren, 2016) .
In the findings of Gunia, Brett & Nandkeolyar (2014) , negotiations were viewed as the process of challenges where an analysis of the interests of the parties and formulation of opinions can establish proper results and relationships. The implementation of the MGA in negotiations can help in predicting the negotiation results, profits, and the relationship. The MGA model assists the team in determining the mutual gains that will satisfy each party. The efficiency of the contract improves after the team members have a common goal.
The findings of Fisher and Ury (2011) indicated that negotiations improved the relations between the parties involved in the contract. The contractual goals were met after the team determined the appropriate opportunity for each party. It is likely that the teams can enter into other agreements after implementing the MGA model.
Theoretical Review
The MGA model comprises of principles which include identification of common interest. The team has to establish the similar goals between both sides. It will be easier for the organization to form opinions that meet the needs of the opposite parties (Graber, 2014) . Another concept is building relationships. The negotiators must form relationships to create an atmosphere of expressing their interests freely (Susskind and Movious, 2009) .
The other concept is of the model understanding the options. The parties have to take into account the concerns of both sides before selecting the appropriate choices. Besides, the team has to choose the shared goals and eliminate the different ones. It will help in the development of similar goals between the members (Susskind and Movious, 2009) .
Finally, the parties have to generate standards in which the contract members have to meet. The MGA model in negotiation assists in enhancing the efficiency, interrelationships, and reputation of the team as well as the activities (Susskind and Movious, 2009) .
Figure 1: Mutual Gain Approach in Negotiation
Source: (Graber, 2014)
Discussion
Negotiations establish relationships among the team members. The development of the relationship is an essential factor in negotiations. The researchers have emphasized the significance of relationships among negotiators. The efficiency of an agreement improves after the parties have implemented in the MGA approach in the negotiation process. The performance of the contract improves, and the reputation of the parties is established.
The reason for utilizing the MCA model in the companies is as a result of globalization in the world and negotiators come from different backgrounds which makes them have conflicting goals. The model helps the negotiators to overcome the challenges that hinder their agreements.
In conclusion, negotiations arise after two or more parties have different goals or interests. The individuals have to negotiate for them to have a common interest. The MGA model gives the negotiators the guidelines that will assist in establishing similar goals. It is useful in improving efficiency, relations, and reputation. Companies should use the model to overcome the challenges that occur during conflicts in projects, agreements, and partnerships.
References
Fisher, R., Ury, W. L., & Patton, B. (2011). Getting to yes: Negotiating agreement without giving in . Penguin.
Graber, A. (2014). How to negotiate with the Mutual Gain Approach? - Anne-Cécile Graber. Retrieved from https://acgraber.com/2014/04/27/how-to-negotiate-with-the-mutual-gain-approach/
Gunia, B., Brett, J., & Nandkeolyar, A. K. (2014). Trust me, I'm a negotiator: Diagnosing trust to negotiate effectively, globally. Organizational Dynamics , 43 (1), 27-36.
Myrers, D., Smith, S. N., & Ostergren, G. (2016). Consensus Building, Negotiation and Conflict Resolution for Heritage Place Management. The Getty Conservation Institute, Los Angeles .
Siedel, G. J. (2014). Negotiating for Success: Essential Strategies and Skills .
Susskind, L.,& Movious, H., (2009). Build to Win: Creating a World-Class Negotiation Organization. Harvard Business Press,
