Why management students need to learn the art of negotiation

Today, an aspiring manager needs to learn the skillful and strategic process of reaching agreements, termed ‘the art of negotiation’. This encompasses various techniques, approaches, and principles that help individuals navigate through conflicting interests, differing perspectives, and complex situations. In a world full of competition, the art of negotiation is a fundamental skill for MBA students, and management institutes have the responsibility of equipping budding managers with this ability. Some areas where management graduates require negotiation skills are:

Stakeholders: Clients, suppliers, employees, investors, and regulators … each stakeholder group has distinct interests, motivations, and priorities. Effective negotiation skills enable MBA students to understand and address these diverse perspectives, resulting in more successful outcomes.

Conflict resolution: Business environments often involve conflicts of interest, divergent opinions, and competing objectives. MBA students need to develop the ability to manage and resolve conflicts in a constructive manner.

Value creation: One of the major outcomes of having the right blend of negotiation and communication skills is winning concessions, further creating value. Managers who become skilled negotiators can identify and leverage opportunities to expand their and the organisation’s benefit. Being a negotiator aids the manager to generate value, ensuring mutually beneficial collaborations.

Tips

Emotional intelligence plays a significant role in negotiation. MBA students should develop self-awareness, emotional control, and empathy to navigate challenging emotions and effectively manage conflicts during negotiations.

Active listening involves giving full attention to the other party, understanding their perspectives, and showing genuine interest in their concerns. This trait can help in rapport building.

The BATNA technique (Best Alternative to a Negotiated Agreement) means an alternative course of action a party can take if the negotiation does not result in a satisfactory agreement. MBA students should understand their own BATNA and assess the other party’s BATNA to come to a mutually beneficial decision.

To ensure that students develop these schools, B-Schools should develop an interdisciplinary approach that also integrates negotiations concepts, case studies and exercises. It would also help to give students exposure to the different aspects of business decision-making through interactions with experts. Finally experiential learning through live projects and internships will help students apply what they have learnt and receive feedback from their mentors and faculty, which will help them also develop soft skills required in the corporate world.

The writer is Director, Jaipuria institute of Management, Ghaziabad.