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1. Negotiation

            Negotiation is the combination of two words taken from Latin 'neg' means no and other one 'ostia' which means leisure refers to those business person who does not have spare time in the work related to industries. It is also regarded as the scenario of dialogue that occurs between two people or among a group in an intention to bring some outcomes which are beneficial for both the parties on some particular issue which consist of potential harm. Therefore, negotiation is defined as the combining process comprising of the activities where two completely different opinions are made to come together in a mutual decided agreement on certain conflict or issues (Goldberg and et.al., 2014).

            It completely focuses on the resolution of differences which has advantages for individual or a group or to take out some results for satisfying varying interest of people. These conflicts do not create any benefit to the people who creates disagreements. The rigid behaviour of individual influences the decision making of a particular group. Trust is the major factor that is included in the concept of the negotiation. Higher the intensity of trust between the parties sooner the people will negotiate. 

            Negotiation has a major influence on the corporate sector. As it is a group of individuals who operate the whole organisation which comprises different thoughts that mostly creates the circumstances for conflicts and issues on any topic. This scenario impacts the company in a negative way which also influences the functions. To solve all these disputes, it is very necessary to form an agreement on which various people agrees, providing several benefits individually and mutually (Moore, 2017). The process of negotiation leads to smooth functioning of the company. The group of stakeholders always creates conflicts as everyone seeks for their own advantages; thus, neglecting others. So, to overcome this situation, negotiation plays an effective impact on their joint decision process which includes mutual agreeableness of each stakeholder without creating any problems and disagreements for the particular subjects.

2. Rationale for the negotiation process

            Negotiation process is very important as it helps to resolve the conflict very efficiently and in a peaceful manner which is very important for any corporate as it promotes harmony in the relationship between different individuals. Negotiation process facilitates in determining what are the basic issues and reasons for the disagreements which leads to many conflicts and disputes among them. The process leads to the settlement of all disputes with a mutual agreement of people which makes sure that both the parties should be equally benefited.

            The negotiation process includes the following steps which are as follows:

Preparation

            Preparation comprises following activities like information gathering which includes acknowledging the facts related to particular problem and assuming what data or information is required for the same. Next step is evaluation of leverages which means determining the leverages of both the parties. After this, the individual or parties involved in the dispute are understood as it is very crucial to know the their party with whom negotiation is occurring. An establishment of rapport is performed with the opponent. Objectives of the process should be clarified. Also, the negotiation type should be anticipated followed by the approach that has to be followed for the process (Khadhraoui and et.al., 2017).

Opening Phase

            This includes the creation of influence on other party which directly or indirectly affects their mind and the decision process in turn. It is very important to psychologically influence others for an effective negotiation.

Bargaining Phase

            It involves the commencement of both parties to the main objective which both wants to achieve and tries to convince each other for it by determining the pros and cons and evaluating the reason of other on the same criteria.

Closure Phase

            This is the last phase which is very crucial as it provides the revision of all the information gathered for the meeting and  the conditions on which the agreement is closing so that amendments can be done on time otherwise, it can lead to other conflicts.