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What are the merits of using the internet to conduct negotiations

Advances in the Internet and technology have caused a move away from traditional face-to-face negotiations in some instances.

Frequently Asked Questions ... About Business Negotiations on the Internet

Managers sometimes negotiate with new employees on salary and benefits. Managers and other employees also commonly engage in negotiations with business partners, clients and customers, and suppliers to get the best deal on business transactions. Trust Trust is the building block of all relationships, includes those in business. Face-to-face negotiations provide a much better format for small-talk and building rapport with someone you meet for the first time.

Transforming Business

Negotiators can more capably form first impressions and make assessments of counterparts based on overall appearance, facial expressions, tone of voice and other personality and communication traits.

Negotiators can look each other in the eye when talking to better discern whether they are being lied to or deceived. Less Conflict Some people think electronic negotiations create less conflict since they are less direct.

  1. Better Results The most significant advantage of negotiating face-to-face is an increased likelihood for a mutually beneficial resolution.
  2. Cooperation and negotiation involve agents who are located almost everywhere, have different norms and values, cultural and professional backgrounds, and needs and objectives.
  3. Executives from small companies with limited travel budgets and restricted office space can use the Internet to bypass these impediments. Managers sometimes negotiate with new employees on salary and benefits.
  4. Large corporations create vertical e-markets and introduce supply chain management systems that increase efficiency and reliability, and reduce transaction costs. It is the synergy among 1 communication, 2 access to information, and 3 support for problem solving that provides the basis for informed interaction, cooperation, and participation.

However, in their book "Wharton on Making Decisions," Wharton School of Business faculty point out that e-mail negotiations actually have more room for conflict.

With face-to-face communications, you have more interactive communication that allows for immediate feedback and discussion with nonverbal context.

Face-To-Face Negotiation Advantages

Electronic communication may include miscommunications and misinterpretations of feelings and emotions. In face-to-face negotations, you can more easily clear up any unclear messages.

Focus A scheduled place and time for face-to-face negotiations allows both parties to focus on their respective needs and mutually beneficial communication. This is quite different than back-and-forth communication through other channels that is fragmented. Participants may get distracted by other negotiations or other business activities in the midst of an electronic communication.

Even phone negotiations can involve distractions from other employees in your office or issues with the connection. Better Results The most significant advantage of negotiating face-to-face is an increased likelihood for a mutually beneficial resolution. When negotiators take the time to make negotiating a priority, they show commitment to finding an agreeable resolution.

  1. Difficult, multidimensional situations, e. No less important is the ability to access various sources of information and expertise, and use both local and remote systems to obtain support and advice.
  2. Even phone negotiations can involve distractions from other employees in your office or issues with the connection.
  3. Sending ultimatums like "this is my last offer" or other competitive moves tend to dominate e-negotiations.

In situations where negotiators are working together in a partnership or collaborative business arrangement, meeting in person for negotiations conveys a better sense of partnership and cooperation. Negotiators can also bring along any useful materials and data to present in face-to-face communication.