Contract negotiation and organizational performance

Abstract

The research aimed at establishing the effects of Contract Negotiation and organizational performance, with Akright Project Limited as case study. The specific objectives of the study were as follows: What is the relationship between negotiation planning and organizations performance?, what effects do negotiation approaches and negotiation ethics have on organizations performance? Organisations stand to reap a number of benefits from employing effective contract negotiation, most notably an increase in the level of productivity which are still relatively undesirable due to the use of a competitive approach . As such there is still room for improvement with regard to use of effective contract negotiation. A case study research design was used with a sample size of 25 respondents using both quantitative and qualitative methods. With the qualitative method, the research focused mainly on understanding the importance of Contract negotiation in business while the quantitative approach was used to analyse numerical data collected from respondents. Literature was reviewed objective by objective following this order: negotiation planning, negotiation approaches and then negotiation ethics. From the findings of the research study, it was noted that one of the larger aspects of contract negotiation for better work performance in their skills and abilities is the negotiation planning, consequently, if correctly designed and administered, contract negotiation can lead to an increase in the overall performance within an organization. It was recommended that organizations should put more emphasis on the issue concerning negotiation planning in order to enable organizations to be more purposeful and improve their performance.