Negotiation Manual

Negotiation
Objectives: To explore key skills and the structure of negotiation.

To practise negotiation skills.
Session Times: 3 hours: Sections AH
2 hours: Sections B! H
" hour: Sections B#
Essential
Background: The $in%$in Approach
Sections: A. Sti&ulus Acti'ity "(.3
B. xploring the #oncept of )egotiation "(.3
#. The *hases and Skills of a )egotiation "(.+
,. -esponding to -esistance fro& .thers "(."2
. .pening a )egotiation "(."3
/. 0sing ,1S# to 0nderstand )egotiation Styles "(."2
3. -esponding to 40nfair4 Tactics "(."5
H. *ractising )egotiation "(."6
Activities: Buying and Selling A."(."
.pening a )egotiation A."(.+
)egotiation in *ractice A."(.6
Handouts: Section #: The Skills of )egotiation H."(."
Section : Thirty Second .pener H."(.2
Section /: ,isc )egotiation Styles $orksheet H."(.3
)o fee re7uired to reproduce this page if this notice appears:
8 The #onflict -esolution )et9ork *. Box "("5 #hats9ood )S$ 2(+6 Australia
*h. 5" 2 :2": ;+(( /ax 5" 2 :2"3 ""2; &ail: crn<crnh7.org $e=: 999.crnh7.org
Negotiation 10.1
Section 3: Strategies for -esponding to 0nfair Tactics H."(.2
-esponding to 0nfair Tactics H."(.+
Section H: )egotiation: *reparation *hase H."(.5
Negotiation 10.2
Negotiation
Creating Suitable Environments for Working Together
Towards Resolution
A. Stimulus Activity
Group Activity: Buying and Selling: working in pairs, one as buyer and one as seller,
participants negotiate the price of a car. (See Negotiation Activities, p
A.10.1. >2( &inutes?
B. Eploring t!e "oncept o# $egotiation
%&' minutes(
)uestion: *!at do +e understand by t!e term ,,negotiation,,-
.iscussion: !ncourage a few "inutes# discussion to arrive at a co""on
understanding of the ter".
@@)egotiation in'ol'es t9o >or &ore? parties 9ith co&peting or
conflicting interests or needs! 9orking to9ards an agree&ent on ho9
they 9ill coAoperate@@ $r %regory &illett Resolving Conflict (Sydney'
Sydney (niversity )ress, 1**1 p+,.
)uestion: T!ink o# some recent negotiations in +!ic! you !ave been
involved. *!at are t!ey-
.iscussion: $raw out participants# responses. -n addition, you "ight list'
=uying a car! a house or an appliance
negotiating a ne9 salary package
negotiating different roles and responsi=ilities at 9ork
arranging a fair di'ision of household chores
&aking di'orce settle&ents and custody arrange&ents
agreeing 9ith a child >or a parent? on a study schedule or 9hat ti&e
to =e ho&e.
)uestion: *!y do +e negotiate in t!ese settings-
.iscussion: $raw out participants# responses. -n addition, you "ight consider'
'ariety of reasons depending on the situation
there see&s to =e no alternati'e >people &ay not other9ise =e
9illing to shift?
to reach agree&ent
Negotiation 10..
to &aintain or strengthen the relationship
to =e fairB to take account of =oth parties@ perspecti'es! needs and
concerns
to get the =est deal possi=le.
)uestion: /n +!at +ays is our style o# negotiating di##erent depending on
t!e situation-
9e often tend to =e &ore open in our negotiations 9hen there is a
high le'el of trust! 9hen the continuance of the relationship is seen
as i&portant! and 9hen there see&s to =e &any options a'aila=le
>e.g. negotiating task di'isions a&ongst people 9ith 9ho& 9e
either 9ork or li'e?
9e often tend to =e less open 9hen there is little trust! 9hen 9e are
not o'erly concerned a=out the relationship! and 9hen there see&s
to =e fe9 options a'aila=le >e.g. =uying and selling a car?.
1n this course! 9e@re going to focus on an approach to negotiation that
is =uilt 9ithin a 9in%9in fra&e9ork.
)uestion: *!at do you t!ink a +in0+in approac! to negotiation +ould
involve-
.iscussion: $raw out participants# responses. /ake sure the following is included'
A 9in%9in approach to negotiation takes account of the &any needs of
the parties in'ol'ed.
This approach is so&eti&es kno9n as interestA=ased =argaining.
-oger /isher C $illia& 0ry in Getting to Yes >Dondon: Business
Books ":;"? identify it as @@principled negotiation or negotiation on the
&eritsE >p""?.
This can =e understood as a process 9hich seeks to &eet needs or
interestsB not to 9in positions or to gain 'ictories for people. 1t@s 'ery
different to positional =argaining in 9hich each side takes a position
argues for it and at =est! &akes concessions to reach a co&pro&ise.
/isher and 0ry >i=id. p""? identify four &ain points to define this
&ethod of negotiation. (See over.
0rite on the board'
Separate t!e people #rom t!e problem
1ocus on interests2 not positions
Generate many options
3se objective standards
Negotiation 10.+
1n this session! 9e@ll identify the skills 9hich help to put these principles
into practice.
". T!e 4!ases and Skills o# a $egotiation
%56 minutes(
/or a negotiation to =e successful resulting in agree&ents to 9hich
people feel co&&itted! 9e need to take account of the range of
people@s needs. These needs 9ill =e =oth tangi=le and intangi=le.
$raw and write on the board'
SAT/S1A"T/O$ T7/A$G8E
&he Satisfaction &riangle above is adapted fro" 1$2 Associates'
Papers from "Negotiation and Mediation. !ey "on#t Cost t!e
$art!## a se"inar held in Sydney, Australia, 10 3ctober 1**0.
Su=stanti'e needs refer to tangi=le needs for &oney! ti&e! goods!
resources! territory! products etc.
*rocedural needs are those that relate to specific types of procedures
and =eha'iours! @@the 9ay so&ething is done4.
*sychological%-elationship needs are those that refer to ho9 people
feel! ho9 they 9ant to =e treated and the conditions for the onAgoing
relationship.
#oncern for all these needs pro'ides us 9ith a 9in%9in fra&e9ork for
the negotiation.
1t can =e useful to think of a negotiation proceeding through three
phases.
Negotiation 10.4
4HASE &: 47E4A7AT/O$
There are four key acti'ities in the preparation phase.
0rite on the board fro" the botto" up, discussing as you go'
)uestion: *!y +ould +e map t!e negotiation-
to identify our needs and concerns! and to speculate on those of
the other parties
to assess the needs 9hich are &ost i&portant! so that these are
gi'en priority in the negotiation.
)uestion: *!at mig!t be included in researc!-
gathering infor&ation on facts! costs! precedents! protocol etc.
identifying currencies. $hat can 9e tradeF >$hat is it easy for one
person to gi'e and 'alua=le for the other person to recei'eF?
Negotiation 10.,
4!ase &
4repare environment
Become clear on outcome
7esearc!
9ap
finding out 9hat it is possi=le for the other parties to do! &aking it
easy for the& to say @@yes@@
identifying the =eha'ioural style of the parties! using ,1S#! so that
9e can prepare and present a case in 9ays that are appropriate to
the other parties@ needs.
)uestion: *!at do you t!ink is meant by becoming clear on t!e outcome-
identifying 9hat it is 9e 9ant to achie'e
defining it in such a 9ay that there is roo& to negotiate.
$e often call this: =eing clear on the outco&e and flexi=le on the
route.
As an adGunct to =eco&ing clear on our outco&e! it is 9ise to de'elop
=oth a BAT$A and a *AT$A.
BAT)A is the Best Alternati'e to a )egotiated Agree&ent and
$AT)A is the $orst Alternati'e to a )egotiated Agree&ent.
BAT)A is the =est 9e can hope for if negotiations don@t succeedB and
$AT)A is the 9orst 9e can realistically fear. /or exa&ple! 9hen
purchasing a car! the BAT)A &ight =e to accept the =est deal 1 can get
at a different dealer. The $AT)A &ight =e to accept a car 9ith fe9er of
the features 1 9ould like.
)uestion: Ho+ +ould !aving a clear idea about BAT$AS and *AT$AS !elp
in negotiation-
they protect us fro& accepting 'ery unfa'oura=le agree&ents or
reGecting reasona=le offers =ecause 9e kno9 9hat our alternati'es
are
9e kno9 9hat are the conse7uences for us if 9e can@t reach a
satisfactory agree&ent
they help us to &aintain a flexi=le approach. Any proposal can =e
co&pared 9ith our BAT)A or $AT)A to see 9hich &eets our
needs =etter
so&e of our =argaining strength in negotiating co&es 9hen the
other person needs us to reach an agree&ent and 9e are
indifferent to 9hether or not 9e do. A clear plan to &ini&ise the
disad'antages and to &axi&ise ad'antages of a failed agree&ent
stops us feeling so desperate that 9e &ust accept the other
person@s ter&s.
)uestion: *!at could +e include in preparing t!e environment-
Negotiation 10.5
choosing a place 9here all parties feel co&forta=le
arranging ta=les! chairs! flipcharts and refresh&ents appropriately.
4HASE :: /$TE7A"T/O$
There are four key acti'ities in the interaction phase.
0rite on the board'
)uestion: *!y +ould +e +ant to build rapport-
to encourage trust
to understand each other@s point of 'ie9
to esta=lish the negotiation as an exercise in partnership and Goint
pro=le&Asol'ing
Negotiation 10.6
*hase "
*repare en'iron&ent
Beco&e clear on outco&e
-esearch
Hap
4!ase :
Select Options
Generate Options
Educate on needs ;
perspectives
Build rapport
to help &aintain an approach 9hich is soft on the person and hard
on the issue.
)uestion: *!at skills +ould be particularly use#ul to build rapport-
acti'e listening
asking 7uestions
=eing a9are of =eha'ioural styles >,1S#?
using inclusi'e language: A), not B0T
identifying areas of agree&ent.
Skilled negotiators gi'e priority to esta=lishing and =uilding co&&on
ground =efore confronting areas of difference. This is particularly
'alua=le in the early stages of a negotiationB and it is also 'ery
i&portant 9hene'er differences recei'e so &uch e&phasis that the
parties start losing sight of the si&ilarities and! therefore! of their
partnership.
)uestion: $hy is educating each other on needs and perspecti'es i&portantF
to confir& a 9in%9in approach of needs first! solutions later
to esta=lish co&&on ground
to clarify differing perceptions of the issue! facts etc.
to expose 9here needs can interlock.
)uestion: *!at skills +ould be particularly use#ul to educate eac! ot!er
about needs and perspectives-
414 State&ents
&apping the situation together
&anaging e&otions
asking 7uestions
acti'e listening
inclusi'e language: A), not B0T.
)uestion: *!at skills +ould be particularly use#ul in generating options-
.iscussion: $raw out participants# responses. -n addition, you "ight consider :
=rainstor&ing
Negotiation 10.*
chunking the pro=le& into s&aller parts
identifying 9ays of @@expanding the pie@@ such as longer ti&efra&e!
&ore resources etc.
using inclusi'e language: A), not B0T
reAfra&ing the pro=le& to clarify and explore details and direct
attention to the positi'e.
)uestion: *!at skills +ould be particularly use#ul in selecting options-
assessing ho9 9ell the options &eet the needs of the parties
trading =y using currencies. $hat is it easy for one person to gi'e
and 'alua=le for the other person to recei'eF
using o=Gecti'e standards and criteria to esta=lish 9hat is fair!
reasona=le! or fits 9ithin the guidelines or rules
assessing the options in co&parison 9ith a BAT)A and a $AT)A.
)uestion: *!at do +e understand by t!e term ,,currencies,,-
#urrencies are 9hat 9e trade in.
#urrencies 9hich 9e 9ish to recei'e could include &oney! ser'ices!
goods! security! recognition! or estee&.
#urrencies 9e trade a9ay in exchange for the currencies 9e 9ish
to recei'e could include effort! ti&e! support for colleague! or our
expertise.
So&e currencies are easy for us to gi'e and 'alua=le for the other
parties to recei'e. $e can offer these during negotiationB and 9e
can ask the other parties to gi'e us 9hat is lo9 cost for the& and
'alua=le for us.
/mportant 4oints to "over:
Throughout this interaction phase! it is crucial to:
listen carefully
identify areas of agree&ent! and
=e explicit in looking for 9ays to &eet needs of all parties.
As negotiators! in order to sol'e our o9n pro=le&s! 9e need to sol'e
the other person@s pro=le&s also.
Negotiation 10.10
4HASE 5: "8OSE
1n the closing phase! there are four key acti'ities.
0rite on the board'
$e need to &ake clear agree&ents. ,epending on the situation! this
&ay in'ol'e a spoken agree&ent! a sho9 of hands a handshake or a
9ritten contract. Then 9e need to de'elop an action plan and
ti&efra&e for i&ple&enting the options. $ithout these! the difficulty
9hich =rought us to the negotiating ta=le &ay persist! and people &ay
lose faith in the negotiation process. Si&ilarly! esta=lishing a re'ie9
process ensures that the i&ple&entation of the options and the
satisfaction of the parties can =e &onitored.
%ive out the !andout: ##!e S%ills of Negotiation##.
Negotiation 10.11
*hase "
*repare en'iron&ent
-esearch
Hap
*hase 2
Select .ptions
3enerate .ptions
ducate on needs C
perspecti'es
Build rapport
4!ase 5
4lan revie+
Set time#rame
.evelop action plan
1orm Agreements
.. 7esponding to 7esistance #rom Ot!ers
%56 minutes(
-f you have already covered this "aterial in a session on power, "ove
directly to Section ! below. (See 1hapter 4. 1o7operative )ower'
Section 8. p 4.22 and p A4.1,
A &aGor =lock during the interaction phase of a negotiation can =e
resistance =y so&e or all of the parties to shifting fro& their positions.
)uestion: Ho+ mig!t parties in a negotiation s!o+ t!eir resistance to s!i#t
#rom t!eir positions-
use resistant =ody language >e.g. ar&s folded! fist on the ta=le?
say directly that they 9ant a particular solution chosen
repeatedly steer discussion to focus on their positions
argue their solution is =est >e.g. &ost effecti'e! &ost efficient!
&eets &ost needs etc.?
react negati'ely to any other solution or idea that is proposed
refuse to attend discussions.
Det@s consider specific 9ays in 9hich people react negati'ely to a ne9
idea or proposal.
)uestion: /magine you are +anting to introduce a ne+ policy or practice2
and you,re con#ronted +it! strong resistance #rom ot!ers. *!at
mig!t be some o# t!e negative responses t!at you could !ear-
.iscussion: $raw out participants# responses. -n addition, you "ight give the
following e9a"ples'
I$e@'e tried that already@@.
@@1t@s too expensi'e4.
4Jou@re =eing nai'e that@s not ho9 the syste& 9orksE.
$e@ll no9 spend so&e ti&e exploring specific strategies to deal 9ith
this type of negati'ity.
Group Activity: Responding to Resistance from &t!ers: working in groups of three,
or of si9, participants practise dealing with negativity and resistance.
&he si"ulation includes three rounds. &he first round is run before the
"aterial on using :uestions to refra"e resistance has been discussed.
&hen 2ound 2 is run. &he third round (;ariation 2 is run during
Section ! below. (See 1hapter 4 1o7operative )ower Activities'
2esponding to 2esistance fro" 3thers, p A4.1,. >3( &inutes?
Negotiation 10.12
E. Opening a $egotiation
%5' minutes(
So&eti&es 9e find oursel'es in the &idst of a negotiation! 9hen 9e
9eren@t e'en planning one. Ho9e'er! as 9e ha'e already noted
preparing carefully for a negotiation &ay result in it =eing &ore
effecti'e.
.ne aspect of preparation is 9orking out ho9 to open the negotiation.
1f 9e are a=le to introduce our idea in a 9ay that captures the interest
of the other person! 9e &ay succeed in:
setting a positi'e tone for the negotiation
preAe&pting so&e o=Gections
decreasing resistance and negati'ity fro& the other person.
)uestion: *!en +e,re opening a negotiation2 +!at sort o# t!ings +ould +e
need to #ocus on to capture t!e interest o# t!e ot!er person-
the &ain thrust of the idea
the =enefits to the other person and%or to the organisation
a 9ay to in'ol'e that person.
1n identifying =enefits! 9e need to step into the shoes of the other
person. 4$hat 9ould he%she consider a =enefitF4
An opening state&ent needs to =e kept to a=out thirty seconds. 1t@s like
a headline in a ne9spaper: short and snappy to gain the person@s
attention. 1t pro'ides a =ridge fro& the preparation phase to the
interaction phase.
%ive out the !andout: "!irty Second &pener". 1heck that
participants understand the three steps of'
". ngaging interest.
2. Stating the o=Gecti'e.
3. 1n'iting a response.
Group Activity: 1hoose one of the two activities below.
Responding to Resistance from &t!ers: 2ound ., variation 2'
working in groups of three or of si9, one or two participants practise
writing and presenting thirty second openers. (See 1hapter 4. 1o7
operative )ower Activities, 2esponding to 2esistance fro" 3thers p
A4.1* >-ound 3 'ariation 2 only: "( &inutes?
&pening a Negotiation: working in pairs, participants practise
preparing and presenting thirty second openers for negotiations they
identify. (See Negotiation Activities, p A.10.4. >"+ &inutes?
Negotiation 10.1.
1. 3sing ./S" to 3nderstand $egotiation Styles
%<6 minutes(
)uestion: Ho+ +ould an understanding o# t!e ./S" model !elp us in
negotiations-
.iscussion: $raw out participants# responses. -n addition, you "ight add'
it 9ould help us assess our o9n style of negotiating. This
assess&ent could highlight =oth the strengths and the pitfalls of our
style and indicate areas that need special attention
it 9ould re&ind us that differences 9e ha'e 9ith other participants
in negotiation &ay arise fro& differences in styles! as &uch as fro&
holding different 'ie9points or 9anting different outco&es
it 9ould assist us in preparing for the negotiation! particularly in
identifying the procedural and relationship needs of the other
person
9hen 9e@re 9anting to adopt a 9in%9in approach! 9e 9ant to turn
opponents into partners. The ,1S# &odel helps us to identify and
'alue other people@s strengths. 1n a negotiation our o9n skills &ay
=e co&ple&ented =y so&eone else@s skills. Together! 9e could
=eco&e a po9erful pro=le&Asol'ing tea&
in a &ultiAparty negotiation! it &ay help us choose a =alanced tea&
to represent our case.
Group Activity: Assessing $egotiation Styles: working in s"all groups of four,
participants identify features of each $-S1 style, relevant to
negotiation. (See below for details. >3( &inutes?
$ivide into groups of four.
%ive out the !andout: "'(SC Negotiation Styles## and refer
participants to the !andout: )'(SC Model## that was given out during
!"pathy.
Ask participants to discuss and co"plete each section of the handout.
Allow 20 "inutes.
.iscussion: Ask each s"all group to share their answers with the large group.
After e9ploring their responses, you "ight add points fro" the table
over the page.
As is al9ays true 9ith the ,1S# &odel! 9e need to realise that our
style 'aries according to the situation. 1n fa&ily negotiations! 9e &ay
tend to adopt one style! 9hile at 9ork 9e tend to adopt another.
Beco&ing a9are of the styles 9e tend to choose &eans that 9e are
a=le to pay special attention to skills and approaches! 9hich capitalise
on the strengths and a'oid the pitfalls of those styles.
Negotiation 10.1+
"O$S"/E$T/O3S ./7E"T
Strengt!s
TaskAfocused
Attenti'e to detail
#oncerned that the
solution is
co&prehensi'e
4it#alls
Hay o'erlook 'ariety
of options and
people@s needs and
concerns
Hay =e so concerned
9ith details that &ay
not sufficiently heed
the =igger picture
Hay appear un9illing
to =e flexi=le
Strengt!s
TaskAfocused
Straight to the point
#oncerned 9ith
ensuring a result
occurs
4it#alls
Hay o'erlook so&e
people@s disco&forts
and concerns
Hay =e so focused on
the appropriateness
of o9n outco&e!
that &ay not hear
others@ suggestions
.thers &ay hear o9n
suggestions as
de&ands
Areas needing special attention
thinking laterally
=eing flexi=le
listening sensiti'ely
allo9ing &ore ti&e for exploration of feelings
and concerns
listening attenti'ely
sho9ing e&pathy
gi'ing constructi'e feed=ack
including others in decisionA&aking
STAB/8/S/$G /$183E$"/$G
Strengt!s
*eopleAfocused
Supporti'e
#oncerned that
e'eryone is satisfied
9ith the negotiation
4it#alls
Hay o'erlook the
re7uire&ents of the
task
Hay not participate
fully in the process
Hay =e too ready to
gi'e up o9n needs
in a co&pro&ise
Strengt!s
*eopleAfocused
*ersuasi'e
#oncerned that
agree&ent is
reached
4it#alls
Hay o'erlook
necessary details
and procedures
Hay =e slo9 to attack
the pro=le&
Hay falsely =elie'e
that others ha'e
=een persuaded to
o9n point of 'ie9
&aking 414 State&ents
setting li&its on others talking
ensuring that ade7uate attention is gi'en to
the task
encouraging noteAtaking
preparing thoroughly
focusing on the task
putting sufficient e&phasis on others@
concerns.
listening carefully to others@ co&&ents
Negotiation 10.14
G. 7esponding to =3n#air= Tactics
%:6 minutes(
)uestion: *!at tactics used by people during negotiation !ave you #ound
di##icult to deal +it!-
.iscussion: $raw out and write participants# responses on the board. <ou "ight
consider:
introduction of irrele'ant or &isleading infor&ation
personal attacks
the addition of conditions after agree&ent has =een reached
&anipulati'e ti&ing or agendaAplanning >includes lea'ing i&portant
discussion points to last in a =usy agendaB and pushing through
see&ingly s&all! =ut often i&portant! agree&ents at the last &inute
9hen e'eryone is tired?
negotiation of unrealistic positions so that a later position! in
co&parison! looks 'ery generous or reasona=le
introduction of past e'ents and hurts in the relationship
accusations regarding integrity and &oti'ations of parties in the
negotiation
e&otional =lack&ail >e.g. stirring up guilty feelings?
state&ent of ulti&atu&s
referral to higher authority >indicating during the negotiation that any
agree&ents &ade 9ill need to =e checked 9ith other! &ore senior
people?
persistence 9ith finalising details on one issue! thus delaying
proceeding to the other issues so&e of 9hich &ay =e rele'ant to
the first issue.
Group Activity: Responding to *nfair actics: working in s"all groups of four,
participants consider strategies for responding to unfair tactics which
will neutralise their effect without further da"aging the relationship.
>"+ &inutes?
$ivide into groups of four.
%ive out the !andout: ##Strategies for Responding to *nfair
actics".
Ask participants to identify four ##unfair## negotiation tactics, and then
develop strategies for responding to the".
.iscussion Ask s"all groups to share their strategies with the large group.
&hen give out the !andout: ##Responding to *nfair actics+.
=ighlight strategies that participants have not already considered.
Negotiation 10.1,
0sing a 9in%9in approach to negotiation leads to a particular set of
responses to unfair tactics. The ai& is not to outAtrick the other party.
-ather! the ai& is to neutralise the effect of the tactics in a 9ay 9hich
&aintains the relationship 9ith the other person 9hile resol'ing the
issue.
1n =road ter&s! the response to an unfair tactic is al9ays to reAdirect
attention =ack to the issue.
H. 4ractising $egotiation
Group Activity: Negotiation in Practice: working in pairs, participants practise the
skills of negotiation using a given scenario. (See Negotiation Activities,
p A.10.5 >2( &inutes?
Negotiation 10.15
Negotiation Activities
Buying and Selling
Trainers> /n#ormation Only
"ontet: Although 9e negotiate fre7uently! &any of us are una9are of our
negotiating approaches and of ho9 9e respond =efore and during a
negotiation. As a sti&ulus acti'ity! this exercise highlights participantsK
approaches to negotiation. 1n a &ixed skill le'el group! do not let it run
o'er ti&e as ad'anced participants 9ill 9ant to &o'e on 7uickly (See
1hapter 10 Negotiation' Section A
Time: 2( &inutes
Aim: To introduce negotiation in an acti'e and rele'ant 9ay
7e?uirements: )Simulation , Buying and Selling a Car: Seller-s Notes+ and
)Buyer-s Notes+
/nstructions: 1n this acti'ity! 9e@re going to 9ork in pairs to negotiate the price of a
car.
$ivide the group into pairs.
*artner A is selling a car.
*artner B 9ants to =uy a car.
1 9ill gi'e each of you notes to guide your negotiation. ,on@t sho9 your
notes to your partner.
%ive out "Simulation: Buying and Selling a Car: Seller#s Notes##
and "Buyer#s Notes##, to )artners A and > respectively. (See attached
sheets p A.10.. and p A.10.+.
Ask participants to read through the notes.
Allow 2?. "inutes.
Negotiation A.10.1
)o9! you ha'e a=out + &inutes to negotiate the price and sale of the
car.
Allo9 +6 &inutes.
.iscussion: Ho9 did the negotiation process 9ork out fro& the =uyer@s
perspecti'eF
Ho9 did the negotiation process 9ork out fro& the seller@s
perspecti'eF
Ho9 9ould you ha'e felt to =e in the opposite roleF
$hat 9ere your &ain concerns in the negotiationF
$ere you concerned a=out ho9 the other person feltF
$ere you focused on the &oneyF
$ere you 9anting to ensure that you got a fair dealF
,id you find out anything a=out the other person fro& the transactionF
,id you finally agree on a priceF 1f so! 9hat 9as itF Ho9 9ould you
define a 9in in this negotiationF
>After participants ha'e responded! you &ight add: A 9in could =e
defined in &oney ter&s or it could =e defined in satisfaction ter&s i.e.
ho9 satisfied =oth parties feel 9ith the negotiation.?
1n &oney ter&s:
1f the price 9as greater than L5!5+(! the seller @@9on@@ and the =uyer
@@lost@@.
1f the price 9as less than L5!3+(! the =uyer @@9on@@ and the seller
4lost4.
1f the price 9as =et9een L5!3+( and L5!5+(! =oth parties @@9on@@.
1f a price 9as not negotiated! =oth parties 4lost4.
&he trainer can suggest to participants that they reflect on their own
responses to this negotiation e9ercise by considering the following
:uestions'
,id you approach this negotiation in the 9ay that you often approach
negotiationF
$hat do you feel 9hen you ha'e to negotiateF ,oes it 'ary depending
on the relationship! the su=Gect! and the stake you ha'e in itF
$hat do you think you do 9ell in negotiationF
$hat 9ould you like to do differentlyF
Negotiation A.10.2
Simulation
Buying and Selling a Car
Seller's Notes
Jou@re going interstate and 9ill =e gi'en a co&pany car! 9hich 9ill replace your present car.
Jou@'e =een offered L+!2(( =y a used car yard! and hope to get a =etter price =y
ad'ertising it yourself.
As you@re due to lea'e in t9o 9eeks! you really need to sell it this 9eekend.
Jou ha'e placed an ad'ertise&ent in the 9eekend ne9spaper. Jou ha'e asked L6!((( in
the ad! =ut a friend 9ho is fa&iliar 9ith used car prices has said that you@re &ore likely to
get =et9een L5!3+( and L5!6+(.
The details of the ad are as follo9s:
/.- SAD
,aihatsu Sirion 2((( ".(D Super econo&ical this fi'e door! dark =lue &etallic
paint! A0T.HAT1# hatch=ack is surprisingly roo&y. 56!((( k&s! fi'e &onths
registration! air conditioning! good condition tyres! excellent condition! L6!(((.
Your tas% is to negotiate yourself a good deal.
So"eone has read your ad and "ade an appoint"ent to see the car. &he doorbell rings.
=e@she has arrived.
)lease return this sheet to the trainer at the end of the activity.
Negotiation A.10..
Simulation
Buying and Selling a Car
Buyer's Notes
Jou@'e =een needing a secondAhand car for so&e ti&e and ha'e not seen 9hat you 9ant.
Jou ha'e =eco&e 'ery frustrated looking at secondAhand car yards! and so you ha'e
decided to try the pri'ate sales.
Jou ha'e seen a classified ad in the 9eekend ne9spaper 9hich see&s to =e 9hat youKre
after. The asking price is L6(((.
Jou are hoping to pay less than that! as it stretches your =udget too far. The &ost you can
pay is L55+(. JouKd like to get it for L52+(.
The details of the ad are as follo9s:
/.- SAD
,aihatsu Sirion 2((( ".(D Super econo&ical this fi'e door! dark =lue &etallic
paint! A0T.HAT1# hatch=ack is surprisingly roo&y. 56!((( k&s! fi'e &onths
registration! air conditioning! good condition tyres! excellent condition! L6!(((.
Your tas% is to negotiate yourself a good deal.
<ou have "ade an appoint"ent to see the car, and you have Aust arrived. <ou ring the
doorbell.
Negotiation A.10.+
Opening a Negotiation
"ontet: 1n negotiations! a thoughtfully prepared opening state&ent 9ill often
set a positi'e fra&e9ork for further discussion (See 1hapter 10
Negotiation' Section !
Time: "+ &inutes
Aim: To practice preparing and presenting a Ithirty second openerE for a
negotiation
Handout: )!irty Second &pener+
/nstructions: 1n this acti'ity! 9e@ll practise preparing and presenting a thirty second
opener for a negotiation. To =egin 9ith! 9e@ll 9ork indi'idually and then
in pairs.
Ask participants to think of e9a"ples of negotiations in which they
have recently been involved or which are likely to occur soon.
3ffer the following situations, if necessary.
Jou &ight =e trying to negotiate:
a roster to ans9er telephones o'er the lunchti&e period
a 9eek@s lea'e =efore you@re due for holidays
relief fro& your usual share of household chores 9hile you prepare
for exa&s! co&plete an assign&ent! or &eet a deadline for an
i&portant 9ork proposal
a different deadline for paying =ack &oney to a friend or parentB or
for co&pleting a report.
Ask participants to use the !andout: "!irty Second &pener" to
record and structure this opening state"ent.
Allow 4 "inutes.
&hen, divide into pairs.
1n our pairs 9e 9ill take it in turns to present our thirty second openers.
$e@ll each gi'e feed=ack on the opener and then help each other
polish it.
Negotiation A.10.4
Before you present the opener! explain your relationship 9ith the
person 9ith 9ho& you are negotiating! and gi'e any other necessary
=ackground infor&ation >e.g. this is the second occasion on 9hich
you@'e raised this issueB it in'ol'es a =reak 9ith co&pany policyB it is a
stated issue of concern to the Hanaging ,irector etc.?
1n this explanation! don@t include anything 9hich you 9ill =e presenting
in the thirty second opener.
.nce you@'e presented the thirty second opener! ask your partner for
feed=ack and try to polish the state&ent further.
Allow 4 "inutes.
&hen reverse roles.
.iscussion: $hat are the difficulties in preparing and presenting thirty second
openersF
Ho9 do you think a thoughtfully prepared thirty second opener 9ould
help in a negotiationF (After participants have responded, you "ight
add' decreases resistance fro" the other personB establishes a
fra"ework for constructive discussionB helps us to focus our attention,
not Aust on our obAective but also on the needs and concerns of the
other person.
Negotiation A.10.,
Negotiation in Practice
"ontet: )egotiation! 9ithin a 9in%9in fra&e9ork! dra9s on a 9ide range of
conflict resolution skills. *articipants need the opportunity to practice
dra9ing these together. (See 1hapter 10 Negotiation' Section =.
Time: 2( &inutes
Aims: To practice the skills of negotiation
To =eco&e a9are of the 'alue of careful preparation
To identify strengths of indi'idual negotiating styles! and highlight
areas that need attention.
Handout: )Negotiation: Preparation P!ase+
7e?uirements: ISimulation , Career .dvancement+ pages 1 and 2
)Simulation , /undraising and Pu0licity+ pages 1 and 2
/nstructions: $e are going to practise a negotiation in pairs. 1 9ill gi'e each person
details of a scenario. ,o not sho9 your partner the details 1 gi'e you.
1hoose one of the two following scenarios as a si"ulation in which
participants practise win@win negotiation tactics.
Scenario &
An e&ployee 9ants to negotiate 9ith a Hanager a=out &easures to
i&pro'e his%her career prospects.
Scenario :
A /undraising .fficer for a local neigh=ourhood centre 9ants to
negotiate 9ith the *u=licity .fficer to esta=lish a ne9 pu=licity
co&&ittee.
(See attached Sheets ? CSi"ulation' 1areer Advance"entD pages 1
and 2, p A.10.* and p A.l0.10 or si"ulation' Eundraising and )ublicity
pages 1 and 2, p A.10.11 and p A.10.12.
$ivide the group into pairs. %ive a copy of page 1 of the si"ulation
used to one person in each of the pairs. %ive a copy of page 2 of the
si"ulation used to the other person in each of the pairs.
Negotiation A.10.5
&hen give out the !andout: "Negotiation: Preparation P!ase".
-ead through the scenario and your role. Then try to ans9er the
7uestions on the !andout: "Negotiation: Preparation P!ase## in
readiness for the negotiation. Jou ha'e a=out + &inutes.
Allow 4 "inutes.
2e"ind participants of the phases and skills of negotiation by drawing
attention to the !andout: "!e S%ills of Negotiation".
)o9! start your negotiation. Jou ha'e "("+ &inutes.
4air .iscussion: Ask participants to share their thoughts on the negotiation with each
other.
.iscussion: $hat progress did you &ake in the negotiationF
,id anyone reach agree&ent or settle on any optionsF $hat 9ere
theyF
$hat 9orked in the negotiationF $hat particular skills did you useF
$ho found a thirty second opener 'alua=leF
,id anyone consider ,1S#F Ho9 9as that helpfulF
$ere you a=le to use 7uestions to refra&e the discussionF $hat are
so&e exa&plesF
1n 9hat 9ays did you =uild rapportF
$ere you a=le to use @@and@@ not @@=ut4F Ho9 9as that usefulF
$hat did you do to close the negotiationF
Negotiation A.10.6
Simulation
Career Advancement
Page 1
Jou are *aul%*auline #a&p=ell. Jou ha'e =een 9ith the co&pany for four years as Tea&
Deader of a ,i'isional Sales Tea&. Jou@re keen to ha'e a ne9 challenge at 9ork. Jour goal
is to =eco&e part of the Senior Hanage&ent tea& of the co&pany. This 9ould also &eet a
nu&=er of personal needs. To do this you =elie'e you need to get a =road =ase of
experience in different areas of the co&pany.
Jou@re attracted to &arketing. T9el'e &onths ago! you co&pleted a six session e'ening
course on introduction to &arketing. Jou@'e no9 found that the )ational 1nstitute for
-esearch and Harketing runs a highly regarded and intensi'e course in &arketing o'er a
t9el'e 9eek period! fro& 2.(( p& 6.(( p& on $ednesdays. 1t 9ould also re7uire a
co&&it&ent of ti&e to 9ork on a 9orkA=ased &arketing exercise.
Jou =elie'e co&pletion of the course 9ould =e an asset to you in a transfer to the
Harketing ,i'ision. As 9ell! it 9ould assist you in applications to other co&panies.
Jou ha'e asked for a &eeting 9ith the Hanager of State .perations! Toni%Tony Hichaels! to
discuss your career prospects 9ith the co&pany.
Negotiation A.10.*
Simulation
Career Advancement
Page 2
Jou are Toni%Tony Hichaels. Jou ha'e =een 9ith the co&pany for se'en years. /or the past
t9o years you ha'e =een the Hanager for State .perations. Jou are keen to &o'e
up9ards into )ational .ffice.
*aul%*auline #a&p=ell! a Tea& Deader of a ,i'isional Sales tea&! has asked for a &eeting
to discuss his%her career prospects 9ith the co&pany.
Jou regard *aul%*auline as a good e&ployee! and consider that he%she has a pro&ising
future.
His%her perfor&ance appraisals re'eal strengths in interpersonal co&&unications and
presentation skills. Because of recent co&pany restructuring! it 9ould =e possi=le to offer
*aul%*auline a transfer to the Hu&an -esources ,i'ision! and this 9ould see& particularly
9ell suited to his%her skills. Apart fro& this! there are fe9 other opportunities for &o'e&ent
9ithin the co&pany in the near future.
This transfer 9ould include *aul%*auline attending inAhouse training in the &aintenance of
corporate cli&ate and the de'elop&ent of co&pany policies! as 9ell as Hu&an -esource
practices.
Negotiation A.10.10
Simulation
Fundraising and Publicity
Page 1
Jou are /rancis%/rances Hopkins. Jou are the Honorary /undraising .fficer at your local
neigh=ourhood centre. The centre@s &ain fundraising acti'ity this year is a spring fete.
*lanning for this fete is progressing 9ell. )u&=ers of people ha'e already =een assigned
to look after stalls.
.ne aspect of the fete organisation 9hich still concerns you is pu=licity. The neigh=ourhood
centre has an Honorary *u=licity .fficer. Jou are often concerned =y the *u=licity .fficer@s
approach to pu=licity. Jou certainly feel that pu=licity is less extensi'e! and &ore
conser'ati'e! than you 9ould like to see.
Because the spring fete is such an i&portant e'ent! you 9ant the pu=licity to =e 'ery
effecti'e. Jou =elie'e that relying on the *u=licity .fficer 9on@t =e ade7uate so you are
keen to esta=lish a /ete *u=licity #o&&ittee! 9hich you 9ould con'ene. This #o&&ittee
could de'ote its attention to pu=licising the fete. This 9ould &ean that the *u=licity .fficer
9ould =e free to continue 9ith the routine pu=licity re7uire&ents of the centre.
Jou ha'e arranged to &eet 9ith the *u=licity .fficer! -o=in%-o=yn Deslie! to discuss
pu=licity for the fete. At the &eeting! you intend to propose the /ete *u=licity #o&&ittee.
Negotiation A.10.11
Simulation
Fundraising and Publicity
Page 2
Jou are -o=in%-o=yn Deslie. Jou are the Honorary *u=licity .fficer at your local
neigh=ourhood centre.
/rancis%/rances Hopkins! the Honorary /undraising .fficer! has asked to &eet 9ith you to
discuss pu=licity for this year@s &aGor fundraising acti'ity! a spring fete. Jou@re happy to
&eet 9ith /rancis%/rances as he%she has re7uested it! although you don@t feel that it is
necessary.
/rancis%/rances has plenty to do in organising the fete itselfB and you are 9illing to look
after all the pu=licity 9ithout re7uesting ti&e and effort fro& others. Jou =elie'e that
/rancis%/rances likes to in'ol'e hi&%herself unnecessarily in areas that fall outside of
his%her responsi=ility. This results in ti&eA9asting and excess effort.
Jou are looking for9ard to the fete. The pu=licity needs are straightfor9ard: you 9ill
organise the usual letter=ox drop! poster displays in shop 9indo9s! free co&&unity ser'ice
ad'ertise&ents on local radio! and an article on page three of the local ne9spaper.
Negotiation A.10.12
!e S%ills of Negotiation
)egotiation calls on all of the skills of conflict resolution.
Jou &ay find these skills useful in any of the phases.
$hen 9orking 9ith a 9in%9in approach:
Be !ard on t!e problem
Be so#t on t!e person
1ocus on needs2 not positions
Emp!asise common ground
Be inventive about options
9ake clear agreements
&he Satisfaction &riangle is adapted fro" "aterials of 1$2 Associates, 100 Arapahoe Avenue, Suite
12, >oulder 13 60.02 (SA
Negotiation =.10.1
*hase "
*repare en'iron&ent
-esearch
Hap
*hase 2
Select .ptions
3enerate .ptions
ducate on needs C
perspecti'es
Build rapport
*hase 3
*lan re'ie9
Set ti&efra&e
,e'elop action plan
/or& Agree&ents
!irty Second &pener
$rite a 3( second state&ent as an opener to a negotiation.
&. Engage /nterest
$hat 9ould &ake this person interestedF Ho9 &ight they =enefitF
:. State Objective
$hat do 1 9ant to achie'eF
5. /nvite 7esponse
$here do 9e go fro& hereF Ho9 9ill 1 in'ite the next stepF
After presenting a Fthirty second opener,F consider'
$as the state&ent concise and clearF
,id the other person feel that his%her needs had =een addressedF
$hat additional infor&ation &ight he%she ha'e neededF
,id you say or do anything 9hich encouraged a @@no@@ rather than a @@yes@@
responseF
Negotiation =.10.2
'(SC Negotiation Styles "or%s!eet
"O$S"/E$T/O3S ./7E"T
Strengt!s 4it#alls

Strengt!s 4it#alls
Areas needing special attention Areas needing special attention
STAB/8/S/$G /$183E$"/$G
Strengt!s 4it#alls

Strengt!s 4it#alls

Negotiation =.10..
Strategies for Responding to *nfair
actics
The ai& is not to outAtrick the other party. -ather! the ai& is to &aintain the
relationship 9hile resol'ing the issue. Broadly! reAdirect attention =ack to the issue.
3n#air $egotiation tactics Strategies #or 7esponding to T!em
Negotiation =.10.+
Responding to *nfair actics
The 9in%9in approach includes these co&ponents. 0se the& to steer a negotiation in a
positi'e directions and particularly 9hene'er an unfair tactic has =een used.
7e#rame
Ask a 7uestion to refra&e.
-e7uest checking of understanding. >4*lease tell &e 9hat you heard &e%the& say.@@?
-e7uest so&ething she%he said to =e restated &ore positi'ely or as an 414 State&ent.
-eAinterpret an attack on the person as an attack on the issue.
7espond not 7eact
#entre. Hanage your e&otions.
Det so&e accusations! attacks! threats or ulti&atu&s pass.
Hake it possi=le for the other party to =ack do9n 9ithout feeling hu&iliated >e.g. identify
changed circu&stances.?
7e@#ocus on t!e /ssue
Haintain the relationship and try to resol'e the issue.
Su&&arise ho9 far you@'e got. -e'ie9 co&&on ground and agree&ent.
/ocus on =eing partners sol'ing the pro=le&! not opponents.
,i'ide the issue into parts.
Address a less difficult aspect 9hen stuck.
1n'ite trading currencies >@@1f you 9ill...! then 1 9ill...@@?.
Try for agree&ent in principle.
xplore =est and 9orst alternati'es for a negotiated agree&ent.
/denti#y 3n#air Tactics
)a&e the =eha'iour as a tactic.
xpose the feelings that the tactics ha'e exposed.
0se 414 State&ents.
Address the &oti'e for using the tactic.
Ask a=out underlying principles and co&&it&ents.
"!ange t!e 4!ysical "ircumstances
Ha'e a =reak. #hange locations! seating arrange&ents etc.
3o into s&aller groups. Heet pri'ately.
#all for &eeting to end no9 and resu&e later! perhaps 4to gi'e opportunity for reflectionE.
Negotiation =.10.4
Negotiation: Preparation P!ase
$eeds and "oncerns
$hat are &y needs and concernsF
A& 1 really co&&itted to using a 9in%9in approachF Ho9 9ill that affect &y ai&s
and actionsF
$hat =eha'ioural style >,1S#? do 1 and the other parties in'ol'ed usually adoptF
$hat are the needs and concerns of the other parties in'ol'edF
$hat infor&ation do 1 need and 9hat infor&ation do others needF
Options
$hat agenda ite&s do 1 9ish to raise! and 9hat are &y preferred outco&esF
$hat are &y preferred options for &eeting that outco&eF
$hat other options could =e consideredF
$hat is &y =est alternati'e to a negotiated agree&entF
$hat is &y 9orst alternati'e to a negotiated agree&entF #an 1 reduce its negati'e
effectF
1n 9hat currencies can 1 tradeF $hat can =e easy for &e to gi'e and 'alua=le for
the other parties to recei'eF $hat can 1 ask for that is helpful for &e and lo9 cost
for the&F
Anticipating t!e Actual 9eeting
$hat are the physical conditions in 9hich 1 9ant the negotiations to occurF
$hat e&otions of &y o9n &ay 1 ha'e to &anageF
$hat e&otions in others &ay 1 encounter and ha'e to respond toF
1n 9hat 9ays 9ill 1 &anage and respond to these e&otions%
Negotiation =.10.,

Negotiation Manual

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Negotiation Manual

Uploaded by

Copyright:

Available Formats

Negotiation

Objectives: To explore key skills and the structure of negotiation.

You might also like