BBDS2033 PROCUREMENT MANAGEMENT

Tutorial 8

1. What is negotiation?

2. Explain how Persuade, Give in and/or Problem solving can be influential methodology in
negotiation.

3. Discuss the personal factors or characters of a person which might help in his/her negotiation
procedures or process.

4. Negotiation is affected by various techniques used in manipulating the negotiating process.

Describe these following manipulative techniques/ploys:
a. Nice guy/hard guy ploy
b. Add ons ploy
c. Deadlines ploy
d. Empty larder ploy
e. Approval from higher authority ploy.

5. What are the focus areas in negotiation? Explain them in details.

6. What is(are) the most important topic(s) in negotiation? Explain.

7. Why negotiation skill is important the company?

Negotiation is a process where two or more parties with different needs and goals discuss an
issue to find a mutually acceptable solution. In business, negotiation skills are important in
both informal day-to-day interactions and formal transactions such as negotiating conditions
of sale, lease, service delivery, and other legal contracts.

Good negotiations contribute significantly to business success, as they:

help you build better relationships
deliver lasting, quality solutions — rather than poor short-term solutions that do not satisfy
the needs of either party
help you avoid future problems and conflicts.
Negotiating requires give and take. You should aim to create a courteous and constructive
interaction that is a win-win for both parties. Ideally a successful negotiation is where you
can make concessions that mean little to you, while giving something to the other party that
means a lot to them. Your approach should foster goodwill, regardless of the differences in
party interests. A good negotiation leaves each party satisfied and ready to do business with
each other again.
A skilled negotiator considers a wide range of options; gives a great deal of attention
to common-ground aspects; is flexible dealing with issues as they arise.
They confirm what has been agreed in a ‘first draft’ agreement, which is then
confirmed/commented upon by the other party.

Negotiation style depends on the objective to be achieved – short-term gain

may use an aggressive, assertive style. This approach tends to lead to long-term
problems. A longer-term ‘win–win’ approach based on trading wants is far more
likely to reap reward – while one party may concede on price, it may be gaining
on delivery or payment terms.