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BCM 20325 BUSI NES S COMMUNICATION-III

NEGOTIATION SkIlls

OBJECTIVES:

Conduct principled negotiations that result in wise agreements.

a. Learning how to recognize and understand your own personality

traits and tactics
b. Learning to manage the inherent tensions of a negotiation
c. Mapping out the negotiation process
d. Formulating communicating strategies based on various situations
e. Enhancing skills by applying best practices in a real world setting
f. Conflict management
g. Using positive reinforcement

 John owns a land with four coconut tress and a well in the middle of the
land.
 Task: Divide the land, trees and the well equally among four of his sons.

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Ben wants to give 17 Camels according to the

following ratio among Tim, Tom and Jim

TIM ½
TOM 1/3
JIM 1/9
Suggest a way.
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1. What is Negotiation?

Negotiation is used to achieve agreement about the goals and the outcome of the situation.
Negotiation involves discussion about allocation of good & services about opportunities &
issues related to conditions & timing. This discussion can end in conflict if the negotiation
process is not successful. So, you need skills for dealing with conflicts.

2. Skills needed for effective negotiation: -

You need a range of specific skills to negotiate in order to achieve an agreed outcome. Good
interpersonal Skills are an important part of successful negotiation.

 Planning and preparing thoroughly before a negotiation.

 Having an understanding of the negotiation process.
 Being able to use appropriate techniques during negotiation.
 Knowing how to follow up processes.
 Evaluating the effectiveness of a negotiation.

There are many techniques that people use when negotiating. You will encounter these when
you analyze, observe and participate in negotiation.
3. Preparing Negotiation: -

A. Identify the problem.

B. Define the goal.
C. Gather & record all relevant facts about the negotiation situation.
D. Map the negotiation.
E. Anticipate possible outcome.
F. Determine the negotiation outcome.

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A.Identify the problem.

This is one of the most important aspects of the negotiation process. If you are not addressing
the right problem, then the outcome will be off track. When you identify the problem in a
negotiation you are trying to describe the overall issue and identify the challenges faced. The
negotiator focuses on the problem while you are planning- so that the issues being negotiated
are your main concern rather than the people and their views.

B. Define the goal.

Defining your goals in a negotiation means making a statement about the best outcome that
you can achieve in the situation. if you can clearly state your goal then you will be more
likely to keep the discussion focused and eventually achieve your goal. A clear goal will help
you to present your position to others. And think about anticipate their goals.

C. Gather & record all relevant facts about the negotiation situation: -

A successful negotiator is always fully informed and prepared before commencing the
negotiation. This requires through information gathering to help you to identify the range of
issue/ needs/ goals/ options & facts related to the particular negotiation.

A SWOT analysis will help in record the gathered information (Strength / weakness/
opportunities / threats)

In a negotiation situation it is helpful to conduct a SWOT analysis for each person or

party involved.

Simply list relevant points under the four heading (Working alone/ with the help of
others)

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D.Map the Negotiation.

Use the information you have gathered to create a picture, or map of the negotiation consider
the following 4 steps.
1. Describe the problem of the negotiation.
2. Identify the people who are involved in the situation.
3. Use empathy to analyze the situation.
4. Think about each person in turn, including yourself, and record their needs and fears
about the problem.

E-Anticipate possible outcomes.

Consider and evaluate as wide as a before the negotiation starts. This is a key step to
effective, planning. Brainstorming individual or as a group will help clarify the problems,
issues and strategies.

F. Determine the negotiation outcome.

When preparing for negotiation you should determine the goal in terms of what you need to
achieve and what you think others want. There are ranges of ways to describe the goal.
 Win loose.
 Loose Loose
 Win Win

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Ten negotiation techniques:

1. Prepare, prepare, prepare. Enter a negotiation without proper preparation and

you’ve already lost. Start with yourself. Make sure you are clear on what you really
want out of the arrangement. Research the other side to better understand their needs,
as well as their strengths and weaknesses. Enlist help from experts, such as an
accountant, attorney or an adult.

2. Pay attention to timing. Timing is important in any negotiation. Sure, you must

know what to ask for, but also be sensitive to when you ask for it. There are times to
press ahead, and times to wait. When you are looking your best is the time to press for
what you want. But beware of pushing too hard and poisoning any long-term
relationship.

3. Leave behind your ego. The best negotiators either don’t care or don’t show they
care about who gets credit for a successful deal. Their talent is in making the other
side feel like the final agreement was all their idea.

4. Ramp up your listening skills. The best negotiators are often quiet listeners who
patiently let others have the floor while they make their case. They never interrupt.
Encourage the other side to talk first. That helps set up one of negotiation’s oldest
maxims: whoever mentions numbers first, loses. While that’s not always true, it’s
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generally better to sit tight and let the other side go first. Even if they don’t mention
numbers, it gives you a chance to ask what they are thinking.

5. If you don’t ask, you don’t get. Another tenet of negotiating is, “Go high, or go
home.” As part of your preparation, define your highest justifiable price. As long as
you can argue convincingly, don’t be afraid to aim high. But no ultimatums, please.
Take-it-or-leave-it offers are usually out of place.

6. Anticipate compromise. You should expect to make concessions and plan what they
might be. Of course, the other side is thinking the same, so never take their first offer.
Even if it’s better than you’d hoped for, practice your best look of disappointment and
politely decline. You never know what else you can get.

7. Offer and expect commitment. The glue that keeps deals from unraveling is an
unshakable commitment to deliver. You should offer this comfort level to others.
Likewise, avoid deals where the other side does not demonstrate commitment.

8. Don’t absorb their problems. In most negotiations, you will hear all of the other
side’s problems and reasons they can’t give you what you want. They want their
problems to become yours, but don’t let them. Instead, deal with each as they come up
and try to solve them. If their “budget” is too low, for example, maybe there are other
places that money could come from.

9. Stick to your principles. As an individual and a business owner, you likely have a set
of guiding principles and values that you just won’t compromise. If you find
negotiations crossing those boundaries, it might be a deal you can live without.

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10. Close with confirmation. At the close of any meeting (even if no final deal is struck)
recap the points covered and any areas of agreement. Make sure everyone confirms.
Follow-up with appropriate letters or emails. Do not leave behind loose ends.

Conducting the Negotiation:

A. Using appropriate negotiation styles
B. Using suitable language
C. Effective responding & listening technique.
D. Identify the needs & wants.
E. Creating the non-verbal environment
F. Setting up the negotiation
G. Starting the negotiation
H. Dealing with conflict during the negotiation
I. Achieving the negotiated outcome.

A-Using appropriate negotiation skills

There is no one approach to negotiation that is effective in all situations. You need
approach each situation. Use the best way in order to obtain an effective outcome. Your
power in a negotiation situation depends on how much people accept you as a credible
communicator and will be strongly influenced by various aspects of your personality.

 Knowledge
 Similarity of appearance and voice
 Relationship (Trust)
 Self Confidence & Sincerity
 Ability to praise free.
 Ability to handle pressure.

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B-Using suitable language

Always use simple, clear and polite language

C-Effective responding & listening techniques.

An introductory statement is constructed as a non-blaming statement, that contains 3
parts,
 A statement of your feelings about the issue
 A description of behavior relevant to the issue
 A statement of real effect of the issue on you.

For example, you might use a statement when you are concerned about proposals to
introduce quality management practices into the workplace.

The statements could commence with “I” / “We”. Good listening aided by appropriate
responses such as summarizing & interpretation, paraphrasing the main points of the
conversation.

Acting listening techniques involve listening to the points that the other parties are
making & responding appropriately.

Taking brief notes in one way to aid effective listening but concentrating & giving the
speaker your attention. Closed questions are helpful in an examination of the fact
because they focus on specific information. While open questions provide you with
specific information.

Open Question (Simple Answers)

What do you see as the implication of introducing quality management?

Closed Question (Specific Answer)

What is the cost involved in the quality management? (Measurement?)
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D-Identifying needs & wants.

Your needs for goods, services & opportunities are usually the main reason while you are
planning to negotiate.

In a successful negotiation you need to provide opportunities to identify your own needs
& the needs of the other party.
Often, we express our needs as wants. When we say what to gain without stating why?
Finding out the needs of the people in a negotiation allows both parties to consider a
range of outcomes.
It is important to focus on the problem and to avoid focusing on the people involved.

E-Setting up the negotiation

Time, location furniture & seating team members are the key elements of setting up a
negotiation.
Organize an agreed time for the negotiation which suits everyone involved selected a
location where people can give their attention to the negotiation & not to be interrupted
by other work.

Furniture & seating: furniture should be adequate for the group. Avoid physical barriers
between participants. Make sure the seating arrangements do not exaggerate the statues of
any other party.
Team members – ensure that:
o All the people involved in the negotiation are available for the meeting.
o All parties are adequately represented in the discussion.
o The people with power to make decisions are at the negotiation.
This is the only way to ensure that everyone knows the relevant information & that
the agreement is accepted by all.

o F-Creating a non-verbal environment.

Before you start any negotiation, it is important to a create positive non-verbal
environment. This is the time to make decisions about these nonverbal factors that you
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have planned for. Involved all team members, plan suitable time, venue & suitable seating
arrangements. Refreshments can also assist the negotiation process.

o G-Starting the negotiation

Once you have dealt with the preliminary. It’s time to move to the business of the
negotiation itself.
Start the negotiation by clarifying the issue. It is essential that the parties be clear about
this and that they are all addressing the same issue. The goals of each party may be
clearly stated at the commencement of the negotiation.
Get agreement on the process that will be used during the negotiation. All parties need to
discuss and agree on the way that it will be conducted. (Same as setting the agenda or the
rules)
H-Decision Making (Agenda)
Once again brainstorming is used,
o Awareness (ventilation): parties’ clarity the goals & establish the climate & agenda.
o Statement of objectives: all possible outcomes are listed in a brainstorming session.
o Ranking objectives: Objectives are divided into two classifications. (Musts / Wants)

Identify obstacles in reaching the objectives and anything that prevents it. Remove these
obstacles.
State alternative means for searching the objectives using a second brainstorm.
Analyze how for the alternative will work and can be implemented.
 Tentatively (Temporarily) select the decision that will achieve the musts and the large
number of wants.
 Test the tentative decision against the possible results and identify any obstacles to be
removed.
 Choose the best alternative by repeating the steps .
 Describe the steps for implementing the best decision.

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These steps work well where there is potential for a high-level cooperation between parties
and a commitment to the best possible outcome.

Finally record the agreement

H-Dealing with conflict during the negotiation.

When people come to a negotiation with strong feeling & views then the process of
expressing them often produces conflict.

Conflict needs to be expressed discussed & dealt with successfully before you negotiate to
achieve an agreed outcome.

Factors that can occur & will increase the level of conflict.
 Competition
 Righteousness
 Not Listening to the views of others
 Allowing the discussion to spread to new issues.
 Dealing in personalities
 Threats.
 Internal Hurt.
 Violating social Norms and the Observable Result.

I-Achieving a negotiation outcome:

The important task for the parties is to focus on the “Win Win” outcome. All the issuers
feeling needs. Conceptions & potions have been discreet that were determined at the state of
selection and refracting from the range of options.

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Case study 01
Mike and Jean are members of a new project team set up to develop a sales promotion plan
for an important client. Jean is the project leader.
As part of her planning, Jean has come up with a number of problems.
Mike’s workplace is two floors down where Jean works, and she is anxious for all team
members to be in the same area because they will need to share files. Previous experience
with a project where team members were separated showed that communication was difficult,
documents went astray, it was always hard to get people together quickly if something had to
be discussed.
The project will be managed using a new software package and it is common knowledge that
Mike is not keen on using computers. Coming to grips with the new program will also
involve Mike in learning to use word processing software and acquiring key board skills.
Mike won’t be keen on moving because his workplace is in a prime location with good light,
a view and a fair amount of privacy. He would have to give these up to move to Jean’s area
which he regards as crowded and noisy. He also sees coming to grip with the computer
programme as a problem because some of the training would be in his time and he does not
see the need for everyone on the team to use the software.

1- What are some of the issues for Jean in this situation?

2. What are some of the issues for Mike?

3. Form groups of five and discuss what are some of the ways in which this situation
could be handled. - Your group comprises Mike, Jean the negotiator, a leader and a

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secretary. At the end of the discussion the group leader will orally present the decision
of the group.

Skills Case study 02

Analyse the following situation and prepare for the negotiation.
The supplier’s study Your company KAR Mouldings produces plastic parts for
mining and manufacturing machinery. One of your customers is a mining company
working in a remote part of western Queensland. The company has stopped operations for a
week while they conduct routine maintenance on their machinery. One of the parts that has to
be replaced is being supplied by your company. An unanticipated breakdown of one piece of
your equipment will cause a two-day delay to the completion of the current production run.
This means that the parts will be delayed at least seven days because they will miss the plane
that flies only once a week into the mine area. Your company has had a good supply record
up until now, but delays in delivery of raw materials from overseas have made it impossible
to keep the normal one-week gap between production and delivery dates. Another feature of
your products is the very high-quality standards that are maintained in production. This
particular contract is only worth about 8000$ each year but because it is in an expanding area,
you are anxious to position your company as a key supplier of parts for both new machinery
and replacement parts. There are alternative suppliers of the product, but it is unlikely that
they could get the parts to the mine any sooner.
Group A-You are representatives of KAR Mouldings Pvt.Ltd, analyze the above situation and
come up with your solutions:
Solution 1-
Solution 2-
Solution 3-

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Group B- You are representatives of the Mining Company. Discuss the solutions with
representatives of KAR Pvt.Ltd and come to a conclusion with the best solution.

Dewey Sequence Problem – Solving

One of the most effective methods of problem solving is the Dewey Sequence.
Developed by educator John Dewey, this reflective thinking process which is a structured
organized series of question is best described by the questions listed below.

(Task:Every member of the group must come prepared to answer each of the questions in
steps one through four as it pertains to your topic.)

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Step One: Define the Problem

 What is the specific problem that the group is concerned about? (In the case of your
group this will be your policy question)
 What teams, concepts, or ideas need to be defined?

Step Two: Analyze the problem

 What is the history of the problem?

 What are the causes of the problem?
 What are the symptoms of the problem?
 What methods, (approaches, laws, policies) currently exist for the dealing with the
problem?
 What are the limitations of these methods?

Step Three: Determine Criteria for optimal Solution.

 What are the guidelines for a workable solution? (Sample criteria may include cost,
ability to be implemented, enforced, i.e., ……… uniforms-comfortable, eye catching,

Step four: Propose Solutions

 After the group has analyzed the problem and suggested criteria for a solution, it
should begin to suggest possible solutions in tentative, hypothetical terms. Many
suggest a verity of possible solutions without evaluating them. (Brainstorming)

Step Five: Evaluate proposed solution.

 After the group has compiled a list of possible solutions, it should be ready to select
the best possible solution in the light of the criteria that the group developed in step
three.

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 Are there any disadvantages to the solution? Do the disadvantages outweigh the
advantages?
 Does the solution conform to the criteria formulated by the group? (The group may
decide to modify the criteria)

Step Six: Select a Solution

 Weigh merits and deficiencies.

 What would be the long-term and short – term effect of this solution if it were
adopted?

Step Seven: Suggest Strategies to Implement the Solution

 Group members should be confident that the solution will indeed solve the problem.
After the group selects the solution, they must determine how to put the solution into
effect.
 How can the group get public support and approval for its proposed solution?
 What specific steps are necessary to implement the solution?
 How can the group evaluate the success of its problem- solving efforts?

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