Transcript Follow-up

Business Communication
Course Unit 8
Negotiations
Intro
Have you ever bargained for something? Describe your
experience. Was it successful?
How would you define negotiations?
1. A brief definition
A negotiation is:
•
a back-and-forth communication where 2 or more
parties bargain for a desired outcome
1. A brief definition
The parties involved in negotiation have interests that
may be:
•
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common
opposed
• What communication skills are necessary
for successful negotiations?
2. Negotiation essentials
For successful negotiations, remember the following
advanced communication skills:
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a positive attitude
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beliefs can affect outcomes
=> believe that you deserve what you want to get
Follow-up
Do you usually think positively or negatively? What
could the implications be for business
transactions?
2. Negotiation essentials
For successful negotiations, remember the following
advanced communication skills:
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state your desires and concerns clearly
–
listen carefully to the other party’s desires and concerns
2. Negotiation essentials
For successful negotiations, remember the following
advanced communication skills:
•
knowledge of the negotiation process
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know how to break down an issue into separate parts
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negotiate or bargain for who gets each part
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know how to address common interests for mutual gains
Follow-up
Give examples of some possible mutual gains in a
negotiation.
2. Negotiation essentials
For successful negotiations, remember the following
advanced communication skills:
•
an understanding of human behaviour
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know what motivates you and the other party
be aware of what matters to you and to the other party
know how to apply all relevant communication skills
(see the previous and subsequent units in this course)
2. Negotiation essentials
For successful negotiations, remember the following
advanced communication skills:
•
using creativity
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solve problems creatively
find innovative solutions
Follow-up
Are there any downsides to being creative and
innovative in business transactions / negotiations?
Why? Why not? Give some examples.
2. Negotiation essentials
For successful negotiations, remember the following
advanced communication skills:
•
knowledge of the negotiation subject
–
inform yourself about the subject of negotiation
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do some research into the options prior to negotiation
3. Fairness standards
Consider the following three fairness standards that
should guide any negotiation:
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the standard of equity
–
people are rewarded based on merit and effort invested
3. Fairness standards
Consider the following three fairness standards that
should guide any negotiation:
•
the standard of equality
–
each person gets an equal share, regardless of their
contribution
3. Fairness standards
Consider the following three fairness standards that
should guide any negotiation:
•
the standard of need
–
the person with the greatest need gets the largest percentage
Follow-up
Discuss the advantages and disadvantages of the three
fairness standards in negotiations:
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equity
equality
need-based
4. Negotiator types
You may be one of the two negotiator types below,
based on your personality, experience, fairness
standards and cultural background:
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the soft negotiator < the nurturing cultural dimension
–
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easier to negotiate with
frequently loses
may be forced to the extremes of acquiescence
4. Negotiator types
You may be one of the two negotiator types below,
based on your personality, experience, fairness
standards and cultural background:
•
the hard negotiator < the achieving cultural dimension
–
–
–
goes to great lengths to win
frequently wins
may bully the other party into a losing outcome
Follow-up
Which of the two negotiator types (soft / hard) would
suit you best? Why?
Could either of the two cause you problems? What
kind?
5. Negotiation factors
There are four basic factors that impact negotiation:
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the outcome
–
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the goal you want to achieve
the items / issues for which you are negotiating
compromise may be essential (i.e. give up one half of the
items you need in order to get the other half)
Follow-up
How far could you compromise in a negotiation? What
factors would you take into account?
5. Negotiation factors
There are four basic factors that impact negotiation:
•
the relationship
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may be as important as the outcome
your relationship with the other party is an integral part of the
negotiation process
5. Negotiation factors
There are four basic factors that impact negotiation:
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the time
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time constraints heavily impact negotiation
time pressures may lead to less desirable outcomes
5. Negotiation factors
There are four basic factors that impact negotiation:
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the transaction costs
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money, time, energy, wear and tear, stress etc.
know when to stop bargaining and settle the negotiation
6. Bargaining: positional v principled
As a negotiator, you may assume:
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a positional bargaining stance, in which you
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take sides
form camps
fail to build rapport
begin to fight over your position
may go to extremes
automatically have a debate
cannot use your influence tactics to build a bridge
6. Bargaining: positional v principled
As a negotiator, you may assume:
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a principled bargaining stance, in which you
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look for what you have in common with the other party
negotiate on merits
separate the people from the problem
focus on interests rather than positions
come up with a variety of options before making a decision
use objective standards to evaluate results
6. Bargaining: positional v principled
By assuming a principled bargaining stance, you must
consider the three criteria below:
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‘Does it produce a wise agreement?’
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the solution makes sense
the solution is the best one possible out of a variety of options
all the options have been explored by participants
6. Bargaining: positional v principled
By assuming a principled bargaining stance, you must
consider the three criteria below:
•
‘Is it efficient?’
–
the issues of transaction costs
6. Bargaining: positional v principled
By assuming a principled bargaining stance, you must
consider the three criteria below:
•
‘Does it improve the relationship?’
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separating the people from the problem
allowing participants to avoid personality conflicts
focusing on all the participants’ needs, interests and concerns
Follow-up
Which of the two stances (positional / principled)
would you most probably assume as a negotiator?
What kinds of problems might you expect, based
on your choice? Explain.
7. Negotiation outcomes
Anticipate how a negotiation will end, before deciding
how to start it. Your choice of tactics and
strategies will determine the outcome:
•
win / win
–
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an optimum occasion
both the issues and the relationships matter equally
may be time-consuming
7. Negotiation outcomes
Anticipate how a negotiation will end, before deciding
how to start it. Your choice of tactics and
strategies will determine the outcome:
•
win / lose
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the issues matter more than the relationship
time is needed to wear down the other side
synonymous to getting the best deal
7. Negotiation outcomes
Anticipate how a negotiation will end, before deciding
how to start it. Your choice of tactics and
strategies will determine the outcome:
•
lose / win
–
long-term bonds are more important than momentary issues
7. Negotiation outcomes
Anticipate how a negotiation will end, before deciding
how to start it. Your choice of tactics and
strategies will determine the outcome:
•
lose / lose
–
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sometimes, the best solution
the issues are less important to both parties
transaction costs are the most important
Follow-up
“Only free men can negotiate. Prisoners
cannot enter into contracts.”
Nelson Mandela
• You must be fully prepared to lose a great
deal in order to make a great deal.
• Information is a negotiator's greatest
weapon.
Victor Kiam