negotiation

NEGOTIATION SKILLS

NEGOTIATION

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How would you define negotiation?

What are the alternatives to negotiation as a technique?

NEGOTIATION

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Negotiation is a process which takes place when two or more interdependent parties who have different needs and goals, work together to find a mutually acceptable & beneficial outcome.

This often involves both parties making concessions.

ALTERNATIVES

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PERSUASION ( convincing the other party )GIVING INCOERCION ( threatening ) PROBLEM SOLVINGINSTRUCTION (employer/employee

relationship )ARBITRATION ( seeking fairest 3rd party ruling )

NOTE: Negotiation is the art of persuasion and thus, it is a skill to learn & enhance.

NEGOTIATION SKILLS

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A successful negotiator needs to be….

professionalconfident, relaxed, at easeopen, honest, sincere & crediblerespectful of other peoples’ values

show empathy and understanding committed to a WIN:WIN resultcontinually enhancing their skills

Let’s watch this:

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THE 4 PHASES OF NEGOTIATION THE 4 PHASES OF NEGOTIATION PROCESSPROCESS

STAGE 1 : PREPARATION

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You are clear about your objectives and what you are trying to achieve:

You have worked out your tactics and how best to put your case.

You have gathered background information

http://www.ehow.com/video_4774342_negotiating-skills_.html

STAGE 2 : EXCHANGING INFORMATION

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This is the single most important stage of negotiation. Both parties will be trying to find out and understand the other’s position and requirements.

STAGE 3 : BARGAINING

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As soon as a number or term is mentioned by one party, you have begun to move out of information exchange and into bargaining....

Exchange of terms

BARGAINING cont …

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Reject constructively: Do not cause offence. “I’m afraid we can’t

possibly agree to a reduction in the service charge, but there might be room for manoeuvre on the wording of clause16”. Retain a constructive atmosphere.

Be firm on broad issues: be flexible on specifics.

STAGE 4 : CLOSING AND COMMITMENT

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Your judgement : Is this best and final offer?If yes:

List the agreement in detailList the points of explanation,

clarification and interpretationRecord agreed summary with all at the

tableRe-start negotiations if any dispute

over agreement

Basic Approaches

4 different approaches to negotiation:

Distributive Negotiation or Win-Lose Approach Lose-Lose Approach Compromise Approach Integrative Negotiation or Win-Win Approach

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EFFECTIVE COMMUNICATION SKILLS WHEN NEGOTIATING

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Making a deal at the best price is good business practice …

Required Skills

• Body language• Listening


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PREPARATION

Know your product and the value it will bring to a business so you can convey your message without hesitation.

If you are buying a product, research and prepare questions to determine the validity of any claims and draw out flaws


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TONE OF VOICE

Pause before making decisions or making points, emphasizing the importance of what you are saying.


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BODY LANGUAGE

Reading body language will enable you to interpret the buyer.

Be conscious of your facial expressions and body positioning to contribute to more favorable negotiations.

Crossed arms or legs, when standing, for example, indicate a closed stance.


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ATTITUDE

Be authoritative in your approach and ensure that you maintain composure when questioned.

If you sound uncertain, a buyer will not trust your product and may not buy it or expect a reduction.

It comes to a deadlock if you cannot reach any agreement.

FINAL WORDS

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Be unconditionally constructive.

Approach a negotiation with this—‘I accept you as an equal negotiating partner; I respect your right to differ; I will be receptive.’

NEGOTIATION SKILLS

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http://www.5min.com/Video/powerfulnegotiation20g-techniques-155908736

http://www.5min.com/Video/Practicing-Negotiation-Skills-155908735

http://www.5min.com/Video/Finishing-Negotiations-on-a-High-Note-155908734

http://www.ebsglobal.net/programmes/negotiation-quiz

TUTORIAL TASK

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TUTORIAL TASK 3

(1) What is listening and hearing? Discuss(2) When and why do you negotiate? (3) Create and role-play a negotiation in

PAIRS.

Further reference

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http://www.slideshare.net/ImtheKiller/negotiating-skills

Negotiation in Action

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http://www.youtube.com/watch?v=CbKg1W3rtWc&feature=related

http://www.youtube.com/watch?v=sioM-tLEksc

negotiation

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