Professional Documents
Culture Documents
0 Introduction
2.1 Definition of Negotiation
According to the text book, negotiation is a process of two differing parties trying
to influence each of the other party to fulfil their inter-dependence needs. Not
everything is negotiable, not anytime and anywhere negotiation can take place.
According to the Wikipedia, negotiation is a dialogue between two or more
people or parties, intended to reach an understanding, resolve point of difference, or
gain advantage in outcome of dialogue, to produce an agreement upon courses of
action, to bargain for individual or collective advantage, to craft outcomes to satisfy
various interests of two people/parties involved in negotiation process. Negotiation is
a process where each party involved in negotiating tries to gain an advantage for
themselves by the end of the process. Negotiation is intended to aim at compromise.
Negotiation occurs in business, non-profit organizations, government branches,
legal proceedings, among nations and in personal situations such as marriage, divorce,
parenting, and everyday life. The study of the subject is called negotiation theory.
Professional negotiators are often specialized, such as union negotiators, leverage
buyout negotiators, peace negotiators, hostage negotiators, or may work under other
titles, such as diplomats, legislators or brokers.
According to Investopedia, negotiation is a strategic discussion that resolves an
issue in a way that both parties find acceptable. In a negotiation, each party tries to
persuade the other to agree with his or her point of view.
or delivery. The transferee takes the instrument in good faith, for value, and
without notice of any defect in the title of the transferor, and obtains an
indefeasible title.
Win-lose situations cause turmoil and hard feelings. Some parties behave
like a five-year-old who has just lost a game, kicking, screaming, and saying,
Its not fair! Others behave like a five-year-old who has just won, gloating
and rubbing his opponents face in his victory. When one party loses in
negotiation, it can have long-term emotional as well as financial
consequences; it is to be expected that this will continue to cause turmoil and
discord.
The relationship will change with a win-lose situation and not for the
better. If you have to continue working with the winner, it can be very
difficult to maintain a professional attitude, especially if they helpfully remind
you again and again that you lost. On the other side, it can be difficult working
with the loser, who is intent on focusing on the past instead of the future.
Sometimes the loser will be annoyed enough with the loss that the battle is not
truly over and you may suffer unforeseen consequences as that person tries to
even the score.
You move into conflict territory. Instead of having a disagreement that you
can settle, you instantly have a conflict situation where both sides feel the need
to win. The initial issue is buried, at least in part, by emotions and the need to
be right and usually no one really wins.
resolve the problem, not necessarily win, exploring options with a creative
spirit is a very good place to start.
You avoid lose-lose negotiations. Its like when you fight with a sibling over
a ball; you call mom in to mediate and she ends up taking the ball away. No
one wins. Negotiation should not leave you worse off than before. Be sure to
do your research before you start to negotiate. Maybe you are already getting
a better deal than it is reasonable to expect.
3.0 Body
3.1 Characteristic of Win-Win Negotiators
Heres an idea: The best negotiators in the world never actually get the very best
deal. Well, I suppose that may depend on how you define best, but in my world, best
doesnt mean Ive won or beaten my opponent. To me, the best deal is the one that
both people walk away from happy and excited to do it again. The best negotiators
dont get the very best deal for themselves; they get a great deal for everyone
involved.
The follow are the characteristics of a win-win negotiator:
1. Accept the fact that you need to negotiate. You may not like it. It might make you
feel awkward. The fact is, we all negotiate whether we want to or not. And if choose
to ignore it, then, you will lose. Very few people will try to create an outcome that is
harmful to you, but almost all people will do what is in their best interest. If their best
interest and your best interest dont align, then you lose. Thats where knowing the
basics of negotiation and learning how to use them prevents you from getting
stepped on and pushed over.
2. Forget about the price tag and focus on what you are willing to pay. Economics
101: an item is worth what someone is willing to pay it. There is no reason to accept
the given price if youre not willing to pay for it. The agreement between buyer and
seller happens during every purchase. There is nothing wrong, cheap, or immoral
about asking for a lower price.
3. Know how much value you hold. Do you know how valuable your business is?
For many businesses, the cost of acquiring a new customer is very high. Companies
pay for advertising, marketing, shipping, packaging, and a whole host of other costs
all just to get a product in front of you. Even if you buy a product or service for 50%
of the regular price you are making all of those costs worth it to the company because
they got a new customer. And if they do a good job, then maybe youll be a repeat
customer. So that first 50% was totally worth it. Negotiate for a discount, your
business is worth it.
4. Know what you are willing to accept. Not every negotiation can be planned ahead
of time, but you can prevent a dumb mistake by knowing where you are going to call
it quits before you start talking things out. Know what options are out there. How
much does that car usually sell for? What is a typical rental rate? Do your homework
and, if you can, bring proof.
5. Just try one new thing. If negotiation makes you uncomfortable, then only focus
on doing one thing out of your comfort zone. You dont need to be a master negotiator
to get your desired result. Sometimes one little addition is all it takes.
When win-win negotiator starting of negotiation
6. The way you enter a room can dictate how the rest of an interaction will be.
Ever see someone slump through a doorway with a scowl on their face? Not very
inspiring. Keep your head high and smile when you enter. Starting things off with a
positive vibe is very important, no matter how small it is.
7. Find a person who can help you. The first person you talk to will not always be in
a position to deal with your situation. If they dont have the ability to make the
changes you need or give you the discount you want, then politely ask to talk with
someone that does.
8. Dont dismiss someone on a bad note. If you do need to switch to someone else,
then remind the person you are currently talking to that youre happy with their
service and you appreciate their help, but you would like to talk with a manager.
9. Kick things off by talking about a mutual interest, making a true compliment,
or finding common ground. Talk about something you both like before starting to
ask for what you want.
10. Good listening skills. What do they really want and how can you give it to them?
11. Patience. Take care of them and neutralize their objections before they even know
what youre asking for.
12. Compromise. What can you compromise on so that you get exactly what you
want in the areas that are most important to you?
13. Use the other persons name. Its so basic that almost everyone forgets.
14. Focus on creating a cooperative discussion instead of an adversarial
argument. Use the word, We to signify that youre working through this together.
For example, You know, $100 is a good starting place. Now we just need to work out
the details.
15. Ask about alternative options. Most places have all types of discounts, reduced
rates, secondary options, and other alternatives that can be applied. Youll never know
what options exist if you dont ask. There is almost always more than one way to
solve a problem.
16. If you have a bill with multiple items, always negotiate each individual item
first. Go line by line and see if there is an alternative option, a discount, or if you can
simply eliminate that item altogether. Then, when you have made it through the full
list, you can ask for a group discount.
17. Ask open ended questions. For example, avoid asking, Do you offer a
discount? The obvious answer is, No. Instead say What is your discount for as
it requires more of an explanation.
18. If you can, offer to pay in full right away. Paying in full saves the business from
the hassle of managing your payment plan or calling you in the future for money, so
that benefit should be worth a discount on your end.
19. Give yourself an out. Negotiations often go south because blame gets assigned to
one side or the other. Make it easier on both parties by referring to someone off the
scene. A simple, Ill have to run this by my spouse/business partner/attorney, can
make it a lot easier. It prevents you from looking like the bad guy.
20. Listen more, talk less. You dont need to say much. Typically, the person that
talks more ends up saying something they regret. Silence can make some people feel
awkward, but a well timed pause can say a lot.
21. Dont offer an ultimatum. This is my final offer. Take it or leave it. I
demand 20% off. Nobody likes being told what to do. Ease up, Corleone.
22. Acting like price is the only thing you care about is disrespectful. Saying,
Whats the most you will pay? or Whats the lowest price you can offer? totally
eliminates any human element of the conversation. Think about the person on the
other end of the phone, other side of the screen, or other side of the counter.
23. Ask for what you want. The world is a good place with good people, but most of
them are too busy with their own jobs to figure out what you want for you. People are
willing to help, but you need to show them what to do by asking for what you want.
24. Dont be vague. Stop beating around the bush or trying to tiptoe your way to a
discount. Instead of hinting at what you want and hoping they figure it out, just
clearly ask for your desired outcome. Youll be surprised by how often you get it.
25. Ask the other side to help you. Another great tip from Baker:
The what-would-you-do-in-my-shoes question My favorite way to initiate this
question is to say, Heres the main issue [restate problem plainly] what would
you do in my shoes? Asking questions like this is an effective way to generate all
sorts of creative ideas that you would never even thought to ask. I often ask this to
customer service representatives after being told no. Baker, Man vs Debt
How win-win negotiator finish the negotiation
26. Dont put all that work in and blow it at the end. Its easy to get nervous and
panic when youre on the verge of getting what you want. If youre excited and dont
know what to do, then just ask for what you want and be quiet. Talking to much or
play it carefully at the end rarely works out well.
27. No deals on a handshake. If you get a new price, a discount, or any other benefit,
then ask for it in writing. Dont just take their word for it unless you want to negotiate
for it again later. Just make it easier on everyone and get them to write it down.
28. Call back or come back. Sometimes you get the wrong person. Sometimes you
start off on the wrong foot. Sometimes you catch an employee on the wrong day.
Getting someone with the right personality can make all the difference in the world. If
your conversation isnt getting anywhere, then hang up, head out, and try it again
some other time.
29. Treat people with respect. No discount is worth burning bridges, ruining
relationships, or making people feel disrespected. In the long run, you are better off
paying a higher price and keeping the good will.
30. Dont take it personally. Maybe youll get what you want. Maybe you wont.
Life will move on either way. Most people will never have a negotiation that will
make or break their life. Keep it real and dont get emotionally involved.
When both parties agree upon such standards, it becomes easier for everybody
involved to evaluate a proposal or an idea from a position of common ground,
according to Dr. Leimbach.
"For example, if a customer needs to demonstrate to his or her manager that the
price for the deal is a good value, then an independent standard such as market
value/price can be used to justify or reinforce the customer's choice," he explains.
5. Have an alternative plan.
Enter every negotiation with a backup plan that comes into effect if you and your
counterpart can't reach agreement. (Dr. Leimbach calls this a BATNA: "Best
Alternative to a Negotiated Agreement.")
For example, suppose you're working with a potential customer who simply
won't (or can't) pay you enough to make the deal profitable for you. In this case, your
BATNA might be to maintain contact and continue to investigate opportunities to
work together.
Having an acceptable BATNA frees you from the limiting perspective that you
MUST close the deal no matter what, thereby freeing you to negotiate without fear of
"losing."
opponent. Some people even suffer from fear of fearthat is, they fear the physical
symptoms of fear. As with anger, the way to deal with fear involves being aware of it
first and then using techniques to address it.
It is important to note that even being aware of and recognizing our emotions
may not be enough to control behavior. Due to the way the human brain works,
sometimes very strong negative emotions, such as extreme fear or rage, may lead us
to act before we are even aware of the emotion. Also, most of our blood rushes to our
extremities when we experience anger. So, although we are well prepared for a
physical fight or for flight, our problem-solving abilities are not at their optimum, to
say the least. Thus, it is ideal to be able to head off strong negative emotions before
they arise; that is, to anticipate when they may arise and create an environment that
will minimize their occurrence. If and when they do arise, it is important to be able to
deal with them as early and as quickly as possible.
The various techniques and tools discussed below for dealing with strong
negative emotions work well at different stages in the negotiation process. Some help
deal with emotions when they arise during a negotiation, while others help anticipate
and dissipate emotions even before they have the chance to arise.
distance allows calm rationality to prevail, and this gives you time to better analyze
what is happening. The first group of techniques involves mental pauses or breaks:
Say let me think about that.
Use an imaginary pause button. Visualizing a big round red button and
pressing it while you distance yourself from the immediate exchange will help
you distance yourself mentally.
Focus on physical sensations in the environment. Listen to the air flow in the
room, feel the sensation of your body on the chair, your hand on the table, the
position of words on a piece of paper. All of these will allow you to calm your
mind.
Think of a relaxing scene that you love and that touches you. It may be your
backyard in the summer, a flower, your childs face, a beach. Any of these
scenes will transport you away from the current situation.
Adopt a relaxed positionfind the tension in your body and relax it
intentionally.
The second group of techniques involves taking a physical break, actually
removing yourself from the negotiation:
Take a break for coffee or lunch.
Take a break to use the bathroom facilities.
Halt the negotiations and schedule them for another time. You can preface this
move by I think this is a good time to take a break from negotiations.
If you are negotiating on the phone, say that someone needs you urgently and
that you will call them back. However, use this technique sparingly and only if
you are unable to deal with strong negative emotions in other ways.
A break lets you step away and become a detached observerto figure out what
you are feeling and why. William Ury describes this technique as going to the
balcony. As you relax and distance yourself emotionally, think about how to react
constructively. Breathing techniques are very beneficial to achieving calm during both
mental and physical breaks. Taking a deep breath in through your nose and letting the
air out slowly through your lips will help you calm down. Similarly, taking a deep
breath and letting the air out all at once, as if you were sighing, will also help you
calm down. Deep breathing activates the parasympathetic part of the autonomic
nervous systemthe part you want activated during stress so that you can relax.
However, be careful about using the second breathing technique around other people;
they might think you are expressing frustration, despair, despondency, boredom,
anxiety, or fatigue.
2. Changing Your Emotions
Emotions are not fixedthey are fluid and can be changed. Hot feelings, which
are less adaptable and rational, can be changed to cool feelings, which are healthier
and less volatile. Thus, one way to deal with a strong hot negative emotion is to
change it into a weaker or cooler emotion. Since our feelings are related to our
thoughts and beliefs, we can change our feelings by changing our thoughts and
beliefs. One simple way to change our thoughts about a feeling is to redefine it. For
example, instead of labeling the emotion you are feeling as fury, identify it as
irritation or annoyance instead. This small step can change how you perceive the
emotion and consequently change how you feel it. Other examples include redefining
depression as sadness, severe guilt as regret, and anxiety as concern.
Still another way to change an emotion is to look at the thoughts fuelling that
emotion. Negotiators tend to have a bias that they are more cooperative than their
counterparts and that such counterparts are more competitive and hostile. Based on
this bias, a strong negative emotion could be created by the thought that the other side
is intentionally violating standards of fairness, standards that you are upholding to
your detriment. You may even tell yourself that the violation is a personal slight.
However, if you were aware of your thoughts and what you were telling yourself, you
would be able to change the thoughts and stop the emotion from building momentum.
You would be able to look at the situation more objectively and determine whether
your assessment is accurate. In a calmer state the behavior of the other side, if unfair,
could be addressed in a constructive manner using, perhaps, the communication
techniques discussed below.
3. Using Communication Techniques
There are specific communication techniques that are particularly effective in
defusing competitive verbal moves that are typically used to throw us off balance by
evoking strong negative emotions. These moves can include challenging competence
or expertise, demeaning ideas, criticizing style, and making threats. These techniques
are varied and include taking a break, naming the move, questioning the move,
correcting the assertion with accurate information, and diverting the focus back to the
substance in question. Examples of these techniques, or turns, appear in figure 1.
Active listening is yet another technique that works well to deal with a competitive
move.
Examples of Turns
Figure 1
Turns
Examples
INTERRUPTING
Take a break
get a coffee
NAMING
QUESTIONING
Unreasonable?/Unfair?
DIVERTING
Source: Based on the moves and turns set out in D. Kolb, Staying in the Game
Harvard Negotiation Newsletter (December 2003).
Figure 2
Stances
Too soft: This is probably stupid, but these figures dont seem to ad
up to me.
Too hard: Are you trying to rip me off?
Just right: Lets look at these numbers. There appear to be
discrepancies we should look at.
Too soft: Im not sure that I have this right, but it seems to me that
initial position. Please help me to understand why you are not also a
to make concessions.
Source: Based on the Goldilocks Test from K. Patterson et al., Crucial Conversation
Tools (New York: McGraw Hill, 2002) at 133.
them. Figure 3 presents examples of assertive messages that use the three-part
structure.
Examples of Three-Part Assertive MessagesFigure 3
Description
Description of Behavior
Disclosure of Feeling
of Tangible Effect
for gas.
I feel annoyed
work well.
I feel tense
at length
When you do not put your dirty
I feel irritated
Source: R. Bolton, People Skills: How to Assert Yourself, Listen to Others, and
Resolve Conflicts (New York: Simon & Schuster, 1979) at 153.
An assertive message allows for firmness without dominance and should satisfy
the following six criteria:
1. There is a high probability that the other person will alter the troublesome
behavior being dealt with.
2. There is a low probability that you will violate the other persons space.
3. There is little likelihood of diminishing the other persons self-esteem.
4. There is a low risk of damaging the relationship.
5. There is a low risk of diminishing motivation.
6. There is little likelihood that defensiveness will escalate to destructive levels.
Expressing yourself assertively will prevent emotions from building momentum
and allow you to deal with bothersome behavior or issues in a way that is both
constructive and affirmative. In contrast, once emotions have built up, expressing
them in
inappropriate ways
can be
damaging
to the
relationship and
Appreciation
devalued
Affiliation
You are treated as an adversary and kept at a You are treated as a colleague
distance
Autonomy
Your freedom to make decisions is impinged Others respect your freedom to decide
upon
Status
Role
important matters
Your relative standing is treated as inferior Your standing, where deserved, is given f
to that of others
recognition
personally fulfilling
Source: R. Fisher & D. Shapiro, Beyond Reason (New York: Penguin Books, 2005) at
17.
The central premise put forward by Fisher and Shapiro is that these five core
concerns motivate people in a negotiation; when both sides feel their concerns are
met, the relationship will be enhanced and the negotiation outcome will be improved.
So, for example, to create a positive negotiation environment, you will want to be
respectful and appreciative of the other partys ideas, interests, thoughts, and behavior.
As well, you will want to be respectful of the other sides autonomyincluding their
ability to make decisions.
Support for the five core concerns comes from research on words and phrases
that trigger emotional responses. For example, labeling other people negatively and
telling them what they should or should not do triggers the greatest number of
emotional responsesthe most typical one being anger.57 Thus, during the negotiation
planning stage, think about how to address the five core concerns and perhaps even
create some key phrases to use during the negotiation.
Negotiating without a plan to deal with strong negative emotions has been
compared to working in a hospitals emergency department without procedures and
protocols in place for dealing with new patients.58 Thus, it is important to find out
which techniques and tools work best for you and are easiest to use. Experiment with
them during uncomfortable conversations rather than waiting to try them out during a
longer negotiation. Taking a break is always a good technique to use because it is easy
to do; it allows you to stop reacting, and it permits you to become more analytical
about what is happening. As part of your negotiation planning, list any responses,
topics, behavior, and attitudes that have triggered strong negative emotions in the past
during conversations or other negotiations. Try to analyze whether your core identities
or shadow characteristics were involved in your response. By doing this work, you
will be able reduce the occurrence and strength of your emotional responses and, as a
result, be better able to deal with them. Also, by becoming more aware of core
concerns and trigger points, you may be better able to anticipate and reduce the
chance of evoking strong negative emotions in others.
4.0 Conclusion
There are different kinds of negotiation styles employed by different people.
Obviously one person's personality, character, upbringing and a whole plethora of
factors come into play when one adopts a particular negotiation style over another.
One party could be a hard negotiator. She sets a high demand, and reduces it
slowly. Another could be a bottom-line negotiator. Go straight to (or close to) the
bottom line, and refuse to budge. One party could adopt an aggressive stance, but
conceals a kind heart. Another could be sweet and smiling, but is internally hard as
steel.
Is anyone negotiation style better than another? If we're merely talking about
styles, then I guess each person has his own style. Perhaps a better way to gauge
negotiation styles is by looking beyond the style to the substance.
Is the negotiator bringing value to the table? The value may not be in the form of
a compromise, but can be something entirely different altogether. A lateral solution, if
you like. As long as a negotiator is bringing value to the table, then I would think that
is a good negotiation. On the contrary, a negotiator who only seeks to chip away
another person's interest without offering any value in return would be a less than
desirable negotiator, no matter how sweet and smiling he/she may be.