BUSINESS

NEGOTIATION
CHAPTER 8

What is Business Negotiation?

A core leadership and management skill is the ability to
negotiate effectively in a wide range of business
contexts, including deal-making, employment
discussions, corporate team building, labor/management
talks, contracts, and handling disputes / arguments.
Dialogue between two or more parties with the purpose
of coming to a mutually agreed solution, because each
party has something the other wants.
Communication process between two or more people in
which they consider alternatives to arrive to mutually
agreeable solutions or mutually satisfactory alternatives.

Characteristics of a Good Negotiator

Open minded
Strong personality- charming personality
Knowledgeable knowledge of subject matter
being negotiated
Experienced
Motivated
Patience
Persuasive ability to persuade or encourage
others
Good communication skills

Negotiating Skills
In the world of business, negotiating skills are used for
a variety of reasons, such as to negotiate a salary or a
promotion, to secure a sale, or to form a new
partnership.
Examples of different types of negotiations in the
business world:
1. Manager and Clerk: Negotiating a promotion
2. Employer and Potential Employee: Negotiating job
benefits
3. Business Partner A and B: Making decisions about
investments
4. Company A and Company B: Negotiating a merger
5. Customer and Client: Making a Sale

Showing Your Interest

Prove you're listening by using body language or
brief verbal replies that show interest and concern.
Simple phrases such as "yes," "OK" or "I see"
effectively show you are paying attention.
This encourages the other person to continue talking
and hand over more control of the situation to the
negotiator.

Paraphrasing
Tell the other person what you heard them
say, either quoting them or summarizing
what they said

Emotion Labelling
This means attaching a cautious label to the
feelings expressed by other person's words and
actions.
This shows you are paying attention to the
emotional aspects of what other person is
conveying.
When used effectively, emotion labeling is one of
the most powerful skills available to negotiators
because it helps identify the issues and feelings
driving the other person's behavior.

Mirroring
Repeating the last words or main idea of other
person's message.
This indicates interest and understanding. For
example, a subject may say, "I'm sick and tired of
being pushed around," to which a negotiator can
respond, "Feel pushed, huh?
Mirroring can be especially helpful in the early stages
of a crisis, as negotiators attempt to gain initial
intelligence and build rapport.

Preparation is Key
Know about the party / client you're negotiating with
so you can capitalize on your strengths and the
party's weaknesses.
If the other party / client is very experienced, that
means he also has a history that could contain
useful information.
If possible, talk to business associates who have
dealt with this person before.
Many negotiators develop patterns and certain
styles that you may be able to use to your
advantage.

To organize a meeting with your client

Decide exactly who should attend the meeting.
Schedule a time for the meeting with the persons
attending, making it clear what the meeting is about
and how long it will take.
Schedule a place for the meeting that is conducive to
discussion and does not allow interruptions.
Plan an agenda with a time schedule for addressing
each issue.
Distribute the agenda well in advance of the meeting,
asking for any modifications or additions.

The Dos in a Business Negotiation

Be honest and straightforward.
Give testimonials for your argument. Support your
argument with facts.
Be optimistic (positive). Dont fear losing. There are
opportunities in other transactions ( dealings, trades
and business) also.
Keep away personal differences. Just focus your
arguments on facts.
Keep on giving recaps during the negotiation
process.

The Donts in a Business Negotiation

Do not discuss too many issues, emphasize on the
prior issues.
Dont get carried away by rumors.
Never give deadlines, it might lead to delays in deals.
Avoid being rigid. Listen to the other parties view
point if valid.
Dont make demands which cant be accepted at all.
Dont let emotions overwhelm
(over power) you.

Conclusion
Negotiations can be called as a way of resolving
disputes.
It is considered as being synonymous to settlement,
agreement, collaboration and bargaining.
It takes place almost in all spheres of life -be it is
business, personal circumstances (married life,
parenting, etc.), legal procedures, government matters,
etc.
Negotiation can be defined as a channel of
communication intended to settle differences between
parties and to settle conflict together. The parties aim
at achieving a win-win position.