NEGOTIATING SKILLSNEGOTIATING SKILLS

NEGOTIATING SKILLS

1) Introduction

2) Understanding the concept of successful negotiations.

3) Preparing for negotiations.

4) Negotiating techniques.

5) Recognizing needs of opposer.

6) Use of questions

7) Salary negotiations

8) Typical tricks

9) Conclusion.

“You get what you negotiate and not necessarily what you deserve.”

Factors which lead to successful negotiations

1) Knowledge of human nature.

2) Preparation for negotiations including understanding of needs.

3) Effective conduct.

How Nations Negotiate- Fred Ikle

“ According to 17th & 18th century manuals on diplomacy, an ideal negotiator should have a quick mind but unlimited patience, be clever without being a liar, inspire trust without trusting the other party, be modest but assertive, charm others without succumbing to their charm, possess plenty of money and a beautiful wife, while remaining indifferent to all temptations of riches and women.”

Individual And Team Negotiations

Advantages of Team negotiations

More brains better than one, hence pool of opinion and judgment available.

1) Presents other side with larger opposition.

2) Different member backgrounds can guard against misstatements of facts.

Advantages of Individual negotiations

• Prevents opposer from creating disagreements among the members.

• Places complete responsibility on one individual.

• On the spot gain/concession decision can be made.

Meeting Place

(Own office / Opposer’s office)

Advantages of own office are as under

• Psychological advantage of opposer coming to your office.

• Saves travelling time, energy and money.

• Easy to get boss’s approval on unforeseen problems.

• During breaks you can attend to routine matters too.

Advantages of Opposer’s office are as under

• Uninterrupted devotion to negotiations.

• Information can be withheld saying it is not readily available.

• Opposer’s seniors can be approached over their heads.

• Responsibility of arrangements passed on to opposer.

Opposer’s Negotiating History

• Their previous business and other deals successfully consumated.

• Their unsuccessful deals and reasons for failure.

• Proposals/counter proposals made, how rigid/flexible were the opposer’s.

• Their method of operating.

Negotiating TechniquesNegotiating Techniques

FOREBEARANCE (patience pays). Instead of answering a question immediately,

you hold off, take time to think, you are using technique of “Forbearance”.

It helps to avoid direct conflict, allows both sides to think and helps in cooling off which facilitate settlement.

Knowing when to stop is another form of Forbearance.

SURPRISE Sudden shift in method, argument or approach. The change may be drastic or dramatic. At times even altering the tone of voice makes the

point.

FATE ACCOMPLI

(now it is upto you).

This is a risky strategy. One party takes one sided decision and declares it.

BLAND WITHDRAWL

( who me?)

Taking law in your own hand for your benefit and faking innocence when checked and promising to be law abiding in the future.

APPARENT WITHDRAWL

Some deception is involved here.

The aim is to convince your opposer that you have withdrawn from proceedings, but in reality you are watching discretely, ready to make the move when required.

REVERSAL

In this technique, you need to act in a direction opposite to popular expectations.

DOUBLE REVERSAL This is another type of reversal, little more

complicated by arrogance of one of the parties.

LIMITS

Both sides can propose limits of various types. Time limit,communication limits- who will talk to whom etc. Opposers limit may be followed if advantageous to you.

To put time pressure, some bosses hold negotiations just one or two days before popular holidays.

FEINTING

(look right, go left)

It is a deceptive activity, to test the opposers reaction, say, “from a reliable source.”

SHIFTING LEVELSChanging involvements, thereby shifting responsibility.

PARTICIPATION

(We are friends)

In case of a merger or acquisition coming up, let the people know that the work would be as usual and no one would loose their jobs.

ASSOCIATION

Give examples of celebrity organization/person practicing say foregoing a holiday for a company.

DISASSOCIATION

(who is your friend?)

Reverse of association. Try to maintain a independent company, we have right to make our choice.

CROSS ROADS

Putting up counter demands to the opposer. If the worker union is asking for shorter work week and counter them with reduction in paid holiday.

BLANKETING

(shotgun coverage)

At a negotiation between management and union, management needs that a union has a number of demands so that they can come to the conference hall and cover the whole board with their demands.

RANDOM SAMPLE

Picking up a sample convenient to us and then generalizing it.

E.g. political parties show survey report to indicate that their candidate would win. Actually it is a cleverly taken sample.

USE OF AGENTS

Agents can be used to represent at negotiations. When agents put up a demand, on 50% of the ocassions he would get it. However, when the opposer puts up a demand saying, “sorry I have limited authority”, thus getting a number of concessions from the opposer, without giving away anything.

BE A GOOD LISTENER-VERBAL COMMUNICATION

1) Opposers words, phrases, choice of expression, tone of voice.

2) “By the way….” Pretending, but has the actual matter in mind.

3) “ To be honest/honestly speaking….” the speaker is not honest at all.

4) “Frankly speaking…” the speaker is not being frank!

5) “Before I forget…”

BE A GOOD LISTENER-NON VERBAL COMMUNICATION

• Observe gestures - body language of opposer, their psychological overtones and undertones.

• Tensions can be shown by contraction of facial muscles, clenching of fists etc.

• Unusual blinking indicates anger, excitement or guilt.

USE OF QUESTIONS

1) Be like a detective. Questions are windows to the mind.

2) Decide :

a) What questions.

b) Phrasing of questions.

c) Timing of questions.

3) Phrasing:

Church member to father, “ father may I smoke while praying?”……..denied.

Another member, “father may I pray while smoking?”….. granted.

TYPICAL TRICKSTYPICAL TRICKS

NIBBLE

Sales person: so with all these factors,this would cost you Rs.25,000/-

Customer: fine I will take it.

Sales person : and of course Rs.100/- for the delivery and Rs.250/- as installation charges.

COUNTER NIBBLE

Sales person: So with all these factors this would cost you Rs.25,000/-.

Customer: I doubt whether it is worth that much, unless you are offering some concessions.

Sales person: Normally Rs.100/- for delivery and Rs.250/- for installation is charged extra, but for you we will try to reduce the cost price of Rs.25,000/-. Don’t you think that is fine.?

Customer: Well, Ok.

THE BOTTOM LINE

Sales person: We have gone over all features of this computer at length. It will cost you Rs.30,000/-.

Customer: Actually, I was looking for something smaller ad more moderate in everyway (gets up and prepares to leave).

Halts.

But to be fair to you, what is the lowest price acceptable to you?

Sales person: Please wait a minute (pretends to calculate). Sir,Rs.28,500/- will be the lowest.

Customer: I will take it.

FUNNY MONEY

At a car show room Sales person: You have selected an excellent car

model. It is economical in fuel consumption and has good features and costing you just Rs.5,50,000/-.

Waits.

Actually sir, come to think of it, for your position, you should be completely relaxed while traveling. This luxury model would cost you just Rs.50/- per day extra. Sir, don’t you think your comfort level is worth Rs.50/- per day?

GOOD GUY/BAD GUY

REAL ESTATE NEGOTIATIONS

Owner: I don’t think our customer is really interested in buying the property. I should be going for another meeting.

Leaves the room.

Sales person: At times our owner gets worked up.but nothing to worry about. I will try to get through him in the next couple of days. How far do you think you can go in buying this?

Customer: You think you can get him to sell for Rs.10crores?

Sales person: Sir, for you i will do everything i can. If he stopped 10% away,would you be interested?

HIGHER AUTHORITY

Customer: I am not happy with this repair bill of Rs.800/-

I don’t think it is fair, you should be more reasonable.

Customer care: Sir, I only work here. I don’t have the authority to change the bill. And sir, as per the rules if you don’t pay the full amount, you cant take the vehicle.

Counter.

Customer: Who has the authority to change the bill?

SET ASIDE

Purchase manager: You should know that we don’t deal with vendors who cannot give us 60 days credit.

Sales person: Sir, I appreciate and respect your policy, however, may I request you to set that point aside for a while and talk as to how we can benefit your organization.

PUPPY DOG

It is a type of trick which people use to get you attached to a product being sold.