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Negotiating Skills
- 32. BATNA The B est A lternative T o a N egotiated A greement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
- 46. Roles : Rita , a 15 year old girl. The Observer becomes Rita’s parent . Others are Observers to record use/abuse of “win/win” techniques. Background : Rita is calling home from a payphone on Hwy 401 to tell her parent she is hitch-hiking to Hollywood to be a movie star. She has no money, is a little afraid, and secretly wants to go to drama school. The parent is worried about Rita being out after curfew. Parent picks up the ‘phone, and has 3 minutes to effect a “win-win” approach before the payphone times out.
- 47. Background : Suresh has a Programmer off sick, and wants to negotiate two weeks of Kunal’s time to work on the Company’s most important project immediately, because Kunal is the best programmer, and knows the tasks. Delays may affect everyone’s bonus. Kunal’s Manager is concerned the loss of Kunal will mean he will not be able to complete tasks on another project their department is committed to deliver (requiring one week of work in the next 3 weeks), because Suresh has a reputation of over-utilizing resources (and padding their schedule contingency). Other commitments will also need juggling.
- 48. Background: Raima is not using the car this weekend, but is concerned the good friend is a fast driver. The friend is generous, and has done Raima several favours for Raima, including a recent birthday gift. Time : 3 minutes
- 62. Exercise: List the last 3 times you felt someone pressed your “Hot Button”. Subject discussed Who pushed your buttons? Why did you feel manipulated? Next time I will…..
Notas do Editor
- Day-to-day / Managerial Negotiations Such types of negotiations are done within the organization and are related to the internal problems in the organization. It is in regards to the working relationship between the groups of employees. Usually, the manager needs to interact with the members at different levels in the organization structure. For conducting the day-to-day business, internally, the superior needs to allot job responsibilities, maintain a flow of information, direct the record keeping and many more activities for smooth functioning. All this requires entering into negotiations with the parties internal to the organization.
- Commercial Negotiations Such types of negotiations are conducted with external parties. The driving forces behind such negotiations are usually financial gains. They are based on a give-and-take relationship. Commercial negotiations successfully end up into contracts. It relates to foregoing of one resource to get the other.
- Legal Negotiations These negotiations are usually formal and legally binding. Disputes over precedents can become as significant as the main issue. They are also contractual in nature and relate to gaining legal ground.
- This type of manager must learn to be more collaborative. Autocratic managers have a tendency to miss seeing the big picture. When these types of managers fail to negotiate effectively, the results of their efforts often suffer. While autocratic types may believe they are skilled negotiators, they often are not because they lack the ability to listen and to empathize.
- Since negotiation often implies conflict (something these types of managers avoid at all costs), it is critical for them to take responsibility for forcing a certain amount of compromise. This is the only way they will be able to lead others effectively.
- Highly Brill Leisure Center has hired you to help them with their marketing decision making. Perform a SWOT analysis on Highly Brill Leisure Center, based upon the following issues: 1.The Center is located within a two-minute walk of the main bus station, and is a fifteen-minute ride away from the local railway station. 2.There is a competition standard swimming pool; although it has no wave machines or whirlpool equipment as do competing local facilities. 3.It is located next to one of the largest shopping centers in Britain. 4.It is one of the oldest centers in the area and needs some cosmetic attention. 5.Due to an increase in disposable income over the last six years, local residents have more money to spend on leisure activities. 6.There has been a substantial decrease in the birth rate over the last ten years. 7.In general people are living longer and there are more local residents aged over fifty-five now than ever before. 8.After a heated argument with the manager of a competing leisure center, the leader of a respected local scuba club is looking for a new venue. 9.The local authority is considering privatizing all local leisure centers by the year 2000. 10.Press releases have just been issued to confirm that Highly Brill Leisure Center is the first center in the area to be awarded quality assurance standard BS EN ISO 9002. 11.A private joke between staff states that if you want a day-off from work that you should order a curry from the Center's canteen, which has never made a profit. 12.The Center has been offered the latest sporting craze. 13.Highly Brill Leisure Center has received a grant to fit special ramps and changing rooms to accommodate the local disabled. 14.It is widely acknowledged that Highly Brill has the best-trained and most respected staff of all of the centres in the locality
- In such a case, what are the community's options for trying to resolve this situation? *They could possibly sue the business based on stipulations of the Clean Water Act. *They could contact the Environmental Protection Agency and see what sort of authority that agency has over such a situation. *They could lobby the state legislature to develop and implement more stringent regulations on polluting factories. *The community could wage a public education campaign and inform citizens of the problem. Such education could lead voters to support more environmentally minded candidates in the future who would support new laws to correct problems like this one. In weighing these various alternatives to see which is "best," the community members must consider a variety of factors. *Which is most affordable and feasible? *Which will have the most impact in the shortest amount of time? *If they succeed in closing down the plant, how many people will lose their jobs?
- Negotiation activity_charity
- Established rapport and common goals? Probed for understanding of beliefs, goals, win-win options, and hidden stakeholder motivators? Paraphrased for confirmation/affirmation? Analysed outcomes and risks? Summarized what was agreed on, and next steps? If stalled, returned to a fundamental that was agree on? Built on this common ground? Avoided emotional responses (even if insulted)? Considered interim options (or postponement) if undesirable outcome was imminent, or key info missing?
- SWOT analysis to be done on a case study. Case study :: Assessing Losses Caused by Vandalism "The rents for houses in the city area are too high," said Ramesh Chatterji to his friend Vinod Mehra. To avoid paying high rent, Chatterji had taken a house almost on the outskirts of the city. "How is the rent for the house in which you are presently residing?" asked his friend Mehra. "There is hardly any difference from what is charged in the city area. Even though it is little less than the rent charged in the city, it is compensated by the amount of money spent on commuting," said Chatterji. Chatterji was working as a senior financial analyst at Badla Finance Consultancy, situated in Navi Mumbai. The company was flying high on its recent achievements. The organization had recently helped a leading private commercial bank recover from a financial disaster. The bank was able to recover by implementing the suggestions given by the team at Badla Finance Consultancy. Chatterji was a part of the team involved in developing a solution for the bank. Due to his valuable contribution to the team, he was recently promoted as senior financial analyst. "Considering the rent I am to pay, I feel that it is high time I built a house of my own," said Chatterji. "I will obviously agree with you as you are a financial consultant and would be sure to know what is best for you," said Mehra. A few months after this conversation, Chatterji began constructing his house. Though he faced a lot of hardship in the process, he was happy with the outcome. On an auspicious day, he arranged the Gruhapravesam ceremony and invited all his near and dear ones for the function The function went well. At the end of the function, Mehra called Chatterji aside and asked him whether he had insured the house. "I realize that this is not the right time to discuss insurance, but I feel that you should insure your house against possible losses," said Mehra. "Yes, you are right, Vinod," replied Chatterji. "The same thought had occurred to me some time back. But, to tell you the truth, I could not spare the time to go and talk to the insurance people and get my house insured," continued Chatterji. "But better late than never," said Mehra. Chatterji agreed and said he would get his house insured soon. After a few days, Chatterji got his house insured against losses. He was happy that he was now able to save on rent. His good days were, however, short-lived. One day, disaster struck and his house was completely destroyed in communal riots. The Gujarat riots were at their peak at that time. The disturbance had spread to the neighboring states too and Maharashtra, being one of them, was affected by it. On that fateful day, the miscreants broke open the doors and looted the property and damaged the house. Fortunately, on that particular day Chatterji and his entire family had gone out of station. The next day, when they returned home, they were shocked to see the destruction caused to the house. Chatterji asked his neighbors about the cause of the damage. They explained what had happened during his absence. Immediately, he got in touch with the insurance office as well as his friend Mehra. Both Mehra and the claims adjuster arrived at Chatterji's place at the same time. The claims adjuster went round the house assessing the damage. Chatterji was in a bad mood and didn't feel like talking to anyone. "This is the time when your active participation is required in helping the claims adjuster in evaluating your property," consoled Mehra. "How did it happen?" asked the claims adjuster. "Some miscreants broke in and damaged the property and they later damaged the house as well," said Chatterji. Mehra intervened and informed the claims adjuster that Chatterji had already intimated the police and they had registered the case. He also said that the police were unable to stop the destruction because a large number of people had broken into the house. So they had simply become silent spectators. "What is the estimated damage that has been caused?" Mehra asked the claims adjuster. "The loss to the house itself will amount to around rupees two lakh," replied the claims adjuster. "But that is too little," shouted Chatterji. "I have spent nearly twenty five thousand rupees for the entrance door alone." "It is made of teak wood," added Mehra. "I am not bothered about the amount you have spent on the door," replied the claims adjuster. He continued, "I am more bothered about the cost of the property at the time of loss." "This is sheer injustice by you to the customer," replied Mehra.
- Prepare, prepare, prepare. Enter a negotiation without proper preparation and you've already lost. Start with yourself. Make sure you are clear on what you really want out of the arrangement. Research the other side to better understand their needs as well as their strengths and weaknesses. Enlist help from experts, such as an accountant, attorney or tech guru. Pay attention to timing. Timing is important in any negotiation. Sure, you must know what to ask for. But be sensitive to when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship. Leave behind your ego. The best negotiators either don't care or don't show they care about who gets credit for a successful deal. Their talent is in making the other side feel like the final agreement was all their idea. Ramp up your listening skills. The best negotiators are often quiet listeners who patiently let others have the floor while they make their case. They never interrupt. Encourage the other side to talk first. That helps set up one of negotiation's oldest maxims: Whoever mentions numbers first, loses. While that's not always true, it's generally better to sit tight and let the other side go first. Even if they don't mention numbers, it gives you a chance to ask what they are thinking. If you don't ask, you don't get. Another tenet of negotiating is "Go high, or go home." As part of your preparation, define your highest justifiable price. As long as you can argue convincingly, don't be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place.
- Anticipate compromise. You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it's better than you'd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get. Offer and expect commitment. The glue that keeps deals from unraveling is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment. Don't absorb their problems. In most negotiations, you will hear all of the other side's problems and reasons they can't give you what you want. They want their problems to become yours, but don't let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from. Stick to your principles. As an individual and a business owner, you likely have a set of guiding principles — values that you just won't compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without. Close with confirmation. At the close of any meeting — even if no final deal is struck — recap the points covered and any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.