EFFECTIVE EFFECTIVE COMMUNICATIONCOMMUNICATION

[UWB 10202]

Negotiation Skills

Mdm Siti Aisyah binti Akiah

OutlineOutline

1. Introduction to Negotiation Skills2. Basis of Negotiation3. Alternatives to Negotiate4. Negotiation Techniques/Stages5. Negotiation Failures6. Criteria of an Effective Negotiator

IntroductionIntroduction

we do all the timea process that takes place when two or more interdependent parties who have different needs and goals, work together to find a mutually acceptable & beneficial outcomeoften involves both parties making concessionsas a compromise to settle an argument or issue to benefit both parties as much as possible

Why Negotiate?Why Negotiate?

AlternativesAlternatives

How to Negotiate?How to Negotiate?

1. 1. Preparation (Pre-Negotiation)Preparation (Pre-Negotiation)Set out your objectivesTake into account how it will benefit the other party

Know your extremesHow much extra can you afford to give to settle an agreement?

Know what your opposition is trying to achieve by their negotiationCould be used to your benefit and may well be used to reach a final agreement

Consider what is valuable to your businessYou may end up losing something in the negotiation that is more valuable to your business than money (e.g. reliable client, company reputation)

Have confidence and powerYour power will come from your ability to influence

2. 2. Exchanging InformationExchanging Information

The most important stage of negotiation

Both parties will be trying to find out and understand the other’s requirements and position besides aiming to get their objectives achieved

Ask all possible questions and spend over twice the amount of time acquiring and clarifying information

3. 3. BargainingBargaining

As soon as a number or term is mentioned by one party or exchange of terms occur

Reject constructivelyDo not cause offence. E.g. “I’m afraid we can’t possibly agree to a reduction in the service charge, but there might be room for plan on the wording of clause16”. Retain a constructive atmosphere.

Be firm on broad issues and be flexible on specifics

3. 3. Bargaining (Con’t)Bargaining (Con’t)

Note the moving base lineAs each issue is agreed, acknowledge the fact, summarise it, and move on to the next point after you have noted the issue of agreement

Look for the agreement signalsCertain formulae of words indicate that agreement is very close. (E.g. “If….then….”“Let’s put that in round numbers. ”“Well, that’s hardly worth holding us up..”)

4. 4. Closing & CommitmentClosing & Commitment

Your judgement : Is this best and final offer?If ‘Yes’:o List the agreement in detailo List the points of explanation, clarification and

interpretationo Record agreed summary with all at the tableo Re-start negotiations for any argument over

agreement

Why Negotiations Fail?Why Negotiations Fail?

Getting too emotional

Focus on personalities, not issues

Not trying to understand the other person (too focused on our own needs)

Wanting to win at all costs

Regarding negotiation as confrontational

1. Professional

2. Confident, relaxed, at ease

3. Open, honest, sincere & credible

4. Respectful of other peoples’ values

5. Show empathy and understanding

6. Committed to a WIN:WIN result

7. Continually enhancing their skills

An Effective NegotiatorAn Effective Negotiator

Test Your SkillsTest Your Skills

Here are some undesirable, offensive ways in which people sometimes speak to one

another in the workplace. Change and make the language more appealing and to reflect good interpersonal communication skills.

1. You are totally wrong on that.

2. An idiot could figure that one out.

3. I am so disappointed with your work.

4. Would you stop bugging me; I’m busy! 5. You kids don’t know how to do anything!

6. Hey! Shut up back there; I’m on the phone!

7. Get out of my space, NOW!

Have you got the winning idea?

We welcome you to send us your exciting project for us to offer you a 50% discount

for your company’s shop lot! Project Presentation will be held at 8.00 a.m. On 12th March 2012. Only the best project

will be chosen!

• Your company has decided to own a shop lot in a new building owned by Pura Kencana Sdn Bhd to be your business one-stop centre. As a promotion for the new building, they are inviting people to submit projects and the committee will choose the winner to get a 50% discount for a shop lot.

• Work in your group and draw a simple floor plan of the business centre and label the rooms and areas. Prepare a short presentation to persuade the committee to accept your project. Try to create maximum impact using pauses, repetition and rhetorical questions, and prepare visual aids to help you get your message across.