INFORMATION SHEET

Negotiation Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution. In the context of negotiation not only that its effective in these aspects, but negotiation is equally applicable and highly benificial for business. Approaches to Negotiation Negotiation typically manifests itself with a trained negotiator acting on behalf of a particular organization or position. It can be compared to mediation where a disinterested third party listens to each sides' arguments and attempts to help craft an agreement between the parties. It is also related to arbitration which, as with a legal proceeding, both sides make an argument as to the merits of their "case" and then the arbitrator decides the outcome for both parties. There are many different ways to segment negotiation to gain a greater understanding of the essential parts. One view of negotiation involves three basic elements: process, behavior and substance. The process refers to how the parties negotiate: the context of the negotiations, the parties to the negotiations, the tactics used by the parties, and the sequence and stages in which all of these play out. Behavior refers to the relationships among these parties, the communication between them and the styles they adopt. The substance refers to what the parties negotiate over: the agenda, the issues (positions and - more helpfully - interests), the options, and the agreement(s) reached at the end. Another view of negotiation comprises 4 elements: strategy, process and tools, and tactics. Strategy comprises the top level goals - typically including relationship and the final outcome. Processes and tools include the steps that will be followed and the roles taken in both preparing for and negotiating with the other parties. Tactics include more detailed statements and actions and responses to others' statements and actions. Some add to this persuasion and influence, asserting that these have become integral to modern day negotiation success, and so should not be omitted. Negotiation tips for Business Entrepreneurs Mistakes to avoid in negotiation Mistakes are common in any negotiation. Learning to identify mistakes and avoiding these mistakes in your future negotiation will dramatically improve the success of your negotiation. If something did not work out as intended in your negotiation, there are still many ways of managing your negotiation to make it a success.

Here are common mistakes which should be avoided during negotiations. Failure to listen There are plenty of people with poor listening skills . The capacity to listen is probably the best asset you can bring to the negotiation table. In order to learn more about the other party, you have to listen. Everyone yearns for others to listen to what they have to say. A way of validating their self-worth. To quote an entrepreneur whom I had a conversation with recently, the best negotiators out there listen more than they talk . Listening is the key to the mystery of great negotiation. It can be listening to both the verbal and non-verbal signals that can give you clues into the intentions of the other party. If you genuinely listen to the person you are negotiating with, take an interest in their view points, you will end up having more to offer in your future negotiations with them.

Talking too much Information is king. The chance of winning in a negotiation is positively correlated to the amount of information which you have. One of the most common mistakes that people make while negotiating is talking too much. The more you talk, the more information about yourself you give away. Giving the other party useful information will diminish your chances of winning in a negotiation. You have to stop talking and learn to question in such a way to get the kind of information you need to make good decisions. Learning to listen and asking questions open them up to providing useful data. Moreover, you build strong rapport and bonding with the other party only if you will stop talking and start listening. Being too tense up Poor negotiators more often than not, put a lot of pressure on themselves before a negotiation. They approach a negotiation like how a boxer will approach a match. They believe that there is only one outcome in all negotiation: either they win or lose. So when they start to think like that, they are afraid to lose. They start to give themselves a lot of pressure and this will only affect their negotiation in a very negative way. Having a walk away point will give you more confidence during a negotiation. You will be less tensed if you know you have other options and when to walk away from the negotiation table. Negotiation is not about winning or losing. It is about collaborating together and to explore the best solution which will benefit both parties.

Insisting that you are right We tend to believe that we are right all the time. The brutal truth is, you are wrong most of the time. Different people have had different experiences. We all can have different perspectives even if we discussing the same thing. If you fail to understand the deal from the other partys perspective, you will not be able to solve the problem at hand. Insisting that you are right will not only decrease your chances of winning in a negotiation, it will also ruin future relationships with the other party. It is better to keep a good relationship going by not insisting you are right and the other party is wrong. Sometimes, sacrificing on a short term win can result in a big win in the future. Not thinking of win-win Win-win is to arrive at a solution that will benefit all parties involved. With a win-win solution , all parties feel good about the decision and stronger relationships are built. Steven Covey introduced the Win/Win or No Deal approach in his book, The 7 Habits of Highly Effective People. If you approach a negotiation with a win/lose approach, you are setting up to lose big time. Even if you emerge the winner at the end of the negotiation, the damage to the relationship will cause you to lose big time in the future. The relationship with the other party is very important, especially in a business setting. Rather than thinking of a win-lose situation, look for ways to make sure that all parties benefit at the end of it. Think win-win, always. Not negotiating with the right person Ensure that you are negotiating with the person who can make decision right from the start. Before you begin your negotiation, start by checking if the person you are negotiating with has the authority to make decision. Sometimes, you might get a lower rank executive negotiating with you. He does not have any power to close the deal. This will result in time wastage. Failure to prepare You should never enter into a negotiation without any preparation . This is setting yourself up for failure. Master negotiators spend huge amount of time gathering information and preparing for their negotiation. Many poor negotiators crash and burn due to lack of preparation. Go into a negotiation with an agenda which you have to prepare beforehand. Consider these 5 factors during your preparation: 1) Objectives 2) Needs 3) Wants 4.) Bargaining points 5.) Walk-away value

Bringing your ego to the table Always set your ego aside. Do not bring your ego to the table. The negotiation is a discussion of a possible solution to the issue at hand and it is not about you. What really matters is the deal. Many people get very personal in their negotiation. If their offer gets rejected, they feel that the other party is rejecting them and not their offer. Never let your pride get into the way of closing the deal. Not knowing what you want To be successful in life, we have to know what we want. Same goes for all negotiation. Defining what you want is the most critical first step in any negotiation. According to Warren Buffet, his companies are able to generate large profits is because they are able to focus on what is really important and never lose sight of what they want. In the midst of a negotiation, you are very likely to get distracted from your initial goal. The best way to avoid losing sight of your initial goals is to have them written down somewhere. Perhaps on a piece of paper which you can refer to during the negotiation. Failure to correct your mistakes We all make mistakes. Mistakes are inevitable. What makes mistakes worse is failure to correct your own mistakes. It is hard to imagine any negotiation without any mistakes. Once you make a mistake in your negotiation, correct it immediately. Do not allow your mistakes affect you in anyway. While making mistakes is good, repeating mistakes is definitely not. Apart from correcting your own mistakes, learn from the mistakes.

Definition of terms:
Negotiation - mutual discussion and arrangement of the terms of a transaction or agreement Negotiator - to deal or bargain with another or others, as in the preparation of a treaty or contract or in preliminaries to a business deal. Agreement - an arrangement that is accepted by all parties to a transaction.

Resources:
Develop and practice negotiation skills module, pp 1 5 www.thenegotiationguru.com , 10 mistakes you should avoid in your negotiations.

OPERATION SHEET OPERATION TITLE: Identifying key information in active listening PURPOSE: To identify key areas of communication especially in the verbal aspect as well as listening to ensure a positive result in negotiation.

CONDITIONS OR SITUATIONS FOR THE OPERATION: EQUIPMENT, TOOLS AND MATERIALS: GUIDELINES: 1. Pay attention. Give the speaker your undivided attention and acknowledge the message. Recognize that what is not said also speaks loudly. Look at the speaker directly. Put aside distracting thoughts. Dont mentally prepare a rebuttal! Avoid being distracted by environmental factors. Listen to the speakers body language. Refrain from side conversations when listening in a group setting. 2. Show that you are listening. Use your own body language and gestures to convey your attention. Nod occasionally. Smile and use other facial expressions. Note your posture and make sure it is open and inviting. Encourage the speaker to continue with small verbal comments like yes, and uh huh. 3. Provide feedback. Our personal filters, assumptions, judgments, and beliefs can distort what we hear. As a listener, your role is to understand what is being said. This may require you to reflect what is being said and ask questions. Reflect what has been said by paraphrasing. What Im hearing is and Sounds like you are saying are great ways to reflect back. Ask questions to clarify certain points. What do you mean when you say Is this what you mean? Summarize the speakers comments periodically.

4. Defer judgment. Interrupting is a waste of time. It frustrates the speaker and limits full understanding of the message. Allow the speaker to finish. Dont interrupt with counter-arguments. 5. Respond Appropriately. Active listening is a model for respect and understanding. You are gaining information and perspective. You add nothing by attacking the speaker or otherwise putting him or her down. Be candid, open, and honest in your response. Assert your opinions respectfully. Treat the other person as he or she would want to be treated. PRECAUTION: 1. Be deliberate with your listening and remind yourself constantly that your goal is to truly hear what the other person saying. QUALITY CRITERIA: 1. Focus on the conversation with the client or speaker. 2. Follow the tips accordingly.

JOB SHEET
JOB TITLE: UNIT: READING: Techniques of effective questioning Developing and practicing negotiation skills. Information and operation sheets related to developing negotiation skills; Teaching tips, effective questioning, www.uab.edu To establish rapport during conversation by being interactive, switching from active listening to effective questioning.

OBJECTIVE:

LABORATORY WORK: Materials required: Procedure: 1. Ask one question at a time. 2.If the question is not important enough to stand on its own, don't ask it. 3. After you ask it, be quiet. 4.If the person you are talking with doesn't answer immediately, resist the urge to answer for him or follow up with another question. He is likely thinking about what he is going to say. 5. After your prospect has apparently finished, remain quiet for 1-2 more seconds. You might get additional information, and this ensures you don't interrupt. 6. Follow-up with a related question. 7. Don't ping-pong around from subject to subject. For example, if your prospect answers, "I believe the main problem we have right now is a lack of motivation," a logical next query would be, "Oh, what are some specific situations where you've seen a lack of motivation?" 8. Be confident in your questioning. One reason people ask multiple questions is that they aren't comfortable asking questions. 9. The only way you're going to truly help someone is by finding out about him. You're not intruding. You're assisting. Safety precation: 1. Dont respond to a question before thinking it through and organizing the answer in your mind. ASSESSMENT CRITERION: 1. Demonstrate interpersonal skills using effective questioning techniques.