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Saturday, January 29, 2011

Negotiation Skills


Introduction

Negotiation is a process in which two or more parties try to resolve differences, solve problems and reach agreement.
Good negotiation meets at as many interests as possible with an agreement that is durable.

Negotiating Methods

Compromise: means to settle differences through concessions made by one or both parties.
Collaboration: involves people cooperating to produce a solution satisfactory to both parties.
Competition: often leads to one party gaining advantage over the other, if it can negotiate at the expense of the other’s needs.
Accommodation: means that only one party is willing to oblige or adapt to meet the needs of the other.
Withdrawal (avoidance): is a negotiation method that makes both parties lose, because one party retracts their point of view or backs away form the situation.
Negotiation Strategies
Win-win strategies:
Both parties are satisfied with the settlement negotiated.
Win-lose strategies:
Result in the party who initiates the conflict being satisfied and the other dissatisfied.
Lose-win strategies:
A situation in which the initiator is dissatisfied and the other is satisfied.
Lose-lose strategies:
Result form a situation in which the objectives of both parties are too rigid, and  both parties are dissatisfied.

Personal Styles In Negotiation

Self-denying:
• People difficult to negotiate, are introverted and reticent with information (feedback), hide their feelings.
Self-protecting:
• People use divisionary tactics, discussing other people or side tracking to other issues hide their true Feelings.
Self-exposing:
• People wish to be centre of attention, demand this attention by speaking loudly, speak over other use attention-seeking body movement or by ignoring feedback and other’s view.
Self-bargaining:
• People show feeling if you show yours. wait until you lead them in negotiation open up when others initiate the process.
Self-actualizing:
• People ideal negotiators , want information and feedback from others, present information constructively to aid the negotiation process, achieve goal without conflict.

Power in Negotiation

When an organization delegates people to get the job done, it gives them power to act. Power may be used to influence and, in some cases, to control people.
• It can also be used to bring about change. Power can be exerted over one person or a group by another person or group.
• Power used well achieves good communication and results.
• Each person has and can enjoy power.
• Observe how you use power.
• If you use it properly, you will make an impact on workplace decisions and actions. Abuse or misuse it and people will mistrust you.
• Power is a useful tool in the negotiation process; however, if you misuse it or refuse to use it correctly, the likely result is tension and conflict.

Five Types of Workplace Power

Legitimate power: bases on a persons position or role in an organization. their authority and control over resources gives them power that is acknowledged.
Expertise power: people with more skill and strength than others have to them; their colleagues refer to them.
Reward power: is exerted by someone who has control over resource desire by others. Such as person can influence and manipulate behavior.
Coercive power: is exerted by those who use their authority or any force, emotional or physical, against the interest of the other party.
Consultative power: is exerted by someone who seeks information, considers other’s advice and make plans with others

Negotiating The Job Offer

l      Prepare carefully: gather information from alumni, friends.
l      Know specific data: collect reliable information about the range of salaries.
l      Organize negotiation plan into four parts:
l      Compensation issues as cash and fringe benefits.
l      Position within the company.
l      Environment of the company.
l      Beginning and ending of work benefits.

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