Vocabulary Dispute: A disagreement, argument, or debate. Arbitration: A process in which a disagreement between two or more parties is resolved by impartial individuals, called arbitrators.Mutually: Having the same relationship each to the other. Bargaining: Negotiate the terms and conditions of a transaction. Compromise: An agreement or a settlement of a dispute that is reached by each side making concessions.
What is Negotiation? Negotiation is trying to reach an agreement or compromise by discussion with others.
TIPS FOR NEGOTIATION Prepare ahead of time Have confidence you can win Listen to the other person Find opportunities for agreement Don’t become angry Reference expert opinion
COMMON NEGOTIATING MISTAKES Not focusing on closing the negotiation Worrying too much about the other person Feeling powerless during a negotiating session—an indicator of a lack of preparation
Situation 1 Your neighbor is selling his car. You are really interested in buying it, but you want to negotiate the price. How do you use the following negotiation tactics?
Situation 2 Your company wants to renovate its premises. You are chosen to negotiate the price with the renovation company. How do you use the following negotiation tactics?
What would you do if….. A client walks into your office and is exceedingly angry and difficult to talk to. How do you approach your client to make your meeting as productive as possible? A. You suggest that you both take a break and wait for your client to cool off. B. In a stern voice, remind your client that there is an appropriate manner in which to speak to professionals and you expect to be treated accordingly. C. Reschedule the meeting. D. Push forward with the meeting and make the best of the situation. E. Acknowledge that they are upset and ask them what is bothering them.
What would you do if….. You are negotiating a major purchase, such as a car or a house, and the sales agent suggests a price far above your anticipated purchase price. How do you address the agent in order to get the best price? A. Respond with a low price and engage in positional bargaining, hoping that you will end up somewhere in the price range you think is fair. B. Ask what the basis for their suggested price is. C. Advise the sales agent that their price is far too high and that you will walk away unless they give you a more reasonable price. D. Suggest a price of your own and provide the criteria upon which you have arrived at the price. E. None of the above.
What would you do if….. You are having trouble communicating effectively with your boss. She seems to be picking on you, in particular, and you don't know why. You are getting increasingly unhappy with the situation, so you: A. Address the issue directly by asking your boss why she is always singling you out for criticism. B. Address the issue directly by politely telling your boss that you feel as though you have been singled out for criticism lately and ask her if there is something in particular about your performance of which you need to be made aware. C. Seek out a job offer from a competitor and tell your boss that you will leave unless you are treated with greater respect. D. Jokingly tell your boss that you think she might not like you and see what she says. E. Draft a letter explaining what you believe your job responsibilities are and ask your boss if your assumptions are accurate and, if not, what you have missed.
What would you do if….. You have been seeking greater responsibility at work for quite a while and a position just opened up at your company that you think would be perfect for you. While you are confident you can do the job, you lack one of the credentials required for the position. How do you recommend yourself for the position? A. Point out the benefits to the company of letting you fill the position, such as the fact that you are a known quantity, you are familiar with the company, and they would save both time and money on recruiting. B. Seek out a competing offer and threaten to quit unless they offer you the position. C. Offer to do the job at no salary increase for a probationary period of 3 to 6 months. D. Apply for the position through normal channels and make your pitch during the interview process. E. Offer to get the necessary credentials in exchange for a promise that the job will be available when you are finished.