Business negotiations


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materials for International "Corporate Communications" Summer School 2012

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Business negotiations

  1. 1. BusinessNegotiation s
  2. 2. What is it?A core leadership andmanagement skill is theability to negotiateeffectively in a wide rangeof business contexts,including deal-making,employment discussions,corporate team building,labor/management talks,contracts, and handlingdisputes.
  3. 3. Negotiating skills In the world of business, negotiating skills are used for a variety of reasons, such as to negotiate a salary or a promotion, to secure a sale, or to form a new partnership. Here are a few examples of different types of negotiations in the business world: Manager and Clerk: Negotiating a promotion Employer and Potential Employee: Negotiating job benefits Business Partner A and B: Making decisions about investments Company A and Company B: Negotiating a merger Customer and Client: Making a Sale
  4. 4. Showing Your InterestProve youre listening byusing body language or briefverbal replies that showinterest and concern. Simplephrases such as "yes," "OK"or "I see" effectively showyou are paying attention.This encourages the otherperson to continue talkingand relinquish more controlof the situation to thenegotiator.
  5. 5. ParaphrasingTell the other person what you heard them say, eitherquoting them or summarizing what they said
  6. 6. Emotion LabelingThis means attaching a tentativelabel to the feelings expressed orimplied by other persons wordsand actions. This shows you arepaying attention to the emotionalaspects of what other person isconveying. When used effectively,emotion labeling is one of themost powerful skills available tonegotiators because it helpsidentify the issues and feelingsdriving the other personsbehavior.
  7. 7. MirroringRepeating the last words or main ideaof other persons message. Thisindicates interest and understanding.For example, a subject may say, "Imsick and tired of being pushedaround," to which a negotiator canrespond, "Feel pushed, huh?"Mirroring can be especially helpful inthe early stages of a crisis, asnegotiators attempt to establish anonconfrontational presence, gaininitial intelligence and build rapport.
  8. 8. Preparation is Key0 Know about the party youre negotiating with so you can capitalize on your strengths and the partys weaknesses. If the other party is very experienced, that means he also has a history that could contain useful information. If possible, talk to business associates who have dealt with this person before. Many negotiators develop patterns and certain styles that you may be able to use to your advantage.
  9. 9. To organize a meeting0 Decide exactly who should attend the meeting.0 Schedule a time for the meeting with the persons attending, making it clear what the meeting is about and how long it will take.0 Schedule a place for the meeting that is conducive to discussion and does not allow interruptions.0 Plan an agenda with a time schedule for addressing each issue.0 Distribute the agenda well in advance of the meeting, asking for any modifications or additions.
  10. 10. There are certain do’s and don’ts in case of negotiations0 Do not discuss too many issues, emphasize on the prior issues.0 Be honest and straightforward.0 Don’t get carried away by rumours.0 Never give deadlines, it might lead to delays in deals.0 Keep away personal differences. Just focus your arguments on facts.0 Keep on giving recaps during the negotiation process.0 Avoid being rigid. Listen to the other parties view point if valid.0 Give testimonials for your argument. Support your argument with facts.0 Don’t make demands which can’t be accepted at all.0 Don’t let emotions overwhelm you.0 Be optimistic. Don’t fear losing. There are opportunities in other transactions also.
  11. 11. Conclusion0 Negotiations can be called as a way of resolving disputes. It is considered as being synonymous to settlement, agreement, collaboration and bargaining. It takes place almost in all spheres of life -be it is business, personal circumstances (married life, parenting, etc.), legal procedures, government matters, etc. Negotiation can be defined as a channel of communication intended to reconcile differences between parties and to settle conflict jointly. The parties aim at achieving a win-win position.