Conflict and Negotiation skills training

Conduct negotiations to
deal with conflict situations
117853
NQF LEVEL 5
8 CREDITS

Purpose of the Unit Standard
This unit standard is intended for people who negotiate in dealing with conflict
situations. A learner credited with this standard will be able to:
 Prepare for negotiations;
 Conduct negotiations;
 Conclude negotiations; and
 Evaluate negotiations.

SO2: Engage in negotiations.
ASSESSMENT CRITERIA
 Behaviour and conduct during negotiations is explained and aligned with selected negotiation strategy
and tactics.
 Negotiations are conducted in a manner that maintains or enhances relationships and promotes
outcomes that are satisfactory or advantageous in terms of the purpose of the negotiation.
 The negotiation process is facilitated using effective communication and interpersonal skills.
 Relevant options are identified, explained and explored throughout the process.
 Negotiations are conducted and appropriate action is taken and initiated to obtain an amended mandate.
 Negotiated outcomes are clearly presented, explained and motivated to the constituency.
 Proceedings and interim outcomes are recorded accurately for feedback purposes.

Engage in Negotiations
A variety of conditions can affect the success or failure of negotiations. The
following conditions make success in negotiations more likely:
 Identifiable parties who are willing to participate.
 The people or groups who have a stake in the outcome must be identifiable and
willing to sit down at the bargaining table if productive negotiations are to occur.
 If a critical party is either absent or is not willing to commit to good faith
bargaining, the potential for agreement will decline.

 Interdependence.
 For productive negotiations to occur, the participants must be dependent upon
each other to have their needs met or interests satisfied.
 The participants need either each other's assistance or restraint from negative
action for their interests to be satisfied.
 If one party can get his/her needs met without the cooperation of the other, there
will be little impetus to negotiate.

 Readiness to negotiate.
 People must be ready to negotiate for dialogue to begin.
 When participants are not psychologically prepared to talk with the other parties,
when adequate information is not available, or when a negotiation strategy has
not been prepared, people may be reluctant to begin the process.

A variety of conditions can affect the success or failure of negotiations. The following
conditions make success in negotiations more likely:
 Means of influence or leverage.
 For people to reach an agreement over issues about which they disagree, they must
have some means to influence the attitudes and/or behaviour of other negotiators.
 Often influence is seen as the power to threaten or inflict pain or undesirable costs, but
this is only one way to encourage another to change.
 Asking thought-provoking questions, providing needed information, seeking the
advice of experts, appealing to influential associates of a party, exercising legitimate
authority or providing rewards are all means of exerting influence in negotiations.

 Agreement on some issues and interests. People must be able to agree upon
some common issues and interests for progress to be made in negotiations.
Generally, participants will have some issues and interests in common and others
that are of concern to only one party. The number and importance of the common
issues and interests influence whether negotiations occur and whether they
terminate in agreement. Parties must have enough issues and interests in common
to commit themselves to a joint decision-making process.

 Will to settle. For negotiations to succeed, participants have to want to settle. If
continuing a conflict is more important than settlement, then negotiations are
doomed to failure. Often parties want to keep conflicts going to preserve a
relationship (a negative one may be better than no relationship at all), to mobilise
public opinion or support in their favour, or because the conflict relationship gives
meaning to their life. These factors promote continued division and work against
settlement. The negative consequences of not settling must be more significant
and greater than those of settling for an agreement to be reached.

 Unpredictability of outcome. People negotiate because they need something from
another person. They also negotiate because the outcome of not negotiating is
unpredictable; for example, if, by going to court, a person has a 50/50 chance of
winning, s/he may decide to negotiate rather than take the risk of losing as a
result of a judicial decision. Negotiation is more predictable than court because if
negotiation is successful, the party will at least win something. Chances for a
decisive and one-sided victory need to be unpredictable for parties to enter into
negotiations.

 A sense of urgency and deadline. Negotiations generally occur when there is
pressure or it is urgent to reach a decision. Urgency may be imposed by either
external or internal time constraints or by potential negative or positive
consequences to a negotiation outcome. External constraints include: court dates,
imminent executive or administrative decisions, or predictable changes in the
environment. Internal constraints may be artificial deadlines selected by a
negotiator to enhance the motivation of another to settle. For negotiations to be
successful, the participants must jointly feel a sense of urgency and be aware that
they are vulnerable to adverse action or loss of benefits if a timely decision is not
reached. If procrastination is advantageous to one side, negotiations are less likely

 No major psychological barriers to settlement. Strong expressed or unexpressed
feelings about another party can sharply affect a person's psychological readiness
to bargain. Psychological barriers to settlement must be lowered if successful
negotiations are to occur.

 Issues must be negotiable. For successful negotiation to occur, negotiators must
believe that there are acceptable settlement options that are possible as a result of
participation in the process. If it appears that negotiations will have only win/lose
settlement possibilities and that a party's needs will not be met as a result of
participation, parties will be reluctant to enter into dialogue.

 The people must have the authority to decide. For a successful outcome,
participants must have the authority to make a decision. If they do not have a
legitimate and recognised right to decide, or if a clear ratification process has not
been established, negotiations will be limited to an information exchange between
between the parties.

 Willingness to compromise. Not all negotiations require compromise. On
occasion, an agreement can be reached which meets all the participants' needs
and does not require a sacrifice on any party's part. However, in other disputes,
compromise- willingness to have less than 100 percent of needs or interests
satisfied- may be necessary for the parties to reach a satisfactory conclusion.
Where the physical division of assets, strong values or principles preclude
compromise, negotiations are not possible.

 The agreement must be reasonable and implementable. Some settlements may be
substantively acceptable but may be impossible to implement. Participants in
negotiations must be able to establish a realistic and workable plan to carry out
their agreement if the final settlement is to be acceptable and maintained over
time.

 External factors favourable to settlement. Often factors external to negotiations
inhibit or encourage settlement. Views of associates or friends, the political climate
climate of public opinion or economic conditions may foster agreement or
continued turmoil. Some external conditions can be managed by negotiators
while others cannot. Favourable external conditions for settlement should be
developed whenever possible.

 Resources to negotiate. Participants in negotiations must have the interpersonal
skills necessary for bargaining and, where appropriate, the money and time to
engage fully in dialogue procedures. Inadequate or unequal resources may block
the initiation of negotiations or hinder settlement.

Behaviour and Conduct during
Negotiations
Explain and Align Behaviour and Conduct during Negotiations
 Parties’ behaviour and conduct during negotiations are vital to the success of the
negotiations.
 You need to align your behaviour and conduct with your selected negotiation
strategy and tactics.
 By focusing on the communication process (verbal and non-verbal), you are able
to ensure that you communicate in a clear, effective manner through any
behaviours or conduct during negotiations.

Communication Processes
Communication is a two-way street that requires everyone involved to
exchange messages.
To negotiate more effectively, you must relate to the other party with strong
communication skills.

Verbal Communication in
Negotiation
1. Communication varies according to the formality of the negotiation situation. As
the rules and procedures of negotiation, become increasingly detailed and
specific, the impact of communication becomes less significant.
2. Rules govern communication in negotiation interaction.
 In informal negotiations, many of the rules are generated through the
negotiation interaction.
 In formal negotiations, rules and procedures structure communication.
 Rules may be generated in a pre-negotiation stage.
 Within certain negotiation "cultures," rules may become ritualized.

Negotiation
1. Communication functions to:
 Coordinate outcomes.
 Exchange information, intentionally and unintentionally; overtly and covertly.
 Express strategic intentions and tactical actions.
 Identify patterns of behaviour.
 Alter perceptions and expectations concerning the bargaining situation,
relationship, process, and outcomes.

Negotiation
1. Communication in negotiation focuses on:
 Substantive issues.
 Offers and counteroffers; proposals, demands, interests.
 Procedural issues.
 The interpersonal negotiation relationship.
 Intangible issues (e.g., face, respect).
2. Intentional communication behaviours are tactics reflecting a negotiator's
strategic orientation.

Nonverbal Communication in Negotiation
Nonverbal communication certainly affects the resolution of conflicts and disputes,
yet little research has considered nonverbal communication within dispute resolution
contexts. Some speculations follow, gleaned from experiences of practitioners and the
nonverbal behaviour literature.
1. Negotiation practitioners place great importance on nonverbal behaviour
(probably too much importance).
2. Nonverbal behaviour in negotiation is culture-bound; the cultural identification of
negotiators and the cultural context of negotiation will influence what nonverbal
behaviour is appropriate and how nonverbal behaviour should be interpreted. Yet
some negotiators may regard certain nonverbal behaviours as culturally universal.

1. Some nonverbal behaviour categories relevant to negotiation:
 Chronemics (time): Some negotiators place great importance on time; being
prompt, meeting deadlines, and using time efficiently. This emphasis on time
may translate into impatience.
 Proxemics (space and distance): Western negotiators prefer maintaining
secondary relationship distance when negotiating; they prefer negotiating in
environments that ensure distance (e.g., sitting on opposite sides of a table).
 Kinesics (body): Western negotiators prefer environments that support formal,
controlled behaviour (e.g., sitting vs. standing).

1. Some nonverbal behaviour categories relevant to negotiation:
 Facial and eye expression: Face and eye behaviours are often trusted greatly by negotiators
from a variety of cultures.
 Physical appearance and dress: Negotiators may rely on appearance attributes to indicate
respect for the negotiation situation.
 Paralanguage: Like face/eye expression, negotiators may trust judgments based on vocal
tone, rate, etc.
 Environment/architecture: (the smarter the venue, the more formal the negotiation strategies
could be that are used).
 Social/cultural rituals, manners, and conventions: These areas may be particularly critical in
the pre-negotiation phase.

1. Nonverbal behaviour does not communicate in isolation, and particular behaviours do not
have specific meanings.
2. Nonverbal behaviour must be interpreted in context, including the sequence in which it
occurs.
3. Negotiators need to avoid over-interpreting nonverbal behaviours (e.g., always trusting
nonverbal cues over verbal cues) and falling victim to nonverbal ethnocentrism (like cultural
ethnocentrism).
4. Nonverbal behaviours are particularly significant when they are inconsistent with verbal
messages. Negotiators should check their perceptions of inconsistency with the other
negotiator if the inconsistency is significant.

 By using the following six rules for effective communication,
you can overcome barriers, reach a higher level of satisfaction
every time you negotiate, and win more negotiations in the
process:

Rule 1: Organise Your Thoughts
Throughout the negotiation process, always allow yourself time to organise your
thoughts to avoid conveying the wrong message or confusing the issues.
Before you start the negotiation process, and even after it starts, take notes and plan
what you’re going to say.
To help you express your thoughts clearly when the negotiations begin, outline in
advance the main points you want to cover. Planning the gist of what you’re going to
say is the most effective way to avoid sending mixed messages, but don’t stop with
that.

Rule 1: Organise Your Thoughts
As the negotiations commence, continue to take notes and plan your responses as
you go through the entire process. And remember, no law exists that says every
statement must be met with a response within five seconds.
Take your time. In fact, silence can be one of your most powerful negotiating tools.
Stop talking whenever you feel like you need to reorganise yourself and before you
respond to anything that’s said. And make sure everything you say reflects the true
meaning of your thoughts.
This tactic not only helps you organize what you’re going to say, but it also helps you
digest what your counterpart proposes.

Rule 2: Don’t Think About It; Think Through It
Thinking about something leads to confusion, but thinking through something leads
to clarity.
The difference between these two processes is a crucial distinction in communication.
Many times, people approach negotiations with a mind-set of, “Tell it like it is, then let
the chips fall where they may.”
But by processing an idea through to its logical conclusion, you can evaluate the
possible responses you may get from the other side.

For example, if you make an offer and say, “Take it or leave it,” what kind of response would that
produce? The other party may say, “Okay, we’ll take it.”
They could say, “Thanks, but no thanks.” They could say, “We won’t take it, but here’s what we
will accept.”
Or they might say, “No one talks to us that way!” and walk out of the room.
A range of possibilities exists, and this tactic requires careful reading of the other person’s
reactions.
But if you feel from your experiences with the person that they will either accept your offer or
your counteroffer, it makes sense to speculate and take the chance.
So give some thought to your counterpart’s possible reactions to your points before you actually

Rule 3: Recognise that Actions Speak Louder than Words
Experts say that seventy-five percent of communication is nonverbal.
This means that the messages negotiators convey have more to do with their
looks, their actions, and the way they say things, than with the actual words
they say.
The best negotiators practise saying and doing things in ways that send
precisely the message they want to send.

Rule 3: Recognise that Actions Speak Louder than Words
The bottom line is that the better you become at using nonverbal
communication and reading the nonverbal messages others send, the more
effective you can be as a negotiator.
Realise that everything you do at the bargaining table is part of the
communication and negotiation process. So make sure you don’t send the
wrong messages by doing something that conflicts with what you want to
say.

Rule 4: Be Concise
 Most people tune out a majority of what they hear, so you should always be
concise and get right to your point.
 Say what you mean in as few words as possible, without being blunt.
 If you drone on, people will stop listening to you.
 To ensure your message reaches your counterpart, always oversimplify your
message, and then elaborate as they ask questions. Repeat your main point
several times to emphasise what’s most important.

Rule 4: Be Concise
 To boost your negotiating power even more, practice saying everything
clearly and concisely, then repeat your key points to yourself again and
again.
 One main problem with negotiation communication occurs when your
counterpart gets too wrapped up in what they want to say, that they don’t
pay attention to what you say.
 This is why it is so important to organise your thoughts, and say your

Rule 5: Always Translate Your Message into Benefits for the Other Party
People always listen more carefully when they believe some benefit exists in your message for
them.
In negotiations, focus on that benefit, even when the underlying purpose of the message is in
your favour.
For example, when you interview for a new job, you don’t talk about the huge salary the
company can offer you. You talk about all the great skills you can bring to the company, for their
benefit. You try to convince them that they’ll be ahead of everyone else by hiring you, regardless
of the cost.
As a salesperson, you should always highlight the value of your product or service, rather than

Rule 6: Listen Carefully to the Other Party
 If you want to reach a mutually beneficial agreement, you must make sure your
message are heard and understood.
 But don’t get so caught up in your own message that you don’t hear and
understand what the other party needs to reach an agreement.

Rule 6: Listen Carefully to the Other Party
Use the following tips for listening more effectively:
 Open your mind and be receptive to the other party’s message.
 Make a commitment to listen, and follow through with this commitment as soon as they start to talk.
 Listen for feelings, as well as facts, and consider the other party’s concerns.
 Eliminate distractions. Close your door, turn of the radio, and tune in to the other person.
 Respond to the other party with questions that stimulate conversation and clarify your understanding of his or her
message.
 Take notes on the important points the other party makes, and keep these points in mind as you formulate your
responses.
 As you improve your listening skills, you increase your negotiating effectiveness by collecting more information to

Conduct Negotiations
 Negotiations must be conducted in a manner that maintains or enhances relationships
and promotes outcomes that are satisfactory or advantageous in terms of the purpose
of the negotiation.
 It is important that you approach the other party directly to make an appointment to
negotiate, should it be in person, writing or by phone (not through a phone operator,
receptionist, assistant etc.) as this will allow you to set the agenda in advance, and
improve the prospects of the other party preparing sufficiently enough to make a
decision on the day.
 Try to be fairly open about your reason for contact or they may lose interest instantly
and not follow up on the appointment.
 Save all your comments for the actual appointment- don't give away anything that will

Step 1: Preparation
 Before you decide to negotiate, it is a good idea to prepare. What is it exactly that you want to
negotiate? Set out your objectives (e.g. I want more time to pay off the loan). You have to take into
into account how it will benefit the other party by offering some sort of reward or incentive.
 What is involved (money, sales, time, conditions, discounts, terms, etc.)? Know your extremes: how
much extra can you afford to give to settle an agreement? Although you are not aiming to give
out the maximum, it is worth knowing so that you will not go out of your limits.
 Know what your opposition is trying to achieve by their negotiation. This is useful information
that could be used to your benefit and may well be used to reach a final agreement.
 Consider what is valuable to your business, not the costs. You may end up losing something in the
negotiation that is more valuable to your business than money. It could be a reliable client or your

Do your homework and know as much as
possible about:
 Yourself and the other parties
 When you go into a negotiation, take a personal inventory.
 How do you feel about negotiation?
 Do you want to get it over fast? If so, you may give in too quickly, or give away too
much. Or, do you want to win, no matter what the cost? If so, you may become
adversarial and damage the relationship.
 Most people carry on an inner dialogue with themselves.

Do your homework and know as much as
possible about:
Yourself and the other parties
 Most people carry on an inner dialogue with themselves.
 When you’re trying to communicate with someone else, this inner dialogue becomes a problem
because you can’t listen internally and externally at the same time.
 When you negotiate, turn off your inner voice and only listen externally.
 You won’t miss important nonverbal messages, facial expressions of voice inflections, when you
listen externally.
 Know who you’re negotiating with before you begin. What’s his or her reputation as a negotiator?
Win/Win model or Win/Lose model?
 Does the person want to negotiate with you (Oh Boy!), dread the negotiation (Oh No), or is this a
neutral situation (Show Me)?

 What is each party's Best Alternative to a Negotiated Agreement (BATNA) i.e. can
any of the parties walk away from the negotiations?
 The acronym BATNA comes out of the research on negotiation conducted by the
Harvard Negotiation Project. Before you begin a negotiation, know what your
options are. Can you walk away from the deal? What other choices do you have?
What are the pros and cons of each choice? Don't stop here. Also consider the
BATNA of the other party.
 It is not enough to know what you want out of negotiation. You also need to
anticipate what the other party wants (double think). The smart negotiator also tries

 Your best and worst case scenarios (your settlement range)
 What is your best case scenario or favoured outcome? What is your worst case
scenario? The area in between is called your settlement range. If you can reach an
agreement within your settlement range, that’s a Win! Don’t drop below your
bottom line, i.e. the point beyond which you will not go; you’ll feel bad about
yourself and the deal afterwards, and you may not follow-through on your
commitments.

 The other parties' reputations and negotiation models (win/win? win/lose?)
 Negotiation is a highly sophisticated form of communication. Without trust, there
won’t be communication.
 Instead you’ll have manipulation and suspicion masquerading as communication.
Be trustworthy. Honour your commitments.
 Tell the truth. Respect confidences.

 It’s risky to make yourself vulnerable to someone. That’s why in a negotiation you
begin by stating your position.
 Later, when the trust has deepened, you and the other party can risk more honesty
and identify your true interests.
 As a negotiator, it is your responsibility to ask questions that will uncover the
needs or interests of the other party.
 If you’ve also done your job of creating a supportive climate, you’re more likely to
get honest answers

 Don’t assume that because the other party has one type of power, e.g. position
power, that he or she is all-powerful.
 That’s giving away your power!
 Balance power by assessing the other parties’ source(s) of power, and then your
own.
 While there are many sources of power, they all break down into two categories;
internal power and external power.
 The former no one can take away from you and includes your personal power,

Create an appropriate climate and environment for meeting
o Physical: location, venue, seating arrangements should be neutral, non-
threatening, calm, and supportive.
o Verbal: use language appropriate and understandable to both parties; use
interpreters if necessary.
o Time frame: be flexible and don't rush to an outcome - successful negotiation
requires time and effort and quick fixes may be only short term solutions.

Establish the ground rules
 Behavioural: not interrupting; taking turns; respect; no abuse.
 Procedural: clarify roles of various parties - facilitator, chairperson, experts, absent
partners.
 Substantive: what can be discussed and decided; confidentiality; privacy;
permission to speak to the media
Confirm the authority the participants have to negotiate
 Do all participants have the authority to negotiate a mutually acceptable

Step 2: Presentation
So, it's time to negotiate and you've prepared well. What else must you have?
Two things: confidence and power. Your power will come from your ability to influence.
For example, you may be the buyer (but not always a strong position), or have something
that the other party wants, or you may be able to give an intention to penalise if the other
party fails to meet the agreement (as in construction).
You may be able to give a reward or an incentive.
For example, you may be selling kitchen knives and as part of the package you are giving a
knife sharpener and a storage unit away free as an incentive.

Step 2: Presentation cont.
It is always important that you keep the negotiation in your control: this can mean
within your price range, your delivery time or your profit margin.
If you fail to do so, you will end up on the wrong side of the agreement, and with
nothing more out of the deal other than maintaining trading relationships.
When negotiating, aim as high as you feel necessary in order to gain the best deal for
yourself.
The other party may bring this down but it is a good tactic, as it is always easier to
play down than to gain.

 Make sure that you remain flexible throughout the negotiation in case the opposition
decides to change the direction of the agreement (they may want different incentives
or even change their objectives).
 This is where your preparation comes to good use: knowing your limits and the other
party's needs. If you're a quick thinker, you've got an advantage.
 You'll need to turn it around quickly if things start to go against you without putting
your objectives at risk.
 Confidence comes from knowing your business, your product, what its worth, and
being able to communicate this well to the other party: sometimes these people are
almost impossible to get the better of, as some of you will know only too well.

Short and sweet
Don’t prepare a long monologue with detailed arguments- you will have lost your audience
within 30 seconds:
o You are giving too much information
o They cannot absorb all the information
o You are not customising the material to their needs
o You are not allowing them the opportunity to react
o You cannot be sure you are carrying their agreement

Short and sweet
 If your presentation has to be long and complicated, break it up into small chunks,
separated in time. Supply visual evidence of the points you want to make and
supply proof of any claims you make.
 Remember that people can only remember 3-5 facts at a time, so keep the facts
few in number, reinforce them and restate them in different ways.
 As John Winkler says:
 “If you want your competitors to get the business,
then just do all the talking, all the time”.

Create a climate of confidence
 The other party needs to know that you are someone whose word can be relied
upon:
o You turn up at meetings on time
o You do the things you say you will
o You do things on time

Shape your presentation towards the needs of the other party
 Make sure that each section of your presentation is linked to a benefit for
the other party.
 If you are certain that they will react unfavourably to a part of your
argument, anticipate this by building your answers to their questions into
your presentation.

Step 3: Probing
 Identify the non-negotiables before starting negotiations
o What can the meeting discuss and decide?
o What is not negotiable for you and the other parties (is this immutable)?

Step 3: Probing
 Make certain that you relate your benefits to a problem of theirs
 Look closely at the other party’s business. Spot what is wrong and what is needed
for you to put it right.
 Dig into the problem. Ask questions; make sure that they understand what you are
offering. Use questions to secure their agreement and buy in.
 If you do not get their buy in at first, go back to their problem, lead them to
seeing that you are offering the solution they have “identified” (with your

Obstacles to good questioning
o We avoid questions that reveal our own ignorance
o We are afraid to show that we haven’t been paying attention
o We have a “cultural distaste” for prying into someone else’s business
o We forget in the heat of the moment
o Difficult to follow other party’s reasoning AND come up with good questions

Obstacles to good questioning
o Difficult to follow other party’s reasoning AND come up with good questions
o We battle to formulate our questions properly
o We do not want to embarrass the other party
o Some of us talk rather than listen, while questions are designed for listening
rather than talking
o We give up too easily when questions are poorly answered
 We don’t plan our questions in advance p 166, Give and Take

Types of questions to ask
 Directive questions:
 Directive questions are used when the other party is uninterested, apathetic or undecided.
You would ask a buyer if she wants the red or blue one. She would then have to answer red,
blue or neither. If she chooses neither, you would then ask why she made that choice.
 Directive questions are specific, requesting answers about a particular point, for example:
- What have you been paying?
- Are you in the market for a 2-bedroom house?
- What price would you like me to meet?

 Nondirective questions:
 Nondirective questions are general and are best used when the other party needs
to express him/herself.
 What do you look for in a good…?
 How do you feel about…?
 What requirements are most important to you…?

Questions that give information:
 Are you aware that our company has received an award for…?
 Did you know that we have consultants on standby…?
 You’re surprised at our low price, aren’t you?

Questions that stimulate thought:
 Would you consider a two-year contract?
 Have you thought about expanding…?
- What if we ordered twice as many?

 Questions that lead to decisions:
 These are also referred to as terminal questions. They lead the other party to
make a choice and close the deal.
 Which one do you want?
 How many do you want to order?
 Are you prepared to give us the whole order if we reduce the price by 10%?

Loaded questions:
 These are questions that are distasteful or prejudicial to the person
answering:
- Why is your material cost so high?
- How is that difficult boss of yours?
 If you are called upon to answer a loaded question, laugh it off. Get the
question clarified and advise that your material costs are not high, or
that your boss is not difficult.

 Ambiguous questions:
 An ambiguous question can be interpreted in more than one way. The questioner
could be on a “fishing expedition”, or s/he could be unclear about his/her own
objectives.
- How did you put this quote together?
- You can do better than that, can’t you

 Leading questions:
 A leading question is one that leads to other lines of inquiry. It proves a point by
directing the person answering from statement to statement until the logic of the
questioner’s argument is made. It can also lead to a trap, such as when it is raised
to find out if the other party is telling the truth.
 Are you sure of that figure? It seems to be different on that page. Which is right?
How do you explain that? Now look at your summary. It’s different again. Let’s
start from my figures in that case.
 Do you have a smaller model? How is that priced? Based on what you are saying I
can’t see how the price on the larger one is justified.

 Closure questions:
 A closure question is one that closes, commits or freezes the discussion
temporarily or permanently. Such questions are raised to force a decision or break
off talks.
 Is that your final offer?
 You’ve seen my costs. Can you ask me to lose money?

Step 4: Bargaining
 Bargaining is the phase of the negotiation in which the two parties involved in
negotiations, such as the buyer and seller of a good or service, dispute the price
which will be paid and the exact nature of the transaction that will take place, with
the objective of eventually coming to an agreement.
 Collective bargaining - Collective bargaining is specifically an industrial relations
mechanism or tool, and is an aspect of negotiation, applicable to the employment
relationship. It is not the focus of this unit standard, but we can briefly look at the
advantages of collective bargaining:

 Advantages of collective bargaining
 First, collective bargaining has the advantage of settlement through dialogue and
consensus rather than through conflict and confrontation.
 It differs from arbitration, where the solution is based on a decision of a third
party, while arrangements resulting from collective bargaining usually represent
the choice or compromise of the parties themselves.
 Arbitration may displease one party because it usually involves a win/lose
situation, and sometimes it may even displease both parties.

Second, collective bargaining agreements often institutionalise settlement
through dialogue.
For instance, a collective agreement may provide for methods by which
disputes between the parties will be settled.
In that event the parties know beforehand that if they are in disagreement
there is an agreed method by which such disagreement may be resolved.

Second, collective bargaining agreements often institutionalise settlement through
dialogue.
For instance, a collective agreement may provide for methods by which disputes
between the parties will be settled.
In that event the parties know beforehand that if they are in disagreement there is an
agreed method by which such disagreement may be resolved.

Third, collective bargaining is a form of participation.
Both parties participate in deciding what proportion of the 'cake' is to be shared by the
parties entitled to a share.
It is a form of participation also because it involves a sharing of rule-making power
between employers and unions in areas which in earlier times were regarded as
management prerogatives, e.g. transfer, promotion, redundancy, discipline, modernisation,
production norms.
However, in some countries such as Singapore and Malaysia, transfers, promotions,
retrenchments, lay-offs and work assignments are excluded by law from the scope of

Fourth, collective bargaining agreements sometimes renounce or limit the settlement
of disputes through trade union action.
Such agreements have the effect of guaranteeing industrial peace for the duration of
the agreements, either generally or more usually on matters covered by the
agreement.

 Fifth, collective bargaining is an essential feature in the concept of social
partnership towards which labour relations should strive.
 Social partnership in this context may be described as a partnership between
organised employer institutions and organised labour institutions designed to
maintain non-confrontational processes in the settlement of disputes which may
arise between employers and employees.

 Sixth, collective bargaining has valuable by-products relevant to the relationship
between the two parties.
 For instance, a long course of successful and bona fide dealings leads to the
generation of trust.
 It contributes towards mutual understanding by establishing a continuing
relationship.
 The process, once the relationship of trust and understanding has been
established, creates an attitude of attacking problems together rather than each
other.

Seventh, in societies where there is a multiplicity of unions and shifting union
loyalties, collective bargaining and consequent agreements tend to stabilise union
membership.
For instance, where there is a collective agreement, employees are less likely to
change union affiliations frequently.
This is of value also to employers who are faced with constant changes in union
membership and consequent inter-union rivalries resulting in more disputes in the
workplace than otherwise.

Eighth - perhaps most important of all - collective bargaining usually has the effect of
improving industrial relations.
This improvement can be at different levels.
The continuing dialogue tends to improve relations at the workplace level between
workers and the union on the one hand and the employer on the other.
It also establishes a productive relationship between the union and the employers'
organisation where the latter is involved in the negotiation process.

Identify the issues and agree on them
o Clarify the areas where you disagree
o Divide the issues into parts
o During the negotiation, address a less difficult aspect when stuck
o Throughout the process, refocus on the issues and try to resolve them based
on what's fair for all parties.
o Explore best and worst alternatives to negotiating an acceptable agreement

Clarify each party's needs and wants/interests and positions and explore them
 Each person begins with a clearly identified statement of what he or she wants
and/or needs. Negotiation should identify not only individual concerns, but mutual
concerns, perceptions and interests.
 From this process, a common ground for agreement between the individuals is
sought. Selfish issues and goals are eliminated in favour of mutually acceptable
goals.
 Problems are examined apart from the personalities involved.
 Blaming the other person is inappropriate and destroys the cooperative nature of

Clarify each party's needs and wants/interests and positions and explore them
- Wants are not the same as needs
- Explore why the parties have these needs/wants - it may end the conflict (as the story of the
two cooks who wanted an orange reveals - one needed the juice and the other needed the
rind).
- Base the negotiation on the basic needs and true interests of the parties

Find the common ground and establish a common purpose
 Working together doesn't mean "giving up" or "giving in" to another person's demands or goals.
Two or more individuals can agree that disagreement exists.
 However, they can also agree to put aside their anger, frustration, resentment and egos in favour
of working together for a solution to a common problem.
 All negotiated work is completed by consensus.
 A negotiated solution is reached when everyone has given up something to gain common
benefits.
- You will now have defined the scope of the dispute and set a more balanced tone for the
negotiation

Explore the options
- Suggested options must satisfy the parties' needs
 Be as inventive and creative as possible in suggesting and exploring all options:
More information about the problem may be needed before a solution can be
decided upon.
 It may be helpful to examine other sources of information such as books,
magazine articles and people who may be familiar with the issue.
 Outside assistance may help you to overcome your own biases. Mediators can
provide impartial assistance with the negotiation process.

 Brainstorming is one way to gather many creative ideas
rapidly.
 This process allows everyone to openly make suggestions
without fear of criticism.
 At this stage, every suggestion has value and is accepted.
 After all suggestions have been shared, they are reviewed to
determine whether they might coincide or overlap with each
other.
 Negotiation then becomes a matter of choosing a solution to
which no one has an objection.

Discuss possible solutions, including their viability
- Which solutions address most of what you all want?
- Which most create a win/win situation?
- Review common ground

Step 5: Closing
 One of the most important stages of negotiating is closing the deal, which refers
to the actions taken by the negotiator to gain agreement to the sale/ proposal.
 There are four different closing techniques you may use to close a negotiation:
 There are no rules for deciding which technique to use.
 The most appropriate closing technique will depend upon your individual style
and the other party’s particular situation.

The Balance Sheet (or Pros and Cons)
Close
 The balance sheet close is a way of looking at the reasons for and against the decision and
letting the facts make the decision. This close involves the following steps:
 Take a piece of paper and draw a vertical line down the middle.
 Label one side of the page “Reasons For” and the other side “Reasons Against”.
 On the Reasons For side, list the benefits to the other party for committing, along with any
the other party has agreed to. On the Reasons Against side, write the objections or reasons
agree.
 Ask for input and agreement.

Close
The balance sheet close is a way of looking at the reasons for and against the
decision and letting the facts make the decision. This close involves the following
steps:
 Add up the total number of items on each side.
 If there are more reasons for than reasons against, ask the other party, “Which
of these sides weighs heavier for going ahead – the left or the right?” Wait for
the other party to reply.
 If there are more reasons against, you have objections that are still questions
in the other party’s mind. You need to resolve these concerns and obtain

Close
The balance sheet close is a way of looking at the reasons for and against
the decision and letting the facts make the decision. This close involves the
following steps:
 The balance sheet close works well with parties who want guarantees and
assurances that they are making the right decision.
 The pros and cons closing technique follows the same steps as the
Balance Sheet close, except you label one column “pros” and the other
column “Cons”. The Pros and Cons technique is helpful for showing the
other party how their decision to go ahead can be to their benefit.

The Mini-Max Close
The Mini-Max Close
 This technique involves minimizing the potential loss while maximizing the
possibility of gain. This method is a decided clarifier.
 The risk, brought out into broad daylight by showing the worst that can happen,
suddenly seems minimal, while the advantages look substantial.
 It’s important to remember that, for the other party, there are also risks associated
with not reaching agreement.

The Mini-Max Close
Examples:
 “The worst that could happen is . . .”
 “On the other hand, the benefit is . . .”
 “Even if that happens . . .”
 “At most, you would lose . . .”
 The mini-max technique works well with parties who are looking for reassurances
and consensus that their decision is right.

The Balance Sheet (or Pros and
Cons) Close
A cost analysis close is a way of examining the value one gains for the price being paid.
This technique involves using a pad to list the cost of your solution and then weighing the
consequences of both implementing and not implementing the solution in terms of:
 Money saved
 Hours
 Percentage of increased productivity
 Other tangible outcomes of your solution
 A cost analysis works well with parties who want evidence and proof that committing
to your solution is best.

The Options Close
The options close is a way of providing the other party control in the decision-making
process by asking which of several options they prefer. You might set up a choice
between:
 Certain details contained in your solutions
 Optional or alternative solutions
 Two forms of action – two ways of accepting the solution

The Options Close
Examples:
 “Which of these do you prefer?”
 “How many would you like to start with?”
 The options close works well with parties who want to feel that they have made
the decision themselves.
 As mentioned earlier, there are win-win, win-lose and lose-lose situations in
negotiation. It is not always possible to reach an amiable agreement and there are
times when negotiations may end with no favourable outcome.

The Options Close
Examples: cont.
Negotiations should however be conducted fairly and in good faith. This means that:
 Once an offer is made it cannot be withdrawn
 Verbal offers and agreements are taken as given
 No denial of something that has been accepted
 Both sides should display willingness to negotiate

The Options Close
Examples: cont.
Negotiations should however be conducted fairly and in good faith. This means that:
cont.
 No outside or informal settlement of a negotiable issue
 Confidential information may not be abused by either party
 Opponents should be left with some credit
 No trickery in the final agreement
 Agreements implemented as they stand.

Closing the meeting may not always involve closing on a negotiation. In most complex
negotiation, a series of agreements are reached before contracts are signed or money ever
changes hands. The close may involve asking for commitment to proceed to an
appropriate next step such as:
 Permission to conduct an investigation
 Permission to make a presentation
 A trial run
 A meeting with another decision maker
 A price quotation

Maintain or enhance relationships

Focusing on a positive healthy business relationship helps you work toward a win-win
agreement.
By knowing that you're in it for the long haul, you may want to be more flexible, open
and understanding.
You should listen more effectively, seek to understand the other party's viewpoints
and adopt approaches that are conducive to a win-win agreement. .

Consider adopting some of the following approaches.
 Use positive negotiation tactics.
 Clarify expectations.
 Separate people from the issues: be hard on the problem and soft on the
person
 Focus on interests and needs, not positions

Consider adopting some of the following approaches.
 Create solutions that are beneficial to both: emphasise common ground
 Be inventive about options
 Reach clear agreements
 Sometimes you need to put yourself in the other person's shoes. By trying to see
things from the other's perspective, you'll gain an awareness of what issues are
important to the other person and why.

Handle Conflict
 The essence of negotiation is dealing with differences between two or more
parties.
 The final result of any negotiation must be an agreement.
 This can be a mutually beneficial solution, an agreement to disagree or something
in between.
 Both parties must deal with the differences at hand; these differences must be
communicated with understanding of the other's points of view and with a logical,
open-minded approach to conflict resolution.

Handle Conflict
 Conflict will inevitably be part of the negotiation process as you and the
other party have different points of view, goals and interests.
 To reach a win-win agreement, you need to address conflict in a
constructive way.
 A structured approach to conflict resolution can help you reach a win-win
agreement in your negotiations.

Handle Conflict
 The following approach is simple, easy to follow and logical. You should
apply it during negotiations when the situation arises.
 It will instil confidence in the other party that you are committed to
building collaborative solutions.
 Like any approach, the following one is designed to be a guideline.
 Adapt it as you see fit. Apply it not only during negotiations, but also in
your daily operations.

The diagram below shows this five-stage approach:
http://strategis.ic.gc.ca/sc_mangb/stepstogrowth/engdoc/skills/skill-3-5.php

Step 1: Open discussion of
problems
 During this stage, both parties should feel free to express any concerns that they have,
without fear of being ridiculed or judged.
 You can't expect to deal with your concerns if you don't discuss them, regardless of
relative importance.
 Communicate fully.
 This approach can be a long process.
 Remember that you're setting the tone for any future meetings or transactions, so you
want to establish an environment of openness and honesty.
 This will also facilitate trust building with the other party.

Step 2: Identify differences
 Imagine if a deal fell through because you and the other party thought you had
incompatible goals but, in reality, you didn’t.
 That's why it's so important to separate real from perceived differences in opinion.
 Be prepared to explain the rationale behind your demands so that you and the other
party can determine if you have different interests (a true conflict) or just different ways
of getting to the same result (perceived conflict).
 Conflict arises from a difference in opinion or values.
 The cornerstone of dealing with conflict is understanding the gaps between your
desires and those of the other party.
 You need to do this before you can bridge these gaps.

Step 3: Build understanding for
point of view
You need to gain an understanding of the other party's needs and ensure s/he
understands your point of view.
Conflict resolution techniques that focus on positive outcomes of conflict may help
you approach the issue from a more workable angle.

point of view
Here are some intervention techniques that you can use.
 Try to understand the other person's point of view. Listen to him/her without
trying to think of what you'll say next. Focus on the other party, giving your full
attention.
 Acknowledge that s/he has a point of view. Do this even if you disagree with it.

point of view
Here are some intervention techniques that you can use.
 Use open body language. (Maintain eye contact, nod in agreement.) Physically show
your willingness to be reasonable and open to discussion. Whether you're listening or
speaking, you're still communicating silently with the other party through your body
language. Your audience responds more to what your body is doing than to what you
are saying so try to synchronise your actions with your words. Together they can
transmit your message much more clearly than each one can individually.
 Initially focus on points where you and the other party agree. That way you won't waste
time discussing those points. Tell the other party which points you agree with and why.
Ask him/her to repeat the process for you.

Step 4: Reduce defensiveness
 When someone triggers one of our emotional "hot buttons", our instinctive
response is to defend ourselves by counterattacking.
 When we're defensive, it's difficult to see the situation objectively — our logic is
clouded by our emotions.
 This can create a vicious cycle of increasingly hostile exchanges with one party
trying to outdo the other.
 Defensiveness can be detrimental to the relationship because the focus switches
from common goals to individual interests.

There are several ways you can break the cycle of defensiveness:
 Disengage: Back off for a bit
 Empathise: Express an understanding for the other side's view
 Inquire: Ask questions focussing on the situation, not on the people involved
 Disclose: Use "I" statements to tell the other party how you interpret things
 Depersonalise: Separate your identity from your tasks/work; you're not the
company, you're an official of the company.

When challenged during negotiations, you'll probably feel personally attacked.
Don't take things personally.
Minimise your defensiveness.
Ensure that you don't lose your cool, and keep focused on your goal: successfully
negotiating a deal.

Step 5: Begin mutual problem
solving
 The binding thread for all conflict management techniques is trust.
 If you have a good relationship with the other party, both of you will want to work
toward a mutually beneficial agreement.
 Being patient, handling stress and controlling your emotions are essential to
successful negotiations.
 You should have a high tolerance for frustration and take whatever time is
necessary to reach an agreement.

Step 5: Begin mutual problem
solving
 Long negotiations, tedious processes, conflict and unexpected events will increase
your stress level.
 Keep your emotions under control.
 It's healthy to express how you feel, but don't let your emotions cloud your
judgment or negatively affect your business relationship with the other party.

 Be flexible and creative
 You should seek creative alternatives that benefit both the other party and you.
 If you reach a roadblock, think "what else?" and you may be able to unleash
previously unexplored possibilities.
 Be flexible; don't reject the other's alternatives too quickly.
 Avoid the desire to get everything and never give in.
 Admit that you don't know something or that you were wrong.
 More specifically, the other party’s response to your proposal and your response
to the terms are the first negotiation step.
 Use the terms as a guide, not a step-by-step list over which to haggle.

Understand power and use it effectively
 Even though you might perceive the other parties as powerful because
they control the financing, for example, you also have power. Power can
come from a variety of sources, such as:
 Having a second-best option if you can't reach a deal with the other party
 Seeking to establish a two-way communication

Understand power and use it effectively
 Probing for the reasons behind the other's position
 Looking for alternatives that benefit you both
 Using an agreed upon method for assessing the value of the proposal's
elements
 Don't place too much emphasis on only one or two of those sources of
power. You should strive to have a good balance of each.

Disclose information effectively
 When and how information is disclosed can make a difference to the results of a
negotiation. There are two main approaches to disclosing information:
o Telling all - The first approach consists of telling everything without any
interaction or pauses. The fact that you're providing so much information
when the other party has spent little effort asking for it might seem suspicious
and reduce the credibility of your information.

Disclose information effectively
o Slow reveal - The second approach involves more interaction with the other
party. In fact, you disclose information a few bits at a time. Because the other
parties sense that they control the flow of the information, they may be more
confident about the reliability of the information. Disclosure should be a two-
way, not a one-way, process.
 Be open to pauses in the conversation or silences.

Approach negotiations logically
 Every issue needs to be discussed. There are two basic approaches you may
choose to take:
 The first approach consists of addressing the easy points first to build
momentum. It's usually easier to start the negotiations by reaching an agreement
on minor issues.
 The second approach consists of going over issues that are more important to
both parties and then using minor issues to sweeten the deal.

Approach negotiations logically
 If you decide to use this approach, be aware of the way you present the
issues on which you strongly disagree. In this case it may be appropriate
to start by going over past meetings, conversations, resolutions and
submitted documents.
 This would serve to bring the proceedings up to the present. It would also
also enable you and the other party to explain the situation with your
respective perspectives and express how you feel about them

Facilitate the Negotiation Process
Facilitate the negotiation process using effective communication and
interpersonal skills. This means that you need to make the negotiation
process “easy” for everyone involved.
The traits and skills you would need as a negotiator would include:
 Honesty/ integrity/ openness
 Consistency/predictability

The traits and skills you would need as a negotiator would include: cont.
 Reliability
 Fairness
 Empathy/understanding
 Respect
 Good communication skills

It is important for negotiators to have the aforementioned traits and apply the
discipline required to negotiate successfully, otherwise they might be tempted to
react negatively during a challenging negotiation.
However, negative reactions can result in a breakdown of the negotiation
environment.

Pitfalls to avoid
Threatening the other party
During a challenging negotiation, you might become frustrated with the other party
and be tempted to threaten to walk out on the negotiation.
Unless you are prepared to leave, don’t threaten to do so or you might find that the
other party calls your bluff.
You’ll only lose respect with the other party by making idle threats.

Pitfalls to avoid
Becoming emotional
 Negotiations can be emotionally intense for those involved.
 Each party is aware that important issues depend on the outcome of the negotiation.
 Allowing your emotions to overpower your judgment hinders your ability to
communicate with the other party.
 Becoming angry or resentful creates hostility and distracts your focus from the
objectives you wish to accomplish in the negotiation and can lead to bad feelings and
misunderstanding.
 In addition, the other party can lose respect for you if you instigate an emotional

Pitfalls to avoid
Sarcasm
 Sarcasm is insulting and demonstrates a lack of respect for the other party.
 In turn, the other party might lose respect for you.
 Losing respect can damage the relationship and the success of the negotiation.

The key to effective negotiation is clear communication. Communication involves
three important skills: understanding, speaking and listening.
 Understanding: Before two sides can look for solutions, a common understanding
must be reached. If two people do not understand each other's problems and
concerns, then the process of negotiation will either be broken off or will end with
solutions that do not work.
 You can't have good understanding without good listening and speaking.
Negotiation is most effective when people are able to clearly identify and discuss
their sources of disagreement and misunderstanding.

The key to effective negotiation is clear communication. Communication involves
three important skills: understanding, speaking and listening. Cont.
 Speaking: Typically a successful negotiator is a strong communicator. It's someone
who's willing to do whatever it takes to build a positive business relationship. It's
someone who's prepared to make compromises to achieve a larger, more creative
and mutually agreeable goal.
 Negotiation is not always between two people: it can involve several members
from two parties. Communication is always the link that will be used to negotiate
the issue/argument whether it is face-to-face, on the telephone or in writing.

 Negotiation begins with a clear, concise explanation of the problem as each person sees it.
Facts and feelings are presented in a rational manner from the individual's perspective,
statements.
 Communication between people will go more smoothly when statements such as "I become very
upset when you..." are used rather than more aggressive statements such as "You make me mad
when you," which blames the other person and puts him or her in a defensive position.
 Shared concerns rather than individual issues remain the focus of discussion throughout
negotiation.
 The negotiation process will be most effective when people take time to think through what
they will say.

 Listening: Listening is an active process of concentrating all of one's attention on the other person.
 Encouraging the other person to share thoughts and feelings, giving feedback on what has been
heard, and maintaining eye contact are skills that show you are interested in understanding what
he or she has to say.
 Observations are shaped as much by the observer as by the person being observed. It is good
practice never to assume to understand the other person without first asking, "Did I hear you
correctly?" or "I have noticed that you appear …" or "I sense you are under strain.
 Do you want to talk about this?" and "I'd like to hear from you about how you are feeling" are all
good examples of statements that encourage communication and better understanding between
people.
 It is always helpful to simply ask, "I understood you to say… Am I correct in this?" or "I hear you

 Active listening assures the other person that he or she is heard, accepted and
respected. The ability to listen actively supports open, on-going negotiation.
 Active listening encourages understanding. It is important to pay close attention
to what someone says as well as to how he or she behaves. Body language,
including facial expressions, hand gestures and degree of eye contact, can
provide clues about the other person's thoughts and feelings.
 Thinking ahead or anticipating the course of the discussion are distractions
interfere with listening. Poor attention and listening can lead to
misunderstandings, inappropriate solutions and continuing conflict.

Effective questioning
 Asking appropriate questions during a negotiation can have several
benefits.
 First, it demonstrates to the other party that you are concerned about his
or her objectives.
 Next, it reveals any barriers to agreement.
 Questions are also a polite way to disagree with the other party or call his
or her bluff.

Effective questioning
 There are three types of questions that can have a positive effect on the success of
a negotiation: bridge questions, strategy questions, and clarifying questions.
 Negotiations are usually viewed as a war of demands.
 This viewpoint often puts negotiators on the defensive. By asking the other party
questions, you can reduce his or her defensiveness.
 Asking questions demonstrates your willingness to hear the other party’s point of
view while allowing you to control the direction of the negotiation.

contains basic types of questions
to ask in a negotiation
There are different types of questions you can ask in a negotiation to help you control its
direction.
Open-ended - Since open-ended questions require more than a yes or no answer, they
encourage the other party to speak and provide information about him- or herself or his
or her situation.
 Open-ended questions typically start with the words what, why, and how.
 Use open-ended questions when you are not looking for a specific answer and want to
establish a dialogue with the other party.
 The information you receive by asking open-ended questions will help you understand

 Closed-ended - Closed-ended questions allow you to gain specific information or
clarify the other party’s viewpoints, objectives, or responses.
 This type of question does not generate extended dialogue since the answer is
usually a yes or no.
 Closed-ended questions typically start with the words do, did, and have.
 Use a closed-ended question when you need to narrow the scope of the
information you have collected, and you need a brief, specific response from the
other party.

 Confirming - Confirming questions enable you to verify the other party’s
meaning or your understanding of the information he or she has offered.
 To confirm your understanding, you should restate or rephrase the information the
other party offered in the form of a question.
 Use confirming questions to clarify information for both parties.

 Bridging questions - Bridging questions are designed to elicit additional
information from the other party.
 For example, the other party might refuse to give a concession and not provide a
reason for refusing.
 You might ask the other party to tell you why he or she objects to the concession.

 Strategy questions - Strategy questions allow you to disagree or call the other
party’s bluff.
 For example, if the other party quotes a price that you know is too high, you
might ask for documentation that confirms the accuracy of his or her claim as a
way of calling the bluff.

 Clarifying questions - Clarifying questions help you ensure that you understand
the other party’s terms.
 For example, if the other party asks for an extended warranty, you might ask for
specifics about how long he or she wants the warranty extended.

 Specific questions - Although you should use your own word choices and
phrasing techniques to maintain sincerity, you can use questions that uncover the
other party’s purpose and questions that uncover barriers to assist you in directing
the negotiation.

Questions that find the other
party’s purpose
The following examples are questions that can help you find the other party’s
purpose:
 What would you like to see happen in this negotiation?
 What are your ideas on how we might agree?
 What is your most important objective?

Tactics to delay a negotiation
would include:
Red herring or straw issues – negotiators deliberately
introduce one or more issues which are of no real importance
to them, but on which they spend an inordinate amount of
time. This distracts the other party from the more important
aspects of the negotiations.
Interruptions – these can be useful if the negotiations are not
going well for one party and they need time to reconsider but

would include:
 Changing negotiators – a change of negotiators may take place for the
purpose of gaining time. A new negotiator will take time to get up to
speed with the developments necessitating time being spent
backtracking.
 Statistics and averages – some negotiators attempt to overwhelm the
other party with statistical information and averages that have no
meaning at all. Remember there are lies and there are statistics. Statistics
can be interpreted in many ways. Having to review statistics for accuracy,
takes time.

would include:
 Limited authority - a negotiator may, when faced with a difficult decision, hide
behind the excuse that he does not have the necessary authority to make the
decision.
 While all negotiators do, from time to time, refer back to their principles, they
should have the authority to make the decision within the parameters of their
mandate.
 The best way to deal with this is to ask your opponent to obtain a wider mandate
or be replaced by someone who can make the necessary decisions.

Methods to deal with a deadlock
 Deadlock, at times, is an inevitable part of any negotiation.
 Deadlocks can actually be times for periods of respite from intense
emotions that might get in the way of honest negotiations.
 Often, a tactic is to step back and stop negotiating about highly personal
issues and focus on bigger issues.
 If emotions creep into the process too much, then "deadlock" is
inevitable.

Methods to break deadlocks
would include:
 Look for ways to reshape each side's way of thinking.
 Remove the more difficult items from the meeting and work on reshaping the
ways of thinking for the easier items. Keep communication open for further
negotiations on the difficult items later.
 If the deadlock involves future enforcement of your agreement consider putting it
to a third party for mediation or arbitration.
 You may want an independent third "expert" to get all parties into a co-operative
problem-solving mode.

Methods to break deadlocks
would include:
 You may wish to lighten the mood by making a joke.
 No matter what, if you want to resolve deadlocks, you must re-involve your
opponent in discussions. There can be no future negotiations unless the lines of
communication remain open. Even suggesting new alternatives can have the effect
of making the old proposals look better.
 Who should make the first move in deadlocks? Many deadlocks are the product
of poor communication, risk of losing face or just personality differences - so
consider these human variables when deciding whether to take the initiative.

Questions that overcome barriers
to agreement
The following examples are questions that can help you overcome barriers that
prevent you and the other party from reaching an agreement:
 What questions do you have about this specific term of the agreement?
 What is your hesitation with making this concession?
 What is another way we can agree on this term?

What it takes to be a first-rate negotiator:
 Great negotiators are great listeners.
 They don't do a lot of talking and spend much of the time asking smart questions and concentrating on
the answers.
 They also take their time responding to what they've heard as opposed to reacting in an unnecessarily
adversarial fashion.
 Even if you don't like the other person or his communication style, you're negotiating because you have
to. If you could simply get your way, you wouldn't be in this situation.
 Therefore, no matter how you feel about the other party, stay focused on the issues that need to be
resolved.
 The key is to remember that communicating your distaste decreases the odds you will accomplish your
objectives.

What it takes to be a first-rate negotiator:
 Communicate from the other person's point of view.
 Great negotiators work hard to see the process as an opportunity to help someone else
accomplish his or her objective.
 When participants are too focused on their own (often narrow) objective, they aren't successful.
 If the other person sees you as someone who is considerate of them and their agenda, they are
more likely to give you what you want without seeing it as giving in.
 Be clear on what you want, but don't dig your heels in too deep.
 It's important to communicate your goals in the negotiation process while being flexible enough
to respond to opportunities that present themselves in the process. (Again, it is important to be a
good listener.)
http://www.stand-deliver.com/star_ledger/031202.asp

 If you go into a negotiation with a hard and fast definition of "winning" you are
likely to be disappointed. And unless you are willing to walk away, this is a risky
position to take indeed.
 When someone says something in a negotiation that seems totally unreasonable
to you, don't take the bait.
 Very often the person is doing this to see what your reaction will be.
 Instead, remain calm.

 Imagine you are a manager who has an employee who is requesting a 30% pay
increase. Consider this disarming response; "I just want to be clear, you are saying
you want a 30% pay increase while we've just laid off a third of our workforce and
everyone else's salary is frozen?"
 Your goal is to put a mirror up in front of the other person and help them see how
unreasonable their demand is. If they don't, I would suggest this isn't someone
you want to deal with.
 Finally, avoid characterising someone's position as worthless. ("That's a really
stupid point, Jim.") When you communicate in this fashion, Jim feels worthless as a
person and has few options other than to fight back and dig in. Is that what you

Identify, Explain and Explore
relevant Options
During the negotiating process, you may need to deviate from your prepared tactics
and strategies and explore other options, such as:
 The use of experts
 Brainstorming
 Trade-offs and concessions
 Linkages

The use of experts
 You may sometimes find that you need an independent third "expert" to get all
parties into a co-operative problem-solving mode.
 If you have reached deadlock and it involves future enforcement of your
agreement, consider putting it to a third party for mediation or arbitration.

Brainstorming
 A problem is simply an obstacle that needs to overcome, but to be successful in
doing so, we need to learn and apply problem-solving techniques to be effective.
 Negotiation problems can be solved by trying one of several powerful creative
strategies, namely brainstorming.
 This creative-thinking technique works because it helps to free you from fixed
ideas. The intent is to get every possible idea out on the table.
 You can try brainstorming on your own — with a notepad and pen — but
brainstorming almost always works better with a group because you can build on
each other’s ideas.

Guidelines for successful brainstorming
Taken from Leigh Thompson's, 'Heart and Mind of the Negotiator', Second Edition, (2001):
1. Expressiveness - Group members should express any idea that comes to mind, no matter how
strange, weird, or fanciful. Group members are encouraged not to be constrained or timid. They
should freewheel whenever possible.
2. Non-evaluation - Do not criticise ideas. Group members should not evaluate any of the ideas in
any way during the generation phase; all ideas should be considered valuable.
3. Quantity - Group members should generate as many ideas as possible. Groups should strive for
quantity; the more ideas, the better. Quantity of ideas increases the probability of finding excellent
solutions.
4. Building - Because all of the ideas belong to the group, members should try to modify and
extend the ideas suggested by other members of the group whenever possible.

 After the ideas have run completely dry, stop.
 Give everyone a final opportunity to add something to the list.
 Be sure that everyone has articulated every idea that they could possibly
have.
 Then take a little break to let people shift gears from the free-wheeling
creative session to the practical job of narrowing the list to a manageable
number of ideas.

 When you are ready, look through your list of ideas and choose the ones that you believe
will best yield results during the negotiation process.
 This is best done by the same group that came up with the list in the first place.
 That way everyone is heard. No one has reason to be upset later when his or her ideas don’t
show up on the final list.
 And most importantly to the welfare of the group, an idea can be fleshed out and explained
if the brief expression of the idea wasn’t clear to everyone.
 Sometimes a good idea doesn’t seem so good until it carries a bit of an explanation.
Adapted from: http://art-of-negotiation.blogspot.com/

Trade-offs or concessions
A trade-off is a situation that involves losing one quality or aspect of something in
return for gaining another quality or aspect.
It implies a decision to be made with full comprehension of both the upside and
downside of a particular choice.
A trade-off is also sometimes referred to as a ‘Concession’ where one or more parties
to a negotiation engage in conceding, yielding, or compromising on issues under
negotiation and do so either willingly or unwillingly.

Linkages
 Are your current negotiations linked to other negotiations, or even a history of
previous negotiations?
 Negotiations can be competitively linked or they can be reciprocally linked.
 Stand-alone negotiations are rare, as even a simple negotiation such as buying a
house involves competition with other purchasers, dealings with mortgage
brokers and lenders and even interactions with several sellers.

Conduct Negotiations, Take Action
and Obtain an Amended Mandate
 Conduct Negotiations, Take Action and Obtain an Amended Mandate
 Sometimes it is necessary for negotiators to obtain an amended mandate from
their constituency.

Present, Explain and Motivate the
Negotiated Outcomes
 Negotiated outcomes are clearly presented, explained and motivated to the
constituency that mandated you to negotiate on their behalf.
 The format of the feedback depends on the agreements reached and recorded
when you were mandated.

Negotiation Outcome
 Negotiation outcome addresses the nature of the final agreement between the
parties.
 The three elements considered at this stage are verification, agreement and
negotiation breakdown.
 Verification is important in situations in which the party responsible for the
preparation of the final document includes provisions not previously agreed to by
the parties.
 Therefore, negotiators must verify the contents of the contract according to their
interpretation of the terms agreed to during the finalisation stage of bargaining.

Negotiation Outcome
When the parties can agree on appropriate terms for a final document, agreement
occurs and produces one of four outcomes:
1. Both parties benefit (win-win)
2. One party benefits at the expense of the other (win-lose)
3. The other party benefits at the expense of the former (lose-win); or
4. Neither party benefits (lose-lose).
Retrieved from: http://www.themhedajournal.org/content/2q09/negotiations.php

 The nature of the agreement will depend on the relative positions of the parties
throughout the negotiation process, the amount of preparation and the strategies
used.
 Negotiation breakdown occurs when the parties fail to agree on the key issues to
the agreement, and they recognise that their mutual needs can be achieved more
effectively through other sources.
 This type of situation is not unusual in today's business environment, where
strategies such as niche marketing and supply base reduction are implemented as
mechanisms to target specific customers or suppliers in the material handling

 The circular nature of negotiation causes the information from one negotiation to
become a part of the next one; for example, a firm that completes a negotiation
with one supplier or customer will use the information they've gained in future
negotiations with the same party.
 In addition, the party will use elements of the information base for future
negotiations with other parties that have similar negotiation characteristics.
 This learning experience is critical to firms desiring market and supply base
expansions in their industry.

Record Proceedings and Interim
Outcomes
 Proceedings and interim outcomes are recorded accurately for feedback purposes

Finalise Negotiations and
Communicate Agreements
After completing this section, the learner will be able to finalise negotiations
and communicate agreements, by successfully completing the following:
 Finalise agreements and agree verbally to agreements (by parties)
 Record final agreements accurately according to best practices
 Disseminate and make final agreements accessible to all constituents and
stakeholders

Finalise the negotiations by
following these three easy steps:
1. Propose
 Make a proposal for the exchange, summarising what you expect from the other
and what you will give them in return (if anything).
 Include everything that you believe is necessary and sufficient to achieve an
agreement.
 Use closing techniques and other negotiation tactics as appropriate.
 Watch out for what the other person is doing in this area and resist any tricks or
handle opposition as needed.

2. Agree
 Check to make sure the other person understands the deal and is ready to make the
exchange.
 Summarise the agreement as necessary. Be clear about whether the deal is reversible
(For example, can you take the goods back?)
 Handle opposition as needed, including appropriate use of objection-handling
techniques.
 Write down what has been agreed as necessary, for example in an email.
 Get what written confirmation you need and delay the exchange if you need to check

3. Exchange
 Complete the deal by making any exchanges as agreed. If the other side
has said that they will do something then they should do it.
 Ensure you get receipts and other proof of exchange as necessary,
particularly if these are needed to reverse the agreement or claim later
benefits, such as warranty returns.
 As necessary, you can follow up later to ensure that they have completed
all the things that they said that they would do.

Conflict and Negotiation skills training

Recommended

Recommended

More Related Content

Similar to Conflict and Negotiation skills training

Similar to Conflict and Negotiation skills training (20)

Recently uploaded

Recently uploaded (20)

Conflict and Negotiation skills training