Management skills
Workshop 7:
Negotiation skills and preparation
Presentation by
First Name
Second Name
Date w/c 5 Nov 18
Objectives
Briefly revise different types of negotiation
Identify the stages in the negotiating process
Describe the key skills required in the negotiating process
Prepare for the workshop activity
Activity: What does negotiating mean?
Working in groups of 3-4, take 10 minutes to agree and write down a definition of:
“negotiations”
What does negotiating mean?
Possible definitions:
A two way discussion to agree terms
Conferring for the purpose of mutual agreement
A process of discussion aimed at reaching agreement
Establishing consensus amongst two or more parties
Resolving conflict through compromise
REVISION: Types of Negotiation
Win-Lose
Win-Win
Lose-Lose
REVISION: Getting to YES!
Fisher, R. and Ury, W. (2012) Getting to yes, negotiating an agreement without giving in. London: Random House
Any method of negotiation should:
Produce a wise agreement
Be efficient
Improve or at least not damage the relationship between the parties
Getting to YES!
Principled negotiation
Focuses on basic interests, mutually satisfying options and fair standards which results in a wise agreement
Getting to YES!
BATNA – Best Alternative to a Negotiated Agreement
Know your BATNA
BATNA - is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached
Helps you to determine what is a minimally acceptable agreement
Judge every offer against it
(Fisher and Ury 2012)
Stages in the negotiation process
Preparation
Discuss
Propose
Bargain
Agreement
Activity: How to prepare
Divide group into pairs
One will prepare for the negotiation as a seller and the other one as a buyer
Seller: think of something you have that you will sell to your partner, eg a car, a laptop, etc
Give the buyer basic details, eg make; model; age; colour; general condition
Buyer: you want the object – but how much is up to you.
Activity: How to prepare
You each have 10 minutes to prepare
Consider any research you may want to do now; the negotiation strategy you will adopt; consider your 3 objectives
You have 10 minutes to try to negotiate a deal
Activity: How to prepare
Group discussion:
How many groups had a successful negotiation?
How many groups had an unsuccessful negotiation?
What did you do in your preparation that helped?
How could you have prepared better?
Examples of ‘if’ and ‘then’
If you are willing to give me a bonus then I will accept a lower salary.
I am happy to relocate to Manchester providing I receive a significant pay rise.
I am prepared to offer you 3 days’ extra holiday per year if you will work ‘on call’ for 3 hours/one evening each month.
I can offer you a salary of £20,000 if you start in 3 months.
Next week - practicals
You will be involved in 2 x Role Plays:
Divide group into 2 – Group 1 and Group 2
Preparation
Each group should keep their case studies a secret from the other so that the role plays are as realistic as possible.
Each group can work in 4s or 5s to begin to prepare.
You might consider: what are the important issues? What research might be helpful to do? Where does your power lie? Begin to think about linking issues.
Continue to prepare both of your parts over the coming week.
Use the Negotiation Preparation Sheet to help you prepare.
Timetable
Preparation - 20 minutes
Manager and Employee of Anderson’s negotiate - 30 minutes
Employee gives Manager feedback - 10 minutes
Break (10 minutes)
Manager and Employee of Zig Zag negotiate - 30 minutes
Employee gives Manager feedback - 10 minutes
Core reading
Fenn, P. (2011) Commercial Conflict Management and Dispute Resolution. London: Taylor Francis. Chapter 4.
Malhotra, D. (2014) 15 Rules for negotiating a job offer. Harvard Business Review. April 2014 pg. 117 – 120
Watson, G. and Reissner, C. (2014) Developing Skills for Business Leadership. CIPD: London (Chapter 9)
Further reading
Cornelius, N (2002) Human Resource Management (2nd ed) London: Thomson Learning (Chapter 10)
Ellis, R. (2009) Communication Skills: Stepladders to Success for the Professional. Bristol: Intellect Books. (Chapter 9)
Fisher, R. and Ury, W. (2012) Getting to yes, negotiating an agreement without giving in. London: Random House
Fowler, A (1996) Negotiation Skills and Strategies. London: IPD
Gennard, J. and Judge, G. (2010) Managing Employment Relations. CIPD: London
Raj, R (2008) Business Negotiations: A ‘soft’ perspective. The Icfai Journal of Soft Skills. Vol II No.1, 2008
Sebenius, J. (2001) Six Habits of Merely Effective Negotiation. Harvard Business Review. April 2001.
Smith, T. (2007) Let’s make a deal: A guide to successful workplace negotiations. Business and Economic Review. Oct – Dec 2007
Thorn, J. (2001) How to negotiate better deals. Gloucestershire: Management Books
Any questions?