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Юриспунденкция

The Art of Negotiating

Negotiating is often referred to as an ”art”. While some people may be naturally more skillful as negotiators, everyone can learn to negotiate. And, as they often say in business, everything is negotiable. Some techniques and skills that aid people in the negotiating process include:

· Aiming high

· Visualizing the end results

· Treating one's opponent with respect and honesty

· Preparing ahead of time

· Exhibiting confidence

a) Preparing to Negotiate

Lack of preparation in a negotiation almost always sets a person up for failure. First and foremost, each party must clearly define their own goals and objectives. Secondly, each party must anticipate the goals of the opposition. This may require doing some background research. Finally, each party must come up with various alternatives to their main objectives.

Markus Prepares to Negotiate with Louis

Markus approaches Louis after his shift on Friday afternoon and asks if he can arrange a meeting to discuss a potential promotion. Louis sighs and reminds Markus that they already had this discussion last year. Markus agrees, but reminds Louis of his loyalty to the company and insists that they speak again on the subject next week. Eventually Louis, who is afraid that Markus might quit on the spot, agrees to meet on Monday during the crew's lunch hour.

Over the weekend, Markus thinks about Monday's meeting. Last year, he was unprepared to negotiate and ended up only getting a 50 cent/hour pay raise. This did not satisfy him, and he has continued to feel undervalued ever since. Many times, after a hard day at work, Markus has considered quitting. However, it is difficult to find work in the middle of winter. Markus has a family to support and he can't afford to lose his job.

Markus decides to do some research on negotiating. He learns the principles behind collaborative negotiating, and decides that this is the approach he will take this time. After he has understood the concept he can ask himself the preparatory questions above. Finally, he can apply the rules of collaborative negotiating to his own case.

Here are some preparatory questions to ask yourself before beginning talks with the other party:

· What is my main objective?

· What are all of the alternatives I can think of?

· Why do I deserve to have my goals met?

· What will my opponent's counter proposal likely consist of?

· How can I respond to this counter proposal?

· When would I like to have this issue resolved?

· What is my bottom-line?

· What market research/homework do I need to do to back up my cause?

· What is my bargaining power compared to my opponent's?

· What do I know about the principles of negotiating?

Markus Answers the Preparatory Questions

· My main objective is to be named crew foreman and to earn a salary that is competitive with other foremen in the area.

· Alternatives include looking for work elsewhere, asking for a dollar more an hour, suggesting that Louis hire someone else to take on extra duties.

· I deserve this promotion because I have worked with Landscape Labourers for five consecutive years, and have received many compliments from satisfied clients. I am the team member who reports early every morning and leaves last. If we are under a deadline, I work through my lunchhour. All of the other team members come to me with their questions.

· Louis will likely say that he can't afford to pay me more because business is slow in the winter. He will say that there are plenty of qualified labourers who will do the work for less money.

· Both of these arguments are probably true. Landscape Labourers lost a lot of money last year due to poor weather. There were a few weeks that we couldn't work, but Louis had to pay us anyway because of our contracts. And, unemployment is at an all time high in our region. However, Louis just signed a contract with a new company that will mean regular work for at least the next two years. Also, the other team members rely on me, and none of them have the experience to take over my position if I quit. It will cost Louis a lot of money to train a new landscaper to do everything that I do.

· I understand that winter is tough on this business, so I would like to have this issue resolved by spring.

· I will look into three other local landscaping businesses and inquire about the salary and benefits of its employees. I will also review the classified ads to see if any other companies are hiring or looking for a foreman.

· My bottom-line is to receive an extra dollar an hour and to be named team manager.

· I think Louis and I have equal bargaining power right now. None of the other current members of our team are as committed to the job as I am. However, unemployment is high and there are other people he could hire.

· I have never been a strong negotiator. I need to learn more about negotiationg strategies and tactics.

b) Collaborative Negotiating

In business, the goal of negotiating parties should always be for mutual gain. This type of win-win negotiation is often called collaborative negotiating. The opposite of collaborative negotiating is called competitive negotiating. The goal of competitive negotiating is for one party to win and the other to lose. Dishonest practices, such as lying, manipulation, intimidation, and bribery are often used in this type of negotiation.

Main Principles of Collaborative Negotiating:

· Resolve previous conflicts ahead of time

· Deal with issues, not personalities

· Commit to listening more than speaking: The more you know about your counterpart, the more likely you will achieve your goals. You cannot convince someone of something when you do not know anything about them, or what their own needs are. A common mistake is to prepare one's next question or point while the opponent is speaking.

· Establish trust in the onset

· Develop a common goal

· Discuss a common enemy

· Take opponent's views/needs into careful consideration: Not only do you want to win this negotiation, you want your opponent to win as well, so that he or she will negotiate with you again in the future.

Markus Applies the Principles for Collaborative Negotiating

· I will not discuss the fact that I was only offered a 50 cent raise last year. It was my fault for not being prepared to negotiate.

· Even though I think Louis is lazy, and takes too many days off when we are busy, I will not point out his shortcomings. This is about my promotion, not his work ethic.

· I will first thank Louis for employing me for five consecutive years. I will tell him that the stable work has meant a lot to me and my family, and I appreciate the security, especially with so many people out of work.

· I will tell Louis that I think his company is one of the most respected landscape companies in the region, and ensure him that my goal is to have a lifelong career at Landscape Labourers.

· I will say that I hope I will never have to work for a company that does a poor job, such as Powell Designs.

· I will acknowledge that last year's weather was a problem and note that it is not anyone's fault that the company lost money.

c) Preparing to Negotiate a Job Offer

Negotiating a job offer should mean more than just saying, yes. Though being offered a job is an exciting time, it is also an important time to use your negotiating skills. Here are some issues you may want to raise before you accept:

· Salary

· Promotion opportunities

· Insurance (medical, dental, accident, life)

· Holidays

· Vacation time

· Retirement/pension plans

· Stock options

· Overtime

· Expenses

d) The Negotiation Process

It's time to negotiate! Here are a few golden rules to successful negotiations:

1) Always try to negotiate for at least 15 minutes. Any less than that and it is unlikely that either party has had enough time to fairly consider the other side. Generally, the size or seriousness of the negotiation determines the amount of time needed to negotiate it. Setting a time limit is a good idea. Approximately 90% of negotiations get settled in the last 10% of the discussion.

2) Always offer to let the other party speak first. This is especially important if you are the one making a request for something such as a raise. The other party may have overestimated what you are going to ask for and may actually offer more than what you were going to request.

3) Always respect and listen to what your opponent has to say. This is important even if he or she does not extend the same courtesy to you. Do your best to remain calm and pleasant even if the other party is displaying frustration or anger. Remember some people will do anything to intimidate you.

4) Acknowledge what the other party says. Everyone likes to know that what they say is important. If the other party opens first, use it to your advantage, by paraphrasing what you have heard. Repeat their important ideas before you introduce your own stronger ones.

5) Pay attention to your own and your counter partner’s body language. Review the chart below to learn how to interpret body language during the negotiations. Make sure that you aren't conveying any negative body language.

Body Language	Possible meaning
Avoiding Eye Contact	ü Not interested ü Lying ü Not telling the whole truth
Serious Eye Contact	ü Trying to intimidate ü Showing anger
Touching the face/fidgeting	ü Lack of confidence ü Nervousness ü Submission
Nodding	ü Agreeing ü Willing to compromise
Shaking the head/turning away	ü Frustrated ü Disagreeing with a point ü In disbelief

Markus Opens the Negotiations

It's finally lunchtime and Markus and Louis meet as planned. Markus offers for Louis to speak first, but Louis declines:

Markus: Thanks again for agreeing to meet today. I really appreciate you taking the time during your lunch.

Louis: Okay, well, let's get started. I'd like to resolve this as soon as possible so we can get back to work.

Markus: Great. Okay, well, if there's anything you'd like to say first, please be my guest.

Louis: Oh, no, I insist you go first. After all, you're the one who asked to meet with me.

Markus: Very well then. First of all I want you to know that I am fully aware of the challenges you have faced in running this company in the last few years. I understand that the poor weather last year ended up costing you and all of the local landscape companies a lot of money. However, I think you realize that I am unsatisfied with my current salary. I've been with Landscape labourers for 5 years now and there have been many other years that were profitable. Despite how much your business has grown, I'm making less than a dollar more than I was the day I started.

Louis: You're lucky to have a job in these times.

Markus: Yes, and I'm very thankful that you have employed me all this time, especially during the slow seasons when the company is struggling to make a profit. It means a lot to me to have that stability, which is why I have remained loyal to your company.

Louis: You haven't had much choice but to remain loyal, Markus. There are no jobs out there.

Markus: Well if you don't mind, I'd like to finish what I have to say and then you can let me know what your position is. As a matter of fact, there are a few companies hiring right now in our area. These are not all necessarily companies that I would be interested in working with. For example, you and I both know that I would never want to work for a company such as Powell Designs. I'd much prefer to be associated with a company like Landscape Labourers because we do a good job. Having said that, I took the liberty of calling a few other local companies to find out what type of salary packages they offer to their foremen.

Louis: Foremen? I don't have a foreman. I never have. It's not my style. Don't forget, you're a contract labourer just like the rest of the crew.

Markus: Yes, I thank you for bringing that up. Besides deserving a higher salary, one that is competitive with local companies, I also think that I deserve a new title. You and I both know that the crew looks to me as though I am a foreman, even though I don't have the title.

Louis: You don't have the title, but you also don't have the responsibility. It's a lot of work being a foreman.

Markus: Exactly. And you can't say that you haven't noticed me coming in earlier than the others and leaving later. I also designate jobs to all of the crew members each morning and call suppliers when needs arise. These are duties of a foreman, am I right?

Louis: I suppose. But a foreman also helps solve conflicts that arise within a team, and deals with customer complaints. You always pass those things on to me.

Markus: I agree with you on that. However, I would be willing to take on these extra responsiblities, should you offer me a foreman position at a rate of $25.00 per hour.

e) Coming to a Close or Settlement

There are a number of signals that indicate that negotiations are coming to a close. This may not always mean that an agreement has been reached. In many cases, there are many rounds of negotiations. The preliminary round may uncover the major issues, while subsequent rounds may be needed to discuss and resolve them. Here are some signals of talks coming to a close:

· A difference of opinion has been significantly reduced.

· One party suggests signing an agreement.

· One or both parties indicate that a period of time to pause and reflect is necessary.

<== попередня сторінка	\|	наступна сторінка ==>
Text I. The Art of Negotiations	\|	Beware of last-minute strong-arm tactics.

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