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Business Negotiation English

By Daniel Hicks,2014-05-22 17:06
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Business Negotiation English

Business Negotiation English Business Negotiation English

Chapter 1 Chapter 1

    Principles of Business Negotiation: Principles of Business Negotiation:

     What is negotiation? What is negotiation?

    ----the process we use to satisfy our needs when someone else controls what we ----the process we use to satisfy our needs when someone else controls what we

    want. (Robert Maddux) want. (Robert Maddux)

    ----Whenever people exchange ideas with the intention of changing ----Whenever people exchange ideas with the intention of changing

    relationships, whenever they confer for agreement, then they are negotiating. relationships, whenever they confer for agreement, then they are negotiating.

    (Gerard I. Nierenberg) (Gerard I. Nierenberg)

Definitions: Definitions:

    ----the ability to deal with business affairs, ----the ability to deal with business affairs,

    ----to arrange by discussion the settlement of the terms, ----to arrange by discussion the settlement of the terms, ----to reach agreements through treaties and compromise, ----to reach agreements through treaties and compromise, ----to travel through challenging territory. ----to travel through challenging territory.

    2. When do people negotiate? 2. When do people negotiate? ---where to go for dinner ---where to go for dinner

    ---which movie to watch ---which movie to watch

    ---how to split household chores, etc ---how to split household chores, etc

    ---whether to buy a computer ---whether to buy a computer

    ---who to have the first apple ---who to have the first apple

Practice: Please check off the following situations that represent negotiations. Practice: Please check off the following situations that represent negotiations.

    ? Purchasing a computer at a department store. ? Purchasing a computer at a department store.

    ? Deciding with the family where to go for the weekend. ? Deciding with the family where to go for the weekend.

    ? Bidding for a second-handed car. ? Bidding for a second-handed car.

    ? Deciding how the house will be cleaned up. ? Deciding how the house will be cleaned up.

    ? Borrowing a musical instrument from a friend. ? Borrowing a musical instrument from a friend.

    ? Selecting a contractor to build a new kitchen. ? Selecting a contractor to build a new kitchen.

    ? Deciding whether to stay late at work to finish up a project. ? Deciding whether to stay late at work to finish up a project.

    ? Getting an extension on your unfinished assignments. ? Getting an extension on your unfinished assignments.

    ? Making up, or rebuilding a relationship with someone you love. ? Making up, or rebuilding a relationship with someone you love.

    ? Deciding on a date for the next meeting with your customer. ? Deciding on a date for the next meeting with your customer.

    ? Getting a child to go to bed. ? Getting a child to go to bed.

    ? Picking a successor for the CEO of a company where you are on the board. ? Picking a successor for the CEO of a company where you are on the board. 3. Types of negotiation: 3. Types of negotiation:

    ? Competitive style ? Competitive style

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? Accommodative style ? Accommodative style

    ? Avoidance style ? Avoidance style

    ? Compromising style ? Compromising style

    ? Collaborative style ? Collaborative style

    ? Vengeful style ? Vengeful style

    ? Self-inflicting style ? Self-inflicting style

    ? Vengeful and self-inflicting style ? Vengeful and self-inflicting style

    Types of negotiation: Types of negotiation:

    ? Competitive style: To try to gain all there is to gain. ? Competitive style: To try to gain all there is to gain. ? Accommodative style: To be willing to yield all there is to yield. ? Accommodative style: To be willing to yield all there is to yield. ? Avoidance style: To try to stay out of negotiation. ? Avoidance style: To try to stay out of negotiation.

Types of negotiation: Types of negotiation:

    4. Compromising style: To try to split the difference or find an intermediate 4. Compromising style: To try to split the difference or find an intermediate

    point according to some principle. point according to some principle.

    5. Collaborative style: To try to find the maximum possible gain for both 5. Collaborative style: To try to find the maximum possible gain for both

    parties-----by careful exploration of the interests of all parties-----and parties-----by careful exploration of the interests of all parties-----and

    often by enlarging the pie. often by enlarging the pie.

Types of negotiation: Types of negotiation:

    6.Vengeful style : To try to harm the other. 6.Vengeful style : To try to harm the other.

    7. Self-inflicting style: To act so as to harm oneself. 7. Self-inflicting style: To act so as to harm oneself. 8. Vengeful and self-inflicting style: To try to harm the other and also 8. Vengeful and self-inflicting style: To try to harm the other and also

    oneself. oneself.

    4. Principle of Collaborative negotiation 4. Principle of Collaborative negotiation ? Problem-solving negotiation ? Problem-solving negotiation

    ? Consensus-building negotiation ? Consensus-building negotiation

    ? Interest-based negotiation ? Interest-based negotiation

    ? Win-win negotiation ? Win-win negotiation

    ? Mutual gains negotiation, etc. ? Mutual gains negotiation, etc.

    The assumptions : The assumptions :

    ? The negotiation parties have both diverse and common interests ? The negotiation parties have both diverse and common interests ? The common interests are valued and sought. ? The common interests are valued and sought.

    ? The negotiation processes can result in both parties gaining something. ? The negotiation processes can result in both parties gaining something. ? The negotiating arena is controlled by enlightened self-interest. ? The negotiating arena is controlled by enlightened self-interest. ? Interdependence is recognized and enhanced. ? Interdependence is recognized and enhanced.

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    ? Limited resources do exist, but they can usually be expanded through cooperation and creativity. ? Limited resources do exist, but they can usually be expanded through cooperation and creativity. ? The goal is a mutually agreeable solution that is fair to all parties and effective for the community ? The goal is a mutually agreeable solution that is fair to all parties and effective for the community / group. / group.

    Disadvantages : Disadvantages :

    ? Pressure an individual to compromise and accommodate in ways not in his interest. ? Pressure an individual to compromise and accommodate in ways not in his interest. ? Avoid confrontational strategies, which can be helpful at times. ? Avoid confrontational strategies, which can be helpful at times.

    ? Increase vulnerability to deception and manipulation by a competitive opponent. ? Increase vulnerability to deception and manipulation by a competitive opponent. ? Make it hard to establish definite aspiration levels and bottom lines. ? Make it hard to establish definite aspiration levels and bottom lines. ? Require substantial skill and knowledge of the process. ? Require substantial skill and knowledge of the process.

    ? Require strong confidence in one s perceptions regarding the interests and needs of the other ? Require strong confidence in one s perceptions regarding the interests and needs of the other side. side.

    5. Principled negotiation 5. Principled negotiation

    ? PIOC: ? PIOC:

    People: Separate the people from the problem. People: Separate the people from the problem.

    Interest: Focus on interests, not positions (interests always underlie Interest: Focus on interests, not positions (interests always underlie positions) positions)

    Options: Invent options for mutual gains. Options: Invent options for mutual gains.

    Criteria:Insist on using objective criteria. Criteria:Insist on using objective criteria.

    *Separate the people from the problem. *Separate the people from the problem.

? Techniques: ? Techniques:

    ---Establish an accurate perception. ---Establish an accurate perception.

    ---Cultivate appropriate emotion. ---Cultivate appropriate emotion.

    ---Strive appropriate communication. ---Strive appropriate communication.

    *Focus on interests, not positions *Focus on interests, not positions Methods: Methods:

    ---identify the self-interests ---identify the self-interests

    ---discuss interests with the other party ---discuss interests with the other party

    *Invent options for mutual gains *Invent options for mutual gains ? Brainstorming ? Brainstorming

    4 obstacles: 4 obstacles:

    ? Premature judgment ? Premature judgment

    ? Searching for the single answer ? Searching for the single answer

    ? The assumption of a fixed pie ? The assumption of a fixed pie

    ? Thinking that solving their problem is their problem. ? Thinking that solving their problem is their problem.

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    Steps for overcoming the obstacles Steps for overcoming the obstacles ? Separating the act of inventing options from the act of judging them. ? Separating the act of inventing options from the act of judging them.

Run a brainstorming session: Run a brainstorming session:

     Consider brainstorming with the other side; it can be very valuable. Consider brainstorming with the other side; it can be very valuable.

Before brainstorming: Before brainstorming:

    ---Define your purpose: what you would like to achieve at the meeting. ---Define your purpose: what you would like to achieve at the meeting. ---Choose a few participants: 5-8 people. ---Choose a few participants: 5-8 people.

    ---Change the environment: distinguishing the session from regular discussion. ---Change the environment: distinguishing the session from regular discussion. ---Design an informal atmosphere: a drink, at a vacation lodge etc. ---Design an informal atmosphere: a drink, at a vacation lodge etc. ---Choose a facilitator: to keep the meeting on track. ---Choose a facilitator: to keep the meeting on track.

During brainstorming: During brainstorming:

     ---Seat the participants side by side facing the problem; ---Seat the participants side by side facing the problem;

     ---Clarify the ground rules, including the ---Clarify the ground rules, including the

     no-criticism rule; no-criticism rule;

     ---Brainstorm; ---Brainstorm;

     --- Record the ideas in full view. --- Record the ideas in full view.

After brainstorming: After brainstorming:

    ---Check the most promising ideas; ---Check the most promising ideas;

    ---Explore improvements for promising ideas; ---Explore improvements for promising ideas; ---Set up a time to evaluate ideas and make a decision. ---Set up a time to evaluate ideas and make a decision.

    Steps for overcoming the obstacles Steps for overcoming the obstacles B. Develop as many options as possible before choosing one. B. Develop as many options as possible before choosing one.

     Adopt the four types of thinking: Adopt the four types of thinking:

     Identifying a problem; Identifying a problem;

     Analyzing the problem; Analyzing the problem;

     Considering what to be done; Considering what to be done;

     Coming up with some specific and workable suggestions for action. Coming up with some specific and workable suggestions for action. Look at the problem through the eyes of different experts. Look at the problem through the eyes of different experts.

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Develop different versions of agreement. Develop different versions of agreement.

     Change the scope of a proposed agreement. Change the scope of a proposed agreement.

    Steps for overcoming the obstacles Steps for overcoming the obstacles C. Search for mutual gains C. Search for mutual gains

? Identify shared interests; ? Identify shared interests;

    ? Dovetail differing interests. ? Dovetail differing interests.

    D. Find ways to help make the other partys decision easy. D. Find ways to help make the other partys decision easy. * Insist on using objective criteria * Insist on using objective criteria 1) Guidelines for objective criteria: 1) Guidelines for objective criteria:

    ? Independent of wills of all parties. ? Independent of wills of all parties.

    ? Legitimate and practical. ? Legitimate and practical.

    ? Acceptable to all parties. ? Acceptable to all parties.

    2) A