Negotiations

Warm up

1. Discuss the following questions:

1. What is a 'negotiation?

2. How would you judge the success of a negotiation?

3. What makes a good negotiator?

4.Have you ever been involved in formal or informal business negotiations? Describe your experiences.

2. What do you think?

How appropriate is the following advice? Rank each suggestion on a scale from 1-10 (1 = essential, 10 = unhelpful) to indicate your opinion:

How to be a good negotiator

• try to get on well with your opposite number

• use emphatic language

• show respect for your opposite number

• make suggestions to resolve disagreement

• have clear objectives

• be determined to win

• say ‘I don't understand’, if that is the case

• listen carefully

• always compromise

• discuss areas of conflict

3. Choose adjectives which, in your opinion, characterize a perfect negotiator:

persuasive, pushy, polite, firm, aggressive, flexible, sensitive, confident, loud-mouthed, clear, competent, willful, knowledgeable about business sector, constructive, hot-headed, controlled, honest, prepared, tenacious

Reading I

1. Skim through the text and answer the following questions:

1. What are the three main types of negotiation?

2. What is important to create at the start of a negotiation?

3. What should negotiators do if any problems arise?

The art of negotiation

Negotiations take place in ‘different situations’ both at home and at work. Broadly speaking, one can identify three main types of negotiation: 1. The win-win format: two parties try to find a mutually beneficial agreement and establish the basis for a lasting relationship. 2. Both teams look more for independent advantage with less emphasis on a long-term relationship. 3. The win-lose format: when the two sides see their counterparts as opponents, for example in some trade union and management negotiations.

There has been a great deal of research into the art of negotiation, and, in particular, into what makes a 'good' negotiator. One point most researchers seem to agree on is that good negotiators try to create a harmonious atmosphere at the start of a negotiation. After initial small talk to establish a good rapport, both groups normally present their opening position. However, strategies and tactics have been prepared and there is usually room for manoeuvre. Parties will prepare an ideal position but will be prepared to make concessions and move to a fallback position to meet the required conditions.

Good negotiators generally wish to reach an agreement which meets the interests of both sides. They therefore tend to take a long-term view, ensuring that the agreement will improve, or at least not harm, their relationship with the other party. On the other hand, a poor negotiator tends to look for immediate gains, forgetting that the real benefits of a deal may come much later.

Skilful negotiators are flexible. They do not "lock themselves" into a position. Proposals and counter-proposals will be made as part of negotiations. It may also be necessary to identify and overcome obstacles to a settlement. After a great deal of bargaining and haggling, both parties should compromise without losing face. They have a range of objectives, thus allowing themselves to make concessions, for example, "I aim to buy this machine for £2,000" and not "I must buy it for £2,000". Poor negotiators have limited objectives, and may not even work out a "fall-back" position.

Successful negotiators do not want a negotiation to break down. If problems arise, they suggest way of resolving them. Only in this way a deal will be reached and a contract will be signed. The best negotiators are persuasive, articulate people, who select a few key arguments and repeat them. This suggests that tenacity is an important quality.

Finally, it is essential to be a good listener and to check frequently that everything has been understood by both parties.

2. Now read the text once again and answer the more detailed questions:

1. In what negotiations do the two parties see their counterparts as opponents?

2. What do both parties normally present after establishing a harmonious atmosphere of negotiation?

3. Do negotiators generally wish to reach immediate gains to themselves?

4. Why is it important to be flexible at negotiating?

5. Is it necessary to make concessions and work out a fall-back position at negotiation?

6. What is one of the most important qualities of a perfect negotiator?

7. Why is it essential to be a good listener at negotiation?