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How to negotiate effectively
HOW O EGO IA E EFFEC IVELY1. Wha is ego ia io ego ia io is a esse ial par of he every-day busi ess life. I ca ake place a a y ime a d i a y place. ego ia io is a ki d of mee i g, bu co rary o he la er i may be held i some u expec ed a d u comfor able place such as he s ree or o he s airs. here are several defi i io s of ego ia io . I is said o be “ he process for resolvi g co flic be wee wo or more par ies whereby bo h or all modify heir dema ds o achieve a mu ually accep able compromise”. hus, i is “ he process of cha gi g bo h par ies’ views of heir ideal ou come i o a a ai able ou come”. he eed of ego ia io arises whe we are o fully i co rol of eve s. ego ia io s ake place o ha dle mu ual differe ces or co flic of:. i eres s (wages, hours, work co di io s, prices: seller vs buyer) . righ s (differe i erpre a io s of a agreeme ) he aim of a ego ia io is o come o a agreeme which is accep able o bo h sides, a d o preserve he overall rela io ships. While specific issues are o be ego ia ed, commo i eres are ye s ill o be mai ai ed. ego ia io s do o mea “war”. ego ia ors ca s ill be frie ds a d par ers. 2. he ego ia io co i uum. Overlap he si ua io s of ego ia io ca be show diagramma ically i erms of ideals a d limi s. Ideal Limi HIMBargai i g area Limi Ideal YOU he limi may be he limi of ego ia or’s au hori y, such as a mi imum (e.g. price) accep able. If here is overlap i is possible o se le. he fi al posi io wi hi he bargai i g area, where se leme akes place, depe ds o he ego ia ors’ rela ive s re g h a d skill. o overlap he aim of he ego ia or is o achieve a resul , i.e. o fi d a solu io , wi hi he bargai i g area. However, i is possible ha bo h par ies se limi s which do o provide overlap. I his case he ego ia ors have o move heir limi s, o herwise he ego ia io will be broke dow . Ideal Limi HIM o deal YOU Limi Ideal . oo much overlap he opposi e case is also possible. Whe o e is careless a d se les for less ha he could. I his case he limi of he opposi e side should be fou d a d he ideal should be revised. Ideal Limi HIM YOU Limi Ideal Revised Ideal 3. he approach here are four mai s ages of ego ia io :. Prepari g objec ives, i forma io , s ra egy . Discussi g (argue) a d sig alli g willi g ess o move . Propose a d bargai . Close a d agreeWhile prepari g o he ego ia io i is impor a o o ly o prepare suppor i g argume s bu also o defi e objec ives. Objec ives should be realis ic a d a ai able a d have cer ai priori ies. I is also ecessary o i ves iga e he oppo e ’s pla s a d priori ies, which ca be ra her difficul . he objec ives should be classified basically as follows:Like Ideal bu leas impor a I e d Achievable, a ra ge of possibili ies Mus he real limi Ideal Limi AREA OF O DEAL Like I e d Mus he ge eral s ra egy for ego ia io is o have a ego ia i g eam of hree people, who will also be i volved i he prepara io . Leader he perso who will do he alki g a d co duc he ego ia io s . Summariser he perso who will ask ques io s a d summarise for co rol . Observer he perso o i volved i he ac ual ego ia io s, whose role is o wa ch, lis e a d record80 % of he ego ia i g ime is spe argui g.
If i equals 100 % he ego ia io will break dow . here are wo ki ds of argui g:. Reaso able a d co s ruc ive Deba es, discussio s . U reaso able a d des ruc ive Emo io al quarrels he oppo e may ry o diver you by escapi g i o des ruc ive behaviour. I his case, your behaviour should be o o i errup , bu o lis e a d co rol your feeli gs. Eve if he ba le is wo , he war ca be los .A ego ia or should be co s ruc ive i argume s a d ry o ge i forma io by aski g ope ques io s or eve leadi g ques io s. O e hi g should be ackled a a ime a d he oppo e should be made jus ify his case i em by i em.I is impor a o be o -commi al a d o s a e o ly ideals a firs . La er, he i forma io abou he ego ia or’s posi io ca be give , a d la er al er a ive proposals ca be made. Some imes i is ecessary o challe ge he oppo e , so ha he demo s ra es his s re g hs. ego ia io mea s moveme . I may be ha bo h par ies move o o e issue. I may be ha each moves o differe issue. he mo ive forces are wofold:. Sa c io s he pe al y of o agreei g . I ce ives he be efi s of agreei g.I bo h cases, he par ies seek o pro ec heir self-i eres s. hey will show willi g ess o move by se di g sig als. o sig al is o o show weak ess. Bu if bo h par ies wai for he o her o sig al, he resul will be deadlock. he oppo e ’s sig als will show his willi g ess o move. So o e should lis e , recog ise his sig als a d i erpre hem, looki g for he qualified words which are evide ce of willi g ess o move.A o her very impor a poi of ego ia io s is proposi g a d bargai i g. Proposals should be realis ic i order o o cause argume a d deadlock. he la guage of he proposal sig als o e’s firm ess. Weak la guage such as “we hope , we like , we prefer ” should be avoided. I s ead, a phrase “we propose ” is appropria e. he fi al s ep i a ego ia io is closi g a d agreei g. here are wo aspec s o i :. Whe o close . How o close he firs is he mos difficul mome o recog ise. here is a bala ce be wee :. Closi g oo early More co cessio s from he oppo e could have bee squeezed . Closi g oo la e he oppo e s squeezed excessive co cessio s. he aim of closi g is o ge he opposi io o s op bargai i g a d o make a agreeme . he fi al hi g o do is o wri e dow he agreeme a d agree wha is wri e dow . I is ecessary o do his before leavi g he ego ia i g able. 4. Charac eris ics of a effec ive ego ia orWha charac eris ics should o e have o be a effec ive ego ia or. he firs a d he mos impor a charac eris ics, from he s a dpoi of ma y execu ives a d ma agers of large corpora io s, is prepara io a d pla i g skills. he o her very impor a charac eris ics are:K owledge of subjec ma er bei g ego ia ed Abili y o hi k clearly a d rapidly u der pressure a d u cer ai y Abili y o express hough s verbally Lis e i g skills . Judgeme a d ge eral i ellige ce . I egri y . Abili y o persuade o hers . Pa ie ce . Decisive ess5. Co clusio I spi e of he exis e ce of ego ia i g heories, i is freque ly difficul o apply heore ical a d co cep ual k owledge i a prac ical si ua io . I order o be a good ego ia or, o e should have ego ia io skills as well as a heore ical k owledge.
Bu wi hou a prac ical experie ce i is hard o ego ia e effec ively.I erperso al skills are very impor a i he ego ia io , bu wha ca help a ego ia i g par y while hi ki g wha o do is o a elabora ed heory, bu ra her is i a simple a alysis a d i ui io .Bibliography1. Raiffa, Howard. 1982. he ar a d scie ce of ego ia io . Harvard U iversi y Press. Pages 119-133.Murco , Owe . 1991. IBS Ma ageme rai i g. Ha zehogeschool. Gro i ge .
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