McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved ChapterChapter 10 Networking and Negotiating

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Networking Networking – the ongoing process of building interconnected relationships for the purpose of politicking and socializing Networking is a form of political behavior People who are good at networking tend to use outgoing extraverted behavior and have better human relations than those who are not Networking is about marketing yourself

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Networks – clusters of people joined by a variety of links: You Primary Connections (your coworkers, professional and personal friends, relatives) Secondary Connections (your coworkers’ coworkers, friends of friends, relatives)

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Networking Objectives: Reasons to develop your networking skills To get a job or a better one To perform better at your current job To advance within an organization To stay current in your field To maintain mobility To develop relationships

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Networking Process 1. Perform a self-assessment and set objectives 2. Create your 1-minute self-sell 3. Develop your network 4. Conduct networking interviews 5. Maintain your network

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Networking Interviewing Process Step 1. Establish rapport – praise and read the person Step 2. Deliver the 1-minute self-sell Step 3. Ask prepared questions Step 4. Get additional contacts for your network Step 5. Ask your contacts how you might help them Step 6. Send a follow up with a thank-you note and status report

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Negotiating (1 of 2) Negotiating – a process in which two or more parties have something the other wants and attempt to come to an exchange agreement Negotiation is also called bargaining Networking can lead to negotiating People who are good at negotiating tend to use influencing tactics successfully and develop good human relations

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Negotiating (2 of 2) Negotiating involves: shared interest (parties want to agree and exchange) opposing interest (parties want different things and don’t agree on everything) resulting in a conflict of interest Thus, negotiating is a conflict situation

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Bargaining Strategies Distributive Bargaining Negotiating over shares of a fixed pie Creating a win-lose situation Zero-sum game or condition Any gain you make is at the other party’s expense Integrative Bargaining Negotiating to give everyone a good deal Creating a win-win situation Key is to be open to options besides take it or leave it You have to have open honest communications Requires flexibility to agree on creative solutions

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Negotiating Process Plan Bargain Postponement Agreement No Agreement

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Negotiating Process: Planning Step 1. Research the other parties – Read them Step 2. Set objectives Step 3. Anticipate questions and objections and prepare for answers Focus on meeting the other party’s needs Step 4. Develop options and tradeoffs

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Negotiating Process: Bargaining Step 1. Develop rapport and focus on obstacles not the person Step 2. Let the other party make the first offer Step 3. Listen and ask question to focus on meeting the other party’s needs Step 4. Don’t be too quick to give in and ask for something in return

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Negotiating Process: Postponement When there does not seem to be any progress, it may be wise to postpone the negotiations The other party is postponing and you may create urgency You want to postpone and the other party may create urgency

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Negotiating Process: Agreement It is common for targets to be in opposition Bargaining range – the range between your limit and the other party’s limit, which falls between each party’s target and limit Once the agreement has been made: restate it, and / or put it in writing when appropriate

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Bargaining Range Other party’s limit [upper] ($30,000) Your limit [lower] ($27,000) Bargaining Range Your target ($30,000) Your opening offer ($33,000) Other party’s target ($29,000) Other party’s opening offer ($26,000) Your BATNA Other party’s BATNA Your Objective Range Other Party’s Objective Range

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Negotiating Process: No Agreement If you cannot come to an agreement: Analyze the situation Try to determine where you went wrong so you can improve in the future You may also ask the other party for advice

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Cross Cultural Differences in Networking and Negotiating Time to reach an agreement and deadlines The focus on task vs. relationship The use of power and influencing tactics Communications – verbal and nonverbal Where the negotiations should take place Use of alcohol and choice of food Name, rank/title, dress, greetings, and rituals

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Influencing: Key Terms (1 of 2) Leadership – the process of influencing employees to work toward the achievement of objectives Motivation – the internal process leading to behavior to satisfy needs Power – a person’s ability to influence others to do something they would not otherwise do

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Influencing: Key Terms (2 of 2) Negotiating – a process in which two or more parties have something the other wants and attempt to come to an exchange agreement Trust – the positive expectation that another will not take advantage of you

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Influencing Process (1 of 2) Begins with an objective To achieve it, ethical leadership, power, politics, networking, and negotiating are used to motivate others to help reach the objective Through trust and creating a win-win situation for all parties, the objective is met

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Influencing Process (2 of 2) MotivationBehaviorHuman RelationsPerformance You begin with a need or something you want – so you set an objective. And you need to motivate others to get them to help you meet the objective. You use power, politics, and networking to motivate others to help you meet the objective. When others have something you want and you have something they want, you negotiate so you both can meet your objective. Effective human relations are based on good intrapersonal skills and interpersonal skills. Using ethical behavior to develop trust leads to – Creating a win-win situation for all parties that result in meeting the objective.