1. EFFECTIVE COMMUNICATION [UWB 10202]
Negotiation Skills
Mdm Siti Aisyah binti Akiah

2. Outline Introduction to Negotiation Skills Basis of Negotiation
Alternatives to Negotiate
Negotiation Techniques/Stages
Negotiation Failures
Criteria of an Effective Negotiator

3. Introduction we do all the time
a process that takes place when two or more interdependent parties who have different needs and goals, work together to find a mutually acceptable & beneficial outcome
often involves both parties making concessions
as a compromise to settle an argument or issue to benefit both parties as much as possible

4. Why Negotiate? If the reason is to ‘beat’ the opposition
Must be prepared to use persuasive tactics
Distributive Negotiation
When the negotiation is much more ‘friendly’ with both parties aiming to reach agreement
Usually brings an outcome where both parties will benefit highly
Integrative Negotiation

5. Alternatives Persuasion Giving In Coercion Problem Solving Instruction
Arbitration

6. How to Negotiate?

7. 1. Preparation (Pre-Negotiation)
Set out your objectives
Take into account how it will benefit the other party
Know your extremes
How much extra can you afford to give to settle an agreement?
Know what your opposition is trying to achieve by their negotiation
Could be used to your benefit and may well be used to reach a final agreement
Consider what is valuable to your business
You may end up losing something in the negotiation that is more valuable to your business than money (e.g. reliable client, company reputation)
Have confidence and power
Your power will come from your ability to influence

8. 2. Exchanging Information
The most important stage of negotiation
Both parties will be trying to find out and understand the other’s requirements and position besides aiming to get their objectives achieved
Ask all possible questions and spend over twice the amount of time acquiring and clarifying information

9. 3. Bargaining
As soon as a number or term is mentioned by one party or exchange of terms occur
Reject constructively
Do not cause offence. E.g. “I’m afraid we can’t possibly agree to a reduction in the service charge, but there might be room for plan on the wording of clause16”. Retain a constructive atmosphere.
Be firm on broad issues and be flexible on specifics

10. 3. Bargaining (Con’t) Note the moving base line
As each issue is agreed, acknowledge the fact, summarise it, and move on to the next point after you have noted the issue of agreement
Look for the agreement signals
Certain formulae of words indicate that agreement is very close. (E.g. “If….then….”“Let’s put that in round numbers. ”“Well, that’s hardly worth holding us up..”)

11. 4. Closing & Commitment Your judgement : Is this best and final offer?
If ‘Yes’:
List the agreement in detail
List the points of explanation, clarification and interpretation
Record agreed summary with all at the table
Re-start negotiations for any argument over agreement

12. Why Negotiations Fail? Getting too emotional
Focus on personalities, not issues
Not trying to understand the other person (too focused on our own needs)
Wanting to win at all costs
Regarding negotiation as confrontational

13. An Effective Negotiator
1. Professional 2. Confident, relaxed, at ease 3. Open, honest, sincere & credible 4. Respectful of other peoples’ values 5. Show empathy and understanding 6. Committed to a WIN:WIN result 7. Continually enhancing their skills

14. Test Your Skills
Here are some undesirable, offensive ways in which people sometimes speak to one another in the workplace. Change and make the language more appealing and to reflect good interpersonal communication skills.

15. 1. You are totally wrong on that. 2. An idiot could figure that one out. 3. I am so disappointed with your work. 4. Would you stop bugging me; I’m busy! 5. You kids don’t know how to do anything! 6. Hey! Shut up back there; I’m on the phone! 7. Get out of my space, NOW!

16. Have you got the winning idea?
We welcome you to send us your exciting project for us to offer you a 50% discount for your company’s shop lot! Project Presentation will be held at 8.00 a.m. On 12th March Only the best project will be chosen!

17. Your company has decided to own a shop lot in a new building owned by Pura Kencana Sdn Bhd to be your business one-stop centre. As a promotion for the new building, they are inviting people to submit projects and the committee will choose the winner to get a 50% discount for a shop lot.
Work in your group and draw a simple floor plan of the business centre and label the rooms and areas. Prepare a short presentation to persuade the committee to accept your project. Try to create maximum impact using pauses, repetition and rhetorical questions, and prepare visual aids to help you get your message across.