1. Networking and Negotiating
Chapter 11
Networking and Negotiating

2. Introduction Networking – a form of political behavior
People good at networking:
Tend to use outgoing, extroverted behavior
Have better human relations than those not proficient at networking
Negotiation – coming to an agreement to do something
People good at negotiating:
tend to use influencing tactics successfully
develop good human relations

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Bargaining Strategies
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
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

10. Analyzing Bargaining Why integrative bargaining is not used often?
Open, honest communications are required and one needs to be flexible to agree on creative solutions
All parties should believe they got a good deal
Work at the goal of human relations by developing a win-win situation for all parties
Negotiating skills can be developed

11. The Negotiating Process
Agreement
Plan
Bargain
No Agreement
Postponement

12. 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

13. 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

14. 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

15. 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

16. Other Party’s Objective Range
The Bargaining Range
Your Objective Range
Other Party’s Objective Range
Your BATNA
Other party’s BATNA
Bargaining Range
Your opening offer
($33,000)
Your target
($30,000)
Other party’s limit
[upper]
($30,000)
Your limit
[lower]
($27,000)
Other party’s target
($29,000)
Other party’s opening offer
($26,000)

17. 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

18. 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

19. 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

20. 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