EBLIN YANELY ZUNIGA MENOCAL

ID HM672HED7389

NEGOTIATION

November 9, 2006

SAN PEDRO SULA, HONDURASC.A.

TABLE OF CONTENTS

1. Introduction

2. Description

3. General Analysis

4. Actualization

5. Conclusion

6. Bibliography

INTRODUCTION

Negotiation is the process whereby interested parties resolve disputes, agree upon courses of action, bargain for individual or collective advantage, and/or attempt to craft outcomes which serve their mutual interests. It is usually regarded as a form of alternative dispute resolution. The first step in negotiation is to determine whether the situation is in fact a negotiation.

The essential qualities of negotiation are: the existence of two parties who share an important objective but have some significant difference(s). The purpose of the negotiating conference to seek to compromise the difference(s). The outcome of the negotiating conference may be a compromise satisfactory to both sides, a standoff (failure to reach a satisfactory compromise) or a standoff with an agreement to try again at a later time. Negotiation differs from "influencing" and group decision making.

Penus Given the above definition, one can see negotiation occurring in business, non-profit organizations, government, branches, legal proceedings, among nations and in personal situations such as marriage, parenting and others.

Whether we realize it or not, we negotiate things every day. Many of these are "little things" (Who's going to pick up the dry cleaning? When can we get together for a discussion?How can I get you to return my voice mail message? Children negotiate for toys and sugar-filled treats. Spouses negotiate for more time, more attention and more control. Employees negotiate for better offices, bigger salaries, more responsibility, etc.

Much of the research on effective negotiation points toward high expectations as one of the fundamental keys to a successful outcome.

As much as we emphasize the importance of win/win negotiating and "putting yourself in the other person's shoes" it is also important that you feel comfortable expecting a very positive outcome for yourself.

Don't be afraid to have unreasonably high expectations, as long as you can back them up with some tangible logic and a process designed to move the other party in your direction.

You can agree or disagree with whatever the other party sees or believes, but you will do well to understand it. By understanding it, you will have the advantage in knowing how to present what you seek as a fair outcome in terms that the other party will be able to accept and understand, rather than fear.

Negotiation means developing an ability to resolve disputes and conflicts. Effective negotiation requires a willingness to work with other people to reach solutions that everyone can live with.

DESCRIPTION

Practical Negotiation Skills

Here are a few quick tips to help you develop this important life skill:

  • Know what you want:

Think through exactly what you want - be specific and have valid reasons for why you need it. Knowing what you want, and why, will help you to be clearer and more confident.

  • Know what they want:

Before you start negotiating, it's important to have an idea of what the other party would like the outcome to be, too. So think it through - why do they need what you're offering/asking for? And do your research - how can you make them happy?

  • Be fair:

If what you're asking for is fair and justifiable (example: you'd like to earn as much as someone you work equally as hard as) then you're much more likely to get what you want. It's no good thinking - "I want to go to Ibiza, therefore I need a pay rise, so give me the money". Try and demonstrate how what you do is worth just as much as other person's work - and you're on the way.

  • Believe you're worth it:

You have to believe that you deserve your desired outcome. If you don't, the moment your client or boss questions you, your argument will fall apart because you don't have enough confidence in it. Believe it, trust yourself - and rehearse it.

  • Listen carefully:

When your boss/client is talking to you during negotiations, don't use that time to plan your next line of attack - it's more important that you listen to them and see their point of view. They'll take you more seriously if you do, even if you disagree with them.

  • Keep it friendly:

Negotiating isn't about confrontation; it's about two parties reaching anamicable, mutually beneficial agreement. Keep that in mind when you're talking and, even if you don't get what you want this time, view it as good practice for the future.

  • Have an alternative:

When you're discussing specifically what you want, as well as what they want, work out what you'd be prepared to walk away with if you're not successful. Is there an acceptable alternative that will keep both parties happy in the short-term? Throw this into the negotiation if it doesn't go in your direction - everyone can compromise.

Expect to win

In addition to having high expectations, here are a few more tips for effective negotiation:

  1. Agree on the Terms and Scope of the Negotiation.

Lots of negotiations get off to the wrong start because the parties involved have not taken the time to define clearly the areas where they disagree. Very often, parties will rush toward gaining positional advantage over what they see the main issue to be, but before there is real agreement on which issues are at stake, no real agreement is possible.

  • Define where all parties agree and disagree - the main sticking points become apparent and areas of possible agreement come to light.
  • Discover possible areas of agreement - it sets a more balanced tone as all parties proceed further.
  • Define the scope of the dispute - you have already begun to take subtle control of the following negotiating process.

2. See Yourself from the Other Party’s Point of View.

"Empathy" does not mean soft, emotional feelings of affection. It means the ability to put yourself in the other person's shoes, to see the world from his/her point of view. Empathy does not require "sympathy," it only requires understanding.

3. See the Other Party from Their Point of View.

You will be most successful if you can advance your position so the other party can still maintain the "ego" beliefs they hold most important.

“Tact is the ability to see others as they see themselves” - Abraham Lincoln

For example, if the other parties see themselves as "tough negotiators," find ways during the process to emphasize their "toughness" - directly or, (better yet) indirectly - especially when you are making progress in advancing your position.

Be Honest, and Get Your Facts Right.

You can't negotiate successfully if you lose or lack credibility. Never knowingly make a false statement or assertion, but even that is not enough. Very often, successful negotiation comes down to having more - and more accurate - information than the other party. For that reason, be sure to do your homework, so that you can speak of many facets of the issues at hand with confidence.
Use Silence To Your Advantage.

Loud displays, or "blowing off steam" will almost always work to your disadvantage. Experienced negotiators who use such styles know how to feign such emotions at strategic points in time, in a purposeful fashion. So stay cool. A corollary to this rule involves the use of silence. It is a natural human reaction, especially during conflict, to try to fill up silence, due to anxiety. But anxious people during negotiations tend to say things that erode their positions.

By being silent at the right moments, you can give the other party a chance to see your strength, give voice to the thoughts behind their stated positions - so if they are secretly giving in on the inside, you give them a chance to do it for real.

Find Some Objective, Fair Standards All Sides Can Agree Upon.

Take the initiative early on to stake out some fair standard against which any final solution can be judged.

For example, if you are selling your car, you may want to use the Kelly Blue Book - especially since Blue Book values tend to be slightly higher than those found in other such sources, so that this resource favors the seller, but is still a recognized, fair standard.

By setting the standards for final judgment of the solution, you frame the issues, take greater control of the process and frame up the standard to your advantage.

Long Term Relationships

When you know going into a negotiation that you want (or need) to maintain a productive relationship with the other party after the negotiation concludes, there are certain key principles you must adhere to.

Negotiating within the context of any long-term relationship requires trust, but building that trust doesn't exclude pursuing your interests. It means being forthright and listening carefully to the other side. For this type of negotiation - where gaining advantage has to be balanced with maintaining the viability of the relationship - listening is as important in negotiating as stating what you want.

Something More Than Zero-Sum

In some negotiations, a gain for one party means an equal loss for the other. Think of buying a car: You want the lowest price, the salesman wants the highest, and chances are you'll never see each other again.

Often you'll many issues embedded in what looked like just one. For example, in a salary negotiation, an employer wants to pay as little as possible and a would-be employee wants the opposite. But maybe the candidate values stock options more than salary because her financial needs are not immediate. Likewise, the employer may be cash poor and stock rich. Add in flextime, telecommuting, vacation, and other benefits, and what looked like a zero-sum negotiation at first has become a situation in which both sides can find room for agreement.
Divide, Unify, and Conquer

Define all of the distinct elements of challenging issues. Because typically the most challenging negotiations in long term relationships are comprised of multiple layers. The more layers you "peel off," the more nuanced your negotiation becomes. Once you've dissected the problematical point into its different parts, step back and look at the negotiation as a whole. Avoid treating each individual part as its own separate zero-sum negotiation. Build inclusive packages of agreement with give and take on the various issues.

Be Confident and Courteous, Stay Calm and Curious

Staying calm and non-confrontational keeps aggression at bay and the negotiation on track. Asking questions sets a positive tone -- for the other party, and for you. Cultivating curiosity allows you to unpack the situation, focus on the important issues, and rein in your emotions.

It's hard to be upset and curious at the same time.

Aspire to Greatness but Stick With the Possible

Define success before you come to the table. What do you really want? Generally, people lack confidence when entering a negotiation, and they set their aspirations too low. Think about what you believe is a "reasonable" goal for the negotiation, then push it a little.

Write down you objective - your "stretch goal" - but don't think of it as unreasonable. This should be your target. As long as it is within the realm of possibility. Don't create a stretch goal that's totally impossible, but you should push the envelope of possibility.

Those who set higher goals, who expect more, who plan for more, tend to get more.
What Are Your Alternatives?

In addition to a "stretch goal" - determine your best alternative. This is not your bottom line. This is your plan if negotiations fail completely -- taking another job, looking for another job, or just staying put. Your best alternative is in your control -- you can always work to create a better one.

Example: "The other day I went car shopping. I was considering two cars, one much nicer than the other. The nicer car cost much more; I'd resolved to buy it only if I could negotiate a good price. Otherwise, I'd buy the cheaper car. The expensive car was my aspiration; the cheaper one, my alternative."

Write down your best alternative with your "stretch" goal.

Map Your Range

Your stretch goal (highest possible aspiration) and your best alternative delineate the range of possible agreements for you. If the person across the table offers you something below your best alternative, don't take it. It helps to think through all the options that will work for you, and to write them down. Take your notes into the negotiation with you. They offer a touchstone to keep you focused.

Map Their Range

What do the people across the table want? What's their best alternative? Compare their range to yours. Where do the two overlap? That's where you will find agreement.

Dig for information so that you can map their range of possible agreements.

Example: When buying a car, you might obtain the consumer report that tells you the price of every option and establish a price range. You could dig deeper and discover that car dealerships like to sell cars at the end of each quarter because they're taxed on every vehicle in inventory. So that's when you decide to go and buy a car. So essentially, you have worked to map the range of the other party and enter the negotiation when that range is most advantageous to you.

The Digging is Never Done

Ask lots of questions...

Why do you want that? Why is that important to you? Why is THAT a priority for you? Which of these issues is a "want to have" rather than a "need to have?" Have you thought of any creative alternatives? What are your long-term goals with this? Are there others who will be affected by this?

You get the idea - Negotiators say that you have to dig down five levels of 'why' to get to the root of the issue. It's okay to go into a negotiation not knowing everything -- but you must ask questions to understand fully what they want and why.

Everyday Conflicts

Have you ever experienced any of the following?

  • A father and teenager argue over use of the family car.
  • Two brothers disagree about whose job it is to take out the trash and demand that a parent settle their argument.
  • A couple strongly disagrees over how to balance a checking account.
  • A wife and husband are increasingly at odds over how to share housework and child care.
  • A parent's job is threatened because he or she regularly misses work due to a preschooler's frequent illnesses.
  • Employees resent their employer, who has set an inflexible work schedule to follow.

To find solutions to these disagreements, negotiation skills are needed every day at home, at work and in the community. Negotiation means developing an ability to resolve disputes and conflicts. Effective negotiation requires a willingness to work with other people to reach solutions that everyone can live with.

Your personal relationships are often shaped by how well you are able to manage and settle conflicts. If conflict is managed effectively, then a relationship can be maintained. But if conflict is handled poorly, the outcomes may weaken your relations with family, friends and work acquaintances over time.

Ineffective approaches to conflict

The following examples illustrate some common situations that can lead to conflict. After a discussion of how to develop successful negotiating skills, this publication concludes with suggestions for resolving the conflicts in these examples.

Example 1: Parent-child conflict

It's Friday, and Jose' and his mother are arguing once again about the teenager's weekend curfew. Mrs. Santiago has grown increasingly distressed by her son's continuing resistance to the 11 p.m. curfew she has set. Jose' insists that this is unfair. Both become so angry and frustrated that they storm off to separate areas of the house to avoid each other and further conflict.
Example 2: Workplace conflict

Lamont has been late for work several times in recent weeks. He has failed to turn in several important project outlines on time without explanation or apology, annoying his employer. Until recently, Lamont's attendance and performance at work had been consistent, motivated, and highly productive. Lamont's recent behavior has been so uncharacteristic that his employer decides to confront him, demanding a meeting the next day.

Example 3: Marital conflict

Diana and James have the "perfect" marriage, two children and a lovely home. Both work in professions that provide personal satisfaction as well as a comfortably secure income. They have "made it." And they are miserable. Work and family roles have left them with little time to spend together and have increased their areas of disagreement. Diana and James have become focused on meeting their own needs with little regard for the needs of the other. Resentment, dissatisfaction and conflict are all they seem to share any longer.