NEGOTIATION SKILLS

NOOR SHAHARIAH BT SALEH

FSTPI
LANGUAGE AND COMMUNICATION
DEPARTMENT

NEGOTIATION
What is negotiation?
a process involving two or more different
parties that have different needs, goals or
desire in getting a mutual and beneficial
outcome.
official discussions between the
representatives of opposing groups who are
trying to reach an agreement, especially in
business or politics. (Longman Dictionary of
Contemporary English, 2009)

THE PURPOSES

Resolve argument
Produce agreement
Bargain
Provide satisfaction and peace

WHAT CONTRIBUTE TO THE

FAILURE OF NEGOTIATION?
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

THE BASIC APPROACHES

COMPROMISE

LOGICAL REASONING

EMOTION

BARGAINING

COERCION

1. Compromise
An agreement that involves all parties in a
discussion to meet half way.
The examples of statement:
lets meet half way
lets split the difference and meet in the
middle

2. Bargaining
Bargaining is a process where offers are
accepted based on condition stated by all
parties
Examples:
I will agree to the price if your company offers
a year free maintenance of the gadgets

3. Coercion
A process where one party forces the
other party to agree with its term.
It is threatening to one of the parties.
Example:
You wouldnt want to lose your customers
would you?

4. Emotion
Emotion can be either a help or a disaster.
Example:
A failure to control the anger will make a
businessman lose his customer.

5. Logical reasoning
Logical reasoning is usually used by good
and experienced negotiators to support
their position and, in certain cases, to
undermine the other partys position.
Usually, a research before the deal will
help in negotiating with the other parties.

Activity
Role Play
Choose one of these situations
1) You

want to buy a second hand car from your fathers

friend. Negotiate the price.
2) There is a rumour saying facebook is going to be closed
down. Negotiate with Mark Zucherberg not to do so.
3) You want to re-sit papers for all subjects you are failed
in. Talk to your dean to negotiate your status.
4) You are not satisfied with the condition of your room in
the hostel. Negotiate to the person in charged to change
rooms.

PHASES OF NEGOTIATION

PLANNING

Preparation

BEGINNING

Exchanging
information

DURING

Bargain

ENDING

Closing and
commitment

AFTER
Shell, Richard. Bargaining for Advantage: Negotiation Strategies for Reasonable People (1999)

1.1.Research
Researchand
and
prepare
prepare
- -information
information
7.7.Prepare
Prepareand
and
Rehearse
Rehearse
-opening
-openingstatement
statement

6.6.Check
Checkand
andconfirm
confirm
-dates
-dates
-venue
-venue
-time
-time

2.2.Clarify
Clarify
- -questions
questions

PLANNING
PLANNING

5.5.Specify
Specify
-roles
-roles
-responsibilities
-responsibilities

3.3.Know
Knowbackground
background
-culture,
-culture,business
business

4.4.Decide
Decide
-objectives,
-objectives,agendas,
agendas,
strategies
strategies

1.1. Create
Createpositive
positive
environment
environment

5.5.State
Stateposition
position
ororstand
stand

2.2.Respect
Respectculture
culture
And
differences
And differences
BEGINNING
BEGINNING

4.4.Highlight
Highlight
common
commoninterest
interest

3.3.Establish
Establisha a
framework
framework

1.1.Listen
Listenwell
well
2.2.Check
Checkthe
the
comprehension
comprehension

8.8.Mutual
Mutualadvantage
advantage

7.7.Creative
Creativeand
and
flexible
flexible

DURING
DURING

3.3.Focus
Focuson
onthe
the
areas
areas

4.4.Make
Makeconstructive
constructive
proposal
proposal

6.6.Positive
Positiveand
andcalm
calm
5.5.clear,
clear,firm,
firm,
concise
concise

1.1.Summarise
Summarise

ENDING
ENDING

3.3.End
Endpositively
positively

2.2.Explain
Explainfuture
future
responsibilites
responsibilites

1.1. Recognise
Recognise
Successes
Successesofof
negotiation
negotiation

AFTER
AFTER

3.3.Build
Buildup
upand
and
broaden
broadenup
up
New
Newrelationship
relationship

2.2.Learn
Learnfrom
from
failure
failure

Techniques of Negotiation

1. Greetings (Opening a
Negotiation)
Why a greeting is important?
Good relationship with other parties
Positive environment or climate

When greeting members of the team:

Function

Expression

First meeting

How do you do?

Pleased to meet you

Follow-up meetings

It is good to see you again!

Welcoming

On behalf of the company, I

am glad to welcome you to the
meeting.
Its a pleasure to see you
here!
We are delighted to have you
here.

2. When starting the negotiation:

Function

Expression

Introduction

Im Alvin
My name is Syahidan
Please call me Liana
Let me introduce you to Mr Rizuan
This is Dr Sarah
Have you meet our Director, Dato
Sulaiman?
I think youve met Mr Siva. Hes in
charge of
our sales.

Small Talk

It is good to see you again!

2. When starting the negotiation:

Function
Small Talk

Expression
General
How was your flight?
How was the trip/excursion?
Is this your first time here?
Show interest
Really? Thats interesting!
Yes / Yeah / Uh-huh

3. Stating your position

The strategies
1. Hold back do not present the best offer
immediately
2. Get feedback allow the other parties to
follow, ask and give comments.

 Expressions:
Function

Expression

Getting started

Lets begin.
I dont think we have a lot of time, so
can we
get right down to the business?
We should get started.

General

We believe it is time for us to

develop new
understanding on our deal.
We are looking for the best
equipment
dealer in town.
Basically we are interested in buying
your
shares for an agreeable amount of
money.

Function

Expression

Focus

I want to focus on quality rather than

quantity right now.
Good quality merchandise is
extremely
important to us.
I have to stress on the marketing part
of this
task, not the outcome.

Invite a response

Are there any questions at this stage?

Would you like to correspond to that?
Any comments on that matter?
Do you have anything to say?

Function

Turn-taking

Expression

Now I think we can move on to hear

your part of the deal.
Ok. Perhaps we can hear what you
have to say about this.

4. Clarifying
Consider the two things to make sure the
members understand
Listening
Asking questions

 Listening
to understand the other partys
negotiating position,
develop arguments that respond to
their needs,
show sympathy to their position and
show respect/value to what others are
saying

 Asking questions
Useful to confirm or clarify certain
information during the negotiation
process in order to ensure that both
parties are on the similar levels of
understanding

Function

Expression

Confirming negotiation position

Confirming

So, for you this is an opportunity to

venture into our project?

Thats right.

As I understand it, you would like to Exactly.

close or deal with the price agreed
just now?
So, you said that the total amount is Yes, I would.
RM 81,000.00. Is that your final
stand?

Function
Asking for clarification

Expression
Clarifying

Could you clarify one point for Of course.

me?
Could you go in depth about
the pricing?

Sure.

I dont understand. Could you

explain a little bit more?

Sure, I said that we should

focus more on the price, not
the product.
What I mean is these
consumers are our main
priority, because this product is
created for them.

What exactly do you mean by

targeting specialized
consumers?

Function

Expression

General questions

Clarifying

I am interested to know
more about your project.

Yes, certainly.

Could you tell us something Of course, it will be a

about your products?
pleasure.
Can I just ask questions
about this task?

Go ahead.

Function
Defining priorities

Expression
Direct answer

How important is the price

It is not a main consideration.
to you?
It is a secondary issue.
Is the price your concern?
It is our major priority.
What is your main priority in
this project?
Indirect answer
Well, we still havent decided on
that.
It is not something that we can
ignore.
It is something that we need to
take into account.

Function

Expression

Getting the facts straight

Direct answer

Can you give me the exact

number
of your order?
How soon can you deliver?
What terms of payment
would you
be accepting?
Can you give a confirmation
on your
delivery address?

We would like to order 25 crates.

The fastest we can deliver is after
Chinese New Year.
Around five thousand ringgit.
Indirect answer
It is difficult to say at this time.
I cant really answer that at the
moment.
This depends on various factors.

5. Bargaining
Function
Setting conditions

Responding in the bargaining

phase
Accepting
Refusing with a new offer

Expression
We might be willing to increase the
order if you can deliver by next week.
We can agree to as long as you reduce
the price of order.
We could offer you a lower price on
condition that you increase your order.

That is acceptable.
I think we could go along with it.
That would be difficult. However, would
you reconsider?
We couldnt agree to that but we could
reduce the price.

Function

Expression

Setting conditions

We might be willing to increase the

order if you can deliver by next week.
We can agree to as long as you
reduce the price of order.
We could offer you a lower price on
condition that you increase your order.

Responding in the
bargaining phase

That is acceptable.
I think we could go along with it.
I think it is a great idea.
That would be difficult. However,
would you reconsider?
We couldnt agree to that but we
could reduce the price.

Function

Expression

Accepting with
condition

Thats fine if you lower the price.

If you lower the price, then we
have a deal.
Provided that you lower the price,
then we can agree.

Rejecting

Im afraid that wouldnt meet our

requirements on the price.
Even with this offer, Im afraid we
still couldnt accept the price.

6. Ending a Negotiation
A good negotiation should end with a positive
note
One or both parties
summarise their deal,
check for any future meeting and state both sides
position to ensure both parties are at the similar levels
of agreement

TUTORIAL TASK

HAVE YOU GOT THE WINNING IDEA?

We want to hear your suggestions for a
new employees centre.
Projects to be presented at
a special meeting to be held at 2.30 p.m. next Friday.

MRCB Electronics, the company you work for has

decided to create
a new centre for its
employees. (It could be a centre for sport,
learning and personal development, health,
relaxation, etc.) They are inviting people to
submit projects and a committee will choose the
winner. The winner will been titled to receive RM
15,00.00 from the company.

REFERENCES
http://www.5min.com/Video/Practicing-Negot
iation-Skills-155908735
http://www.5min.com/Video/Finishing-Negot
iations-on-a-High-Note-155908734
Effective Communication Module
Longman Dictionary of Contemporary
English (2009)