In this chapter, you will learn the skills and knowledge required to present and negotiate persuasively, lead and participate in meetings and make presentations to customers, clients and other key stakeholders.
By the end of this chapter, you will understand:
- Different models of negotiation
- Various negotiation techniques and how to implement them
- Techniques to assist with conflict resolution
- Some basic strategies to help de-escalate incidents in the workplace.
No matter the type of business you are in, communication must happen in order to reach common goals or agreements. Negotiation is just that, a discussion aimed at reaching an agreement. Negotiation happens on a day-to-day basis, whether it is deciding and agreeing upon a time to meet or making bigger decisions regarding a proposal or contract. Decisions must be made in all aspects of business dealings in order to keep things afloat.
Note: Businesspeople need to be skilled in negotiation tactics and learn how to effectively communicate during the negotiation process.
We will take a look at the following:
- Elements of negotiation
- Models of negotiation
- Negotiation techniques
Elements of Negotiation
There are three elements that, together, make up the fabric of negotiation. We will take a look at each of these elements individually below:
| Process | The way we negotiate with each other is called the process of negotiation. The process includes various techniques and strategies employed to negotiate and reach an agreeable solution. |
|---|---|
| Behaviour | How two parties behave with each other during the process of negotiation. The way we interact with one another, and the way we communicate with each other to make our points clear, all fall under behaviour. |
| Substance | This is the agenda on which we negotiate. A topic is important for negotiation. |
Models of Negotiation
Negotiation can help us reduce conflicts and disputes amongst one another, and it is an essential component when handling business, whether internal or external.
When negotiating, the goal is for the outcome to be favourable for all parties; however, that is not always the case.
There are three different models of negotiation that produce certain outcomes. Let us review them now.
In this model, each and every individual involved in the negotiation wins. Nobody takes a loss in this model, and everyone benefits from the negotiation. This is the most accepted model of negotiation.
This is where one party wins, and the other party loses. Multiple rounds of discussions and negotiations take place until one party benefits while the other party remains dissatisfied.
As the name suggests, in this model, the outcome of the negotiation is zero. No party benefits from this model.
RADPAC Model
There is another model of negotiation that is widely used in the corporate world, which is called the RADPAC model. Let us break this down in further detail.
This signifies the relationship between people. People involved in negotiation should ideally be comfortable with each other and share good rapport before they enter into negotiations.
One party must understand the other party’s views as well. It is important that the individuals understand each other’s needs and interests, and they must listen to each other attentively.
Nothing can be achieved without discussion. This includes discussing issues amongst the parties involved in the negotiation. The pros and cons of an idea are evaluated, and people debate with each other while trying to convince one another. Both parties must remain calm and composed in order for the debate to turn out successfully.
Each individual proposes their best idea in this round. Each tries their best to come up with the best possible idea and reach a conclusion accepted by all.
The parties come to a conclusion at this stage and agree on the best possible option.
The negotiation is complete, and the individuals involved are satisfied.
Case Studies: Models of Negotiations
Daniel’s company sells computers to retail stores throughout the country. A new client that Daniel has been trying to do business with for some time now is finally interested in making a large purchase for his store; however, the client is on a tight budget. The client asks Daniel if he can cut him a deal on the computers and sell him the same quantity of the order for 25% less than the price they normally sell for. Daniel has been doing quite well with his sales over the last few months and feels that he can give the client the 25% discount in order to win his continued business and still make a profit. Daniel agrees to the client’s request, and they are both satisfied. The client will receive his computers, and Daniel has gained a new customer.
Let us suppose that in this scenario, Daniel offers the client a 25% discount, but the client expresses that he really needs a bigger discount and only wants to do business with Daniel’s company. The client asks Daniel for a 50% discount but commits to making a larger purchase from him at full price once he makes his first round of sales. Although Daniel has been doing quite well over the last few months, he can see that he will barely break even by selling his merchandise for what the client is asking for. Daniel, however, wants to work with the client as he feels that in the long run, the client will come back to him for additional merchandise and can pay the full price. Daniel agrees, and the customer is satisfied. Daniel, on the other hand, has lost money in this deal.
Let us say that the client instead wants a more expensive, upscale model of computers that Daniel has, but at the same price as before. Daniel knows that this would be a huge price reduction for the customer; however, he would also lose quite a bit of money by selling his newer equipment. Daniel is only willing to sell the older computers to the client at the prices discussed, but not the newer models. The client does not like this and decides not to purchase anything from Daniel and will explore other options. Daniel loses a client, and the customer does not get the computers for his store.
Sara quoted a salary to James, but James was not too pleased with the figure. He asked Sara to raise his salary to the greatest extent possible. With her excellent negotiation skills, Sara managed to convince James to accept a salary a little less than what he quoted. James needed the job, so he accepted a lower salary offer. Thus, in this negotiation, James was not completely satisfied, but Sara was. We can see that the result of this scenario was a win/lose negotiation as James compromised to take the offer Sara provided. It was not his ultimate goal, but he settled as to not pass up the employment offer. Consider James and Sara’s example to further understand the RADPAC Model.
Consider James and Sara’s example to further understand the RADPAC Model.
- Rapport: They must be comfortable with each other and should not start the negotiation right away. They must first break the ice. The discussions must start with a warm smile and greetings and possibly some light conversation in order to warm up to one another.
- Analysis: Both James and Sara would try their best to understand each other’s needs. James’ need is to take the opportunity while Sara wants to hire an employee for the organization.
- Debate: The various rounds of discussions (debate) between James and Sara. They would debate with each other trying to get what they want.
- Propose: James would propose the best possible salary he can work with, while Sara would also discuss the maximum salary that her company can offer.
- Agreement: The parties come to a conclusion at this stage and agree on the best possible option.
- Close: The negotiation is complete, and the next course of action would be for Sara to generate the offer letter and its acceptance from James.
Check out the following video by Public Sphere called Negotiation: 4:55 13
Negotiation Techniques
As we discussed earlier, not all forms of negotiation will be successful, and measuring the success of various forms of negotiation is challenging. The best way to evaluate your effectiveness when negotiating is to try and identify how well your intended outcome aligns with the final agreement. Before any negotiation begins, it is essential to identify exactly why you are entering into a negotiation. By having a clear understanding of what your objective is, you can then decide what you are willing to do to achieve it. Consider what the other party wants to achieve from the negotiation and what they would be willing to give up in order to get it.
Start by asking yourself the following questions:
- What is my main objective for entering into this negotiation?
- Who are the stakeholders affected by the situation or potential change?
- Internal stakeholders may be team members, colleagues or people in other departments. External stakeholders may be suppliers, clients or customers, industry associations or representatives.
- What are the needs and requirements of your stakeholders, and how will your negotiation address these?
During this preparation for a negotiation, it can be helpful to identify and document potential issues and problems that may arise. This gives you an opportunity to be prepared to overcome these issues or to have a contingency plan in place for them. While the first thing to spring to mind when considering potential problems may surround your desired outcome and possible compromises, there are a number of less obvious factors that may become issues in your negotiation process.
Issues and problems may include:
- Cultural diversity: do you need to take any cultural differences into account with regard to communication and negotiation strategies? How can you overcome these?
- Hierarchy and lines of authority: are you meeting with the correct person? Do you understand how to get in contact with the person who has the authority to make decisions and concessions?
- Conversing with purpose: how do you think you will remain on track and not get distracted by less important conversations?
- Time: have you allocated enough time for the negotiation? If you do not come to an agreement, do you have enough time to make another time for negotiating, or is it a time-sensitive manner?
After a negotiation has taken place, it is important that the outcomes are documented as soon as possible. Everyone should have a clear understanding of what has been agreed to and what remains outstanding. Ideally, time should be allocated at the end of a meeting or negotiation to document this information and ensure that everyone is in agreeance. Following the negotiation, it is important to send written confirmation of the negotiation outcomes to make sure that everyone has a record to refer to in the future. Keeping accurate records of negotiations is essential to ensure that there are no misunderstandings in the future. Make sure to file these records according to the organisation’s procedures. RA
Use the following rules of thumb to improve your negotiation skills.
Identify the Final Goal
Consider the minimum terms you want to reach. How much are you willing to negotiate? Always enter negotiations knowing what you want out of an agreement and how much you are willing to compromise. For example, your ultimate goal may be to negotiate a salary of $80,000, but you would be willing to settle for $75,000.
Practice Building Rapport
Successful negotiation requires you to effectively communicate not only your own intended goals but also to understand the other party’s wants and needs. Building rapport is essential in order to reach an agreement whether the outcome is win/win or win/lose. Building rapport is also essential in easing tension between parties and keeping the conversation goal-centred and non-personal. Showing respect for other parties and using active listening skills are critical.
Be Willing to Compromise
Without compromise, it can be nearly impossible to reach an agreement. Prepare yourself ahead of time so that you already have an idea of the terms you are willing to sacrifice, including the ones that, if not met, you would be willing to walk away from the deal.
Consider Imposing Time Restrictions
Setting a timeline for the negotiations motivates movement in the decision-making process. If terms cannot be met in a specified time frame, both parties can take time to re-evaluate their needs and discuss them at a later time or decide to go separate ways.
Use a Multiple Offer Approach
You can present multiple offers at once to save time on the negotiation process and increase the likelihood that you will agree on at least one of your preferred outcomes. The other party can also make counteroffers that will likely still align with one of your preferred outcomes, as they will already be able to see your goals ahead of time.
Exercise Confidence
Successful negotiation requires self-assurance. Although it can sometimes be challenging to ask for what you want, it will be important to exercise confidence in your negotiation, as the other parties may be more inclined to believe in the benefits of your proposal.
Do Not Take ‘No’ Personally
Sometimes each party’s goals and needs are too different to reach a compromise, and that is okay! When this happens, you will want to go back, evaluate the process, including your goals, consider why things did not go as planned and look for ways you may be able to improve your efforts next time.
Understand Your Weaknesses
Take time to identify your areas of weakness and focus on growing those skills. For example, you may need to improve your ability to build rapport or your power of persuasion. Understanding your weaknesses is the first step to overcoming them.
Practice, Practice, Practice
One of the best ways to increase your comfort in negotiations is to practice often. Consider trying a mock negotiation with a trusted friend or colleague. Be sure to ask for feedback to assist you in improving your skills.
Watch the following video by Antonio Centeno called Seven Ways To Be A Better Negotiator: 16:33 14
Negotiation
Reflect on your own experience in your current work environment or one you have recently worked in, and consider the following question:
- Explain why it is important to build rapport before entering into negotiations with another party.
Be sure to make and keep notes for your future reference, as this information will support you in your assessment and professional practice.
Conflict is a normal and natural part of any workplace. Conflict has a tendency to lower morale and decrease productivity in the workplace, so it is crucial to develop skills and use techniques that will help you resolve conflict when it arises. In our last lesson, we explored different techniques for effective negotiation. You will want to keep those techniques in mind when handling conflict, as those techniques, combined with conflict resolution skills, can potentially turn a very dissatisfying situation into an opportunity for creativity and enhance performance.
Note: Anytime people work together; conflict is a part of doing business.
Sources of Conflict
Conflict in the workplace can occur for several reasons, including personality clashes, disagreements over business ideas, misunderstandings, poor communication, work stress and more.
Website
The BetterHealth Channel has a good fact sheet on workplace conflict.15
Watch the following video by GreggU called HR Basics: Workplace Conflict to review the primary causes of conflict: 7:75
Addressing Conflict
There are a number of different ways that we can address conflict. Before we can do this, we must first understand the five key styles for resolving conflict.
- Accommodating. Here, you give up your own needs or desires in exchange for those of others. In essence, you essentially give in.
- Avoiding. In this stage, you completely avoid the conflict. You may decide the conflict is trivial, that you do not have the time to worry about it, you feel like you will not win, or you are afraid of being met with resentment. Avoidance, therefore, is the easiest way to ‘deal’ with the conflict.
- Compromising. Compromising is about working to find a solution that will, to some degree, please all involved. You would work to find the middle ground between all needs.
- Collaborating. A solution to meet the needs of all parties involved is the aim of collaborating. Rather than finding the middle ground, you work to find a solution that satisfies everyone and leads to a win/win solution.
- Competing. This style involves taking a firm stance. You would dismiss the perspectives of others involved and keep pushing your own viewpoint until you get your own way.
Watch the video below titled Managing Conflict - Thomas Kilmann Conflict Mode Instrument by JamBerryLtd and take notes on how these five different styles impact the resolution of conflict: 3:50 16
Conflict Resolution
The ultimate goal in resolving conflict is to arrive at a positive solution that works for all parties involved (win/win). In resolving conflict, it is important to address the issues face to face rather than via electronic communication.
Following these steps can assist with conflict resolution:
- Clearly articulate the causes of the conflict. Openly acknowledge that there will be differing perceptions of the problem(s). Conflict and disagreements cannot be resolved unless everyone has clarity around what the issue is and how each party may view it differently.
- Establish a common goal for all parties, including what each party would like to see. Make a clear statement of why you want the conflict resolved and reasons to work on the conflict. If both sides of a conflict can agree on a common goal, they are more likely to make the required changes to reach it.
- Discuss ways to meet the common goal. Clear communication of how you want the conflict resolved is imperative for coming to a resolution that everyone is happy about.
- Agree on the best way to resolve conflict. Everyone needs to agree on the best solution. Begin by asking each person what he or she considers common ground. This can help in finding a solution that everyone can live with. This also opens a discussion about responsibilities in maintaining the solution and understanding how the conflict came about so that it does not happen again.
- Acknowledge the agreed solution and responsibilities. Everybody needs to get to the point where they own their responsibility in resolving the conflict. Expressing what they have agreed to is important so that you can be confident that everyone is on the same page and understands what is to happen moving forward. Following up with an email outlining these responsibilities can be helpful to once again ensure that these are clear to all.
Note: Some things to remember during conflict resolution: stick to the issues at hand. In trying to resolve conflict, it is alluring to rehash things that have taken place in the past or to personally attack someone. It is important to focus on specific behaviours and conditions if a change is to occur. It is okay to take time out if required. During conflict resolution, our emotions may get in the way when trying to think clearly and come up with a productive solution. If this happens, take a time-out and continue resolving the conflict later once you are in a calmer state of mind.
Mediation
Sometimes conflict can be so intense that the parties are unable to work through the issue alone and may need to call in an uninterested party (often a professional or manager in the workplace) to help them work through the conflict to ultimately get to a solution. This is called mediation. A mediator will meet with both parties jointly as well as separately to understand both sides' points of view and to also get a clear understanding of the issue(s) and goals both parties wish to seek. When this is the case, the mediator uses effective techniques to encourage open communication between both parties to ensure that everyone’s concerns are heard. They also encourage brainstorming amongst everyone involved to make sure that all ideas are placed on the table for a fair evaluation.
Mediation Techniques
Here are some techniques you can use to effectively mediate a conflict:
It is always easier to mediate disputes when we know the perspectives of both parties involved. After you have met with both parties on a separate level and listened fairly to both sides' points of view, bring them together to keep the scope of communication open. This will help you build rapport with both sides, which ultimately entices trust and encourages them to be open in their own communication.
Be very selective with your words when mediating a dispute. Use power phrases like ‘I think you are feeling…’ or ‘In my opinion, you feel….’ These types of phrases help the other person open up at a professional as well as a personal level.
Keep the conversation goal focused. If parties go off on a tangent, remember to remind all parties about the goals of the meeting in order to keep everyone on track and to focus on the common goal instead of personal or other issues.
Listen to both parties and then ask relevant questions. The questions should be to the point and assist in coming to a conclusion without wasting any time.
Give enough time for both parties to speak during the session. This means that only one person should speak at a time, and the other party should remain silent until it is their turn. Setting boundaries in this manner allows for you, the manager, to hear both sides uninterrupted and for both parties to have mutual respect for one another’s point of view.
As a manager, you should know that you cannot change the disagreements, but you can create a culture in which every employee is ready to listen to the other employee’s point of view without showing aggressive behaviour.
When you decide to make a decision, remember that this decision is being made without bias. Be sure to look at the reasoning for making your decision and also be able to explain it to both parties. Your decision should be made to benefit the team or company and not simply satisfy the individual needs of one party over another.
Ultimately, the main goal is to have a win/win outcome for any conflict.
Incident De-Escalation
Despite negotiations and attempts at conflict resolution, at some point, an incident or disagreement may escalate to the point where it needs to be tackled head-on. Below are some strategies to help with de-escalating a heated situation:
Speak to each individual independently to understand their concerns and any underlying reasons for the conflict. By understanding where the conflict has come from, you can begin to work to overcome it. While speaking to the people involved, listen carefully. Do not only listen to respond.
This is relevant if the conflict is between two team members or if it involves yourself and another team member. Trying to understand what has motivated somebody’s behaviour can give you insight into why they are unhappy.
Often people have an idea in their mind as to how a conflict could be resolved. Invite those people involved to share their thoughts on this.
It is imperative to notice if the conflict is more sinister than personality clashes or misunderstandings. If a conflict arises where one person is insulting a team member based on gender, ethnicity, sexual orientation or religious beliefs, this is harassment and needs to be dealt with swiftly and according to your organisation’s bullying and harassment policies.
Embrace a feeling of unity within your team and find opportunities to bring your team together. This may involve team-building days or activities that foster teamwork. If a conflict has escalated to the point where someone is angry and agitated, there are some techniques you can use that may help them to calm down and resolve the issue.
Website
The following tips can be found on the NSW government health website. 17
When there are signs of anger or verbal aggression, it is important to remember that:
- You need to stay calm
- Anger may be a sign that the person is in distress, experiencing fear or frustrated
- It is not possible to reason or problem-solve with someone who is enraged
- Effective communication skills are the key to settling, resolving and de-escalating a situation
Use the strategies below to de-escalate a situation:
- Listen to what the issue is and the person’s concerns
- Offer reflective comments to show that you have heard what their concerns are
- Wait until the person has released their frustration and explained how they are feeling
- Look and maintain appropriate eye contact to connect with the person
- Incline your head slightly to show that you are listening and give a non-threatening posture
- A nod to confirm that you are listening and have understood
- Express empathy to show you have understood
Remember: It is not your job to stop the person from being angry, but these steps may help to make the person feel calmer. It is only then that you can look at how to deal with the situation and their concerns.
Task 1
Complete the following activity making sure to keep notes for your future reference, as this information will support you in your assessment and professional practice.
In your own work document or workspace, make a drawing of the Blank Thomas- Kilmann Conflict Model shown above.
Indicate, by writing next to each term and situation, what their correct conflict mode on the Thomas-Kilmann axis would be.
- JILL focuses on other’s goals other than her own: Accommodating Style
- Danielle thinks that her point of view is always right and does not like to cooperate: Collaborating Style Competing Style
- Thomas wishes to work together to come up with a solution to a problem: Avoiding Style
- Ben does not want to deal with conflict at all; he would rather walk away:
- Low Assertiveness, Low Cooperation
- High Cooperation, Low Assertiveness
- High Assertiveness, Low Cooperation
- High Assertiveness, High Cooperation
Task 2
Use the following questions to check your knowledge.
