NegotiationNegotiation

What can we negotiate aboutWhat can we negotiate about

Definition of NegotiationDefinition of Negotiation

1. Two or more parties1. Two or more parties2. Exchange goods or services2. Exchange goods or services3. Agree the exchange rate for 3. Agree the exchange rate for

them them

Principle of Negotiation

•Concerns the other person’s interest and needs.•Communication your concerns, fears, needs and wants.

•Setting objective Bottom line Reasonable line Top line

Strategy of NegotiationStrategy of Negotiation

•Reasoning

•Emotional Appeal

•Good and bad guy

•Creditability

For example(study aboard)For example(study aboard)

Case 1: Leon and his fatherPlace: Place: Leon’s homeLeon’s home

Time: Time: 7/8/857/8/85

Characters: Characters: Leon Leon Lai & his fatherLai & his father

Event: Event: Domestic Domestic agruementagruement

Result: Result: Leon criedLeon cried

PrinciplePrinciple

Father Leon

Setting objective

ConcernInterest

Communicateconcern(Fears)

1: Money2: Leon’sbright future

1: Leon commit suicide 2: Broken relationship

1: Increase competitiveness 2: Independence

1: Broken relationship2: work early

1: Bottom line2: Reasonable line3: Top line

1: Bottom line2: Reasonable line3: Top line

The negotiation processThe negotiation process

Leon’s strategies:Leon’s strategies:

1: Good & bad guy• mother and Leon

2: Emotional appeal

For example(Coke company)For example(Coke company)

Case 2: Manager and employeesPlace: Place: Shatin Coke Shatin Coke

factoryfactory

Time: Time: 7/12/987/12/98

Characters: Characters: Labour Labour Union & ManagerUnion & Manager

Event: Event: meeting failuremeeting failure

Result: Result: 15 min strike15 min strike

Principle Principle

Manager Labor Union

Settingobjective

Concerninterest

Communicationconcern(Fears)

1. Reduce production cost 2. Enhance the productivity

1. Strike 2. Morale

1. Bottom line2. Reasonable line3. Top line

1. More leisure time2. Release work load

1. Bottom line2. Reasonable line3. Top line

1. Fire 2. Bad record

The negotiation process The negotiation process

The manager’s strategies:

1: Win-Win situation

2: Reasoning - Downturn of the economy

3: Creditability

ConclusionConclusion

Setting objectiveSetting objective other’s interest other’s interest

and needs.and needs.Communicate to Communicate to

other’sother’s

Emotional Emotional AppealAppeal

ReasoningReasoningGood and bad Good and bad

guyguyCreditabilityCreditability

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Jack

Stephen

Rebecca Jan

Phyllis Elain