NegotiationNegotiationBy Bob Chan

AgendaAgenda

1. Definition of negotiation2. Negotiation basics3. Negotiators in police force

What is negotiation?What is negotiation?There are no “absolute” definition of negotiation as the place, time and personnel are various. However, different definitions share some common characteristics:Negotiation is a processTwo or more stakeholder parties are having discussion on issuesStrive through the exchange and structuring of information

What is negotiation? What is negotiation? (Cont’d)(Cont’d)Come to an effective behavior binding

(mutual) agreementParties share common problems and

conflicts

In conclude, negotiation is a process by which two parties communicate with each other in order to reach an outcome on which they mutually agree.

Why need negotiation?Why need negotiation?

Misconceptions:Negotiate only occurs in serious or important situations.Only professional negotiators can get on the table.

Why need negotiation? Why need negotiation? (Cont’d)(Cont’d)

Facts:Negotiations can also be personal

and happen in daily life (e.g. marriage, parenting, etc)

Everyone can negotiate upon receive training (by means of attitude, techniques, etc)

Negotiation basicsNegotiation basics

3 essential elements to beginFor any kind of negotiation, 3

requirement should be fulfilled before getting started:

Both parties trust each otherBoth parties are willing to

exchange valuesBoth parties are willing to

negotiate

Negotiation basics Negotiation basics (Cont’d)(Cont’d)Negotiation process

◦Preparation◦Establish relationship◦Present (information)◦Discuss and clarify◦Bargain and concession◦Agree

PreparationPreparation

Know yourself Before you get started, you have

to understand the following: Your feelings Your point of view on

negotiation Your condition Your negotiation practice

Preparation (Cont’d)Preparation (Cont’d)Know your enemyThe more you know about your

enemy, the more advantage you can get. We can analyze another party by different approaches:

Identity Background Group (if any) Authorized to make decision

Preparation (Cont’d)Preparation (Cont’d) Negotiation experience Habit Living/working environment Personality Way to react when under

pressure Attitude

Preparation (Cont’d)Preparation (Cont’d)Self-assessment – negotiation style

Recall what negotiation is.Answer all questions honestly.Interpretation guide will be

distributed later on.

This self-assessment is from:William H. Holley, Kenneth M. Jennings, Roger S.

Wolters, The Labor Relations Process (8th edition), Cengage Learning, 2008, ISBN 0324421443

Preparation (Cont’d)Preparation (Cont’d)There are 5 types of negotiating style1. Avoider: dislikes conflict2. Compromiser: fair-minded people

interested in maintaining relationships3. Accommodator: resolve interpersonal

conflicts by resolving the other person’s problem

4. Competitor: winning is the main thing5. Collaborator: seeks to find the

underlying problem, use brainstorming to solve

Preparation (Cont’d)Preparation (Cont’d)

If still cannot understand, please imagine:

You are one of ten people at a conference table, each person sitting across from another

Someone comes in the room and says “I will give $1,000 to the first person who can persuade the person sitting across from them to come and stand behind his/her chair.”

Preparation (Cont’d)Preparation (Cont’d)Different types of negotiators act differently:1.Avoider: says I don’t want to play, look foolish2.Compromiser: both offering $500, starts running to other side3.Accommodator: runs to other side, negotiates later4.Competitor: sits tight, demands other person move5.Collaborator : “let’s both get behind each others chairs, we can each make $1,000.”

Establish relationshipEstablish relationship

Determine the relationship between partiesThere are two approaches in negotiations:1.Relationship > Outcome

◦ Couple discuss for dining place

2.Outcome > Relationship◦ Property trading

Establish relationship Establish relationship (Cont’d)(Cont’d)Building trustAs mentioned in the last section, trust

is vital to negotiation. Don’t worry, we only need basic trust here by doing the following:

Listen to others carefully and patientlyObserve non-verbal messagesRemember, showing your sincereness

through the actions above, and trust is easy to establish.

Establish relationship Establish relationship (Cont’d)(Cont’d)PowerIn a negotiation, power means the

influence you can cast on counterparts, here are some examples:

Position/PostInformationKnowledge/ExpertiseCharacter

Establish relationship Establish relationship (Cont’d)(Cont’d)There are different aspects regarding to negotiation power, and they will become handy:RelativeLimitedChange over timeEither real or apparentOnly exist when being accepted

Establish relationship Establish relationship (Cont’d)(Cont’d)GoalsSetting goals is important, yet

simple, the easiest way to describe is upper and lower limit, which represent the ideal and worst outcome (also called reservation price).

Establish relationship Establish relationship (Cont’d)(Cont’d)The main arena of negotiation is around the Zone of possible Agreement (ZOPA), which is the difference between the reservation price of both sides, for example:

ZOPA$275k$250k

Seller’s Reservation Price

Buyer’s Reservation Price

Establish relationship Establish relationship (Cont’d)(Cont’d)Of course, apart from setting personal goals, you have to guess or even know what counterparts concern. Like a war, you must know enemy’s objective before deploying strategies and units, there are no set rules.

Discuss and clarifyDiscuss and clarify

Negotiation is also a form of communication. In this stage, both parties are speaking and listening to strive for achieving their goals, which acts an important rule. On the other hand, there will be stalemate if anyone handles it badly.

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)ListeningThere are two kinds of listening

skills which usually used by negotiators:

Attentive – used to extract the true message of your counterparts

Interactive – to achieve good understanding of both messages and feelings

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)Attentive listening skillsAsk instead of speakLet counterpart finish his/her words

firstDrop down some notesRemain calmLook your counterpart in the eyePay attention to non-verbal messagesDo not get distracted

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)Interactive listening skillsClarify by using facilitative

questions (i.e. ask precise questions)

Verifying information by paraphrasing speaker’s words

Reflecting by making remarks to reply and show empathy to speaker’s feelings

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)Questioning"You can tell whether a man is clever by his answers.  You can tell whether a man is wise by his questions." (Naguib Mahfouz)

Every negotiators need to know how to ask questions, and the best ones knows asking proper questions in proper time.

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)Purpose of asking questionsGain informationCheck understanding and levels

of interestDetermine behavior styleGain participationGive information

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)Proper questioningSet goal and planKnow your counterpartsNarrowing the scopeAsk in right timingAsk for permissions to askListen after you asked questionTake notes

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)Non-verbal communicationWe heavily rely on verbal

communications in our daily life. Actually, 90% of our messages are delivered by non-verbal means. And since many people are not aware to these messages, communications cannot carry out effectively and lead to various misunderstanding

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)EmotionsEmotion is becoming more and

more important for negotiation in recent years. Why? It is because no matter the emotion is positive and negative, it directly affect the decisions we are going to make, so as our counterparts’.

Discuss and clarify Discuss and clarify (Cont’d)(Cont’d)Positive emotions Negative emotions

Reach more agreements Reduce joint outcomes

Enhance relationships Reducing level of trust

Creative problem solving Act as a warning (angry)

Less aggressive, more cooperative

More competitive

Lowered judgment Lower demands by counterparts (worry)

Actually there are no good or bad for both kinds of emotion, for example, angry (as a negative emotion) can make counterparts to make concessions more quickly in order to avoid stalemate situations.All in all, emotions is a kind of non-verbal language, as well as a way to deploy tactics and strategies.

Bargain and concessionBargain and concession

Offers and ConcessionsRemember the word ZOPA? Yes,

that is what negotiators are going to reduce. Before reaching the point, both side put out their offers or make concessions.

Bargain and concession Bargain and concession (Cont’d)(Cont’d)OfferingMake the first offerDistract counterpart by an

unreasonable offerAdding “value-added” elementsThreat the counterpart either accept

the offer or no more negotiationOffering a "trial" of a product or

service

Bargain and concession Bargain and concession (Cont’d)(Cont’d)ConcessionMake concession on minor topics

instead of majorsTrade offMake counterpart to cost a great

deal to gain your concessionAs late as possible

Bargain and concession Bargain and concession (Cont’d)(Cont’d)StalemateThis is a common occurrence in

negotiation process, which may caused by:

An important item such as price/date

Negative emotionsLow level of trustSome strategies

Bargain and concession Bargain and concession (Cont’d)(Cont’d)Way to break stalematePause/postponeRestart from the last agreementImport new informationChange atmosphereSmall concession

InterviewInterview

Interviewer: Bob ChanInterviewee: Dr. Chan Chi ChuenEx-clinical psychologist of Hong Kong Correctional ServicesEx-lecturer of Hong Kong Shue Yan College and University of Hong KongNow teaching in University of Macau and The Open University of Hong Kong

Further readingFurther readingRoger Dawson, Secrets of Power Salary

Negotiating: Inside Secrets from a Master Negotiator, Career Press, 2006, ISBN 1564148602

Ira Asherman, 50 Activities to Teach Negotiation, Human Resource Developement Press, 1996, ISBN 0874253144

Sandy Asherman, Pike Bob, Negotiation Sourcebook-2nd Ed, Human Resource Developement Press, 2001, ISBN 0874256046

Frank L. Acuff, How to negotiate anything with anyone anywhere around the world, AMACOM Div American Mgmt Assn, 1997, ISBN 0814479502

Works citedWorks citedL. Nieuwmeijer. (1992). Negotiation:

methodology and training (pp.9). Pretoria: HSRC Press.

Gerben A. van Kleef, Carsten K. W. De Dreu, and Antony S. R. Manstead. (2004). The Interpersonal Effects of Anger and Happiness in Negotiations. Journal of Personality and Social Psychology, 2004, Vol. 86, No. 1, 57–76. DOI: 10.1037/0022-3514.86.1.57

Dr.Charles J.Kibert. (2006). Basics of Negotiation [PowerPoint slides]. Retrieved from University of Florida. Website: http://www.dcp.ufl.edu/ckibert/BCN4712/ManagementLectures/Lectures-Spring2005/NegotiationBasics-Kibert-2006.ppt