PRACTICE ASSIGNMENT OF BUSINESS COMMUNICATION

PREPARED BY : ANSHITA GARG 07880303912 MBA- 1ST SEM- 2ND SHIFT SECTION B SUBMITTED TO : MS. KANICA BATHLA Q1. Explain the concept of negotiation and process of negotiation in breif .

Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution. Negotiation occurs in business, non-profit organizations and government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject is called negotiation theory. The word "negotiation" is from the Latin expression, "negotiatus", and past participle of negotiate which means "to carry on business". Another view of negotiation comprises 4 elements: strategy, process and tools, and tactics. Strategy comprises the top level goals - typically including relationship and the final outcome. Processes and tools include the steps that will be followed and the roles taken in both preparing for and negotiating with the other parties. Tactics include more detailed statements and actions and responses to others' statements and actions. Some add to this persuasion and influence, asserting that these have become integral to modern day negotiation success, and so should not be omitted. PROCESS OF NEGOTIATION: There are eight stages in the process of negotiation. This is a unique combination framework that puts together the best of many other approaches to negotiation. It is particularly suited to more complex, higher-value and slower negotiations.

1. Prepare: Know what you want. Understand them. 2. Open: Put your case. Hear theirs.

3. Argue: Support your case. Expose theirs. 4. Explore: Seek understanding and possibility. 5. Signal: Indicate your readiness to work together. 6. Package: Assemble potential trades. 7. Close: Reach final agreement. 8. Sustain: Make sure what is agreed happens. 1) Prepare: The overall action in preparation is to be ready for every stage of the actual negotiation. In preparation, you may walk through many scenarios and prepare for many eventualities. How much time should you spend in preparation? As much as is appropriate. If you are buying a fridge, you may read a few reviews. If you are buying a house or a business, then much more serious preparation is needed. The sections below are rather long, especially if you follow all the links. This reflects how useful it can be to think through the whole negotiation process before you start. a) Identify your boundaries: What will be your opening offer? If it is too high, you might insult the other person or frighten then off. If it is too low, you may lose out. To do this, you may need to consider the agreement zones that might occur. Your opening offer will be based on a combination of the range of 'reasonable value' of the things that you want, the situation of the other person and the dynamics that you want to cause within the negotiation itself. In practice, if the other person makes an opening offer first, which can be a useful action, you may revise your opening offer. Nevertheless, it is still worth deciding where you will start.

b) Count your resources:

Look at everything you have at your disposal that you can bring to bear on this negotiation. What do you have that the other person might value? When buying something, what extra money could you bring to the table? Do you have people you can call on for support? Can you use time in any way? Finding variables is a key activity that can significantly increase your options. Look to the variables in the resources that you have. What could you increase or decrease? What could be expanded? What could be exchanged? c) Develop your concession strategy: When you know where to start, you can now develop the concession strategy, whereby you will make exchanges in order to gain final agreement. This will include the use of variables where you can made trades in many different areas. d) Set up the meeting: Finally, set up the negotiation meeting itself, if this is appropriate. If you can choose the time and the place, you can add further control over the tone of the meeting. Choose a right time for the negotiation can be very useful. Finally, invite the other person to join you. In a surprise negotiation, you might invite them to a 'meeting' in which you spring the negotiation on them, hoping to gain advantage from their confusion. Being personally prepared includes knowledge of the situation and others as described above. It also includes mental and emotional preparation. If it is a big negotiation, then you may want to catch up on any lost sleep or maybe take a day or two to wind down. Preparation also includes your appearance. As necessary get your hair styled, buy new clothes and ensure you are clean and well-groomed on the day. A smart appearance signals a smart mind, which can make all the difference.

2) Open:

The purpose of the opening stage of negotiation is to position yourself and your needs, letting the other person know what you want, both as a outcome and in the process of negotiation. a) The importance of opening: The first few seconds

The beginning of any relationship is critically important as each person sizes up the other, categorizing them against stereotypes and other internal models. The negotiation thus effectively starts well before the talking starts in earnest. When meeting the other person, you should thus seek to create the desired impression right from the start. If you want to negotiate collaboratively, then you might start with an agreeable and friendly greeting, whilst for a competitive approach, you may take a strongly assertive or even aggressive position in order to intimidate and dominate the other person. Be confident

Whatever style you use, it is important to be confident and show that you know what you are doing and where you are going. If you seek to be collaborative, then this encourages the other person to trust you. If you intend to be competitive, it positions you as capable of doing whatever it takes. State your case

The context around a negotiation provides information that justifies and explains the need. Thus, for example, when selling your car, you might start by explaining how your wife is pregnant and will be giving up work soon, thus setting the context for your explaining later how you cannot accept a low price. Be careful with this to legitimize your later arguments whilst not showing that you are in a weak negotiating positions, for example that you are desperate to sell the car. Also match the length of the story to the negotiation -- if it is a quick exchange, and then keep it to a few words. If you are expecting to negotiate all day, then a somewhat longer explanatory preamble may well be appropriate. State the need

Explain what you need as a result of the contextual situation. Show that your need is real and legitimate. Make it clear what you want from the other person. In some situations this is clear and simple, whilst in others you may have multiple needs, for example if you are negotiating an employment contract then there may be many terms and conditions to consider. Listen to their case

When it is your turn to listen, do so actively. Listening is not just being polite -- there are many reasons why you should listen, especially in a negotiation. Showing respect and interest will get them to give you more information, and in negotiation information really is power. The first stage of listening is, basically, to listen without interruption. The only interaction you have with them is active listening methods that encourage them to talk. You can pause them to paraphrase back what you have heard and you can ask them for clarification, but keep such interruptions to a minimum. Then probe for understanding

When they have made their case, you can then ask deeper questions to probe for further information. If they have left out areas that you might have expected them to cover, it may be because they are not comfortable talking about this. Sustain a gentle approach of interest, curiosity and general inquiry. If you make it sound like an audit or inquisition, then they may well stop talking. Your goal is to make it easy for them to tell you more about their situation. Understand the person

Think about the person with whom you are negotiating. Listen to the inner person, discovering their beliefs, values, preferences and schemas. Find out what power they have and how they might use it. I can see that you do not take risks lightly...Find what they really want Understand how they prefer to satisfy their needs. Identify their interests and goals that underlie the positions they are taking. When you know what is driving them, you will have many alternative routes to satisfying them.

3) Argue: In the argument stage, the serious exchange of views begins. This can be uncomfortable as the goal is to strengthen your own position whilst weakening the other person's position. Note that in a collaborative negotiation, the argument may be gentile and polite to the point where it does not seem like argument. Nevertheless, the points may still apply to some extent. a) Erode their position: Respond to the positions and claims of their opening statements and subsequent arguments, pointing out the limitations, falsehoods and irrelevancies. Depending on your approach, your attack on their position may be aggressive, rational, empathetic or apologetic. Overall, you are seeking to refute their argument, and the way you do this will set the tone for the rest of the negotiation. Note that erosion of their position is effective only when they feel less certain or that they have less to bargain with. Simply asserting that they are wrong may only serve to annoy them and make them more determined. b) Minimize benefits to you If they are claiming that something they have is of value to you, you can show how what is on offer is not that important. This is relatively easy to do as only you determine value of what you might get. c) Weaken their truth When they make assertions, question them more closely. Change probabilities. Show how things asserted as always true are only sometimes true. Probe for the evidence behind asserted truths. Test the reasoning they are using. Then use what you discover to undermine what they are proposing as unquestionable truth. d) Manage their needs When they tell of the things that they want from the negotiation and you would find it difficult to give them this, then show how they cannot possibly get these or otherwise reduce

what they will ask for. Show how requirements are not legitimate. Indicate how they can get what they want elsewhere. Hint that what they want is not yours to give. e) Strengthen your truth Where you have stated something as true in your opening argument, add rationality and cause. Use clear forms of reasoning that show how you are speaking the whole truth, and that anything else is falsehood. Demonstrate objective evidence that proves your case. Show your impartiality by considering the (weakened) arguments against your case. 4) Explore: So far, no agreements have been made, and early positioning may have made the way forward difficult to see. Having established what you each want, however, you can now move towards one another, seeking a way forward. It is generally a mistake to go fast during a negotiation and taking time to explore can pay back significantly later. Exploration not only gains you more information about the other person and their needs, it also builds the relationship between you, making it easy to reach agreement. Discover areas of agreement and difference

In many negotiations it can be surprising how much both parties may agree. It is easy for areas of difference to overshadow that the people involved are not that different after all. Find areas of similarity

Particularly when you are far apart, a good first step in getting together is to find those things where you agree with the other person. Finding agreement with the other person demonstrates similarity and hence creates bonding with them. This may also be done during earlier stages.

Find areas of agreement

When you are negotiating, the focus on what you want as opposed to what they want can make it seem like you are miles apart, when in fact you may be quite near to an equitable solution. Finding areas of agreement helps to shrink the areas where you have to negotiate. By saying 'we agree on this and that', you can find the specific areas where negotiation is needed. Find areas of difference

When you know where you agree, then finding where you really disagree is easier. The fact that you agree makes it easier to work together and accept areas of difference. An effective way to enable others to accept differences is to accept the person, even though you do not agree with what they want. At the very least, you can accept that they have the right to have different views and wants to you. A common source of difference is that is not always clear is that people are driven by fundamentally different goals. 5) Signal: Signaling is a relatively short phase of activity in which (usually) both parties prepare to move from their initial position. After early positions and explorations, signaling is a conciliatory move that indicates a willingness to negotiate. Show readiness to move

A signal is a subtle indicator to the other person that you may be willing to negotiate. This is seldom done openly as this would contradict the opening and argument. Signaling is not making a verbal statement and effectively saves face, providing an excuse to subsequently move from your original position (or to backtrack if the other person is not ready to collaborate).

Qualify statements

Add qualifiers that indicate how you might just be persuaded to do something that you would not normally do or that you may agree to something other than what you originally wanted. Indicate possibility

Use words that indicate possibility, opening out the potential for a different future that you may have painted in your opening statement. Use open body language

Open body language sends even more subtle signals of readiness, with indications of welcome (such as open arms) and relaxed, smiling face. Body signaling can be enhanced by starting with closed body language and then moving to an open position at the same time that you use verbal signaling. Use gestures that move in time with your signals. Match the other person's movements to show empathy. Wait for their signal

When you have signaled to the other person, the next step is to wait for them to signal in return. Watch their face when you signal. Are there signs of hope appearing? Do they seem to have recognized that you have gone from arguing your case towards moving towards them? Also watch their body language. When you signal, does their stance change? When you move from matching their body language to a more open position, do they follow you? Hear the signals

Listen for their verbal signals. Hear the tone of voice that they use. Is it more relaxed? Are they using qualifiers and indicating possibility?

Do not concede

If they do not signal, it can be tempting to try something more overt, such as conceding on something. It can seem that they are blind to signals and if you move to concession, then they will get this signal and concede in return. But what you have actually done by this is to show that if you make a move and they do not reciprocate, then you will give something more. This is simply encouragement for them to wait for more concessions. Respond to their signals

When they signal in return (or maybe they signaled first), respond by opening your body language further and responding with a further encouraging signal. Show that you approve of their movement by rewarding them with more attention and acceptance. 6) Package: In this stage, the goal is to build potential solutions. The final agreement is not yet being hammered out and you are still dealing in possibilities. By sustaining an atmosphere of openness, you make it possible for both you and them to consider alternatives exchanges without feeling obliged to complete the exchange. Identify agreeable trades:

In putting together potential agreements, start by looking for things that you can exchange and where they might concede to you. Trade in variables:

When looking for things to exchange, find the variables of the things in which you are dealing. If you are talking about action, consider when and where it will occur. If you are talking about money, consider who pays what to whom when and how often. If you are dealing in physical items, consider size, quantity, weight and other attributes.

Use elegant negotiable

Your elegant negotiable are those things that you have that you do not value very highly, but the other person finds particularly attractive. They are thus easy for you to give away but are valued by the other person. The danger with elegant negotiable is that you give them away without realizing that you can use them to get something valuable in exchange. This is one reason why you should do lots of listening before diving into making trades. Help them think

Use the Columbus technique and Socratic questioning to draw them out. Help them understand variables and elegant negotiable. Support them in problem-solving, clarifying the problem on which you are working together, identifying causes and why things have happened, finding focus for resolution and creatively identifying possible solutions. 7) Close: Move to closure

As your packaging reaches a complete solution, you can move towards the idea of closing on a final deal. Signal readiness to close

Show your own readiness by using signals to indicate that you want to reach agreement. Use words like 'right' and 'ok'. Use ready body language that aligns with your words. Watch their response, and if they signal in return, move further towards closure. Attempt closure

When things seem ready, you can use a trial close to nudge the other person closer to agreement. If they do not seem ready, probe for reasons and return to packaging or handle objections as appropriate.

Summarize the exchange

A good thing to do at closure is to summarize what you believe has actually been agreed. This assures that the other person also agrees and that there is a common understanding of who will do or give what. Handle final objections and doubts

The realization of impending closure can cause people to panic in case they have forgotten something. This may occur as sudden appearance of objections and other reasons why they might not want to complete the deal. You can use objection-handling techniques to manage such situations. Handle last-minute tricks

Tricky tactics such as the quivering quill may be used just before the close as the other person attempts to squeeze a few more drops of blood out of you. Handle opposition such as this with professional aplomb, showing that you are immune to deception or coercion. Confirm the agreement

The final step of closure is to confirm the agreement and sign on the dotted line. 'It's not over until the fat lady sings' is a common saying. In negotiation, it is not over until the ink is dry and the exchange has irrevocably been made. Shake hands

Although you may not literally shake hands, it can be a very effective thing to do at the point of agreement. It symbolizes the closure and is such a powerful social symbol in many different cultures that the other side will think twice about backing out.

8) Sustain: When the deal is closed and seems to be complete, the end may not yet be in sight. Many negotiations have a future element, where the main agreement is for future action. 'There's many a slip twixt cup and lip', as they say, and an earlier commitment might not be delivered as promised. Sustaining commitment is thus about making sure that people stay closed and that what was agreed in the Close stage stays agreed and gets delivered as promised. Sustain their commitment

When commitments were made in the excitement and pressure of the negotiation, they may look a little less attractive in the cold light of day. Particularly if there is a longer delay until the promises are completed, the situation may change and the negotiated agreement may move from being rather attractive to being rather unattractive. And sometimes commitment just wanes, all by itself. Understanding strong and weak commitment is thus important. There are many techniques for sustaining commitment, such as:

Burning bridges: Ensure there is no way back. Evidence stream: Show them time and again that the change is happening. Golden handcuffs: Keep key people with delayed rewards. Involvement: Give them an important role. Reward alignment: Align rewards with desired behaviors. Rites of passage: Use formal rituals to confirm change. . Renegotiate as necessary

If the situation changes and the agreement are really not worth keeping in its current form, then rather than pull out without saying anything, it is better to go and talk to the other party. Where possible and appropriate, re-negotiation the deal, sealing commitment in a newer, more appropriate agreement. If the other person also benefits from this, they will be doubly committed to the new arrangements.

It is good to follow the general rule: Do not negotiate unless you have to or unless you can obtain some direct or indirect advantage by doing so.