NEGOTIATING SKILLS (4 marks short answer, 3 marks multiple choice)

Question 1

What is Negotiation?

Answer 1

The often on going process through which two oe more parties, whose positions are not necessarily consistent, work in an effort to reach an agreement

Question 2

Negotiation Process

Answer 2

1. Recognize you are in a negotiation or about to enter one
2. Plan for the negotiation
   - What do you want to get out of the negotiation (aspiration)?
   - What is your next alternative to a negotiated agreement (BATNA)?
   - What is your initial offer/starting point?
   - What is your reservation point?
3. Select a negotiation strategy that makes sense given the situation

Question 3

Identify what negotiaphobia is and the reasons why it exists

Answer 3

• Disease of attitude and skill deficiency
• Many people see negotiations as an act of combat or conflict
• Skill you need to work on

Question 4

Identify the negotiation strategies and when to use each approach

Answer 4

Thomas-Kilmann Conflict Model
Competing
- High assertiveness, low cooperation
- Only one can win and it has to be me
Avoiding
- Low assertiveness, low cooperation
- Can we discuss this later
Collaborating
- Higher assertiveness, high cooperation
- We can both get what we need
Accommodating
- Low assertiveness, high cooperation
- Lets just do it your way
Compromising
- Medium assertiveness, medium cooperation
- Can we meet in the middle

Question 5

Principled Negotiation

Answer 5

Is the PREFERRED OPTION
Produces wise agreement, that is reached efficiently and more amicably

Question 6

The 4 fundamentals of Principled Negotiation

Answer 6

1. People- Separate people from problems
2. Interests - Focus on interests not positions
3. Options - Generate options for mutual benefit
4. Criteria - Use objective criteria

Question 7

Positional/disruptive Bargain

Answer 7

Person only focuses on what THEY WANT from a particular position

Question 8

Identify the importance of value creation and value claiming

Answer 8

Value Creation
- The purpose of integrative situation negotiations
Value Claiming
- The purpose of disruptive situation negotiations

Question 9

BATNA

Answer 9

An IDEAL outcome
Your Best Alternative To a Negotiated Agreement is if you can negotiate a better deal then that = ideal outcome
If you cannot negotiate a better deal than your BATNA = walk away