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Negotiation: An Important Life Skill: Identify Knowledge Gaps

Negotiation is an important life skill that involves conferring with others to reach a compromise or agreement. Successful negotiation requires awareness of the other parties' perspectives, patience, strong communication skills, and an understanding of different negotiating styles. These styles range from competitive to collaborative, and it is important to identify one's natural style and how to best approach different counterparties. Preparing well by understanding your best alternative if no agreement is reached can strengthen your negotiating position.

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100% found this document useful (1 vote)
507 views3 pages

Negotiation: An Important Life Skill: Identify Knowledge Gaps

Negotiation is an important life skill that involves conferring with others to reach a compromise or agreement. Successful negotiation requires awareness of the other parties' perspectives, patience, strong communication skills, and an understanding of different negotiating styles. These styles range from competitive to collaborative, and it is important to identify one's natural style and how to best approach different counterparties. Preparing well by understanding your best alternative if no agreement is reached can strengthen your negotiating position.

Uploaded by

DejanIric
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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For personal use only.

Not to be reproduced without permission of the editor


(permissions@pharmj.org.uk) CPD

Negotiation: an important life skill


In this article, Ruth McGuire looks at the process of negotiation and the skills that can be useful for achieving positive outcomes

Identify knowledge gaps


1. What skills are required for successful
negotiation?
2. What is your natural negotiating style and are
you confident with your negotiating
techniques?
3. What “dirty tricks” can be used by either side?

Before reading on, think about how this article


Hans Neleman/The Image Bank

may help you to do your job better. The Royal


Pharmaceutical Society’s areas of competence
for pharmacists are listed in “Plan and record”,
(available at: www.rpsgb.org/education). This
article relates to “Negotiating” (see appendix 4 of
“Plan and record”).

n the pharmacy domain, you might find Skills for successful negotiation or her personality. There are five basic styles:

I yourself negotiating with a supplier or, per-


haps, a member of staff who asks for a pay
rise or change to his or her employment con-
Negotiation is often referred to as an art
because it involves creative thinking. Good
negotiators often also possess the following:
competitor, collaborator, compromiser,
pleaser and avoider. Each can be defined as
different degrees of assertiveness and cooper-
tract.And we are all aware of the negotiations ation (as shown in Figure 1, p24) and it can
that go on between the Pharmaceutical Awareness A good negotiator will be well be helpful to know the strengths and weak-
Services Negotiating Committee, the NHS aware of the background to a negotiation — nesses of each style.
Confederation and the Government. The the tensions and emotions of both parties. He
ability to negotiate is not only an important or she will be sensitive to the needs of the Competitor Competitors tend to be assertive,
management skill. It is a key life skill. Outside other side. A skilled negotiator is also often unyielding and uncooperative. This style can
pharmacy there are many situations where able to interpret body language and is aware be effective if you are in a strong bargaining
negotiation skills are useful, for example, buy- of different tactics that might be used by the position but, if used inappropriately, it can
ing a house or a new car, discussing your other side. create tension and mistrust and damage
annual summer holiday with your partner or relationships. If faced with a competitive
even negotiating bedtime with your children. Patience A successful negotiator appreciates negotiator, bear in mind that there are no
According to the Concise Oxford that the negotiation process may not give rules or procedures that have to be followed
Dictionary1 to negotiate means to “confer instant results. Patience, truly, is a virtue dur- and you have no obligation to agree.
with others in order to reach a compromise ing some negotiations — it can take time to
or agreement”. Negotiation is an interactive break down barriers. Collaborator Collaborators use time and
process that can be used to make an agree- energy to find common ground. This style is
ment or settle a dispute.The process involves Communication skills Because negotiation is both high in assertiveness and cooperativeness
two or more people who have opposing a two-way process it requires good commu- and is often seen as the ideal. It is especially
views but want or need to reach some kind of nication skills. A good negotiator will be a useful when you want to maintain a good
resolution. good listener. relationship with the other side.

Ruth Mcguire, BSc, is a journalist from Negotiating styles Compromiser Compromisers are both asser-
West Yorkshire and a lecturer and trainer in It is recognised that each person has a natural tive and cooperative, but not overly so. They
personal development negotiating style, which is influenced by his are ready to meet the other side half way.

www.pjonline.com 3 July 2004 The Pharmaceutical Journal (Vol 273) 23


CPD
Your best alternative If negotiations break
down and you fail to achieve your aims, you
need to be clear, at the outset, what your best
alternative to an agreement would be. This
Competitor Collaborator could include not doing the deal at all.
Defining your best alternative, also gives you
a standard against which to assess any offers
that are made. It protects you from being too
generous (agreeing to give the other side
Assertive

more than the value of your best alternative)


Compromiser or too uncompromising (rejecting an offer
that is better than your best alternative). On
each issue, you should decide on the most
and least favourable result you are willing to
accept.

Conducting negotiations Before con-


Avoider Pleaser ducting a negotiation, you need to consider
how you will negotiate, where the negotia-
Cooperative tions will take place, and whether you will
negotiate alone or as part of a team.
Figure 1: Negotiating styles
Negotiation media Negotiations can take
Pleaser Pleasers are often regarded as nice If negotiations involve multiple issues, place through written correspondence (eg,
people but give way too easily. This style is these need to be isolated and the relative im- letters or e-mails), on the telephone, at a
usually only deliberately used if one side is portance of each issue should be assessed. For meeting or a combination of these. Each
only too happy to accommodate the other. example, if you have a contract with a sup- medium has advantages and disadvantages
plier but he has failed to deliver on an agreed and you should consider these carefully. It is
Avoider Avoiders are low in cooperativeness date, you may well want compensation. On easier to be orderly and reasoned in written
and assertiveness. This style is often adopted the other hand, it may be more important for correspondence. This means of negotiation
by people who hope that if they ignore a you to continue what has been a profitable also gives people time to think (avoiding
problem, it will go away. relationship, especially if the goods being hasty decisions). However, there is danger of
supplied cannot be sourced from elsewhere. delay and responding letters can often ignore
It should, however, be remembered that In “Negotiation skills,”2 Tim Hindle questions raised. No body language is in-
there is no right or wrong style.What matters suggests classifying priorities by deciding the volved and this could be an advantage or a
is flexibility and being able to recognise the following: disadvantage.
style adopted by the other negotiator. Negotiation by telephone can be quick
Effective negotiators are able to change their ■ Which priorities are ideal? and useful for resolving a single issue.
style according to the issues being negotiated ■ Which represent a realistic target? However, you need to ensure you are prop-
and the style adopted by the other side. For ■ Which are the minimum you must fulfil erly prepared. If you are not the person
example, one way of tackling an avoider in order for you to still “win” ? making the call, remember that you can
would be to become a competitor and always ask to call the other side back. Body
impose time limits on the negotiations. Analysing the strengths and weaknesses of language is not a factor but, often, vocal tones
Alternatively, you may choose to adopt the your position and those of the other party are more noticeable. Be aware that silences on
avoiding style if you know that the other side should be part of your preparation. This will the telephone are powerful — do not be
has deadlines and you want to put them help you to establish possible points of com- tempted to fill them with a statement you
under pressure. promise and common ground. You should might regret.
anticipate that the other side will spot weak- Meetings allow greater opportunity to
Negotiation process nesses in your position and prepare carefully explore and settle a situation. They are more
There are four key stages to negotiation: worded replies if these are raised. fluid and bargaining is easier. However, there
preparation, opening, discussion and closing. is a greater danger of being pressurised into
Variables Variables are options that help you an agreement. Before any meeting, agree its
Preparation Although a good negotiator to achieve a final agreement. For example, if time and length.The purpose of the meeting
possesses many skills, these are rendered you process a customer’s photos and they (ie, to agree or to explore possibilities) should
useless if he or she does not have a thorough have gone missing, he or she may ask for be made clear. Multi-issue negotiations need
knowledge of the facts and issues in question. compensation. A different approach might be to be structured with an agenda.
For example, if your negotiation involves to offer to process his or her next three films
some kind of business deal, then you will for free. This could be a cheaper alternative Venue The venue for negotiations should be
need to collect data, annual reports and for you and it gives you the chance to rebuild carefully considered. It can be helpful if the
information about companies or other organ- that customer’s confidence in your service. meeting takes place on neutral territory,
isations. Other examples of variables include preferably somewhere free from interrup-
Before you enter any negotiation, you allowing time for payment, paying in install- tions. However, it is worth exploring the
need to be clear about your objectives. Take ments or in relation to performance and a strategic advantages of using other venues. If,
the example of the employee who is threat- promise for future services or orders. Be for example, you use your office, it is easier to
ening to leave unless a pay rise is forthcom- creative. Going back to the pay rise example, get hold of any extra information that might
ing. You would need to consider whether if you cannot possibly agree to any pay be needed or even to arrange for an “inter-
your objective is to keep your employee or increase but would like to offer your ruption”. Using the other side’s premises may
maintain your budget. Having considered employee something, consider what else you seem an obvious disadvantage but could give
your objectives, you can then decide on could offer, for example, an extra week’s you the option of stalling negotiations by say-
which of your positions you can compromise. annual leave or some kind of profit sharing. ing that you do not have a particular file to

24 The Pharmaceutical Journal (Vol 273) 3 July 2004 www.pjonline.com


CPD
hand. Note that accepting the other side’s other side’s opening statement. This allows
choice of location can make them feel more you to avoid false assumptions and to evalu- Panel 1: Tips for successful
at ease and therefore more collaborative. ate their adopted negotiating style.
You should have decided on the informa- negotiation
Negotiators Before the meeting, you should tion you want to share with the other side at
agree who will be attending from either side. the preparation stage. Bear in mind that the ■ Be open to ideas and prepared to adjust your
If a number of people are to attend, a chair- more information you give to the other side, position in the light of new information
man might be useful. Find out the names and the better your chances of reaching an agree- ■ With multi-issue negotiations, keep the
roles of the other side’s negotiators in advance. ment — sharing nurtures trust and will help whole package in mind — be prepared to go
In some cases you may need to negotiate identify interests common to both parties. below your bottom line on one issue if it
as a team, in which case you need to think However, be careful not to divulge any infor- means you would get a good result on
about the roles each team member will adopt. mation that would damage your argument. another
For example, you may find it useful to ■ Sitting across a table can appear adversarial
appoint a team leader. Other roles you might Discussion The negotiation itself is your — seating placed at 90 degrees can appear
want to assign include “good guy” and “bad chance to probe and search for variables more collaborative
guy”.As part of your negotiation strategy, you that you have not previously considered. ■ Before a negotiation, revise information so
may want the person in the good guy role to However, remember not to bombard the you have key facts and figures at your
be empathetic and acquiescent, to make the other side with questions.Ask one question at fingertips
other side feel comfortable.Conversely, the a time and give them time to answer. This is ■ Use a collaborative tone and friendly
bad guy is useful for proposing extreme solu- your chance to explore how everybody can gestures
tions. If the solution you really prefer is then walk away from the negotiation table with ■ Seek clarification wherever necessary —
proposed by the good guy, the other party something they want. negotiations can break down because of a
may be pre-disposed to accepting it. Team Listen carefully to what is said and pay simple misunderstanding
briefings, rehearsals and even role playing are attention to signs of discomfort or uncer- ■ Taking notes during a negotiation can be a
important aspects of any team negotiations. tainty. Active rather than passive listening useful way of hiding your immediate
Before any negotiations as a team, it is essen- means that, as you listen, you ask questions in reactions
tial to make sure all team members have been your head about the other side’s position.You ■ Adjournments, even for as short as 10
briefed fully and are clear about objectives. might also find it helpful to summarise the minutes, can be useful when alertness is
other party’s points and position in order to decreasing, when there is a deadlock or if a
Opening position and opening statements The check your understanding. discussion becomes heated
opening bid should, generally, be the highest If you are offered a concession, think ■ Deadlocks can be resolved by deferring a
that you can justify — making too optimistic before you express appreciation or disap- particular item and moving onto the next
an opening demand can lose you credibility. pointment too easily. It may not be sensible to issue
The benefit of aiming high initially is that if finalise on any issue until the whole agree- ■ If the meeting environment is uncomfortable
the other side makes valid points, you have ment is clear. And to avoid making a conces- (eg, seating or room temperature), do not be
room to offer concessions. Only open with sion without a return, get into the habit of afraid to ask for these to be changed at the
your bottom line if your bargaining position offering conditional concessions. For exam- outset
is obviously strong. ple, “we could do X, but only if you do Y”. ■ Be aware of “dirty tricks” such as surprise
Your opening statement should create the As a negotiator you need to be prepared to attacks (eg, you should remain impassive to
climate for collaboration. Starting off in the be flexible on the least important matters. For a sudden outburst or withdrawal of an offer),
right way is important because patterns and example, before agreeing or disagreeing, ask the “good guy-bad guy” role, feinting (ie,
styles take root early and can be hard to yourself: “If I give way on this point, what great importance is attached to one issue
change. Your opening statement should pro- difference would it make — what would it which is really of little value and that issue is
vide structure and order, and should remind cost me?”. Try to avoid arguing over things then conceded in order to pave the way for
both sides of the background and areas of that do not matter and concentrate your en- another issue) and false deadlines
agreement or dispute. Listen carefully to the ergy on the things that do. If you are well
prepared, you should already have identified
potential areas of compromise. things do not quite work to plan, record what
Action: practice points Showing respect to the other negotiating has been agreed in writing. Make sure you
Reading is only one way to undertake CPD and the party is fundamental to maintaining an also have the other party’s confirmation about
Society will expect to see various approaches in a atmosphere that is conducive to negotiation. any agreement and that there are no ambigu-
pharmacist’s CPD portfolio. The party on the other side of the negotiat- ities or uncertainties.
1. Practice negotiating with a colleague. ing table needs to feel that their position and
2. Next time you are in a position to negotiate, perspective is valued — respect for others Summary
review this article. always builds trust. Although some people may be more natural
3. Imagine you want to offer a new service to negotiators than others, negotiating is an abil-
your primary care trust. Write down your Closing There are three basic outcomes ity that improves with practice. Further tips
strengths and weaknesses and consider what from a negotiation.The win-win outcome is for successful negotiating are given in Panel
you might put in your opening statement. where both parties emerge from the 1. Remember that negotiation is not just
negotiation feeling that they have won or about winning an argument — winning
at least have achieved their minimum goals. should be done in a way that preserves or
Evaluate This is the ideal outcome — both sides come even improves your relationship with the
For your work to be presented as CPD, you need to away feeling they have gained something. other party.
evaluate your reading and any other activities. The lose-lose outcome occurs when
Answer the following questions: What have you neither party achieves their goals or a stale-
learnt? How has it added value to your practice? mate is reached.Win-lose happens when one References
(Have you applied this learning or had any party achieves their goals but the other party 1. Thompson D (editor). Concise Oxford Dictionary. Oxford:
feedback?) What will you do now and how will this does not. Clarendon Press; 1998.
be achieved? Once you have closed the deal and 2. Hindle T. Negotiating skills. London: Dorling Kindersley;
achieved the win-win situation, or even if 1998.

www.pjonline.com 3 July 2004 The Pharmaceutical Journal (Vol 273) 25

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