COURSE OUTLINECourse Code:  SHS 3283 

Negotiations SkillsWEEKLY SCHEDULE

• Week 1 :Introduction to Negotiation• Week 2 :Principles and Major Mistake in Negotiation• Week 3: Planning and Preparation for Negotiation• Week 4: Strategies and Tactics; Win-win Negotiation• Week 5: Powers in Negotiation• Week 6: Fact to Face Negotiation Skills• Week 7: Follow-Up Action in Negotiation• Week 8: The Function of Consultation• Week 9: Theory and Model of Consultation• Week 10: The process of Consultation• Week 11: Advantages and Disadvantages of Using Consultation Services• Week 12: Consultation In Public Sector• Week 13 :Cross Cultural Consultation and Ethics• Week 14: Presentation

The Nature of Negotiation

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COVERAGEWhat is negotiation?Why we need to negotiate?When in negotiation neededWhere negotiation should be doneHow to negotiate?

Pengenalan • Perundingan adalah sesuatu yang biasa dilakukan dalam

kehidupan seharian

• Perundingan adalah proses dimana melibatkan komunikasi dan perhubungan. Ia ,melibatkan dua atau lebih pihak. Setiap pihak mempunyai konflik dalam matlamat dan minat. Objektifnya adalah untuk mencapai persetujuan atau perjanjian. (Roger J. Volkema 1999)

• Perundingan adalah proses “give and take”. Ianya berjalan dengan situasi kejasama, persaingan dan untuk bertukar-tukar maklumat (Robert & Keller ’97)

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Negotiation – What is it?

‘The process by which we search for the terms to obtain what we

want from somebody who

wants something from us’

Gavin Kennedy

Confer with others to reach a compromise

or agreement.

Concise Oxford Dictionary

To negotiate is to trade something we have for something we want.

Anon

‘Negotiation is an explicit voluntary traded exchange between people

who want something from

each other’

Gavin Kennedy

KONSEP PERUNDINGANPerundingan adalah satu proses yang biasa tetapi kadangkala mengelirukan yang ditemui di mana-mana khususnya oleh kalangan pengurus organisasi. Perundingan perlu untuk menyelesaikan masalah yang timbul di antara dua pihak yang berkaitan. Secara teorinya, perundingan sepatutnya dijalankan secara adil, iaitu kedua-dua pihak memberi dan menerima sesuatu. Walaubagaimanapun secara praktisnya, keadilan ini jarang berlaku. Satu pihak biasanya lebih mendominasi ke atas satu pihak yang lain.

Proses perundingan yang baik dapat berakhir dengan kedua-dua pihak mencapai kehendak masing-masing dalam suasana `win-win situation’

BASIC ELEMENT IN NEGOTIATION SUMMARISE

• Negotiations is a critical skill needed for effective management.

• Involves 2 or more parties• Peaceful way to resolve conflict• Negotiate a resolution meeting the needs of both

parties• Have definite goals and objectives• Outcomes of negotiation – yes

WHY WE NEED TO NEGOTIATE• In Business - To achieve higher margins and more sales - More profitsIn Working Life - Negotiate for pay rise - Negotiate for better benefits - Negotiate for budget (renovation)

Do you consider yourself a

negotiator?

Top ten Negotiations of Your life• Accepting a Job offer • Buying a car• Buying a house• Purchasing furniture• Choosing a computer• Negotiating a raise• Planning your wedding• Starting a business• Going through Divorce• Making a will

WHEN NEGOTIATION IS NEEDED?• Making deals with suppliers, partner businesses or customers• Internal discussion between teams and departments within

the business over aims, processes and resources• Discussions between stakeholder groups within the business

over the solutions to specific situations or issues

• Recruiting new people to the business (Interviews and discussions on salaries and terms)

• Discussions of workload and priorities between managers and staff• Seeking commitment or investment for changes within the business

PROCEES OF NEGOTIATION

Phase 1 – Before Negotiation

Phase 2 – During Negotiation

Phase 3 – After Negotiation

Before Negotiation

• What you have• What you are willing to give

DURING NEGOTIATION

• Setting the tone• Exploring underlying needs• Selecting, Refining and Crafting a agreement

TYPES OF NEGOTIATION IN ORGANIZATIONS

Types

Day-to-day/ Managerial Negotiations

Commercial Negotiations

Legal Negotiations

PartiesInvolved

1. Different levels of Management

2. In between colleagues

3. Trade unions 4. Legal advisers

1. Management 2. Suppliers 3. Government 4. Customers 5. Trade unions 6. Legal advisors 7. Public

1. Government 2. Management 3. Customers

Examples

1. Negotiation for pay, terms and working conditions.

2. Description of the job and fixation of responsibility.

3. Increasing productivity.

1. Striking a contract with the customer.

2. Negotiations for the price and quality of goods to be purchased.

3. Negotiations with financial institutions as regarding the availability of capital.

1. Adhering to the laws of the local and national government.

PERUNDINGANPerundingan berlaku dalam beberapa

sebab antaranya:

Untuk berkongsi atau untuk membahagikan sumber yang terhad.

Untuk membentuk sesuatu yang baru untuk mengekalkannya.

Untuk menyelesaikan masalah atau pertikaian antara sesuatu pihak. 1-16

Pendekatan dalam Perundingan

Kebanyakan orang berfikir bahawa bargaining and negotiation membawa maksud yang sama;

Walaubagaimanapun ada perbezaan dalam penggunaanya iaitu :

• Bargaining: menerangkan persaingan , win- lose situation

• Negotiation: merujuk kepada win-win situasi dimana apabila timbul pertikaian, setiap pihak akan cuba mencari penyelesaian yang sesuai terutama konflik yang sukar

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Three Important Themes 1. Memahami definisi perundingan dan ciri-ciri asas

situasi dalam perundingan

2. Memahami Interdependence – merujuk kepada perhubungan antara individu dan kumpulan yang selalunya akan mendorong mereka untuk berunding.

3. Memahami dinamik dalam konflik dan proses pengurusan konflik dimana kaedah dan pengurusan yang digunakan adalah berbeza

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Kriteria situasi dalam perundingan Terdapat dua atau lebih pihakTerdapat konflik keperluan dan keinginan diantara dua atau lebih pihakSetiap pihak berunding kerana mereka berfikir bahawa boleh mendapatkan sesuatu yang lebih baik berbanding menerima apa sahaja yang ditawarkan pihak lain kepada merekaSetiap pihak mengharapkan ada berlaku proses “give and take”Perundingan memerlukan kemahiran yang tinggi untuk pengurusan yang berkesanCara yang aman untuk menyelesaikan konflikPerundingan adalah kaedah penyelesaian keperluan kedua-dua pihakHasil dari perundingan adalah -yes

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Characteristics of aNegotiation Situation

• Setiap pihak mencari jalan persetujuan berbanding :– Bergaduh secara terbuka– Capitulate – serah pd seseorg berdasarkan syarat yang

dipersetujui– Menamatkan kontrak– Melibatkan pihak ketiga dalam pertelingkahan

• Perundingan yang berjaya merujuk kepada :– Pengurusan yang tangibles ( jelas ) – (e.g., the price or the terms of agreement) – – Resolution of intangibles (the underlying psychological

motivations) such as winning, losing1-20

When to Negotiate ?• Based on Lee and Dobler :

–When many factors bear not only on price, but also on quality and service–When business risks cannot be accurately predetermined–When a long period of time is required to produce the items purchased–When production is interrupted frequently because of numerous change orders

Interdependence Dalam perundingan, setiap pihak memerlukan

antara satu sama lain untuk mencapai hasil yang diinginkan ataupun objektif

• This mutual dependency is called interdependence ( saling bergantung)

• Interdependent menjadi aspek yang penting dalam perundingan

• Win-lose: I win, you lose

• Win-win: peluang kedua-dua pihak untuk capai jalan penyelesaian terbaik

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Jenis Interdependencememberi kesan kepada hasil

• Interdependence dan struktur situasi membentuk proses dan hasil

–Zero-sum or distributive – one winner

–Non-zero-sum or integrative – a mutual gains situation

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Two Types of Negotiations…

• Zero-Sum–Harness the power of anchoring

–Do not disclose key information

–Learn as much as you can

–Exploit

–Don’t overshoot

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Two Types of Negotiations…

• Win-Win

• Tell the truth

• Provide key information

• Learn as much as you can

• Be flexible, creative and fair

The Negotiator’s Dilemma

Alternatives Shape Interdependence

• Penilaian interdependence bergantung kepada alternatif untuk bekerja bersama-sama

• Keinginan untuk bekerja bersama-sama adalah penting untuk mendapat hasil terbaik

• Alternatif terbaik yang ada : BATNA (Best Alternative to a Negotiated Agreement)

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Mutual Adjustment• Perundingan berterusan sebagaimana kedua

pihak bertindak untuk mempengaruhi yang lain

• Salah satu sebab yang membawa perubahan yang berlaku semasa perundingan

• Perunding yang efektif perlu untuk memahami bagaimana orang lain akan cuba sesuaikan keadaan semasa berunding, perlu berubah atau tidak utk pastikan perundingan berjaya

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Mutual Adjustment and Concession Making

• Mutual adjustment akan berlaku apabila :

• Apabila satu pihak bersetuju untuk membuat perubahan dalam kedudukan mereka

• Apabila salah satu pihak bersetuju untuk melakukan perubahan , tolak ansur akan dibuat

• Tolak ansur(concession) terbatas berdasarkan peluang yang ada

• Apabila tolak ansur dibuat, jarak tawar menawar (bargaining) menjadi lebih memaksa

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Two Dilemmas in Mutual Adjustment

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• Dilema of honesty (kejujuran)

• Merujuk kepada berapa banyak perkara yang sebenar perlu diberitahu kepada pihak satu lagi

• Dilema of trust (kepercayaan )

• Merujuk kepada sejauh mana seseorang perunding percaya terhadap apa yang pihak lain beritahu mereka

Value Claiming and Value Creation

• Peluang untuk “win” atau berkongsi sumber

-Claiming value: keputusan of zero-sum or situasi distributive dimana matlamat adalah untuk mencapai sumber yang banyak

-Creating value: result of non-zero-sum or integrative situation dimana objektif adalah supaya kedua-dua pihak melakukan dengan baik

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Value Claiming and Value Creation• Most actual negotiations are a combination of claiming and creating

value processes

–Perunding mesti berkebolehan mengenalpasti situasi yang memerlukan lebih dari satu kaedah berbanding yang lain

–Perunding mesti pelbagai (verstaile) untuk keselesaan dan menggunakan kedua kaedah strategi yang major

–Persepsi perunding dalam sesuatu situasi boleh menjadi berat sebelah terhadap masalah yang dilihat sebagaimana lebih distributive/competitive yang ada

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Value Claiming and Value Creation

Nilai berbeza yang ada diantara perunding termasuklah:

• Perbezaan minat

• Perbezaan dalam penilaian tentang masa hadapan

• Perbezaan dalam risiko tolak-ansur

• Perbezaan dalam masa perkara yang lebih cenderung atau hal yang utama

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The Basic Components in

Negotiation 1. Preparation

2. Objectivity

3. Strategy

4. Technique

Basic Components (1

of 2)1. Preparation: Prepare for negotiation if you want to succeed.

2. Objectivity:Assess your strengths, weaknesses, and goals. Successful negotiators make a point to "accentuate the positive."

Basic Components (2 of 2)

3. Strategy:Plan a realistic course of action based on sound preparation and objective appraisal of resources.

4. Technique:Combine a wide range of skills; draw on experience and self-discipline.

Three Key Factors of Negotiating

Preparation

Negotiation

Communication

What makes a great negotiator?

Whoever is the best prepared

wins

1. Preparation and planning skill2. Knowledge of the subject3. Ability to think clearly and rapidly under pressure and

uncertainty4. Ability to express thoughts verbally5. Listening skill6. Judgement and general intelligence7. Integrity8. Ability to persuade others

34 Characteristics of an Effective Negotiator

9. Patience10. Decisiveness11. Ability to win respect and confidence of opponent12. General problem-solving and analytical skills13. Self-control, especially of emotions and their visibility14. Insight into others’ feelings15. Persistence and determination16. Ability to perceive and exploit available power to achieve

objective

34 Characteristics of an Effective Negotiator

17. Insight into hidden needs and reactions of own and

opponent’s organization

18. Ability to lead and control members of own team or

group

19. Previous negotiating experience

20. Personal sense of security

21. Open-mindedness (tolerance of other viewpoints)

22. Competitiveness (desire to compete and win)

23. Skill in communicating and co-ordinating various

objectives within own organisation

34 Characteristics of an Effective Negotiator

24. Debating ability (skill in parrying questions and answers across the table)

25. Willingness to risk being disliked26. Ability to act out skilfully a variety of negotiating

roles or postures27. Status or rank in organisation28. Tolerance to ambiguity and uncertainty29. Skill in communicating by signs, gestures and silence

(non-verbal language)

34 Characteristics of an Effective Negotiator

30. Compromising temperament31. Attractive personality and sense of humour (degree

to which people enjoy being with the person)32. Trusting temperament33. Willingness to take somewhat above-average

business or career risks34. Willingness to employ force, threat or bluff

34 Characteristics of an Effective Negotiator

1.Positive Attitude 2.Knowledge of the Negotiation

process3.An understanding of people4.Creativity: settle on a solution

before you negotiate5.Communication skills

Basic Elements of Successful Negotiation

A. Self confidence, patient, empathy.B. Know when to start, stop & your bottom lineC. Know your best alternative to a negotiated

settlement “BATNA”D. If other party respects you they will try

harder to agree with youE. Aware of non-verbal communication

The Negotiator Must Be:

PRINSIP PERUNDINGANAnda mesti tahu apa yang dirundingkanAnda mesti tahu apa yang dirundingkanKetahui segala maklumat tentg kedua2 Ketahui segala maklumat tentg kedua2 pihakpihakKaji kelemahan dan kekuatan kedua2 pihakKaji kelemahan dan kekuatan kedua2 pihakPelanggan ada banyak maklumat lebih dari Pelanggan ada banyak maklumat lebih dari yang kita jangkakan – jangan pandang yang kita jangkakan – jangan pandang rendahrendahSelalu memudahkan pelangganSelalu memudahkan pelangganPerundingan akan mencapai win-win jika Perundingan akan mencapai win-win jika kita berusaha ke arahnyakita berusaha ke arahnyaPelanggan selalu minta pakej yang terbaik, Pelanggan selalu minta pakej yang terbaik, sesuatu sebagai pulangan sesuatu sebagai pulangan Perundingan menunjukkan sikapPerundingan menunjukkan sikapBeri kekebasan kepada pelangganBeri kekebasan kepada pelangganSelalu meletakkan sasaran yan tinggiSelalu meletakkan sasaran yan tinggi

Other Major ConsiderationsMany factors can alter the course of Negotiation

• Cultural backgrounds• Mindsets• Negotiation /

Communication Style• Leverage (pengaruh/

kuasa)• Advocacy (sokongan

kepada perundingan)• Relationships (prior /

future)

Negotiation for NewbsMark clearly the differences between:

// firm offers

// conditional offers

// ultimatums

// hypothetical discussion

// one-sided concessions

• Maintain credibility through consistency

• Record important information

• Document outcomes

To Do:

Toolbox of the Successful Negotiator

Knowledge / Info Skills

• Knowledge of both principals

• Clarity of goals• Knowledge of both

parties wishes / needs• Understanding / ability

to cope with stylistic differences of other party

• Verbal comm.• People skills

– Ability to “read”– Ability to pick up cues (apa patut

dibuat)– Suppress negative cues

• Emotional control– Cool-headed– Assertive NOT aggressive– Patience / flexibility/ resilience

In Summation…Negotiation is… Things to keep in mind

• Between two parties– Ability to satisfy each others

needs– Wish to reach agreement

• A Process– Collaborative vs. competitive– Possibility of failure

• Occurs everywhere– Daily life / work life– In person OR multiple venues

• Information / knowledge is key

• Principals / goals• Needs / abilities

• Communication– Effective and clear– Calm, collaborative

• Internal factors– Home culture / Organizational

culture– Communication / negotiation

stylistic differences

Thank You for Listening…

Konflik

Konflik boleh di definasikan sebagai:“Tidak bersetuju dengan teguh atau

penentangan dan termasuk perbezaan pengertian keinginan atau kepercayaan dimana aspirasi semasa pihak tersebut tidak boleh dicapai secara serentak”

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Tahap Konflik

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Dysfunctions of Conflict1. Persaingan , win-lose goals2. Salah anggap dan berat sebelah3. Emotionality4. Mengurangkan komunikasi5. Blurred issues/ isu yang tidak jelas6. Membesarkan

perbezaan,mengurangkan persamaan7. Peningkatan konflik 1-53

Fungsi dan Faedah konflik1. Menjadikan ahli organisasi lebih tahu, berhati-hati dan

boleh berhadapan dengan masalah melalui perbincangan2. Berjanji untuk perubahan organisasi dan adaptasi3. Mengukuhkan perhubungan dan meningkatkan moral4. Mempromosi kesedaran terhadap diri dan orang lain5. Meningkatkan pembangunan personal6. Menggalakan pembangunan psychologikal- ianya

membantu manusia menjadi lebih teliti dan realistik dalam self –appraisal (penilaian) mereka

7. Boleh menjadi seronok dan menjadi rangsangan

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The Dual Concerns Model

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Styles of Conflict Management

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Styles of Conflict Management

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•Ajat, one of Ahmad’s co-workers , heard that Ahmad want to sell his car and plans to talk to him about itu. Her daughter graduating in three months’ time and will need a car to drive to work. Ajat can only afford about RM1,400 including any repairs that might be required and she needs to reserve some money to buy a roof rack. Her daughter has seen the car and thinks its sporty, especially with the stereo. Ajat checked the list price for the model of Ahmad/s car and knows the average wholesale price is RM1,200 and the average wholesale price is RM1200 and the average retail price RM1,450.00

PROJECT

1. Discuss key differences in the behaviour of successful versus average negotiators

2. Recognise the informal negotiating situation that occur with friends and family. Identify key skills and techniques can transfer to more formal situation.