Networking and Negotiating

Chapter 11Chapter 11

Introduction

Networking – a form of political behaviorPeople good at networking:

Tend to use outgoing, extroverted behaviorHave better human relations than those not proficient

at networking

Negotiation – coming to an agreement to do somethingPeople good at negotiating:

tend to use influencing tactics successfullydevelop good human relations

Networking

Networking – the ongoing process of building interconnected relationships for the purpose of politicking and socializingNetworking is a form of political behaviorPeople who are good at networking tend to use outgoing

extraverted behavior and have better human relations than those who are not

Networking is about marketing yourself

Networking Objectives: Reasons to develop your networking skills

To get a job or a better one

To perform better at your current job

To advance within an organization

To stay current in your field

To maintain mobility

To develop relationships

The Networking Process

1. Perform a self-assessment and set

objectives

2. Create your 1-minute self-sell

3. Develop your network

4. Conduct networking interviews

5. Maintain your network

Networking Interviewing Process

Step 1. Establish rapport – praise and read the person

Step 2. Deliver the 1-minute self-sell

Step 3. Ask prepared questions

Step 4. Get additional contacts for your network

Step 5. Ask your contacts how you might help themStep 6. Send a follow up with a thank-you note and status report

Negotiating (1 of 2)

Negotiating – a process in which two or more parties have something the other wants and attempt to come to an exchange agreement

Negotiation is also called bargainingNetworking can lead to negotiating

Negotiating (2 of 2)

Negotiating involves:shared interest (parties want to agree and

exchange)opposing interest (parties want different things

and don’t agree on everything)resulting in a conflict of interest

Thus, negotiating is a conflict situation

Bargaining Strategies

Distributive Bargaining

Negotiating over shares of a fixed pie

Creating a win-lose situation

Zero-sum game or condition

Any gain you make is at the other party’s expense

Integrative BargainingNegotiating to give

everyone a good dealCreating a win-win situationKey is to be open to options

besides take it or leave itYou have to have open

honest communicationsRequires flexibility to agree

on creative solutions

Analyzing Bargaining

Why integrative bargaining is not used often?Open, honest communications are required and

one needs to be flexible to agree on creative solutions

All parties should believe they got a good dealWork at the goal of human relations by

developing a win-win situation for all partiesNegotiating skills can be developed

The Negotiating Process

Plan Bargain

Postponement

Agreement

No Agreement

The Negotiating Process: Planning

Step 1. Research the other parties – Read them

Step 2. Set objectivesStep 3. Anticipate questions and objections and prepare for answers

Focus on meeting the other party’s needs

Step 4. Develop options and tradeoffs

The Negotiating Process: Bargaining

Step 1. Develop rapport and focus on obstacles not the person

Step 2. Let the other party make the first offerStep 3. Listen and ask question to focus on meeting the other party’s needs

Step 4. Don’t be too quick to give in and ask for something in return

The Negotiating Process: Postponement

When there does not seem to be any progress, it may be wise to postpone the negotiationsThe other party is postponing and you may

create urgencyYou want to postpone and the other party may

create urgency

The Negotiating Process: Agreement

It is common for targets to be in oppositionBargaining range – the range between

your limit and the other party’s limit, which falls between each party’s target and limit

Once the agreement has been made:restate it, and / orput it in writing when appropriate

The Bargaining Range

Other party’s limit

[upper]

($30,000)

Your limit

[lower]

($27,000)

Bargaining Range

Your target

($30,000)

Your opening offer

($33,000)

Other party’s target

($29,000)

Other party’s opening offer($26,000)

Your BATNA

Other party’s BATNA

Your Objective Range Other Party’s Objective Range

The Negotiating Process: No Agreement

If you cannot come to an agreement:Analyze the situationTry to determine where you went wrong so you

can improve in the futureYou may also ask the other party for advice

Cross Cultural Differences in Networking and Negotiating

Time to reach an agreement and deadlines

The focus on task vs. relationship

The use of power and influencing tactics

Communications – verbal and nonverbal

Where the negotiations should take place

Use of alcohol and choice of food

Name, rank/title, dress, greetings, and rituals

Influencing: Key Terms (1 of 2)

Leadership – the process of influencing employees to work toward the achievement of objectives

Motivation – the internal process leading to behavior to satisfy needs

Power – a person’s ability to influence others to do something they would not otherwise do

Influencing: Key Terms (2 of 2)

Negotiating – a process in which two or more parties have something the other wants and attempt to come to an exchange agreement

Trust – the positive expectation that another will not take advantage of you