5-Mg.Neg

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1 Managing Negotiations D.C.Singhal TERI July 2010

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2 Overview Influence Styles Push Style – (A) Persuasion and (B) Assertion Pull Style – (B) Empathy and (B) Attraction; Avoidance Style – Withdrawal

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3 Influence Styles You must know your normal influence style, also practice other influence styles, and plan to use appropriate influence style for each stage of negotiation. There are basically three influence styles: The push style comprising (i) persuasion and (ii) assertion The pull style comprising (i) empathy and (ii) attraction The avoidance style comprising withdrawal All these styles are used in negotiation and they might follow each other in succession. A good negotiator knows which style is best usable at what point. Observations suggest : Indian male managers tend to use persuasion than any other style. Military officers, however, tend to use assertion more. Women compared to men use pull style of empathising. Men find it difficult to use empathising style. Many people find it difficult to use visioning or attracting style.

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4 Push Style The push style is cool and dispassionate. It tries to present one’s argument as clearly and logically as possible. There is no room in this style for passion or emotion. It is valid during all stages of negotiation but particularly in opening and closing. Persuasion. The characteristics if this style are: Framing. Giving an overview in advance giving the points in sequence, e.g. “My arguments for doing this are based on three points which are…I shall discuss them in detail”. Labelling. Stating what you are going to do in advance, e.g. “I want to make a proposal”. Here are two reasons to support my proposal”. Relating. Linking to other points or to needs or experiences of listeners. Illustrating. Giving examples and illustrations. Non-verbal. Control of voice, pacing, intensity, and energy. Also gestures, body position and movement, eye contact, and facial expression. This style is not aggressive. Hence voice is relaxed as are the body, gestures and emphasis. Verbal. Use of strong decisive words and phrases rather than tentative words and qualifiers such as ‘may be’, ‘perhaps’, ‘I hope, sort of, sometimes etc.

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5 B. Assertion This is a demanding style (as voice would show). It does not brook interruption. The body is tense (not relaxed). It is mainly relevant during the diagnosis phase of negotiation when both parties are asserting their position. It could be relevant in the closing phase to push for a quick agreement. The characteristics of this style are: 1. Controlling. Control the situation by forcing your agenda and structure, maintain the initiative, do not get sidetracked and end interaction when done. 2. Expectations. State goals, expectations and standards forcefully and succinctly. 3. Judgment. Make strong, direct, evaluative statements based on personal standards. 4. Consequences. State consequences if the person does or does not comply with what is demanded.

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6 5. Non-verbal. The body tends to be stiff, gestures are hard, strong eye contact, voice strong (without fumble for words). 6. Verbal Avoids. Tentative words and phrases e.g. “I hope…”,”I wish…”, May be…” (ii) Qualifiers e.g. “Sometimes…”, “In my opinion…” ,“From my experience…”, “I think…”, “Sort of…”. (iii) Questions like, “Don’t you agree you are overbearing?”, Will you change your behaviour?” The negotiator is forceful at all times. Asserting is not same as aggression or anger. Asserting involves presenting yourself – your feelings, reactions and ideas – forcefully and powerfully so that you are not ignored, discounted, forgotten or find that your resources are wasted. Aggression on the other hand is intended to weaken or hurt the other person.

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7 Pull Styles Empathy You are trying to reach out to the other person and trying to understand his the real needs, desires and motivations. Your voice is sympathetic as your body language conforms. This style is useful in the middle stages of negotiation when each party is trying to understand the other’s needs to develop positions to satisfy their mutual needs. There must be a genuine desire to understand. It should not appear artificial as it can do more harm than good. The negotiator needs to check if the empathising is getting across. Various aspects of empathy include: 1. Listening. (i) Draw the other person out, put him at ease, and let him do most of the talking. (ii) Listen intently, paraphrase accurately in your own words, reflect sensitively to underlying feelings, have good eye contact and be alert.

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8 2. Verbal (i) Non-evaluative listening, absence of ‘oughts’ or ‘shoulds’, no direct or implied judgment of right or wrong, good or bad, competent or incompetent. (ii) Listener does not use push style to control discussion or probe for information which the speaker may not wish to reveal. 3. Non-verbal. (i) Manner and tone implies willingness to accept and understand, though not necessarily agree.

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9 B. Attraction In this style you share your vision with the other person so as to get him on the same path and towards the same goal. The non-verbal signals must match this. There must be passion, conviction and commitment which must come through. Attraction involves: 1. A future orientation and exciting possibilities. 2. Appealing to values, ideals, hopes, aspirations and dreams. 3. Verbal: Use of imagery, or ‘word pictures’ to catch other’s imagination. 4. Non-verbal: High energy or intensity communicated both verbally and non-verbally. 5. Involvement of others by identifying or alluding to shared interests and goals, and finding things in the other person’s position which one can agree with.

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10 Avoidance Style Withdrawal (Disengaging) Style. This is an avoidance style with both body and voice showing it. The person who wants to go away is shifty and nervous. The withdrawal is temporary with the intention to resume. But if this is not so, the negotiation has failed and failure is not a part of any strategy. The withdrawal should be such that it keeps the door open for resumption of negotiation. For such withdrawal: Ignore attacks or challenges directed to you. Utilise humour or change of subject to diffuse others’ negativity or emotionality. 3. Stay out of conflict for which you have no responsibility or interest. 4. Be logical and rational when others are emotional. 5. Postpone or defer decisions with which you do not want to deal, or do not say anything if you are not clear how you want to respond. 6. Do not get caught up in other peoples’ issues or trivia. Stay on course with whatever line of action you have thought out.

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11 Exercises for Role Play 1. Persuasive Style You are a Regional Manager in ‘Data Base’ , a computer marketing organization. As a part of computer support peripherals, you also market UPS. These you buy from a local supplier who specially makes it to your specification. The numbers are such that the supplier has a sales turnover of about Rs. 90 lakh exclusively from your business. The design currently in use was developed six months back. This is fairly compact and generally liked by customers. Last week some design aspect was brought to your notice that makes the product electrically unsafe. Since customer safety is of paramount importance for you, you need the supplier to agree making modifications to the units already in the field and also introduce this modification in his assembly operations. You have called him today for a meeting. For the supplier, there would be additional capital cost involved in doing this and the margins are tight.

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12 2. Assertive Style You are the finance director of a company that has delayed in briefing the Advertising Agency about the design and printing of the annual report. The time available within which the report must be designed, approved and printed is much less than what the agency normally requires. The report must also be issued in time for the forthcoming AGM, allowing for the statutory period during which the report must be in the hands of the shareholders. You, Mr. Batliwala, have called the advertising Agency’s Managing Director, Mr. Vishwanathan Iyer and are demanding that the report be ready on the date you require. Your account is an important one for the agency (Last year’s billing was Rs. 50 lakh). Mr. Iyar normally deals with the Marketing Division whose director is Mr. S.L.Gupta and who is happy with the Agency’s work. At the same time the goodwill of he Finance Director is important to ensure that the bills are settled in time. Mr. Gupta is very sensitive about his ‘turf’ being encroached by others.

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13 3. Empathizing Style You are working as an Engineering Manager with Delta Engineering. Sanjay has been working with Delta as an apprentice for the last six months. This has been a part of his sandwich technical training course which he is doing with the local ITI. He is very skilled machinist and there has been a positive feedback about his work. You also know that unless Sanjay successfully completes his ITI course, you will not be able to offer him a skilled mechanic’s job in ‘A’ grade. Your feedback from ITI suggests that he has not been doing well at the Institute. His final examinations are scheduled after another six months. You are keen that he joins delta where he can have a good career. You have called Sanjay to see you.

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14 4. Visioning Style Mr. Joshi heads the materials function in a company involved in manufacturing and sales operations of automation products. With increased pressure of indigenization, vendor development and supplier O.A. functions (a part of materials function), have for the last couple of years come under tremendous pressure to meet quality and time deadlines. It has been difficult for Mr. Joshi to attract excellent people in these functions. Mr. Mehta, who has been with the company for six years, has worked in R&D, Engineering, Quality Control and currently is Dy. Manager, Production. He has an excellent track record and will be an asset to the materials function. The materials function is likely to grow significantly in the coming years and Mr. Joshi is inclined to share his vision of the future with Mr. Mehta to motivate him to join the materials function. Mr. Mehta is comfortable in Production in which has good staff and relationships and sees materials as a high pressure job.