Negotiation

MOHAMMAD ABDUL QUDDOOS
MBA I year SSBS

Process of bargaining that precedes an agreement. Successful negotiation generally results in a Contract between the parties.

Example: Nelson wishes to purchase a property from Newman. Nelson is willing to pay up to a certain price and desires certain Conditions placed on the sale. Newman will accept anything over a certain price and may be willing to help finance the purchase for a higher price. In negotiation Nelson and Newman attempt to come to an agreement over the price and conditions. When they agree, a sales contract is executed.

Basic Negotiating Tips

You don't have to go to a negotiation seminar to sharpen up your ability to negotiate, although that's not a bad idea if you negotiate on a daily basis. Here's some basic negotiation principles, skills, hints and tips to help you learn.

We all negotiate in our personal and professional lives. We negotiate when we go to a garage sale, or when we want to do something different at work, or when we are dealing with members of the public.

Sometimes its easy to negotiate, but other times, when we have a great deal at stake or we are upset, the task can be intimidating or difficult.

We are going to talk about some tips to effective negotiating that can help you work more effectively with your customers, co-workers, and boss. They are also applicable to other interpersonal situations.

Overview of The Negotiation Process Negotiating is the process by which two or more parties with different needs and goals work to find a mutually acceptable solution to an issue. Because negotiating is an inter-personal process, each negotiating situation is different, and influenced by each party's skills, attitudes and style. We often look at negotiating as unpleasant, because it implies conflict, but negotiating need not be characterized by bad feelings, or angry behavior. Understanding more about the negotiation process allows us to manage our negotiations with confidence increases the chance that the outcomes will be positive for both parties.

Barriers To Successful Negotiation

Viewing Negotiation As Confrontational

Your work success hint!

We won't tell your boss if you don't. You can make quantum leaps in productivity, morale, employee motivation through learning how to delegate effectively. It's not hard to learn but it's a bit more complex than most managers think.

Learn to delegate properly and when your department hits on all cylinders, the trick will remain our little secret.

Negotiation need not be confrontational. In fact effective negotiation is characterized by the parties working together to find a solution, rather than each party trying to WIN the contest of wills. Keep in mind that the attitude that you take in negotiation (eg. hostile, cooperative) will set the tone for the interaction. If you are confrontational, you will have a fight on your hands.

Trying To Win At All Costs

If you "win" there must be a loser, and that can create more difficulty down the road. The best perspective in negotiation is to try to find a solution where both parties "win". Try not to view negotiation as a contest that must be won.

Becoming Emotional

It's normal to become emotional during negotiation that is important. However, as we get more emotional, we are less able to channel our negotiating behavior in constructive ways. It is important to maintain control.

Not Trying To Understand The Other Person

Since we are trying to find a solution acceptable to both parties, we need to understand the other person's needs, and wants with respect to the issue. If we don't know what the person needs or wants, we will be unable to negotiate properly. Often, when we take the time to find out about the other person, we discover that there is no significant disagreement.

Focusing On Personalities, Not Issues

Particularly with people we don't like much, we have a tendency to get off track by focusing on how difficult or obnoxious the person seems. Once this happens, effective negotiation is impossible. It is important to stick to the issues, and put aside our degree of like or dislike for the individual.

Blaming The Other Person

In any conflict or negotiation, each party contributes, for better or worse. If you blame the other person for the difficulty you will create an angry situation. If you take responsibility for the problem, you will create a spirit of cooperation.

Some Negotiation Tips

Solicit The Other's Perspective

In a negotiating situation use questions to find out what the other person's concerns and needs might be. You might try:

What do you need from me on this?

What are your concerns about what I am suggesting / asking?

When you hear the other person express their needs or concerns, use listening responses to make sure you heard correctly.

For example: So, you are saying that you are worried that you will get lost in the shuffle and we will forget about you...Is that right?

If I have this right, you want to make sure that the phones are covered over lunch?

State Your Needs

The other person needs to know what you need. It is important to state not only what you need but why you need it. Often disagreement may exist regarding the method for solving an issue, but not about the overall goal.

For example:

I would like an hour on Tuesday to go to the doctor. I want to make sure I am healthy so I can contribute better to the organization.

Prepare Options Beforehand

Before entering into a negotiating session, prepare some options that you can suggest if your preferred solution is not acceptable. Anticipate why the other person may resist your suggestion, and be prepared to counter with an alternative.

Don't Argue

Negotiating is about finding solutions...Arguing is about trying to prove the other person wrong. We know that when negotiating turns into each party trying to prove the other one wrong, no progress gets made. Don't waste time arguing. If you disagree with something state your disagreement in a gentle but assertive way. Don't demean the other person or get into a power struggle.

Consider Timing

There are good times to negotiate and bad times. Bad times include those situations where there is:

• . a high degree of anger on either side
• . preoccupation with something else
• . a high level of stress
• . tiredness on one side or the other

Time negotiations to avoid these times. If they arise during negotiations a time-out/rest period is in order, or perhaps rescheduling to a better time.

Conclusion

Negotiating is a complex process but one worth mastering. If you keep in mind that you are responsible for the success or failure of negotiation, and if you follow the tips above, you will find the process easier.

Look at Life in a Positive way

The problems you face will either defeat you or develop you — depending on how you respond to them. Unfortunately most people fail to see how God wants to use problems for good in their lives. They react foolishly and resent their problems rather than pausing to consider what benefit they might bring. Here are five ways God wants to use the problems in your life:

1. God uses problems to DIRECT you. Sometimes God must light a fire under you to get you moving. Problems often point us in a new direction and motivate us to change. Is God trying to get your attention?

2. God uses problems to INSPECT you. People are like tea bags . . . if you want to know what’s inside them, just drop them into hot water! Has God ever tested your faith with a problem? What do problems reveal about you?

3. God uses problems to CORRECT you. Some lessons we learn only through pain and failure. It’s likely that as a child your parents scold you not to touch a hot stove. But you probably learned by being burned. Sometimes we only learn the value of something … health, money, a relationship . . . by losing it.

4. God uses problems to PROTECT you. A problem can be a blessing in disguise if it prevents you from being harmed by something more serious. Last year a friend was fired for refusing to do something unethical that his boss had asked him to do. His unemployment was a problem — but it saved him from being convicted and sent to prison a year later when management’s actions were eventually discovered.

5. God uses problems to PERFECT you. Problems, when responded to correctly, are character builders. God is far more interested in your character than your comfort. Your relationship to God and your character are the only two things you’re going to take with you into eternity.
Here’s the point: God is at work in your life — even when you do not recognize it or understand it. But it’s much easier and profitable when you do.

World’s top 100 B schools list

The Global MBA Rankings for the year 2009, which is published annually by Financial Times, London, is now available on their website. The Financial Times is a British international business newspaper. It is a morning daily newspaper published in London and is printed at 24 sites. Its rival is the New York City-based Wall Street Journal. In the list of Top 100 B schools of world, University of Pennsylvania is at number 1 position, while London Business school is at number 2. For the first time the Shanghai-based China European International Business School (Ceibs) has been ranked eighth, whereas this time Indian School of Business, Hyderabad is at 15th position.

IIMs (IIM Ahmedabad, Calcutta and Bangalore) are not participating in this list because they are not providing MBA certificates as they are autonomous and not under any universities. Since 1997 non of IIMs are participating in this list. But I have still doubt, whether this is correct reason of IIMs not in the list. If you know more, then feel free to correct me.

So the list of World’s top 100 business schools is given below ::

1. University of Pennsylvania: Wharton
2. London Business School
3. Harvard Business School
4. Columbia Business School
5. Insead
6. Stanford University GSB
7. IE Business School
8. Ceibs
9. MIT: Sloan
10. New York University: Stern
11. University of Chicago: Booth
12. Iese Business School
13. Dartmouth College: Tuck
14. IMD
15. Indian School of Business
16. Hong Kong UST Business School
17. University of Cambridge: Judge
18. Esade Business School
19. Yale School of Management
20. University of Oxford: Saïd
21. Northwestern University: Kellogg
22. Duke University: Fuqua
23. University of Michigan: Ross
24. Emory University: Goizueta
25. Nanyang Business School
26. Rotterdam School of Management, Erasmus University
27. Lancaster University Management School
28. University of Virginia: Darden
29. HEC Paris
30. UCLA: Anderson
31. University of California at Berkeley: Haas
32. Manchester Business School
33. Australian School of Business
34. Cornell University: Johnson
35. National University of Singapore School of Business
36. Cranfield School of Management
37. Warwick Business School
38. SDA Bocconi
39. Imperial College Business School
40. Georgetown University: McDonough
41. University of Strathclyde Business School
42. University of Arizona: Eller
43. City University: Cass
44. University of Maryland: Smith
45. University of North Carolina: Kenan-Flagler
46. University of Rochester: Simon
47. University of Toronto: Rotman
48. University of Western Ontario: Ivey
49. York University: Schulich
50. University of Texas at Austin: McCombs
51. Carnegie Mellon: Tepper
52. Melbourne Business School
53. Rice University: Jones
54. University of Pittsburgh: Katz
55. University of Illinois at Urbana-Champaign
56. Vanderbilt University: Owen
57. Leeds University Business School
58. Boston University School of Management
59. Texas A & M University: Mays
60. Indiana University: Kelley
61. University of Southern California: Marshall
62. Washington University: Olin
63. University of Florida: Hough
64. Michigan State University: Broad
65. University of Iowa: Tippie
66. Pennsylvania State University: Smeal
67. University of Washington Business School: Foster
68. Thunderbird School of Global Management
69. University of South Carolina: Moore
70. SMU: Cox
71. University of Cape Town GSB
72. University of Minnesota: Carlson
73. University of British Columbia: Sauder
74. University of California at Irvine: Merage
75. Vlerick Leuven Gent Management School
76. Arizona State University: Carey
77. Aston Business School
78. University of Alberta
79. University of Notre Dame: Mendoza
80. Durham Business School
81. Purdue University: Krannert
82. Ohio State University: Fisher
83. Birmingham Business School
84. University of Bath School of Management
85. George Washington University
86. Wake Forest University: Babcock
87. Grenoble Graduate School of Business
88. Bradford School of Management/TiasNimbas Business School
89. Boston College: Carroll
90. Babson College: Olin
91. Eada
92. Coppead
93. University of Edinburgh Business School
94. Brigham Young University: Marriott
95. Case Western Reserve University: Weatherhead
96. Wisconsin School of Business
97. Hult International Business School
98. University of Miami School of Business
99. University College Dublin: Smurfit
100. Nottingham University Business School