Networking and Negotiating Chapter 11 Networking and Negotiating

Introduction Networking – a form of political behavior People good at networking: Tend to use outgoing, extroverted behavior Have better human relations than those not proficient at networking Negotiation – coming to an agreement to do something People good at negotiating: tend to use influencing tactics successfully develop good human relations

Networking Networking – the ongoing process of building interconnected relationships for the purpose of politicking and socializing Networking is a form of political behavior People 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 them Step 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 bargaining Networking 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 Integrative Bargaining Negotiating to give everyone a good deal Creating a win-win situation Key is to be open to options besides take it or leave it You have to have open honest communications Requires flexibility to agree on creative solutions 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

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 deal Work at the goal of human relations by developing a win-win situation for all parties Negotiating skills can be developed

The Negotiating Process Agreement Plan Bargain No Agreement Postponement

The Negotiating Process: Planning Step 1. Research the other parties – Read them Step 2. Set objectives Step 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 offer Step 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 negotiations The other party is postponing and you may create urgency You want to postpone and the other party may create urgency

The Negotiating Process: Agreement It is common for targets to be in opposition Bargaining 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 / or put it in writing when appropriate

Other Party’s Objective Range The Bargaining Range Your Objective Range Other Party’s Objective Range Your BATNA Other party’s BATNA Bargaining Range Your opening offer ($33,000) Your target ($30,000) Other party’s limit [upper] ($30,000) Your limit [lower] ($27,000) Other party’s target ($29,000) Other party’s opening offer ($26,000)

The Negotiating Process: No Agreement If you cannot come to an agreement: Analyze the situation Try to determine where you went wrong so you can improve in the future You 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