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UNIT 7 Clear Communication (Asking Questions). INTRODUCTION. Questions are a very important part of any negotiation. By asking questions, both sides of a negotiation can make their meaning clear. In a normal conversation, it is easy to misunderstand someone’s meaning.
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INTRODUCTION • Questions are a very important part of any negotiation. • By asking questions, both sides of a negotiation can make their meaning clear. • In a normal conversation, it is easy to misunderstand someone’s meaning. • During a negotiation, everyone is under some pressure, making it even easier to have a misunderstanding.
INTRODUCTION • Asking questions is a strategy for overcoming those misunderstandings. • Another type of question does not help with understanding but is meant to make the negotiation more difficult. • These questions are often not seeking information but are part of a distributive negotiation strategy. • A negotiator must be able to deal with these questions without becoming angry.
DIALOG(Personal Questions in Bargaining) • Father: You cannot watch any television until you do some work around the house. • Son: I have some questions about what you mean. • Father: It is very simple. Television is conditional on helping around the house. • Son: May I inquire as to what exactly I need to do? • Father: The requirement includes cleaning your room and washing the dishes. • Son: Can your give me a reduction to just cleaning my room? • Father: I think my offer is already very generous. I shouldn’t let you watch any television. • Son: I see your point, but don’t you think if I do all that work first, I’ll be too tired to enjoy any television. • Father: That is a leading question and is not at all what I think. Maybe I should include mopping the floor also. • Son: Stay calm Mom. I think your offer is very reasonable.
DIALOG(Business Questions in Bargaining) • Alex: Our main objection to your first offer is that it includes only two product types. • Fred: What is your requirement? • Alex: We need at least four product types. • Fred: How different do the designs need to be? • Alex: We can leave this question open-ended for now, it really depends on you. • Fred: So you will let us create the design? • Alex: Yes, we don’t have any objection to that.
DIALOG(Business Questions in Bargaining) • Fred: But this is not reasonable since we would have to spend a lot of time and money on new designs you may just reject and we end up with no agreement. • Alex: Let’s not get confrontational. • Fred: Why is this model issue so important to you? • Alex: We are not flexible on this; we must have at least four different models so our stores do not compete against each other. • Alex: So, your strategy is to put different models in different stores?
DIALOG(Business Questions in Bargaining) • Fred: Exactly. Our counteroffer is exactly the same as your first offer, only with more product models. • Fred: What are the total number of units? • Alex: The total units stay the same. • Fred: Can you appreciate we have higher costs if we produce four models? • Alex: Yes, we can see that. What can we do to help you overcome this problem? • Fred: If you could sweeten the deal by increasing the total units, than our per unit cost will be lower. • Alex: The final offer I can make then is 500,000 units, which is a 20 percent increase.
DIALOG(Business Questions in Bargaining) • Fred: That is not exactly generous, but it does help. • Alex: The product design issue is still unresolved. • Fred: As I said, we would like to leave that up to you. • Alex: But your offer is conditional on having four models. I don’t think the product design should stay so informal. • Fred: We can revisit this issue after we have reached agreement out the other details. • Alex: I don’t like postponing such an important issue, but I guess it is reasonable.
VOCABULARY • Agreement (n): Terms all sides of the negotiation find acceptable; A positive end to a negotiation. • Calm (adj): Showing no emotion; Not excited or angry. • Conditional (adj): Depending on something; An action that will be done only if another action is done first. • Confrontational (adj): Showing anger; Objecting to the other side of the negotiation. • Counteroffer (n): An offer or proposal made after rejecting the other side’s offer. • Generous (adj): An offer or part of an offer that is very good for the other side; Giving more than is required. • Inquire (v): To ask a question; Request some information. • Leading (adj): Directing or pushing the other side in a direction during the negotiation; A question that pushes the other side to give the answer wanted.
VOCABULARY • Objection (n): A reason to not agree; Disagreeing with a point from the other side. • Open-ended (adj): Having no limit; A question that allows any answer. • Reasonable (adj): Not asking for too much; Agreeable to both sides. • Reduction (n): The amount some part of an offer is lowered; The lowering of some demand. • Requirement (n): Something that must be done; A point of the negotiation one side is forced to do or accept. • Revisit (v): To consider a point of the negotiation that was already agreed upon; To talk about a point at a later time. • Units (n): A single measure of the products being negotiated. • Unresolved (adj): Some point of the negotiation not agreed on yet; The lack of information both sides can agree on.
FOLLOW UP • When two people communicate, there are many chances for misunderstanding. • The communication model shows that a speaker must take an idea and encode it. • Encoding is influenced by factors such as culture, experience, and emotions.
FOLLOW UP • The message is next converted into words, which is of course a language and can include other things like codes from body language. • Decoding takes place when the listener tries to understand what the speaker is saying.
FOLLOW UP • Communication theory tells us that even though the message appears clear to both sides, the meaning is actually quite different.
FOLLOW UP • There are two basic types of questions: Positive and Negative. • Positive questions help to make the negotiation clear and overcome the problems shown in the communication model. • These questions can be answered, leading to building the relationship, especially in an integrative negotiation situation.
FOLLOW UP • Negative questions usually do not have an answer. • These questions are not really questions at all but an attempt to influence the negotiation by pressuring the other side. • In an integrative negotiation setting negative questions can help gain an advantage.
FOLLOW UP • When facing a tough situation in a negotiation, some questions can be helpful in making some progress.