In lesson 1, several questions about negotiation were answered and two different approaches called distributive (win-lose) and integrative (win-win) negotiation were introduced. (Be sure to complete Lesson 1 before continuing with Lesson 2.)
This and subsequent lessons about negotiation in this package will focus on the main qualities of successful integrative negotiators and some of the language they use for success.
Pre-Video Vocabulary Task
Complete the following vocabulary task to better understand the video below.
Task 1: Fill in the blanks with words or phrases from the box below.
gut
up front
payoff
kindred spirit
party
to operate from one’s gut
1.
a person or group participating in an action or affair
party
2.
people whose interests or attitudes are similar to one's own
kindred spirits
3.
stomach
gut
4.
to act on instinct rather than rational thought
operate from one’s gut
5.
(to pay) in advance
up front
6.
a return on an investment
payoff
Answer
(1) party (2) kindred spirits (3) gut (4) operate from one’s gut (5) up front (6) payoff
Now watch the following clip from the film ‘Jobs’ about the beginning of Apple Computers.
Steve:So what kind of investment are we talking about here? Paul:Jeez, Steve. I said I was interested, not buying. Steve:I know. But you’re not the only other interested party. Paul: (Sarcastically) Oh really? I’m not? Steve:No, you’re not. Paul: Hmmm… that’s interesting ‘cause it sure seemed that way the other night at Homebrew
(Computer Club). Steve:Do you think that’s the first stop that we made? We’ve been all over the valley. Paul: Oh well then, you already have a retailer. Steve: I got offers, Paul. My middle name’s Paul. My Dad’s name is Paul. A bunch of Pauls. I think we’re
kindred spirits here. We’re both businessmen and operate from our gut. And my gut tells me to
give you this opportunity. Paul:(Thinks) I’m thinking 400 per machine for 50 units, paid at the time of delivery. Steve:400 for one hundred units, a third up front. Paul:We’re not negotiating. Steve: Yes we are. Paul:(Thinks) Ok. I’ll pay 450 per machine. 450 - on delivery. Nothing up front. I know it’s asking a lot
Steve, but it’s a big payoff if you deliver. Steve:When I deliver. (Thinks) Ahh…500 per unit and you got a deal. Paul:All right. You got 90 days. Steve:I’ll have it in 60.
Listen to the audio file
Some Characteristics of Successful Negotiators
Some qualities of successful negotiators are:
Persistence (determination)
Patience / not rushing into agreement or revealing too much interest
Confidence
Ability to find common ground (to find shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
Several of these qualities are displayed by the characters in the video. Complete the task below to discover the negotiating skills of each character and the language they use.
Task 2: Select the best answer(s) for each question below.
Which negotiation skill does Paul display in the following sentence? (Tick only one.)
Paul:I know it’s asking a lot, Steve, but it’s a big payoff if you deliver.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Which negotiation skill does Paul display in the following sentence? (Tick only one.)
Steve:My middle name’s Paul. My Dad’s name is Paul. A bunch of Pauls. I think
we’re kindred spirits here.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Which negotiation skill does Paul display in the following sentence? (Tick only one.)
Steve: -Jeez, Steve. I said I was interested, not buying.
-Oh well then, you already have a retailer.
-We’re not negotiating.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Which negotiation skill does Paul display in the following sentence? (Tick two answers.)
Paul:I’m thinking 400 per machine for 50 units, paid at the time of delivery. Steve:400 for one hundred units, a third up front. Paul:(Thinks) ‘Ok. I’ll pay 450 per machine. 450 - on delivery. Nothing up front. I know it’s asking
a lot, Steve, but it’s a big payoff if you deliver. Steve:When I deliver. (Thinks) Ahh…500 per unit and you got a deal. Paul:All right. You got 90 days. Steve:I’ll have it in 60.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Which negotiation skill does Paul display in the following sentence? (Tick only one.)
Steve:I know. But you’re not the only other interested party. Paul:(Sarcastically) Oh really? I’m not? Steve:No, you’re not. Paul:Hmmm… that’s interesting ‘cause it sure seemed that way the other night at Homebrew (Computer Club).
Steve:Do you think that’s the first stop that we made? We’ve been all over the valley.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Which negotiation skill does Paul display in the following sentence? (Tick only one.)
Paul:…it’s a big payoff if you deliver. Steve:When I deliver.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Listen to the audio file
Reaching a Compromise
The video clip above demonstrates that reaching a compromise – which means finding the middle ground in which both parties are satisfied – is the main goal of integrative negotiation as both parties are hoping to begin a profitable and mutually beneficial long term business relationship with one another. To reach a compromise that satisfies all parties requires many of the characteristics these actors display, and are also exhibited by the characters in the next video.
(Source: Just Go With It (2011) Columbia Pictures, Happy Madison Productions)
Danny: …I thought you’d be excited to have an acting job. Bailee: If it’s an acting job, we should get paid. Danny: Yeah. You’re gonna get paid…in experience. Bailee: I wanna actually get paid. Danny: (laughs) All right, what do you want? Bailee: 600 dollars for the day, plus overtime if we go over eight hours. I’ll do my own hair and
makeup and I want you to pay for the 6-week intensive acting camp that my mom can’t afford. Danny: 50 dollars for the day and a 2-week acting class at the YMCA nearest you. Bailee: 500 dollars and a 4-week acting class. Danny: 300 dollars and a 3-week class. Bailee: Done. (Offers her hand for shaking). Danny: (Shakes her hand) I would have done it for 500 (dollars). Bailee: (laughs) I would have done it for the experience.
Task 3: Select the best answer(s) for each question below.
Which negotiation skill does Bailee display in the following sentence? (Tick only one.)
Bailee: -If it’s an acting job, we should get paid. -I wanna actually get paid.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Which negotiation skill does Bailee display in the following sentence? (Tick only one.)
Bailee:600 dollars for the day, plus overtime if we go over eight hours. I’ll do my own hair and
makeup and I want you to pay for the 6-week intensive acting camp that my mom can’t
afford.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Which negotiation skills does Bailee display in the following sentences? (Tick two answers.)
Danny:600 dollars for the day, plus overtime if we go over eight hours. I’ll do my own hair and makeup and I want you to pay for the 6-week intensive acting camp that my mom can’t
afford. Bailee:500 dollars and a 4-week acting class. Danny:300 dollars and a 3-week class.
Persistence (determination)
Patience / not rushing to commit
Ability to find common ground (finding shared interests, beliefs, values, opinions)
Flexibility / willingness to negotiate
Respect for the other party
Clarity in making offers
Willingness to hide or ‘stretch’ the truth to appear strong
(Correct answers are bolded.)
Listen to the audio file
Five Important Characteristics of Skilled Negotiators
As seen in the above examples, good negotiators have many qualities and use different tactics to reach agreements with other parties.
Task 4: Vocabulary matching. Drag and drop the definitions on the right to the appropriate vocabulary on the left.
Now complete Task 5 to learn more about the five most important characteristics of skilled negotiators.
Task 5: Fill in the gaps with word from the boxes at the bottom of each character trait.
inflexible
persists
character
persistent
persistence
1. Being Persistent
Steve: 400 for one hundred units, a third up front. Paul: We’re not negotiating. Steve: Yes we are.
In this exchange, Steve is
1)persistent
when he says ‘yes we are’ to Paul as he has a strong desire to find a good retailer for his computers. He feels confident that his computers will sell well and that Paul is the best person to help sell them. As a result, he
2)persists
in trying to involve Paul.
In the following exchange…
Danny: I thought you’d be excited to have an acting job. Bailee: If it’s an acting job, we should get paid. Danny: Yeah. You’re gonna get paid…in experience. Bailee: I wanna actually get paid.
…Bailee shows her determination to be paid and that she will not work for free. It is her
3)persistence
that lets Danny know how serious she is and that he must negotiate with her if he wants Bailee to do the job.
Inexperienced negotiators are sometimes not persistent enough or give up too easily when the other side says ‘no’. Some parties say ‘no’ or remain
4)inflexible
at the beginning of negotiations as a strategy to test the resolve of the other party. Good negotiators, therefore, do not easily take ‘no’ as an answer and try to find reasons for the other side’s inflexibility. Skilled negotiators treat every ‘no’ as a reason for further negotiation and as a stepping stone to a ‘yes’. Being persistent is a key
5)character
trait of successful negotiators.
Answer
(1) persistent (2) persists (3) persistence (4) inflexible (5) character
overly
patience
concede
weakness
patient
2. Being Persistent
In the following exchange…
Steve:So what kind of investment are we talking about here? Paul:Jeez, Steve. I said I was interested, not buying. Steve:I know. But you’re not the only other interested party. Paul:(Sarcastically) Oh really? I’m not? Steve:No, you’re not. Paul:Hmmm… that’s interesting ‘cause it sure seemed that way the other night at Homebrew (Computer Club). Steve:Do you think that’s the first stop that we made? We’ve been all over the valley. Paul:Oh well then, you already have a retailer.
…Paul does not immediately show interest in doing business with Steve even though he wants to. Being
1)patient
and non-committal allows Paul to
2)concede
less in future negotiations as he knows that Steve is hungry to do business with him and that Steve has very few or no other interested partners.
3)Patience
allows Paul to maintain his power in negotiations with Steve, helping him to gain more. Skilled negotiators are patient because being too eager is viewed as a sign of
4)weakness
or desperation.
Answer
(1) patient (2) concede (3) Patience (4) weakness
flexible
agreement
return
concessions
flexibility
3. Being Flexible – Making Concessions
1)Flexibility
is another key characteristic of skilled negotiators. When negotiating, it is expected that each party will make
2)concessions
to the other in order to reach a ‘win-win’
3)agreement
. Skilled negotiators see concessions as a process of receiving something in
4)return
for giving something up. The main goal of skilled negotiators is to always receive something back each time they concede something.
In the following exchange…
Paul:I’m thinking 400 per machine for 50 units, paid at the time of delivery. Steve:400 for one hundred units, a third up front. Paul: Ok. I’ll pay 450 per machine. 450 - on delivery. Nothing up front. I know it’s asking a lot,
Steve, but it’s a big payoff if you deliver. Steve:500 per unit and you got a deal. Paul:All right. You got 90 days. Steve:I’ll have it in 60.
Bailee:600 dollars for the day, plus overtime if we go over eight hours. I’ll do my own hair and
make-up and I want you to pay for the 6-week intensive acting camp that my mom
can’t afford. Danny:50 dollars for the day and a 2-week acting class at the YMCA nearest you. Bailee:500 dollars and a 4-week acting class. Danny:300 dollars and a 3-week class.
…each party shows flexibility and makes concessions to the other party. Being 5)flexible
and making concessions is a key element of all successful negotiations.
Paul:I’m thinking 400 per machine for 50 units, paid at the time of delivery. Steve:400 for one hundred units, a third up front. Paul: Ok. I’ll pay 450 per machine. 450 - on delivery. Nothing up front. I know it’s asking a lot,
Steve, but it’s a big payoff if you deliver. Steve:500 per unit and you got a deal. Paul:All right. You got 90 days. Steve:I’ll have it in 60.
Danny:All right, what do you want? Bailee:600 dollars for the day, plus overtime if we go over eight hours. I’ll do my own hair and
make-up and I want you to pay for the 6-week intensive acting camp that my mom
can’t afford. Danny:50 dollars for the day and a 2-week acting class at the YMCA nearest you. Bailee:500 dollars and a 4-week acting class. Danny:300 dollars and a 3-week class.
…each party presents their
1)terms
very clearly. Most of the sentences are short,
2)direct
and very clear allowing for little or no confusion. Skilled negotiators think deeply and prepare well for each negotiation to know exactly what they are willing to
3)offer
and what they are willing to
4)concede
to the other party.
5)Clarity
prevents misunderstandings and errors and is therefore a very important aspect of successful negotiation.
Answer
(1) terms (2) direct (3) offer (4) concede (5) Clarity
sincere
breakdowns
appreciates
consideration
empathizes
5. Being Respectful of the Other Party
In the following exchange…
Paul:I know it’s asking a lot, Steve, but it’s a big payoff if you deliver.
Bailee:Done. (Offers her hand for shaking). Danny:(Shakes her hand)
…each party shows respect for the other. When Paul says, 'I know it's asking a lot', he lets Steve know that he 1)empathizes
with his problems and that he understands that his task of building many computers in a short time will not be easy. Showing
2)consideration
for the other party’s situation helps to maintain smooth negotiations and avoid harmful
3)breakdowns
in communication. By using Steve's given name - 'I know it's asking a lot, Steve…' - Paul shows that he is 4)sincere
in his understanding of Steve's situation, and adds a warm and friendly element to the negotiation. Paul is also wise to remind Steve about the 'big payoff' as this also shows that Paul clearly 5)appreciates
Steve's situation.
Answer
(1) terms (2) direct (3) offer (4) concede (5) Clarity
There is a great deal of language that can be used to convey the above characteristics in negotiations. Complete Task 6 to learn more phrases that can be used to express these characteristics.
Task 6: Complete the chart below by writing the appropriate heading that best describes the language in each column. Use the headings from the box.
HEADINGS
HEADINGS
SHOWING FLEXIBILITY / CONCESSIONS
SHOWING PATIENCE / BEING NON-COMMITTAL
SHOWING RESPECT FOR THE OTHER PARTY
SHOWING PERSISTENCE
BEING CLEAR
(1)
(2)
(3)
(4)
(5)
SHOWING RESPECT FOR THE OTHER PARTY
SHOWING PERSISTENCE
SHOWING FLEXIBILITY / CONCESSIONS
BEING CLEAR
SHOWING PATIENCE / BEING NON-COMMITTAL
We realize it’s asking a lot Mr. Smith, but it should pay large dividends if you can deliver.
Despite difficulties with this issue, we can find a solution which is beneficial to everyone.
As you have made a concession on price, we can concede on the delivery date.
Our offer is 400 dollars per order with 30% up front.
We are not sure that we are interested in this product at this time.
We understand the pressure this puts you under but if you can deliver on time, there will be substantial reward…
Although you’ve stated clearly that you would not move on this matter, we would like to propose…
Would you be willing to accept a compromise?
We feel 300 dollars per order and 20% up front are fair terms.
It seems you already have several interested parties lined up to help you with this.
We hope to understand your position on this matter. What do you feel is a fair solution?
Despite our differences, we hope to settle this in a mutually beneficial way.
We normally only offer these conditions to regular customers, but we can offer them to you.
We propose 35 hours per week plus 3 weeks’ paid vacation each year.
We would need 48 hours to discuss this proposal and get back to you with our decision.
We do appreciate the financial strain this puts you under, so we’d like to offer you an extension on the delivery date.
Despite our previous failed attempts to reach an agreement, we would like to re-open negotiations.
There are a few areas that we feel we can compromise on…
We are only prepared to offer 40 hours per week and 2 weeks’ paid annual vacation.
-Our board would need to authorize this before any decision could be made,
Answer
(1) SHOWING RESPECT FOR THE OTHER PARTY (2) SHOWING PERSISTENCE (3) SHOWING FLEXIBILITY / CONCESSIONS (4) BEING CLEAR (5) SHOWING PATIENCE / BEING NON-COMMITTAL
Vocabulary Practice
Task 7: Study the chart above for 5 minutes then complete the gap fill exercise. Try not to refer to the chart while completing the exercise.
Showing Respect for the Other Party
We realize it’s asking a lot of you Mr. Smith, but it should pay large dividends if you can deliver.
We hope to better understand your position on this matter. What do you think is a fair way to resolve the situation?
We do understandappreciate the pressure this puts you under but if you can deliver on time, there will be substantial reward to you.
We do understandappreciate the financial strain this puts you under, so we’d like to offer you an extension on the delivery date.
We propose 35 hours per week plus 3 weeks’ paid vacation each year.
We are only prepared to offer 40 hours per week and 2 weeks’ paid annual vacation.
Our offer is 400 dollars per order with 30% up front.
Answer
(1) propose (2) prepared (3)front
Showing Patience/ Being Non-Committal
We would need 48 hours to discuss this proposal and get back to you with our decision.
We are not sure that we are interested in this product at this time.
Our board would need to authorize this before any decision could be made.
Answer
(1) get back (2) sure (3)authorize
Listen to the audio file
Informal vs Formal Negotiation
In the above video, Bailee and Danny know each other well and therefore use a relaxed, informal tone in their negotiation. An informal tone, however, would not be appropriate in negotiations where people do not know each other well, or in more formal business situations. Formal negotiation requires a higher level of language, vocabulary and skill – which will be the focus of subsequent lessons in this series about negotiation.
What was covered in Lesson 2? Take the summary quiz!
Task 8: Quiz: What did you learn in this lesson about the characteristics of skilled negotiators?
Yes
No
1.
Skilled negotiators always try to gain as much for themselves as possible.
2.
Skilled negotiators try to reach a compromise with the other party/parties.
3.
Skilled negotiators often try to create a 'win-win' result especially if they how to work with the other party in the future.
4.
A 'kindred spirit' is a person who has very similar interests and values as another.
5.
To 'operate from one's gut' means to think rationally before acting.
6.
'Nothing up front' means no money will be paid in advance.
7.
Skilled negotiators often try to find something that all parties have in common.
8.
Being persistent is a quality of inexperienced negotiators.
9.
Respect and understanding of the other party`s situation cannot lead to a satisfactory result.
10.
Skilled negotiators are seldom flexible when dealing with the other party.
11.
Willingness to hide or stretch the truth to make oneself appear strong is a common characteristic of skilled negotiators.
12.
Skilled negotiators purposely avoid clarity when making offers to confuse the other party/parties.
13.
Skilled negotiators expect to make concessions to the other party/parties.
14.
Skilled negotiators may appear non-committal and unwilling at first.
15.
The characters in the videos in this lesson know one another and therefore negotiate using informal English.
(Correct answers are highlighted in yellow)
Listen to the audio file
Now complete the next lesson in this series entitled:
Listen to the audio file
