Markus Prepares to Negotiate with Louis

Negotiations in English

Vocabulary

Word Part of speech	Meaning	Example Sentence
Alternativesnoun	other options	We can't offer you the raise you requested, but let's discuss some other alternatives.
Amplifyverb	expand; give more information	Could you amplify on your proposal please.
Arbitrationnoun	conflict that is addressed by using a neutral third party	We're better to settle this between us, because a formal arbitration will cost both of us money.
Bargainverb	try to change a person's mind by using various tactics	We bargained on the last issue for over an hour before we agreed to take a break.
bottom-linenoun	the lowest one is willing to go	I'll accept a raise of one dollar per hour, but that's my bottom-line.
Collectiveadj	together	This is a collective concern, and it isn't fair to discuss it without Marie present.
Compensateverb	make up for a loss	If you are willing to work ten extra hours a week we will compensate you by paying you overtime.
Complyverb	agree	I'd be willing to comply if you can offer me my own private office.
Compromiseverb	changing one's mind/terms slightly in order to find a resolution	We are willing to compromise on this issue because it means so much to you.
Concessionnoun	a thing that is granted or accepted	I think we can offer all of these concessions, but not all at once.
conflict resolution noun	general term for negotiations	It is impossible to engage in conflict resolution when one of the parties refuses to listen.
Confrontverb	present an issue to someone directly	I confronted my boss about being undervalued, and we're going to talk about things on Monday.
Consensusnoun	agreement by all	It would be great if we could come to a consensus by 5:00 P.M.
Cooperationnoun	the working together	I have appreciated your cooperation throughout these negotiations.
Counter proposal noun	the offer/request which is presented second in response to the first proposal	In their counter proposal they suggested that we keep their company name rather than creating a new one.
Counterattack verb/noun	present other side of an issue	Before we could start our counterattack they suggested we sign a contract.
Counterpartnoun	person on the other side of the negotiations	I tried to close the discussions at noon, but my counterpart would not stop talking.
Cordiallyerb/noun	politely	In the past I have had little respect for that client, but today she spoke cordially and listened to my point of view.
Demandsadv	needs/expectations that one side believes it deserves	They had some last minute demands that were entirely unrealistic.
Deadlocknoun	point where neither party will give in	When the discussions came to a deadlock we wrote up a letter of intent to continue the negotiations next week.
Disputenoun	argument/conflict	I was hoping to avoid discussing last year's dispute, but Monica is still holding a grudge.
Dominateverb	have the most control/stronger presence	Max has such a loud voice, he tends to dominate the conversations.
Entitledadj	be deserving of	My contract says that I am entitled to full benefits after six months of employment.
Flexibleadj	open/willing to change	We have always been flexible in terms of your working hours.
Hagglingverb	arguing back and forth (often about prices)	We've been haggling over this issue for too long now.
Hostilitynoun	long-term anger towards another	I want you to know that we don't have any hostility towards your company despite last year's mixup.
High-ballverb	make a request that is much higher than you expect to receive	I'm planning to high-ball my expectations when I open the discussion.
Impulsenoun	quick decision without thought or time	I acted on impulse when I signed that six-month contract.
Indecisiveadj	has difficulty choosing/making a decision	They were so indecisive we finally asked them to take a break and come back next week.
Leveragenoun	(bargaining power) something that gives one party a greater chance at succeeding over another	We have a little bit of leverage because we are the only stationary company in town.
Log-rollingverb	trading one favour for another	After a bit of log-rolling we came to an agreement that pleased both of us.
Low-ballverb	offer something much lower than you think the opponent will ask for	I was expecting my boss to low-ball in the initial offer, but he proposed a fair salary increase.
Misleadverb	convince by altering or not telling the whole truth about something	They misled us into thinking that everything could be resolved today.
Mutualadj	agreed by both or all	The decision to call off the merger was mutual.
Objectivenoun	goal for the outcome	My prime objective is to have my family members added to my benefits plan.
Point of viewnoun	person's ideas/ thoughts	From my point of view it makes more sense to wait another six months.
Pressureverb	work hard to convince another of an idea	He pressured me to accept the terms by using intimidation tactics.
Proposalnoun	argument to present	While I listened to their proposal I noted each of their objectives.
Receptiveadj	open to/interested in an idea	His positive body language demonstrated that he was receptive to our suggestions.
Resentmentnoun	anger held onto from a previous conflict	Mary's resentment stems from our not choosing her to head the project.
Resistancenoun	a display of opposition	We didn't expect so much resistance on the final issue.
Resolveverb	end conflict, come to an agreement	Before you can resolve your differences you'll both need to calm down.
Tacticsnoun	strategies used to get one's goals met	There are certain tactics that all skillful negotiators employ.
Tensionnoun	feeling of stress/anxiety caused by heavy conflict	There was a lot of tension in the room when George threatened to quit.
Trade -offnoun	terms that are offered in return for something else	Lower payments over a longer period of time sounded like a fair trade-off until we asked about interest charges.
Ultimatumnoun	a final term that has serious consequences if not met	His ultimatum was that if I didn't agree to give him the raise he asked for, he'd quit today without two week's notice.
Unrealisticadj	very unlikely to happen	It's unrealistic to think that we will have all of our demands met.
Victorynoun	a win	We considered it a victory because they agreed to four of our five terms.
Yieldverb	to give in to another's requests	The client will only yield to our conditions, if we agree to work over the holiday weekend.

 

Preparing to Negotiate

Lack of preparation in a negotiation almost always sets a person up for failure. First and foremost, each party must clearly define their own goals and objectives. Secondly, each party must anticipate the goals of the opposition. This may require doing some background research. Finally, each party must come up with various alternatives to their main objectives.

 

Collaborative Negotiating

 

In business, the goal of negotiating parties should always be for mutual gain. This type of win-win negotiation is often called collaborative negotiating. The opposite of collaborative negotiating is called competitive negotiating. The goal of competitive negotiating is for one party to win and the other to lose. Dishonest practices, such as lying, manipulation, intimidation, and bribery are often used in this type of negotiation.

Main Principles of Collaborative Negotiating:

· Resolve previous conflicts ahead of time

· Deal with issues, not personalities

· Commit to listening more than speaking: The more you know about your counterpart, the more likely you will achieve your goals. You cannot convince someone of something when you do not know anything about them, or what their own needs are. A common mistake is to prepare one's next question or point while the opponent is speaking.

· Establish trust in the onset

· Develop a common goal

· Discuss a common enemy

· Take opponent's views/needs into careful consideration: Not only do you want to win this negotiation, you want your opponent to win as well, so that he or she will negotiate with you again in the future.

 

The Negotiation Process

 

It's time to negotiate! Here are a few golden rules to successful negotiations:

1 ) Always try to negotiate for at least 15 minutes. Any less than that and it is unlikely that either party has had enough time to fairly consider the other side. Generally, the size or seriousness of the negotiation determines the amount of time needed to negotiate it. Setting a time limit is a good idea. Approximately 90% of negotiations get settled in the last 10% of the discussion.

2) Always offer to let the other party speak first. This is especially important if you are the one making a request for something such as a raise. The other party may have overestimated what you are going to ask for and may actually offer more than what you were going to request.

3) Always respect and listen to what your opponent has to say. This is important even if he or she does not extend the same courtesy to you. Do your best to remain calm and pleasant even if the other party is displaying frustration or anger. Remember some people will do anything to intimidate you.

4) Acknowledge what the other party says. Everyone likes to know that what they say is important. If the other party opens first, use it to your advantage, by paraphrasing what you have heard. Repeat their important ideas before you introduce your own stronger ones.

5) Pay attention to your own and your counterpartner's body language. Review the chart below to learn how to interpret body language during the negotiations. Make sure that you aren't conveying any negative body language.

 

Language to use to show understanding/agreement on a point:

I agree with you on that point.

That's a fair suggestion.

So what you're saying is that you...

In other words, you feel that...

You have a strong point there.

I think we can both agree that...

I don't see any problem with/harm in that.

Language to use for objection on a point or offer:

I understand where you're coming from; however,...

I'm prepared to compromise, but...

The way I look at it...

The way I see things...

If you look at it from my point of view...

I'm afraid I had something different in mind.

That's not exactly how I look at it.

From my perspective...

I'd have to disagree with you there.

I'm afraid that doesn't work for me.

Is that your best offer?

 

Body Language	Possible meaning
Avoiding Eye Contact	Lying Not interested Not telling the whole truth
Serious Eye Contact	Trying to intimidate Showing anger
Touching the face/fidgeting	Nervousness Lack of confidence Submission
Nodding	Agreeing Willing to compromise
Shaking the head/turning away	Frustrated In disbelief Disagreeing with a point

 

Language to use in closing

It sounds like we've found some common ground.

I'm willing to leave things there if you are.

Let's leave it this way for now.

I'm willing to work with that.

I think we both agree to these terms.

I'm satisfied with this decision.

I think we should get this in writing.

I'd like to stop and think about this for a little while.

You've given me a lot to think about/consider.

Would you be willing to sign a contract right now?

Let's meet again once we've had some time to think.

 

Negotiations in English

Vocabulary

Word Part of speech	Meaning	Example Sentence
Alternativesnoun	other options	We can't offer you the raise you requested, but let's discuss some other alternatives.
Amplifyverb	expand; give more information	Could you amplify on your proposal please.
Arbitrationnoun	conflict that is addressed by using a neutral third party	We're better to settle this between us, because a formal arbitration will cost both of us money.
Bargainverb	try to change a person's mind by using various tactics	We bargained on the last issue for over an hour before we agreed to take a break.
bottom-linenoun	the lowest one is willing to go	I'll accept a raise of one dollar per hour, but that's my bottom-line.
Collectiveadj	together	This is a collective concern, and it isn't fair to discuss it without Marie present.
Compensateverb	make up for a loss	If you are willing to work ten extra hours a week we will compensate you by paying you overtime.
Complyverb	agree	I'd be willing to comply if you can offer me my own private office.
Compromiseverb	changing one's mind/terms slightly in order to find a resolution	We are willing to compromise on this issue because it means so much to you.
Concessionnoun	a thing that is granted or accepted	I think we can offer all of these concessions, but not all at once.
conflict resolution noun	general term for negotiations	It is impossible to engage in conflict resolution when one of the parties refuses to listen.
Confrontverb	present an issue to someone directly	I confronted my boss about being undervalued, and we're going to talk about things on Monday.
Consensusnoun	agreement by all	It would be great if we could come to a consensus by 5:00 P.M.
Cooperationnoun	the working together	I have appreciated your cooperation throughout these negotiations.
Counter proposal noun	the offer/request which is presented second in response to the first proposal	In their counter proposal they suggested that we keep their company name rather than creating a new one.
Counterattack verb/noun	present other side of an issue	Before we could start our counterattack they suggested we sign a contract.
Counterpartnoun	person on the other side of the negotiations	I tried to close the discussions at noon, but my counterpart would not stop talking.
Cordiallyerb/noun	politely	In the past I have had little respect for that client, but today she spoke cordially and listened to my point of view.
Demandsadv	needs/expectations that one side believes it deserves	They had some last minute demands that were entirely unrealistic.
Deadlocknoun	point where neither party will give in	When the discussions came to a deadlock we wrote up a letter of intent to continue the negotiations next week.
Disputenoun	argument/conflict	I was hoping to avoid discussing last year's dispute, but Monica is still holding a grudge.
Dominateverb	have the most control/stronger presence	Max has such a loud voice, he tends to dominate the conversations.
Entitledadj	be deserving of	My contract says that I am entitled to full benefits after six months of employment.
Flexibleadj	open/willing to change	We have always been flexible in terms of your working hours.
Hagglingverb	arguing back and forth (often about prices)	We've been haggling over this issue for too long now.
Hostilitynoun	long-term anger towards another	I want you to know that we don't have any hostility towards your company despite last year's mixup.
High-ballverb	make a request that is much higher than you expect to receive	I'm planning to high-ball my expectations when I open the discussion.
Impulsenoun	quick decision without thought or time	I acted on impulse when I signed that six-month contract.
Indecisiveadj	has difficulty choosing/making a decision	They were so indecisive we finally asked them to take a break and come back next week.
Leveragenoun	(bargaining power) something that gives one party a greater chance at succeeding over another	We have a little bit of leverage because we are the only stationary company in town.
Log-rollingverb	trading one favour for another	After a bit of log-rolling we came to an agreement that pleased both of us.
Low-ballverb	offer something much lower than you think the opponent will ask for	I was expecting my boss to low-ball in the initial offer, but he proposed a fair salary increase.
Misleadverb	convince by altering or not telling the whole truth about something	They misled us into thinking that everything could be resolved today.
Mutualadj	agreed by both or all	The decision to call off the merger was mutual.
Objectivenoun	goal for the outcome	My prime objective is to have my family members added to my benefits plan.
Point of viewnoun	person's ideas/ thoughts	From my point of view it makes more sense to wait another six months.
Pressureverb	work hard to convince another of an idea	He pressured me to accept the terms by using intimidation tactics.
Proposalnoun	argument to present	While I listened to their proposal I noted each of their objectives.
Receptiveadj	open to/interested in an idea	His positive body language demonstrated that he was receptive to our suggestions.
Resentmentnoun	anger held onto from a previous conflict	Mary's resentment stems from our not choosing her to head the project.
Resistancenoun	a display of opposition	We didn't expect so much resistance on the final issue.
Resolveverb	end conflict, come to an agreement	Before you can resolve your differences you'll both need to calm down.
Tacticsnoun	strategies used to get one's goals met	There are certain tactics that all skillful negotiators employ.
Tensionnoun	feeling of stress/anxiety caused by heavy conflict	There was a lot of tension in the room when George threatened to quit.
Trade -offnoun	terms that are offered in return for something else	Lower payments over a longer period of time sounded like a fair trade-off until we asked about interest charges.
Ultimatumnoun	a final term that has serious consequences if not met	His ultimatum was that if I didn't agree to give him the raise he asked for, he'd quit today without two week's notice.
Unrealisticadj	very unlikely to happen	It's unrealistic to think that we will have all of our demands met.
Victorynoun	a win	We considered it a victory because they agreed to four of our five terms.
Yieldverb	to give in to another's requests	The client will only yield to our conditions, if we agree to work over the holiday weekend.

 

Preparing to Negotiate

Lack of preparation in a negotiation almost always sets a person up for failure. First and foremost, each party must clearly define their own goals and objectives. Secondly, each party must anticipate the goals of the opposition. This may require doing some background research. Finally, each party must come up with various alternatives to their main objectives.

 

Markus Prepares to Negotiate with Louis

Markus approaches Louis after his shift on Friday afternoon and asks if he can arrange a meeting to discuss a potential promotion. Louis sighs and reminds Markus that they already had this discussion last year. Markus agrees, but reminds Louis of his loyalty to the company and insists that they speak again on the subject next week. Eventually Louis, who is afraid that Markus might quit on the spot, agrees to meet on Monday during the crew's lunchhour.

Over the weekend, Markus thinks about Monday's meeting. Last year, he was unprepared to negotiate and ended up only getting a 50 cent/hour pay raise. This did not satisfy him, and he has continued to feel undervalued ever since. Many times, after a hard day at work, Markus has considered quitting. However, it is difficult to find work in the middle of winter. Markus has a family to support and he can't afford to lose his job.

Markus decides to do some research on negotiating. He learns the principles behind collaborative negotiating, and decides that this is the approach he will take this time. After he has understood the concept he can ask himself the preparatory questions above. Finally, he can apply the rules of collaborative negotiating to his own case.

 

Here are some preparatory questions to ask yourself before beginning talks with the other party:

What is my main objective?

What are all of the alternatives I can think of?

Why do I deserve to have my goals met?

What will my opponent's counter proposal likely consist of?

How can I respond to this counter proposal?

When would I like to have this issue resolved?

What is my bottom-line?

What market research/homework do I need to do to back up my cause?

What is my bargaining power compared to my opponent's?

What do I know about the principles of negotiating?