Negotiation in English

I. WHAT IS NEGOTIATION?
 Negotiation is a method by which people settle differences.

 It is a process by which compromise or agreement is reached while avoiding argument.

 In any disagreement, individuals understandably aim to achieve the best possible outcome
for their position (or perhaps an organization they represent).

 However, the principles of fairness, seeking mutual benefit and maintaining a relationship are
the keys to a successful outcome.

 Specific forms of negotiation are used in many situations, such as in:

International affairs
The legal system
Government
Industrial disputes
Domestic relationships
 However, general negotiation skills can be learned and applied in a wide range of activities.

 Negotiation skills can be of great benefit in resolving any differences that arise between you
and others.

 Negotiation can be a structured process using many different interpersonal skills.

Following are tips from English Club, the world's premier free website for learners and teachers
of English.

This Article on Skills You Needs is helping you develop life skills and aims to:
- Describe the common stages in the process of negotiation.
- Describe the different types of negotiation.
- Outline key points for successful negotiation.
- Recognize why effective communication is essential to negotiation.
Why Negotiate?
 It is inevitable that, from time-to-time, conflict and disagreement will arise as the differing
needs, wants, aims and beliefs of people are brought together.
 Without negotiation, such conflicts may lead to argument and resentment resulting in one or
all of the parties feeling dissatisfied.
 The point of negotiation is to try to reach agreements without causing future barriers to
communications.

A. Stages of negotiation
 To achieve a desirable outcome, it is e useful to follow a structured approach to negotiation.
 For example, in a work situation a meeting may need to be arranged in which all parties
involved can come together.
 The process of negotiation includes the following stages:
Preparation
Discussion
Clarification of goals
Negotiation towards a WIN-WIN situation
Agreement
Implementation of a course of action
1. Preparation
 Before any negotiation takes place, a decision needs to be taken as to:
- when and
- where a meeting will take place to discuss the problem and
- who will attend.
 Setting a limited timescale can also be helpful to prevent the disagreement continuing.
 This stage involves ensuring all the pertinent facts of the situation are known in order to
clarify your own position.
In the work example above, this would include:
- knowing the ‘rules’ of your organization,
- to whom help is given,
- when help is not felt appropriate and
- the grounds for such refusals.
 Your organization may well have policies to which you can refer in preparation for the
negotiation.
 Undertaking preparation before discussing the disagreement will help to avoid further
conflict and unnecessary wasting time during the meeting.
2. Discussion
 During this stage, individuals or members of each side put forward the case as they see it:
that is their understanding of the situation.
 Key skills during this stage are questioning, listening and clarifying.
 Sometimes it is helpful to take notes during the discussion stage to record all points put
forward in case there is need for further clarification.
 It is extremely important to listen, as when disagreement takes place it is easy to make the
mistake of saying too much and listening too little.
 Each side should have an equal opportunity to present their case.

3. Clarifying goals
 From the discussion, the goals, interests and viewpoints of both sides of the disagreement
need to be clarified.
 It is helpful to list these in order of priority.
 Through this clarification it is often possible to identify or establish common ground.
4. Negotiate for a win-win outcome
 This stage focuses on what is termed a win-win outcome where both sides feel they have
gained something positive through the process of negotiation and both sides feel their point
of view has been taken into consideration.
 A win-win outcome is usually the best outcome, however it may not always be possible but
through negotiation it should be the ultimate goal.
 Suggestions of alternative strategies and compromises need to be considered at this point.
 Compromises are often positive alternatives which can often achieve greater benefit for all
concerned rather than holding to the original positions.

5. Agreement
 Agreement can be achieved once understanding of both sides’ viewpoints and interests have
been considered.
 It is essential to keep an open mind in order to achieve a solution.
 Any agreement needs to be made perfectly clear so that both sides know what has been
decided.
6. Implementing a course of action (=mettre en œuvre un plan d'action)
From the agreement, a course of action has to be implemented, to carry through the decision.
Failure to Agree:
If the process of negotiation breaks down and agreement cannot be reached, then re-
scheduling a further meeting is called for.
This avoids all parties becoming embroiled in heated discussion or argument, which not only
wastes valuable time but can also damage future working relationships.
At the subsequent meeting, the stages of negotiation should be repeated.
Any new ideas or interests should be taken into account and the situation looked at afresh.
At this stage it may also be helpful to look at other alternative solutions and/or bring in
another person to mediate.
Informal Negotiation:
Apart from situations when it is appropriate to employ this more formal process of
negotiation, you will no doubt encounter one-to-one situations where there is a need to
negotiate informally. At such a time when a difference of opinion arises, it might not be
possible or appropriate to go through the stages set out above in a formal manner.
Nevertheless, remembering the key points in the stages of formal negotiation may be very
helpful in a variety of informal situations.
B. Different types of negotiation
Negotiation in action:
 Negotiation is a means of resolving differences between people.

 In the process of negotiation:

- not only are different opinions are taken into account,
- but also individual:
- needs,
- aims,
- interests and
- differences in background and culture.

 Win-lose (bargaining) vs the win-win approach

 Negotiation is sometimes seen in terms of:
‘Getting your own way’,
‘Driving a hard bargain’ or
‘Beating off the opposition’.
1. Negotiation: win-lose approach
 While in the short term bargaining may well achieve the aims for one side, it is also a win-
lose approach.
 This means that while one side wins, the other loses and this outcome may well damage
future relationships between the parties.
 It also increases the likelihood of relationships breaking down, of people walking out or
refusing to deal with the ‘winners’ again, and the process ending in a bitter dispute.
 Win-lose bargaining is probably the most familiar form of negotiating that is undertaken.
 Individuals decide what they want, then each side takes up an extreme position, such as
asking the other side for much more than they expect to get.
 Through haggling – the giving and making of concessions – a compromise is reached, and
each side’s hope is that this compromise will be in their favor.
 A typical example is haggling over the price of a car:
 Both parties need assertiveness skills to be able to barter or haggle effectively.
 While this form of bargaining may be acceptable in the used car market, for most situations it
has drawbacks.
These can have serious consequences if applied to social situations.
Example:
It may serve to turn the negotiation into a conflict situation, and can serve to damage any
possible long- term relationship.
It is essentially dishonest – both sides try to hide their real views and mislead the other.
The compromise solution may have not been the best possible outcome – there may have
been some other unthought-of agreement that was possible and would serve both parties.
Agreement is less likely to be reached as each side has made a public commitment to a
particular position and feel they must defend it, even though they know it to be an extreme
position originally.

 While there are times when bargaining is an appropriate means of reaching an agreement,
such as when buying a used car, generally a more sensitive approach is preferable.

 Negotiation concerning other people’s lives is perhaps best dealt with by using an approach
which takes into account the effect of the outcome on:
- thoughts,
- emotions and
- subsequent relationships.
2. Negotiation: the win-win approach
 Many professional negotiators prefer to aim towards what is known as a win-win solution.
 This involves looking for resolutions that allow both sides to gain.
 Negotiators aim to work together towards finding solution to their differences that result in
both sides being satisfied.

C. Key points for successful negotiation

 Key points when aiming for a win-win outcome include:

Focus on maintaining the relationship - ‘separate the people from the problem’.

Focus on interests not positions.

Generate a variety of options that offer gains to both parties before deciding what to do.

Aim for the result to be based on an objective standard.

1. Focus on maintaining the relationship
This means:
- not allowing the disagreement to damage the interpersonal relationship,
- not blaming the others for the problem and aiming to confront the problem not the people.

 This can involve actively supporting the other individuals while confronting the problem.

 Remember, separate the people from the problem.

 Disagreements and negotiations are rarely ‘one-offs’.

 At times of disagreement, it is important to remember that you may well have to

communicate with the same people in the future.

 For this reason: It is always worth considering whether ‘winning’ the particular issue is more
important than maintaining a good relationship.

 All too often disagreement is treated as a personal affront.

 Rejecting what an individual says or does is seen as rejection of the person.

 Because of this, many attempts to resolve differences degenerate into personal battles or
power struggles with those involved getting angry, hurt or upset.
 Remember negotiation is about finding an agreeable solution to a problem, not an excuse to
undermine (=léser) others, therefore, to avoid negotiation breaking down into argument, it is
helpful to consciously separate the issues under dispute from the people involved.

 For example:
It is quite possible:
- to hold people in deep regard,
- to like them,
- to respect:
- their worth,
- their feelings,
- their values and
- their beliefs,
and yet to disagree with the particular point they are making.

 One valuable approach is to continue to express positive regard for an individual, even when
disagreeing with what he/she is saying.
 The following are examples of statements that might be used by a good negotiator:
“You’ve expressed your points very clearly, I can now appreciate your position. However...”
“It’s clear that you are very concerned about this issue, as I am myself. Yet from my viewpoint...”

 Another way of avoiding personal confrontation is to avoid blaming the other party for
creating the problem.
It is better to talk in terms of the impact the problem is having personally, or on the
organization or situation, rather than pointing out any errors.

 Instead of saying:
“You’re making me waste a lot of time by carrying on with this argument,”

 The same point could be presented as,

“I’m not able to spend a lot of time on this problem, I wonder if there’s any way we could solve
it quickly?”

 By not allowing ‘disagreements over issues’ to become ‘disagreements between people’, a

good relationship can be maintained, regardless of the outcome of the negotiation.
2. Focus on interests not positions
 Rather than focusing on the other side’s stated position, consider the underlying interests
they might have.

 What are their needs, desires and fears?

 These might not always be obvious from what they say.

 When negotiating, individuals often appear to be holding on to one or two points from which
they will not move.

 For example, in a work situation an employee might say:

“I am not getting enough support”

 While the employer believes that person is getting as much support as they can offer and
more than others in the same position.

 However, the employee's underlying interest might be that he or she would like more friends
or someone to talk to more often.

 By focusing on the interests rather than the positions, a solution might be that the employer
refers the employee to a befriending organization so that his or her needs can be met.
 Focusing on interests is helpful because:
- It takes into account individual needs, wants, worries and emotions.
- There are often a number of ways of satisfying interests, whereas positions tend to
focus on only one solution.
- While positions are often opposed, individuals may still have common interests on
which they can build.

 Most people have an underlying need to feel good about themselves and will strongly resist
any attempt at negotiation that might damage their self-esteem.

 Often their need to maintain feelings of self-worth is more important than the particular
point of disagreement.

 Therefore, in many cases, the aim will be to find some way of enabling both sides to feel
good about themselves, while at the same time not losing sight of the goals.

 If individuals fear their self-esteem is at risk, or that others will think less highly of them
following negotiation, they are likely to become stubborn and refuse to move from their
stated position, or become hostile and offended and leave the discussion.

 Understanding the emotional needs of others is an essential part of understanding their

overall perspective and underlying interests.
 In addition to understanding others’ emotional needs, understanding of your own emotional
needs are equally important.
 It can be helpful to discuss how everyone involved feels during negotiation.
 Another key point is that decisions should not be forced upon others: this is a negotiation.
 Both sides will feel much more committed to a decision if they feel it is something they have
helped to create and that their ideas and suggestions have been taken into account.
 Finally, it is important to clearly express your own needs, desires, wants and fears so that
others can also focus on your interests.

3. Generate a variety of options that offer gains to both sides before making decisions
 Rather than looking for one single way to resolve differences, it is worthwhile considering a
number of options that could provide a resolution and to work together to decide which is
most suitable for both sides.
 Techniques such as brainstorming could be used to generate different potential solutions .
 Often, negotiation can be seen as a problem solving exercise, although it is important to
focus on all individuals’ underlying interests and not merely the basic difference in positions.
 Good negotiators will spend time finding a number of ways of meeting the interests of both
sides rather than meeting self-interest alone and then discussing the possible solutions.
4. Aim for the result to be based on an objective standard
 Having identified and worked towards meeting shared interests, it is often inevitable that
some differences will remain.
 Rather than resorting to a confrontational bargaining approach, which may leave individuals
feeling let-down or angry, it can be helpful to seek some fair, objective and independent
means of resolving the differences.
 It is important that such a basis for deciding is:
- Acceptable to both parties
- Independent to both parties
- Can be seen to be fair
 If no resolution can be reached, it may be possible to find some other, independent party
whom both sides will trust to make a fair decision.
 Other sources of help who might assist in situations which cannot be resolved include:
- A mutual friend or colleague
- A committee member
- A trained mediator
 Before turning for help from such sources however it is important to agree that this approach
is acceptable to both sides.
D. Avoiding misunderstanding
 Misunderstanding is a common cause of negotiations breaking down.

 Because of differences of viewpoint, background, and cultures, it is possible not to ‘hear’

what others intend to say.

 Because misunderstandings can easily occur, it is important to:

- Clarify individual goals.
- State the issues clearly.
- Consider all viewpoints.
- Clarifying meaning.

1. Clarify the goals

 It is essential to have a clear understanding of what the other side is seeking to achieve.

 This is not always what they initially state as their aims.

 Looking at interests often allows for an understanding of the real goals.

 Similarly, it is worthwhile clearly stating what your own goals are so that both parties can
work together to seek mutual benefit.
2. State the issues clearly
 It is important to identify the real issues involved and discard those that are not relevant.
 This enables the focus of the negotiation to remain firmly fixed on the interests and
differences of the individuals involved, without argument spreading to other areas of work.

3. Consider all Viewpoints

 During negotiation, a great deal of time can be spent in establishing the facts.
 However, it should be realized that facts tend to provide another area over which to disagree.
 Another person’s worries, even if totally unfounded, are still real worries and need to be
taken into consideration.
 Conflicts often arise because of differences in personal viewpoints.
 Remember that to accept and understand someone else’s viewpoint does not imply
agreement with that point of view.
 Rather, it shows respect for the person and the wish to work together to find a mutually
satisfactory solution.
 Similarly, it is helpful to encourage the other person to understand your viewpoint.
 An open, honest and accepting discussion of the differences in perspective will often help to
clarify the issues and provide the way forward to a resolution.
4. Clarify Meaning
 Good communication skills are essential for negotiation.
 Improving and developing your communication skills will help to minimize the problems
associated with misunderstandings in negotiation. Such skills include:
- Active listening and questioning,
- Reflecting and clarifying,
- Summarizing and feedback,
- Considering barriers to communication and communication in difficult situations
- Verbal communication and non-verbal communication
 All of these skills help to increase understanding.
 This in turn will increase the possibility of successful negotiation and, most importantly,
maintain the relationship for the future.
 Spending time to clarify and agree what all individuals have said (rather than assuming what
they intended to say), will ensure that misunderstanding of meaning is kept to a minimum.
 Good negotiation involves offering your viewpoint in an assertive manner, rather than taking
an aggressive stance (=position), or passively listening to different views.
 By being assertive you will help to ensure that the needs of all concerned are met.
E. Effective communication is essential to negotiation
Negotiation Skills:
 Negotiation is a process by which people resolve disagreements.

 Structured negotiation follows a number of stages from preparation through to

implementation.

 If possible, a win-win approach is more desirable than a bargaining (win-lose) approach.

 This involves seeking resolutions that allow:

- Both sides to gain, while at the same time
- Maintaining good working relationships with the other parties involved.

A frame work for negotiation:

 In any negotiation, the following 3 elements should be taken into account:
- Attitudes
- Interpersonal Skills
- Knowledge
1. Attitudes
 All negotiation is strongly influenced by underlying attitudes to the process itself.
For example:
- attitudes to the issues and personalities involved in the particular case or
- attitudes linked to personal needs for recognition.

 Always be aware that:

- Negotiation is not an arena for the realization of individual achievements.
- There can be resentment of the need to negotiate by those in authority.
- Certain features of negotiation may influence a person’s behavior.
For example some people may become defensive.
2. Interpersonal Skills
 There are many interpersonal skills required in the process of negotiation which are useful in
both formal settings and in less formal one-to-one situations.
 Such skills include:
- Communication
- Listening
- Reflecting, Clarifying and Summarizing
- Problem Solving
- Decision Making
- Assertiveness
- Stress Management
- Dealing with Aggression

3. Knowledge
 The more knowledge you possess of the issues in question, the greater your participation in
the process of negotiation.
 In other words, good preparation is essential.
 The way issues are negotiated must be understood as negotiating will require different
methods in different situations.
II. CASE STUDIES
Vocabulary, language, skills and tactics for negotiating in English. With case studies.
 One of the most important skills anyone can hold in daily life is the ability to negotiate.

 In general terms, a negotiation is a resolution of conflict.

 We enter negotiations in order to start or continue a relationship and resolve an issue.

 Even before we accept our first jobs, or begin our careers, we all learn how to negotiate.

 For one person it begins with the negotiation of an allowance with a parent.

 For another it involves negotiating a television schedule with a sibling.

 Some people are naturally stronger negotiators, and are capable of getting their needs met
more easily than others.

 Without the ability to negotiate, people:

- break off relationships,
- quit jobs, or deliberately
- avoid conflict and uncomfortable situations.
 In the world of business, negotiating skills are used for a variety of reasons, such as to:
- Negotiate a salary or a promotion,
- Secure a sale, or
- Form a new partnership.

 Here are a few examples of different types of negotiations in the business world:
- Manager and Clerk: Negotiating a promotion
- Employer and Potential Employee: Negotiating job benefits
- Business Partner A and B: Making decisions about investments
- Company A and Company B: Negotiating a merger
- Customer and Client: Making a Sale
The Art of Negotiating
 Negotiating is often referred to as an "art".
 While some people may be naturally more skillful as negotiators, everyone can learn to
negotiate.
 And, as they often say in business, everything is negotiable.
 Some techniques and skills that aid people in the negotiating process include:
- Aiming high
- Visualizing the end results
- Treating one's opponent with respect and honesty
- Preparing ahead of time
- Exhibiting confidence
 Throughout this lesson, we will review important techniques and skills to learn before
negotiating.
 We will also examine certain tactics your opponents may use at the negotiating table.
 These pages are designed to prepare you for negotiating in English in the business world, but
they will also help you achieve your goals in everyday life.
Case Study
 For the purpose of this lesson, we will follow the negotiations taking place at a fictional
company called Landscape Laborers.

Markus, a landscaper who has been with this company for five years, believes he is
underpaid.
He also thinks he deserves more seniority over his crew members.
Markus's manager, Louis is also the owner of Landscape Laborers.
Though Louis values Markus more than any of his other laborers, he is not sure that he
can afford to pay him more, especially at this time of year when work is unsteady.

 Read through the lesson and find out:

- how Markus prepares his case and presents it to management, and
- how the two parties negotiate and achieve their goals.

 First, let’s study the vocabulary part below.

VOCABULARY
WORD MEANING EXAMPLE SENTENCE
alternatives other options We can't offer you the raise you requested, but
let's discuss some other alternatives
amplify expand; give more information Could you amplify on your proposal please.
arbitration conflict that is addressed by using We're better to settle this between us, because
a neutral 3rd party a formal arbitration will cost both of us money.
bargain try to change a person's mind by We bargained on the last issue for over an hour
using various tactics before we agreed to take a break.
bottom-line the lowest one is willing to go I'll accept a raise of one dollar per hour, but
that's my bottom-line.
collective together This is a collective concern, and it isn't fair to
discuss it without Marie present.
compensate make up for a loss If you are willing to work ten extra hours a week
we will compensate you by paying you
overtime.
comply agree I'd be willing to comply if you can offer me my
own private office.
 WORD MEANING EXAMPLE SENTENCE
compromise changing one's mind/terms slightly We are willing to compromise on this
in order to find a resolution issue because it means so much to you.
concession a thing that is granted or accepted I think we can offer all of these
concessions, but not all at once.
conflict general term for negotiations It is impossible to engage in conflict
resolution resolution when one of the parties
refuses to listen.
confront present an issue to some- one I confronted my boss about being
directly undervalued and we're going to talk
about things on Monday.
consensus agreement by all It would be great if we could come to a
consensus by 5:00 p.m.
cooperation the working together I have appreciated your cooperation
throughout these negotiations.
counter proposal the offer/request which is In their counter proposal they suggested
presented second in response to that we keep their company name
the first proposal rather than creating a new one.
 WORD MEANING EXAMPLE SENTENCE
counterattack present other side of an issue Before we could start our counterattack they
suggested we sign a contract.
counterpart person on the other side of I tried to close the discussions at noon, but
the negotiations my counterpart would not stop talking.
cordially politely In the past I have had little respect for that
client, but today she spoke cordially and
listened to my point of view.
demands needs/expectations that one They had some last minute demands that
side believes it deserves were entirely unrealistic.
deadlock point where neither party will When the discussions came to a deadlock we
give in wrote up a letter of intent to continue the
negotiations next week.
dispute argument/conflict I was hoping to avoid discussing last year's
dispute, but Monica is still holding a grudge.
dominate have the most control/ Max has such a loud voice, he tends to
stronger presence dominate the conversations.
entitled be deserving of My contract says that I am entitled to full
benefits after six months of employment.
 WORD MEANING EXAMPLE SENTENCE
flexible open/willing to change We have always been flexible in terms of your
working hours.
haggling arguing back and forth(often about We've been haggling over this issue for too
prices) long now.
hostility long-term anger towards another I want you to know that we don't have any
hostility towards your company despite last
year's mix-up.
high -ball make a request that is much higher I'm planning to high-ball my expectations
than you expect to receive when I open the discussion.
impulse quick decision without thought or I acted on impulse when I signed that six-
time month contract.
indecisive has difficulty choosing/making a They were so indecisive we finally asked them
decision to take a break & come back next week.
leverage (bargaining power) some- thing that We have a little bit of leverage because we
gives one party a greater chance at are the only stationary company in town.
succeeding over another
 WORD MEANING EXAMPLE SENTENCE
log-rolling trading one favor for another After a bit of log-rolling we came to an
agreement that pleased both of us.
low-ball offer something much lower than I was expecting my boss to low-ball in the
you think the opponent will ask for initial offer, but he proposed a fair salary
increase.
mislead convince by altering or not telling They misled us into thinking that everything
the whole truth about something could be resolved today.
mutual agreed by both or all The decision to call off the merger was
mutual.
objective goal for the outcome My prime objective is to have my family
members added to my benefits plan.
point of view person's ideas/ thoughts From my point of view it makes more sense
to wait another six months.
pressure work hard to convince another of He pressured me to accept the terms by
an idea using intimidation tactics.
 WORD MEANING EXAMPLE SENTENCE
proposal argument to present While I listened to their proposal I noted each of
their objectives.
resentment anger held onto from a previous Mary's resentment stems from our not choosing
conflict her to head the project.
resistance a display of opposition We didn't expect so much resistance on the final.
resolve end conflict, come to an Before you can resolve your differences you'll
agreement both to calm down.
unrealistic very unlikely to happen It's unrealistic to think that we will have all of our
demands met.
victory a win We considered it a victory because they agreed to
four of our five terms.
yield 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.
 He 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 lunch hour.
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?
Markus answers the preparatory questions
 My main objective is to be named crew foreman and to earn a salary that is competitive with
other foremen in the area.
 Alternatives include:
- looking for work elsewhere,
- asking for a dollar more an hour,
- suggesting that Louis hire someone else to take on extra duties.
 I deserve this promotion because:
- I have worked with Landscape Laborers for five consecutive years, and have received
many compliments from satisfied clients.
- I am the team member who reports early every morning and leaves last.
- If we are under a deadline, I work through my lunch hour.
- All of the other team members come to me with their questions.
 Louis will likely say that he can't afford to pay me more because business is slow in the winter
 He will say that there are plenty of qualified laborers who will do the work for less money.
 Both of these arguments are probably true.
 Landscape Laborers lost a lot of money last year due to poor weather.
 There were a few weeks that we could not work, but Louis had to pay us anyway because of
our contracts.
 Unemployment is at an all-time high in our region.
 However, Louis just signed a contract with a new company that will mean regular work for at
least the next two years.
 Also, the other team members rely on me, and none of them have the experience to take
over my position if I quit.
 It will cost Louis a lot of money to train a new landscaper to do everything that I do.
 I understand that winter is tough on this business, so I would like to have this issue resolved
by spring.
 My bottom-line is to receive an extra dollar an hour and to be named team manager.
 I will look into three other local landscaping businesses and inquire about the salary and
benefits of its employees.
 I will also review the classified ads to see if any other companies are looking for a foreman.
 I think Louis and I have equal bargaining power right now.
 None of the other current members of our team are as committed to the job as I am.
 However, unemployment is high and there are other people he could hire.
 I have never been a strong negotiator.
 I need to learn more about negotiating strategies and tactics.

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.
Markus Applies the Principles for Collaborative Negotiating
 I will not discuss the fact that I was only offered a 50 cent raise last year.
It was my fault for not being prepared to negotiate.

 Even though I think Louis is lazy, and takes too many days off when we are busy, I will not
point out his shortcomings.
This is about my promotion, not his work ethic.

 I will first thank Louis for employing me for five consecutive years.
I will tell him that the stable work has meant a lot to me and my family, and I appreciate the
security, especially with so many people out of work.

 I will tell Louis that I think his company is one of the most respected landscape companies in
the region, and ensure him that my goal is to have a lifelong career at Landscape Laborers.

 I will say that I hope I will never have to work for a company that does a poor job, such as
Powell Designs.

 I will acknowledge that last year's weather was a problem and note that it is not anyone's
fault that the company lost money.
Preparing to Negotiate a Job Offer
 Negotiating a job offer should mean more than just saying, yes.

 Though being offered a job is an exciting time, it is also an important time to use your
negotiating skills.

 Here are some issues you may want to raise before you accept:
Salary
Promotion Opportunities
Insurance (medical, dental, accident, life)
Holidays / Vacation time
Retirement / pension plans
Stock options
Overtime
Expenses
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 counter-partner'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.
To show understanding and/or For objection on a point or offer
agreement on a point I understand where you're coming from;
I agree with you on that point. however...

That's a fair suggestion. I'm prepared to compromise, but...

So what you're saying is that you... The way I look at it...

In other words, you feel that... The way I see things...

You have a strong point there. If you look at it from my point of view ...

I think we can both agree that... I'm afraid I had something different in mind.

I don't see any problem with/harm in that. 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
Markus Opens the Negotiations
It's finally lunchtime and Markus and Louis meet as planned. Markus offers for Louis to speak
first, but Louis declines:

Markus: Thanks again for agreeing to meet today. I really appreciate you taking the time during
your lunch.
Louis: Okay, well, let's get started. I'd like to resolve this as soon as possible so we can get back
to work.

Markus: Great. Okay, well, if there's anything you'd like to say first, please be my guest.

Louis: Oh, no, I insist you go first. After all, you're the one who asked to meet with me.

Markus: Very well then. First of all I want you to know that I am fully aware of the challenges
you have faced in running this company in the last few years. I understand that the poor
weather last year ended up costing you and all of the local landscape companies a lot of money.
However, I think you realize that I am unsatisfied with my current salary.
I've been with Landscape laborers for 5 years now and there have been
many other years that were profitable. Despite how much your business has grown, I'm making
less than a dollar more than I was the day I started.

Louis: You're lucky to have a job in these times.

Markus: Yes, and I'm very thankful that you have employed me all this time, especially during
the slow seasons when the company is struggling to make a profit. It means a lot to me to have
that stability, which is why I have remained loyal to your company.

Louis: You haven't had much choice but to remain loyal, Markus. There are no jobs out there.

Markus: Well if you don't mind, I'd like to finish what I have to say and then you can let me
know what your position is. As a matter of fact, there are a few companies hiring right now in
our area. These are not all necessarily companies that I would be interested in working with. For
example, you and I both know that I would never want to work for a company such as Powell
Designs. I'd much prefer to be associated with a company like Landscape Laborers because we
do a good job. Having said that, I took the liberty of calling a few other local companies to find
out what type of salary packages they offer to their foremen.

Louis: Foremen? I don't have a foreman. I never have. It's not my style. Don't forget, you're a
contract laborer just like the rest of the crew.
Markus: Yes, I thank you for bringing that up. Besides deserving a higher salary, one that is
competitive with local companies, I also think that I deserve a new title. You and I both know
that the crew looks to me as though I am a foreman, even though I don't have the title.

Louis: You don't have the title, but you also don't have the responsibility. It's a lot of work being
a foreman.

Markus: Exactly. And you can't say that you haven't noticed me coming in earlier than the
others and leaving later. I also designate jobs to all of the crew members each morning and call
suppliers when needs arise. These are duties of a foreman, am I right?

Louis: I suppose. But a foreman also helps solve conflicts that arise within a team, and deals
with customer complaints. You always pass those things on to me.

Markus: I agree with you on that. However, I would be willing to take on these extra
responsibilities, should you offer me a foreman position at a rate of $25.00 per hour.
Coming to a Close or Settlement
 There are a number of signals that indicate that negotiations are coming to a close.

 This may not always mean that an agreement has been reached.

 In many cases, there are many rounds of negotiations.

 The preliminary round may uncover the major issues, while subsequent rounds may be
needed to discuss and resolve them.

 Here are some signals of talks coming to a close:

- A difference of opinion has been significantly reduced
- One party suggests signing an agreement.
- One or both parties indicate that a period of time to pause and reflect is necessary.
Beware of last-minute strong-arm tactics
 Even if you make the decision to treat your negotiating opponent with honesty and kindness,
the other party may not extend you the same respect.

 Be prepared to stand your ground firmly, yet cordially, especially in the last few minutes of
the negotiations.

 This is the time when manipulative parties may employ certain tactics in order to try to fool
you into losing focus or lowering goals and standards.

 Remember that conflicts are generally resolved in the last few minutes.

 The theory behind last minute tactics is that one party may be more willing to give in out of
fear that all of the concessions or progress made up to that point (perhaps hours or weeks of
talks) might be lost.

 People also get tired or have other commitments that need to be met, such as:
- making an important phone call before another business closes, or
- picking up children from school.
 Here are some last minutes tricks that negotiators often use at this time:
- Walking out of the room
- Offering a short-term bribe
- Telling you to take it or leave it
- Giving an ultimatum
- Abrupt change in tone (used to shock the other party into submission)
- Introducing new requests (used at to get you to concede with little thought or
consideration)
- Stating generalizations without evidence (dropped without significant
statistics/proof)
- Adopting the Mr. Nice Guy persona (used to try to make it look like they are doing
you a favor in hopes that you will lower your expectations)
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.
Louis Signals an End to the Negotiations and Attempts some Last-minute Tactics
Louis: Look, we're running out of time here and I've barely had a bite of my lunch.

Markus: I know, and we have a lot of work to get done this afternoon.

Louis: Well, I guess we'll have to settle this at another time.

Markus: Actually, I'd really like to get this settled today. I know how busy you are, and it's not
easy to get you to sit down and talk.

Louis: (standing up and getting ready to walk out of the room) Well, we're not getting anywhere.

Markus: Please sit down for a few more minutes so we can make a decision.

Louis: And what if I don't? Are you going to quit?

Markus: I am a loyal employee, and I believe that it is in the best of both of our interests to have
this conflict resolved. This should only take a few more minutes.

Louis: Fine. You can be the foreman. I'll even change the title on your pay stub. But no raise.

Markus: I think you and I both know, that the raise is more important to me than the title itself.
Louis: You know, not very many owners would agree to give a person like you the title of
foreman. You don't even have your proper certification.

Markus: You've said before that experience means more to you than education. Remember that
guy Samuel that you hired. He had a four year diploma in landscape design but had never
worked a day out on the fields. You let him go before his probation was up.

Louis: Oh, don't remind me of that kid.

Markus: Look, I'd be willing to accept $24.00/hour, if you agree to review my salary again come
spring.

Louis: Fine. I guess, that's fair. You are my best employee, right now at least.

Markus: Great, then, you won't mind changing my status to crew foreman. I won't disappoint
you. Remember, I'm willing to take on the extra duties of a foreman, which will give you more
time to find new clients.

Louis: Speaking of new clients. I'm expecting an important phone call in ten minutes, so let's
wrap this up.
Markus: Well, I think we've both agreed on the terms. Can we shake on it? I mean, can I have
your word that my new hourly wage will begin at the beginning of next month? (Markus holds
out his hand.)

Louis: (Louis shakes it.) Okay, Mr. Foreman. Get back to work, would you. And, I'll need you to
order all of the supplies for Monday.

Markus: Thanks, Louis. I'll get on that right now.

Formalize the agreement/negotiation
 In most business negotiations it is a good idea to get something down in writing.

 Even if a decision has not been made, a letter of intent to continue the negotiations is often
used.

 This is a way for each party to guarantee that talks will continue.

 A letter of intent often outlines the major issues that will be discussed in future negotiations.

 In some cases a confidentiality agreement is also necessary.

 This is a promise from both parties to keep information private between discussions.

 When an agreement has been decided, a formal contract may be required.

 On the other hand, depending on the seriousness of the decision, and the level of trust
between the two parties, a simple handshake and verbal agreement may be all that is
needed.
For example:

 An employer may offer a promotion and an employee may trust that the new salary will be
reflected on the next pay-cheque.

 However, even if nothing is put formally in writing, it is wise to send:

- an e-mail or
- a letter
that:
- verifies the terms and
- puts the agreement on record,
especially when a specific number is decided on.
Sample E-mail

To: louis@landscapelabourers.com
From: markus@landscapelabourers.com
Subject: Today's Negotiation
Attachment: Site #345

Hi Louis
I just wanted to write and thank you for spending your lunch hour with me today. I'm pleased
with how our talks went and am excited to take on my new role as crew foreman. Even though
my new salary will not be put in place until the first of next month, I will begin my new duties
immediately. The supplies for Monday's job (Site #345) have all been ordered, and the total of
the invoice will be $349.98, including tax and delivery. The crew has been assigned their tasks
for Monday so we will be able to start as soon as we arrive. You will find a chart attached
outlining who will be taking care of what and how long it should take us to have it completed. If
you have any concerns, feel free to call me at home over the weekend.
Thanks again,
Markus
High Paying Careers in Business
In the realm of business, the pursuit of financial success often goes hand in hand with career
aspirations. High paying careers in business have long been a magnet for professionals seeking
not only financial stability but also opportunities for growth, influence, and impact.
In this presentation are the top 5 high paying careers in the business world, shedding light on
what makes these paths financially rewarding and professionally fulfilling.
I. Top 5 high paying careers
1. Chief executive officer (CEO)
2. Investment banker
3. Finance director
4. Management consultant
5. Business analyst
II. Executive education programs for high paying careers
AI and ML: Leading Business Growth program by MIT Professional Education
Chicago Booth Accelerated Development Program (ADP)
Global HR Leaders Program (HRLP) from the National University of Business School
Conclusion
I. Top 5 high paying careers
1. Chief executive officer (CEO)
o Average salary
According to Salary.com, CEOs earn a median annual wage of over $828,645.

o Why is it lucrative
As the highest-ranking executive in an organization, the CEO is responsible for shaping the
company’s vision, strategy, and overall performance.
The position often comes with substantial compensation, bonuses, and stock options.
CEOs are the driving force behind a company’s success, making their role one of the most
financially rewarding in business.

o Key responsibilities
CEOs set the company’s strategic direction, lead the executive team, and make critical
decisions that impact the organization’s growth and profitability.
They also represent the company to stakeholders, investors, and the public.
2. Investment banker
o Average salary
Investment bankers can earn substantial salaries, with bonuses and commissions that can
significantly increase their annual income.
According to Talent.com, the average investment banker salary in the United States is
$173,300 per year.

o Why is it lucrative
Investment bankers play a pivotal role in financial markets by facilitating mergers and
acquisitions, raising capital, and providing advisory services to corporations & institutions.
Their compensation is often tied to the success of the deals they facilitate, which can result
in substantial earnings.

o Key responsibilities
Investment bankers analyze financial data, assess market conditions, and structure financial
transactions.
They also negotiate deals, prepare financial documents, and provide strategic advice to
clients.
3. Finance director
o Average salary
Finance directors earn competitive salaries, often exceeding six figures, and can receive
additional compensation through bonuses and profit-sharing.
The average finance director salary, according to Salary.com in the US, is $195,627 as of
November 2023, but the range typically falls between $165,361 and $231,161.

o Why is it lucrative
Finance directors are responsible for overseeing an organization’s financial operations,
including budgeting, financial planning, and risk management. Their strategic financial
guidance is crucial for the company’s fiscal health and growth.

o Key responsibilities
Finance directors manage financial reporting, taxation, and compliance and provide financial
insights to support strategic decisions. They also collaborate with executive leadership to
align financial strategies with business goals.
4. Management consultant
o Average salary
Management consultants can earn high incomes, with additional income from performance-
based bonuses. The average salary for a management consultant is $148,602 per year in the
United States.

o Why is it lucrative
Management consultants work with organizations to identify challenges, improve efficiency,
and drive growth. Their expertise in strategic planning, process optimization, and change
management can lead to substantial financial rewards.

o Key responsibilities
Management consultants analyze an organization’s operations, develop recommendations,
and implement solutions to enhance performance. They work closely with clients to solve
complex business problems.
5. Business analyst
o Average salary
Business analysts earn competitive salaries, with opportunities for increased income based
on experience and expertise.
The average salary for a business analyst is $93,135 per year in the United States.

o Why is it lucrative
Business analysts bridge the gap between business needs and technology solutions.
They evaluate business processes, identify opportunities for improvement, and help
organizations implement effective solutions, often leading to cost savings and revenue
growth.

o Key responsibilities
Business analysts gather and analyze data, document business requirements, and collaborate
with stakeholders to define project objectives.
They play a vital role in optimizing business operations and achieving strategic objectives.
II. Executive education programs for high paying careers
Let us take a look at some programs and how they will be beneficial for getting the above jobs.

 AI and ML: Leading Business Growth program by MIT Professional Education

This AI and ML program is a comprehensive 6-month action-learning-based live virtual
program led by MIT faculty.
You will:
- benefit directly from their expertise & research-driven insights as you learn,
- experiment,
- implement, and
- Reflect
while comfortably managing your work responsibilities from any geographical location
around the world.
The “AI and ML: Leading Business Growth” program by MIT Professional Education will arm
you with the knowledge, tools, and best practices needed to lead strategic initiatives aimed
at leveraging cutting-edge AI and ML to drive innovation, efficiency, and business growth.
 Chicago Booth Accelerated Development Program (ADP)
The Chicago Booth ADP is a rigorous learning journey across 8 modules spread over
9 months and gives you access to the latest management thinking and tools.
It is taught by an award-winning faculty at the Chicago Booth School of Business and
accomplished senior business leaders.
It creates an amazing opportunity to:
- build a strong personal brand and
- competitively position yourself and your organization.
ADP actively engages you in a collaborative learning environment with accomplished peers in
London, New Delhi, and Chicago.
The Chicago Booth Accelerated Development Program is designed for the global executive
with a focus on delivering impact and leveraging the significant history of the Accelerated
Development Program delivered across the globe, including London and India.
 Global HR Leaders Program from the National University of Business School
It is a comprehensive leadership program for global HR leaders that is focused on the future
of work and the associated opportunities for HR leaders to strengthen and enable their
organizations for the digital era.
This 6-month program is an immersive experience that focuses on leading-edge human
resources transformation that is:
- creating a paradigm shift and
- enabling industries to leapfrog challenges.
The NUS* Business School faculty, alongside leading industry experts, will:
- provide rich insights so that you can craft ambitious solutions and
- shape the future of HR within your organization and industry.

*NUS: National University of Singapore

Conclusion
High paying careers in business offer more than just financial rewards; they provide:
- opportunities for personal & professional growth,
- leadership,
and making a significant impact on organizations and industries.
These top 5 careers:
- CEO,
- investment banker,
- finance director,
- management consultant, and
- business analyst
stand out not only for their earning potential but also for the intellectual challenges and
responsibilities they entail.
While pursuing a high paying careers in business can be financially rewarding, it is essential
to consider personal interests, values, and long-term career goals.
Choosing a career that aligns with your passions and strengths can lead to not only financial
success but also job satisfaction and fulfillment.