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.

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. 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 thanhat 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.
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.

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.

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.

TEXT 4

Company Structure

To fulfill its mission effectively, a business needs to operate within a structure best suited to its purposes. Traditionally large businesses divide the organization up into functional areas.

Within any organization there are likely to be several layers of authority. The number of levels depends upon whether the business has a hierarchical or flat structure.

A hierarchical structure has many layers of management, each with a narrow span of control. Instructions feed downwards from one level of management to those below. Feedback comes from the lower levels upwards. The reporting system from the top of the hierarchy to the bottom is known as the chain of command. A hierarchical structure enables tight control. It offers clear opportunities for promotion and may reduce stress levels in both managers and employees. Everybody knows their place in the hierarchy.

However, communication can be a problem in hierarchical organizations. Without effective management, it can take a long time for information to pass up and down the chain of command. Staff may not be fully empowered. Rather than being able to use their initiative, employees may need to seek approval for every action from higher levels of managements. This not only can cause delay but also be bad for employee morale, reducing their motivation to work.

The organization chart shows a typical hierarchical structure in a commercial organization. There are four functional areas. The accounts department has three layers of hierarchy: a director, a manager and three assistants. The accounts manager therefore has a span of control of three, as he or she directly supervises three assistants.

A flat line structure is one where there are few layers of management. Each manager has a wide span of control. This means a manager has responsibility for many people or tasks. Delegation is necessary for tasks to be carried out effectively. This structure gives employees more responsibility for their work. Communication is also faster up and down the layers. This enables problems to be solved more quickly.

This is an example of a flat line structure diagram.

A matrix structure is often referred to as the project team structure. In this approach, team leaders manage specific tasks and projects. Each team will consist of members from different departments, each with their own specialty and expertise related to the project. It takes employees out of their usual functional areas to work with other employees with different expertise and specialty. This ensures the project has all the skills it needs to achieve its target. It also means the employees may benefit from each other's abilities.

Some teams are only formed for a short period of time. They disband when their projects have been completed and the team members are redeployed on other projects. Other teams have a longer or sometimes permanent remit. The matrix structure is not an alternative to functional management but works alongside it.