Diploma in Human Resource Management
Programme Name
Communication Skills 101
Module Name:
Year of study (e.g. Year 1 Year 1, Semester 2
Sem1)
Student Number 202420599
Student Surname Khoza
Student Name Sakhile
Lecturer Name Mr. Mduduzi Mdluli
Assignment Question discuss any 6 main techniques used by business
negotiators, use examples for illustration.
Due Date 13 March 2025
TECHNIQUES USED BY BUSINESS NEGOTIATORS
Negotiation is a critical process in which two or more individuals discuss and reach a mutual
agreement, often requiring compromise and strategic communication to resolve issues
satisfactorily. It is a vital skill in the business environment, significantly influencing an
organization's success. This essay explores four essential techniques employed by business
negotiators.
The first technique is preparation and planning, which is crucial for successful negotiations.
Effective negotiators invest time in gathering relevant information and developing a clear
strategy before entering discussions. According to Fisher & Ury (2011). This preparation
involves understanding the goals and objectives of both parties, as well as identifying the Best
Alternative to a Negotiated Agreement (BATNA). Thorough preparation allows negotiators to
anticipate challenges and develop responses. For instance, a marketing manager negotiating a
contract with an advertising agency will research industry standards, past campaigns, and pricing
structures to ensure they approach the negotiation with a well-informed perspective. This
groundwork enables the manager to present compelling arguments and counter any objections
with confidence.
A Network firm negotiating a contract with a software provider. The Network firm’s negotiator
meticulously prepares by researching the provider's previous contracts, pricing models, and
market position. During negotiations, they communicate clearly about their company's needs
while actively listening to the provider's concerns. By demonstrating emotional intelligence, the
negotiator acknowledges the provider's limitations and suggests a creative solution, such as a
phased payment plan that eases the financial burden on the provider while securing the necessary
software for the firm.
building a strong relationship, is another important technique. Establishing a positive rapport
with counterparts can enhance the negotiation process. When negotiators invest time in building
relationships, they create an atmosphere of trust and respect, which can lead to more open
communication and a willingness to compromise (Cohen, 2016). This technique involves
engaging in small talk, finding common interests, and demonstrating genuine concern for the
other party's needs. For example, a negotiator might take the time to learn about the other party's
business goals or challenges, which can help foster a collaborative environment and facilitate
discussions. The agency's negotiator focuses on building a strong relationship by engaging the
client in casual conversation about their recent projects and challenges. This rapport helps create
a friendly atmosphere, making the client more receptive to the agency's proposals.
The agency's negotiator focuses on building a strong relationship by engaging the client in casual
conversation about their recent projects and challenges. This rapport helps create a friendly
atmosphere, making the client more receptive to the agency's proposals. During the negotiation,
the agency frames their services as essential for the client's brand growth, emphasizing the long-
term benefits rather than the immediate costs. By doing so, they successfully position their
offerings as valuable investments.
Emotional intelligence is another key technique in negotiation. This involves the ability to
recognize and manage one's own emotions, as well as empathize with the emotions of others
(Goleman, 2006). High emotional intelligence enables negotiators to navigate complex
interpersonal dynamics and respond appropriately to the feelings of their counterparts. For
instance, during a salary negotiation, an employee may express frustration about workload
expectations. A manager with high emotional intelligence can acknowledge these feelings and
address them by discussing potential solutions, such as additional resources or flexible work
arrangements. This empathetic approach not only helps to resolve the immediate issue but also
strengthens the relationship between the employee and manager.
A small business owner is negotiating a lease agreement for a new storefront. The owner
prepares by outlining their budget and researching comparable rental prices in the area. During
the negotiation, they communicate their needs clearly and remain open to the landlord's counter-
offers. By employing emotional intelligence, the owner recognizes the landlord's apprehensions
about long-term commitments and proposes a shorter lease with an option to renew. This creative
approach addresses the landlord's concerns while allowing the business owner to secure the
space they need.
Another important technique is effective communication, which encompasses both verbal and
non-verbal interactions. Clear and concise communication is essential for conveying ideas and
understanding the other party's perspective (Adler & Elmhorst, 2016). Non-verbal cues, such as
body language and tone of voice, also play a significant role in negotiations. For example, during
a negotiation for a partnership agreement, a negotiator who maintains eye contact and uses open
body language can create a more inviting atmosphere, encouraging collaboration. In contrast,
closed body language, such as crossed arms, may signal defensiveness and hinder open dialogue.
By being aware of both verbal and non-verbal communication, negotiators can foster a more
productive negotiation environment.
In another scenario, a software company is negotiating a licensing agreement with a large
establishment. The company's negotiator strategically uses silence after presenting their initial
offer, allowing the corporation's representatives to consider the proposal. This silence creates a
sense of urgency, prompting the corporation to respond with a counteroffer. Additionally, the
negotiator employs anchoring by starting with a higher licensing fee, which sets a reference point
for the negotiation. As discussions progress, the negotiator can then make concessions while still
achieving a favorable outcome.
successful business negotiation relies on a combination of techniques that enhance
communication and foster positive relationships between parties. Preparation and planning,
effective communication, emotional intelligence, and building a strong relationship is essential
for navigating complex discussions and achieving agreements that benefit all involved.
References
Adler, R.B. & Elmhorst, J.M., 2016. Communicating at Work: Principles and Practices for
Business and the Professions. 11th ed. New York: McGraw-Hill Education.
Cohen, R., 2016. Negotiate This! By Caring, But Not T-H-A-T Much. New York: Crown Business
Fisher, R. & Ury, W., 2011. Getting to Yes: Negotiating Agreement Without Giving In. 3rd ed. New
York: Penguin Books.
Goleman, D., 2006. Emotional Intelligence: Why It Can Matter More Than IQ. New York: Bantam
Books.
