Negotiation is a method by which people settle differences.

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

In any disagreement, individuals understandably aim to achieve the best possible

outcome for their position (or perhaps an organisation they represent). However, the
principles of fairness, seeking mutual benefit and maintaining a relationship are the
keys to a successful outcome.

Stages of Negotiation

In order to achieve a desirable outcome, it may be 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:

1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. 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 time-scale 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 organisation, to whom help is given, when help is not felt
appropriate and the grounds for such refusals. Your organisation 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 unnecessarily wasting time during the meeting.

2. Discussion
During this stage, individuals or members of each side put forward the case as
they see it, i.e. their understanding of the situation.

Key skills during this stage include 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 factors in order of priority. Through this clarification it is often
possible to identify or establish some common ground. Clarification is an essential
part of the negotiation process, without it misunderstandings are likely to occur which
may cause problems and barriers to reaching a beneficial outcome.

4. Negotiate Towards 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 result. Although this may not always be
possible, 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 compared to 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 for everybody involved to keep an open mind in order to achieve an

acceptable solution. Any agreement needs to be made perfectly clear so that both
sides know what has been decided.

6. Implementing a Course of Action

From the agreement, a course of action has to be implemented to carry through
the decision.

We suggest/propose
Our proposal is
What were looking for is
We would like to put this forward for your consideration.
Wed like
Could you consider?
LISTENING SKILLS
Look at the eyes and give attention but do not do it too close or too long
Show your interest and show that they are important
Concentrate do not let your mind wonder to other places. Do not look at other
places or do other things while listening to people talking to you
Show that you are actually listening to them with full interest by saying yeah oh
like that, nodding your head and continue eye contact.
Do not look at different direction
Ensure that you really understand what you have just heard by repeating what
you have heard to him / her.
Repeat important information and seek confirmation from her Is this what you
are trying say
Give encouragement for people to keep on talking or to tell you more using
phrases such as thats amazing idea, thats interesting story, please tell me
more
Listen to ideas, not just words. Form imagination in your mind while listening.
Do not interrupt or try to finish his sentence while people are talking to you. Wait
until he or she finishes his or her sentences.
Do not be too fast to conclude. Give your response when you are truly sure hes
finished his points.
Do not focus on what you are going to say, focus on what your friend is going to
say first.

PROBLEM SOLVING SKILLS

Problem Identification:
This stage involves: detecting and recognising that there is a problem;
identifying the nature of the problem; defining the problem.

The first phase of problem solving may sound obvious but often requires more
thought and analysis. Identifying a problem can be a difficult task in itself, is there a
problem at all? What is the nature of the problem, are there in fact numerous
problems? How can the problem be best defined? - by spending some time defining
the problem you will not only understand it more clearly yourself but be able to
communicate its nature to others, this leads to the second phase.

Structuring the Problem:

This stage involves: a period of observation, careful inspection, fact-finding
and developing a clear picture of the problem.

Following on from problem identification, structuring the problem is all about gaining
more information about the problem and increasing understanding. This phase is all
about fact finding and analysis, building a more comprehensive picture of both the
goal(s) and the barrier(s). This stage may not be necessary for very simple problems
but is essential for problems of a more complex nature.

Looking for Possible Solutions:

During this stage you will generate a range of possible courses of action, but
with little attempt to evaluate them at this stage.

From the information gathered in the first two phases of the problem solving
framework it is now time to start thinking about possible solutions to the identified
problem. In a group situation this stage is often carried out as a brain-storming
session, letting each person in the group express their views on possible solutions (or
part solutions). In organisations different people will have different expertise in
different areas and it is useful, therefore, to hear the views of each concerned party.

Making a Decision:
This stage involves careful analysis of the different possible courses of action
and then selecting the best solution for implementation.

This is perhaps the most complex part of the problem solving process. Following on
from the previous step it is now time to look at each potential solution and carefully
analyse it. Some solutions may not be possible, due to other problems, like time
constraints or budgets. It is important at this stage to also consider what might happen
if nothing was done to solve the problem - sometimes trying to solve a problem that
leads to many more problems requires some very creative thinking and innovative
ideas.

Finally, make a decision on which course of action to take - decision making is an

important skill in itself and we recommend that you see our pages on decision
making.

Implementation:
This stage involves accepting and carrying out the chosen course of action.
Implementation means acting on the chosen solution. During implementation more
problems may arise especially if identification or structuring of the original problem
was not carried out fully.

Monitoring/Seeking Feedback:
The last stage is about reviewing the outcomes of problem solving over a
period of time, including seeking feedback as to the success of the outcomes of
the chosen solution.

The final stage of problem solving is concerned with checking that the process was
successful. This can be achieved by monitoring and gaining feedback from people
affected by any changes that occurred. It is good practice to keep a record of
outcomes and any additional problems that occurred.

CONFIDENCE BUILDING

1. Stable and clear voice tone. You may need to practice, but speaking in a clear
voice without whispers or stammering conveys self-assurance.

2. Making eye contact. No staring at the floor or looking out the window. Confident
eye contact isnt a persistent stare, but it is a meeting of the eyes as you speak and
make your point.

3. Listening to others. Listening to others is a way of expanding your view of the

world, bridging the differences between you and someone else and demonstrating
that your belief in yourself is strong enough to take in other points-of-view.

4. No attacks or threats. Self-confidence isnt aggressive. A self-assured person can

hear what someone is saying, respond to them and maintain their own point-of-view
or make compromises to solve the real problems that are presented.

5. Speak from the heart. Try connecting to your inner sense of well-being and your
inner convictions when you talk to others and assert yourself. You might appear
passionate, but passion can exude a sense of sureness.

6. Look for win-win solutions. When youre confident, you know that getting your
own way doesnt have to come at someone elses expense. Approach a situation with
the attitude that it is possible that both perspectives are valid and that two or more
people can gain from an interaction.
 7. Use humor. When something is vital to us, its sometimes hard to discuss it in a
light-hearted way. But humor can ease tension and shows youre comfortable with
yourself.

8. Express Gratitude. Confidence is very different from arrogance. Someone who is

confident is able to express gratitude to someone else. An added bonus is that
expressing gratitude happens to be one of the most effective ways to strengthen
relationships.

9. Apologize when in the wrong, but not for being alive or having legitimate human
needs.

10. Acknowledge others, give and receive compliments, recognize other peoples
difficulties.

Sometimes the world is more powerful than us and we dont have the ability to change
a situation. However, behaving with poise, refusing to sell out everything to get
approval and liking and giving respect have the added benefit of making you feel more
respected and more self-confident.

DECISION MAKING SKILL

1. Listing Possible Solutions/Options

To come up with a list of all the possible solutions and/or options available it is usually
appropriate to use a group (or individual) problem-solving process. This process could
include brainstorming or some other 'idea-generating' process.

This stage is important to the overall decision making processes as a decision will be
made from a selection of fixed choices.

Always remember to consider the possibility of not making a decision or doing nothing
and be aware that both options are actually potential solutions in themselves.

2. Setting a Time Scale and Deciding Who is Responsible for the Decision
In deciding how much time to make available for the decision-making process, it helps
to consider the following:

How much time is available to spend on this decision?

Is there a deadline for making a decision and what are the consequences of
missing this deadline?
 Is there an advantage in making a quick decision?
How important is it to make a decision? How important is it that the decision
is right?
Will spending more time improve the quality of the decision?
Remember that sometimes a quick decision is more important than the right
decision, and that at other times, the reverse is true.

Responsibility for the Decision

Before making a decision, you need to be clear who is going to take responsibility for
it.

Remember that it is not always those making the decision who have to assume
responsibility for it. Is it an individual, a group or an organisation?

This is a key question because the degree to which responsibility for a decision is
shared can greatly influence how much risk people are willing to take.

If the decision-making is for work, then it is helpful to consider the structure of the
organisation.

Is the individual responsible for their decisions or does the organisation hold
ultimate responsibility?
Who has to carry out the course of action decided?
Who will it affect if something goes wrong?
Are you willing to take responsibility for a mistake?
Finally, you need to know who can actually make the decision. When helping a friend,
colleague or client to reach a decision, in most circumstances the final decision and
responsibility will be taken by them.

Whenever possible, and if it is not obvious, it is better to agree formally who is

responsible for a decision.

This idea of responsibility also highlights the need to keep a record of how any
decision was made, what information it was based on and who was
involved. Enough information needs to be kept to justify that decision in the future so
that, if something does go wrong, it is possible to show that your decision was
reasonable in the circumstance and given the knowledge you held at the time.

3. Information Gathering
Before making a decision, all relevant information needs to be gathered.

If there is inadequate or out-dated information then it is more likely that a wrong

decision might be made. If there is a lot of irrelevant information, the decision will be
difficult to make, and it will be easier to become distracted by unnecessary factors.

You therefore need up-to-date, accurate information on which to make

decisions.

However, the amount of time spent on information-gathering has to be weighed

against how much you are willing to risk making the wrong decision. In a group
situation, such as at work, it may be appropriate for different people to research
different aspects of the information required. For example, different people might be
allocated to concentrate their research on costs, facilities, availability, and so on.
 4. Weighing up the Risks Involved
One key question is how much risk should be taken in making the decision? Generally,
the amount of risk an individual is willing to take depends on:

The seriousness of the consequences of taking the wrong decision.

The benefits of making the right decision.
Not only how bad the worst outcome might be, but also how likely that
outcome is to happen.
It is also useful to consider what the risk of the worst possible outcome occurring
might be, and to decide if the risk is acceptable. The choice can be between going
all out for success or taking a safe decision.

5. Deciding on Values
Everybody has their own unique set of values: what they believe to be important. The
decisions that you make will, ultimately, be based on your values. That means that the
decision that is right for you may not be right for someone else.

If the responsibility for a decision is shared, it is therefore possible that one

person might not have the same values as the others.

In such cases, it is important to obtain a consensus as to which values are to be given

the most weight. It is important that the values on which a decision is made are
understood because they will have a strong influence on the final choice.

6. Weighing up the Pros and Cons

It is possible to compare different solutions and options by considering the possible
advantages and disadvantages of each.

Some organisations have a formal process that is required at this stage, including a
financial assessment, so check beforehand if you are making a decision at work.

One good way to do this is to use a 'balance sheet', weighing up the pros and cons
(benefits and costs) associated with that solution. Try to consider each aspect of the
situation in turn, and identify both good and bad.

For example, start with costs, then move onto staffing aspects, then perhaps
presentational issues.

Having listed the pros and cons, it may be possible to immediately decide which
option is best. However, it may also be useful to rate each of the pros and cons on a
simple 1 to 10 scale (with 10 - most important to 1 - least important).

In scoring each of the pros and cons it helps to take into account how important each
item on the list is in meeting the agreed values. This balance sheet approach allows
this to be taken into account, and presents it in a clear and straightforward manner.

7. Making the Decision

Finally, its time to actually make the decision!
Your information-gathering should have provided sufficient data on which to base a
decision, and you now know the advantages and disadvantages of each option. It is,
as the television programme Opportunity Knocks had it, Make Your Mind Up Time.

If possible, it is best to allow time to reflect on a decision once it has been reached. It
is preferable to sleep on it before announcing it to others. Once a decision is made
public, it is very difficult to change.

For important decisions it is worth always keeping a record of the steps you followed
in the decision-making process. That way, if you are ever criticised for making a bad
decision you can justify your thoughts based on the information and processes you
used at the time. Furthermore, by keeping a record and engaging with the
decision-making process, you will be strengthening your understanding of how it
works, which can make future decisions easier to manage.

Difference Between Formal and Informal Groups

In an organisation, the formation of groups is very natural, whether it is created by the

management or by the members of the organisations themselves. The most common
reason behind the creation of a group is the urge of people to talk and make their own
circle, where they can interact freely, know each other, work unitedly and accomplish
the tasks which are being assigned to them. Groups are majorly divided into two
categories. First one is the formal group, which are formed by the organisation, to
fulfil a task. The other one is an informal group, formed by the employees as per
their likes, interests, and attitudes.
Comparison Chart

BASIS FOR
FORMAL GROUP INFORMAL GROUP
COMPARISON

Meaning Groups created by the Groups created by the

organization, for the purpose of employees themselves, for
accomplishing a specific task their own sake are known as
are known as Formal Groups. Informal Groups.

Formation Deliberately Voluntarily

Size Large Comparatively small.

Life Depends on the type of group. Depends on the members.

Structure Well Defined Ill Defined

Importance is Position Person

given to

Relationship Professional Personal

Communication Moves in a defined direction. Stretches in all the directions.

Difference Between Formal and Informal Communication

Communication plays a crucial role in our life, as people interchange their ideas,
information, feelings, opinions by communicating. Communication could be verbal
spoken or written, or non-verbal i.e. using sign language, body movements, facial
expressions, gestures, eye contact or even with the tone of voice. Someone said
correctly The very attempt of, not to speak, speaks a lot.

In an organisation, there are two channels of communication formal communication

and informal communication. People often confuse between these two channels, so
here we have presented an article which explains the difference between formal and
informal communication network.

Comparison Chart

BASIS FOR INFORMAL

FORMAL COMMUNICATION
COMPARISON COMMUNICATION
 BASIS FOR INFORMAL
FORMAL COMMUNICATION
COMPARISON COMMUNICATION

Meaning A type of verbal communication A type of verbal communication

in which the interchange of
information is done through the
pre-defined channels is known
as formal communication.
in which the interchange of
information does not follow any
channels i.e. the
communication stretches in all
directions.

Another Name Official Communication Grapevine communication

Reliability More Comparatively less

Speed Slow Very Fast

Evidence As the communication is No documentary evidence.

generally written, documentary
evidence is present.

Time Yes No
Consuming

Advantage Effective due to timely and Efficient because employees

systematic flow of information. can discuss work related
problems, this saves time and
cost of the organization.

Disadvantage Distortion due to long chain of Spread of rumors

communication.

Secrecy Full secrecy is maintained. It is difficult to maintain the

secrecy.

Flow of Only through predefined Can move freely.

Information channels.