Effective Negotiating: Teacher's Book

/

OXFORD BUSINESS ENGLISH SKILLS

TEACHER'S BOOK

'1'

Ieremy Comfort t.t~~·~

with YORK ASSOCIATES

OXFORD UNIVERSITY PRESS

1998

'

.

Oxford University Press Great Clarendon Street, Oxford OX2

6DP

Oxford New York Athens Auckland Bangkok Bogota Buenos Aires Calcutta Cape Town Chennai Dar es Salaam Delhi Florence Hong Kong Istanbul Karachi KualaLumpur Madrid Melbourne Mexico City Mumbai Nairobi Paris Sao Paolo Singapore Taipei Tokyo Toronto Warsaw and associated companies in Berlin Ibadan

Oxford and Oxford English are trade marks of Oxford University Press [ SB N 0

[9 4572 48 x

© Oxford University Press 1998

No unauthorized photocopying All right s reserved. No part of thi s public ation may be reproduced, stored in a retrie val system, or transmitted, in any form or by any mean s, electronic , mechanical, photocopying, recording or otherwise, without the pr ior written perm ission of Oxford University Press. This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent , resold, hired out , or oth erwise circulated without the publisher's pr ior consent in any form of binding or cover other th an that in which it is publi shed and without a similar condition including this condition being impo sed on th e subsequent purchaser. Typeset in ITC Franklin Gothic and Adobe Mini on Printed in Portugal

Contents

page Introduction

4

1

Preparing the ground

9

2

Setting the agenda

13

3

Establishing positions

16

4

Clarifying positions

19

5

Managing conflict

23

6

Making and responding to proposals

26

7

Bargaining

29

8

Conclusion and agreement

32

Negotiating practice extension activities

36

Introduction

Introduction to the course Negotiating is a key communication skill for all learners of Business English . Although many may not be involved in high-powered international negotiations, most learners will have to negotiate with their colleagues, bosses, customers, or suppliers at some stage in their careers. Completing a negotiation successfully holds significant rewards: the right deal for the company, a salary rise, a budget increase - even just a day off work. Because it requires learners to be competent in all key communication and language skills, and often to maintain their performance under pressure, negotiating is arguably the most demanding and the most sophisticated of the core Business English skills. In addition, the skilled negotiator must be aware of the potential difficulties arising from cultural differences which may undermine the effectiveness of their negotiating tactics, even if their language and communication skills are highly developed. What are considered good negotiating tactics in one part of the world may be entirely inappropriate in another - with potentially disastrous consequences. The overall objective of Effective Negotiatingis to enable learners to develop their own personal style of negotiating. The materials and tasks are designed firstly to make learners aware of a range of styles and approaches, and secondly to give them an opportunity to build confidence and competence in the relevant communication and language skills. The course is divided into eight units which deal progressively with the key stages and features of a negotiation between two companies, a supplier and a customer. The learner is taken through a variety of scenarios focusing on key communication skills, starting with preparation and opening, through establishing positions, clarifying and dealing with conflict, and finishing with bargaining and concluding. At the same time, each unit addresses a key cultural issue which can affect the success of a negotiation. Learners are asked to reflect on the variety of negotiating styles that they may encounter, and to be aware of the impact a particular approach can have. Having raised awareness of the underlying cultural considerations, each unit goes on to develop language knowledge and key vocabulary. Finally, both communication skills and language knowledge are consolidated by means of a series of realistic practice activities. This Teacher's Book is intended as a guide to help you handle the different components of the course successfully. It provides suggestions for further 4

INTRODUCTION

exploitation in the classroom and self-study time, and contains extra, photocopiable materials for further negotiating practice (see pages 36 to 61).

Course components In addition to this Teacher's Book, the course consists of three other components: a video, a Student's Book, and an audio cassette.

The video The video, which lasts approximately thirty minutes, is the central component of the course, and acts as a springboard for all the activities in the Student's Book. Based around a negotiation between a Belgium-based multinational and a British IT company, it illustrates key moments from a typical business negotiation, both internally within each team, and between the two teams.

The Student's Book The Student's Book consists of eight units which correspond to those in the video. Each unit is divided into four sections: Communication skills, Cultureand tactics, Language knowledge, and Negotiatingpractice. The Communication skills section identifies and practises key negotiating skills which are illustrated in the video, and involves the learner in a process of feedback, evaluation, and development. The Cultureand tactics section raises a number of key cultural issues which may lead to misunderstanding, conflict, or communication breakdown, and looks at ways in which such problems might be avoided. The Language knowledge section, supported by the audio cassette, expands the learner's knowledge in key functional and lexical areas. The Negotiatingpractice section gives the learner the opportunity to put communication skills, cultural awareness, and language into practice using a variety of role-plays and simulations.

The audio cassette This lasts approximately 50 minutes, and consists of extracts from a wide range of negotiations. It forms the basis of the listening activities in the Language knowledge section of the Student's Book.

Using the course The approach

In each unit the video first shows a poor model ofnegotiating practice in order to demonstrate what can go wrong at any stage ofa negotiation, how and why (Version 1). It then goes on to look at a good model in which the negotiators communicate with maximum effectiveness (Version 2). The video is essential as the starting point for each unit. The approach is designed to develop learners' abilities in three main areas.

Communication skills The course develops the key skills which contribute to a successful negotiation. It aims to build the learner's confidence in their ability to deal

INTRODUCTION

5

with all stages of the negotiating process. Skills such as opening the negotiation, establishing your position, dealing with conflict, making proposals, and bargaining are demonstrated on the video. These are then analysed and discussed. Learners are encouraged to reflect on and develop their own personal negotiating styles, based on an awareness of their particular strengths and weaknesses.

Culture and tactics This section aims to enhance the learner's awareness of how cultural background can affect negotiating style and tactics. Certain key communication styles are highlighted and contrasted, including, for example, task-orientation versus people-orientation, and direct versus indirect communication. The video demonstrates the problems arising when opposing cultural styles clash, whilst the follow-up tasks guide the learner into an analysis of the communication styles fostered by their own business culture. These concepts are then used to develop the learner's flexibility in dealing with negotiating partners from different cultures.

Language knowledge Functional language areas such as sequencing, asking questions, making suggestions, exerting pressure, and making conditions are presented and practised in the Student's Book. The audio cassette is used to introduce a range of expression as well as to develop listening skills with new language. The exercises at the end of the section provide an opportunity for learners to practise key language functions and structures and to activate and develop their negotiating vocabulary.

Methodology

All sections of the course (except Negotiating practice) are designed to work either as classroom material or for self-study.

In the classroom Each unit will take you through the following steps, with further guidance from the unit notes. Objectives These clearly identify the aims ofeach unit in the four key areas: Communication skills Culture and tactics Language knowledge Negotiating practice

Communication skills Pre-viewing Viewing is usually preceded by a question which is designed to make learners reflect on their own experience and also to anticipate the focus of the unit which follows. Before watching, always make sure your students are fully aware of what they are going to see. The Video Negotiating Context section provides briefing on the content of each extract. The Who's who section of the Student's Book gives background information about the characters and their companies.

6

INTRODUCTION

Viewing The first time your students watch a section of the video, play the sequence all the way through. This will give them a chance to adapt to the content and the pace of delivery. For more detailed analysis and questions, you can then play shorter extracts. You may like to play some sections with the sound down. This will give your students a chance to focus on the body language of the characters - in many cases, this will communicate as much as the words they speak! Use the pause button to stop the extracts at key moments. Encourage your students to anticipate what will happen next. The on -screen clock is useful for easy reference to specific sections. The Video transcript at the back of the Student's Book is essential for more detailed analysis and practice of specific language features.

Post-viewing In this section, there will be a chance to relate the focus of the unit to your students' own experience. Culture and tactics In each unit, this section focuses on areas of potential cultural difficulty. Differences of style and approach are explained and illustrated with reference to the characters in the video. There is then a task (such as a discussion, a questionnaire, etc.) which encourages students to relate the particular cultural issue to their own attitudes and experiences. Language knowledge This section is supported by additional extracts from negotiations recorded on the audio cassette. It has three main parts.

Listening practice The recorded extracts are designed to widen your students' exposure to a variety of negotiating styles and types - internal and external, formal and informal, business and personal, one-to-one and group negotiations. The exercises will help learners to improve their listening skills, and to add new language to their own repertoire.

Language focus This section provides comprehensive checklists of functional language and vocabulary contained in the listening exercises.

Language exercises This section provides a variety ofcontrolled tasks to activate the expressions and vocabulary presented in the Language focus. Negotiating practice This section provides a variety of role-plays for pairs or small groups to perform. When you set up the role-plays in class, make sure that you set students a clear communicative objective - for example, to open the negotiation, to deal with conflict, or to come to agreement about a particular issue. In terms oflanguage use, make it clear to the students whether you are looking for accuracy (the correct use of specific phrases) or fluency (no hesitation, confident use of the language). Sometimes it may help to audio- or video-record these practice activities so that students

INTRODUCTION

7

have the opportunity to evaluate th eir own performance, and you can give more detailed feedback.

Self-study The video-based activities focusing on communication skills have been developed with the classroom in mind. However, most of the questions have answers in the Answer Key, and individuals can easily use the video on a self-access basis. The Culture and tactics section usually provides some reading input, followed by questions for discussion , self-assessment, or just food for thought. The Language knowledge section is ideally suited for self-study. Students can refer to the Answer Key for feedback on the exercises. The Negotiating practice section involves pair or group work, although preparation for these activities could also be done during selfstudy time .

8

INTRODUCTION

Preparing the ground

Objectives This opening unit focuse s on the importance of preparing for the negotiation - thinking beforehand about who you are going to meet, what is to be discussed, and what will be the best approach . Good preparation has an immediate impact on the opening stages of a negotiation, which set the tone for the rest of the meeting. The Culture and tactics section looks at a key dim ension in business cultur e, task-orientation versus people orientation. Th e Language knowledge section aims to remind students of key phrases for welcomi ng and introductions, and to start th e pro cess of building vocabulary.

Communication skills Pre-viewing

1

It's important to spe nd tim e establishing what typ e of negoti ations your students participate in , or plan to participate in. Th ese could be either internal or extern al, long or short, formal or informal. Ask them: - who they negoti ate with - what the y negotiate about - why they negotiate - where they negoti ate - how long they negoti ate for. Discuss what is meant by 'a negotiation'. The Answer Key suggests that a negotiation is a meeting in which both parties need each other's agreement to reach a specific objective. For those students with little or no experience of negotiating, focus on everyday negotiations such as, for exam ple, buying a car. Stress that negotiation s are very mu ch part of working and home life.

2

You could ask students to discuss the que stion of how to pr epare for a negotiation in pairs and repo rt back to the group. Ask them what kind of things the y them selves do when the y are preparing for a negotiation and what issues the y would expect to discuss. Th e essenti al prep aration area s are firstly, to ensure that everyon e in the team is clear what the objectives of th e negotiation are, and secondly,to establish th e role that each individual is expected to play in achieving those objectives.

3

Make sure your students are fam iliar with th e context before watching. It may be helpful to also look at the Who'swho section on page 7 of the Student's Book.

UNIT ONE

9

Viewing

Post-viewing

10

UNIT ONE

4

Play the whole of Version 1. If you want to give your students more time to warm up to the context, play it first with the sound down and ask them what they can understand from the body language. Many of the key messages about how the two teams are feeling can be picked up from the way they stand and move. They maintain distance from each other, have little physical or eye contact (at one point Karen actually turns her back on Andrew), and often have aggressive, 'closed' body postures (Karen hugs her file defensively). After you have played it with the sound up, ask the students what problems they foresee with the negotiation to come.

S

The first part ofVersion 1 focuses on how inadequately Karen and Andrew have prepared for the negotiation. Make sure the students notice how, as individuals, they have different agendas and priorities, the result of not having communicated effectively before the meeting. Karen wants to talk about strategy and is frustrated by Andrew's dismissive attitude towards her concerns. Andrew is more interested in personalities.

6

The 'welcome' scene illustrates how poor preparation can immediately lead to problems. As the host, Francoise would normally be expected to take the initiative in making introductions, but she seem s unsure of her role and holds back. Sean has a more proactive approach, but he can't remember much about Andrew, and Andrew neglects to introduce Karen to Francoise. We also see that Sean is impatient and not inclined to dwell on social chit-chat. Ask your students how important the y think it is to spend time building social relationships with their business colleagues. (See the Culture and tactics section for more on this.)

7

Again, you could show Version 2 with the sound down to focus first on the more positive body language. The fact that both teams are more relaxed is conveyed in their 'open' body postures and increased physical and eye contact. The group stands closer together during the introductions, and does not divide into two camps as it does in the first version. The tone is set by Andrew and Karen working as a team and being well prepared. They have obviously agreed on a strategy and what their respective roles will be. Francoise and Sean seem similarly to be more aware of the importance of this opening phase and to function better as a team when making the introductions.

8

Francoise involves everyone in the introductions by greeting Karen herself first, and then letting Sean introduce Andrew. Having watched this version through once, you could do so a second time, stopping the video frequently, and asking students to anticipate what will be said next. Analyse how the 'welcome' session is handled - then put your students in groups of four and ask them to act out a similar welcome and introductions.

9

Ask students to brainstorm their ideas about preparing for a negotiation in pairs or small groups. They should use the headings to help them identify the kind ofquestions negotiators should ask themselves before a meeting, and draw up their own checklists. The groups should compare checklists before looking at the one given in the Answer Key.

Culture and tactics Before you look at the texts, ask yo ur students tu think about the impact of culture. - Does culture affect the way people negotiate? - If so, how does it affect th e way people negotiate? For the reading exercise, get the class to work in pairs. One partner should read th e 'task-oriented' text, the other the 'people-oriented' text. Each sho uld then present a sum ma ry of what they have read to their partner. After the y have had sufficient time to do this in pairs, you could ask for volunteers to present their summaries to the group as a whole, who could offer their comment s and criticisms. The questionnaire could be done in pairs and the results collected and compared for th e whole group.

Language knowledge 1

Focus on the four different typ es of meeting and ask your students what sort of differences in language they expect. Play the four extracts all the way through for global comprehension and get students to identify whether each meeting is formal or informal. If the y need to, let them listen to the extracts all the way through a second time to identify which meeting is which.

2

Thi s second listening pr ovides an opportunity to focus on some key language stru ctures. You could also draw the students' att ention to changes in register since som e of the introductions are more formal than others. Use the tape scripts for further reinforcement and practise of intonation.

3

This final listening is an opportunity to focus on how people switch from the opening small talk ph ase to bu siness. The studen ts have to identify the language structures used. You could again point out how the register of speech often changes (becomes more formal ) when the speakers get down to business.

4

This short activity is an opportunity for students to model language on both the video and audio extracts. The exercise will soon reveal any problems your students have in going th rough these initi al steps of a negotiation. It is important for you to be able to monitor their language, so ask the groups to perform in front of the class. Give feedback and then repeat the steps to improve fluency.

5

This exercise provides some additional speaking pract ice in response to listening prompts. It could be don e as a whole class activity.

6

All the units include some vocabulary work and it is very important to establish a consistent approach to vocabulary building. There are a number of que stions you should discuss with your students. - Passive versus active vocabulary: identify those words which they want to be able to produce (often idiomatic expressions are better left for receptive purposes). - Vocabulary storing: discuss the best ways for recording and stor ing vocabulary so that it is easier to learn, e.g. alphabetically, grouped by area, with translation.

UNIT ONE

11

- Vocabulary recycling: make sure that key words and phrases are constantly recycled in every lesson . - Vocabulary learning: ensure that students understand that this is an active process. Try to vary your approach to vocabulary learning in class, e.g. repetition, putting words in context, the use of games. a Replay the video to see how these expressions are used in context. Ask your students to guess the meaning from the context. In pairs , ask them to carry out the matching exercise. b Individually or in pairs, get them to complete the gap fill. Finally, if you feel it would help, ask your students to use these phrases in their own sentences.

Negotiating practice Pair work The situations given are deliberately everyday, rather than specifically business-oriented. Make sure that students are clear about their objectives and spend time preparing, using the negotiation preparation checklist to help them. In the first two situations, the seller may have to invent some supplementary details about the car and computer. The actual negotiations could be simulated as a phone call (sitting back to back). To provide feedback on this type of exercise, you could appoint an observer for each pair (i.e. divide the class into groups of three) . The observer should give feedback using the checklist from page 68 of the Student's Book.

Group work 1 (groups of 4) For these situations, students should prepare in pairs for each negotiation. Again, it is important that they use the negotiation preparation checklist to help set clear objectives and roles before they start negotiating. You could appoint a fifth member of each group to act as an observer, to give feedback to the pairs on the preparation and negotiation.

Group work 2 (groups of 4 or 6) The emphasis here is on use oflanguage and creating a positive tone at the beginning ofa negotiation. Make sure students understand that they should go through the three stages of hosts welcoming the visitors, making introductions, and then a little polite small talk and offers of refreshment. It will be easier for them if they have some props (business cards, coffee to offer, etc.) and stand up to act out the scene.

12

UNIT ONE

Setting the agenda

Objectives This unit looks at the process of structuring and controlling a negotiation. From a communication point of view, it focuses on the role of the chairperson and the importance of setting an agenda and a procedure for the meeting. The Cultureand tactics section aims to raise awareness about possible different approaches to structuring a negotiation. The Language knowledge section concentrates on the language needed for the opening phases of a negotiation, plus some more vocabulary building. The Negotiatingpractice section provides the opportunity for students to activate and transfer skills in two practice negotiations.

Communication skills Pre-viewing

Viewing

1

It may not be appropriate for informal negotiations to have a rigidly imposed agenda. In an informal negotiation, there may only be one fairly simple point under discussion. However, all negotiations need to have a sense of direction - a clear picture of objectives and the best way to achieve them. The role of the chairperson is vital in maintaining this sense of direction, albeit unobtrusively. Usually the host company should be responsible for chairing or controlling the negotiation.

2

Make sure your students are familiar with the video context. It may be helpful to also look at the Who's who section on page 7 of the Student's Book.

3

Before you play Version 1, ask your students what they would expect to happen in the first stage of the negotiation. Then play it all the way through and ask them what goes wrong. They should be able to see that the negotiation starts off on a negative footing because Francoise immediately focuses in on the problematic staffing question, without giving Karen and Andrew a chance to present their proposal. There is a tendency for inexperienced negotiators to jump in feet first in this way and attack what they see as the main issue. This is not a good tactic. It is better to clarify objectives and establish positions before tackling the sticking points.

4

When you play Version 1 again, ask half the group to focus on the Levien team (Francoise and Sean) and the other half on the Okus team (Andrew and Karen). Tell the observers of the Levien team to evaluate how

UNIT TWO

13

Francoise deals with the critical issue of staffing. How could she improve her performance? The observers of the Okus team should look at Andrew and Karen's reaction to Sean. What is the best way to handle the aggressive position he immediately adopts? If students find it difficult to come up with any answers regarding Sean, you could suggest that a key factor might be to avoid showing any strong emotional response to Sean's aggressive attitude, as he is likely to regard this as a weakness.

Post-viewing

5

Watch Version 2 all the way through. Ask the students what they think of Francoise's performance. They should be able to see that she has clearly prepared well and knows where she is going.

6

As you watch Version 2 through again, stop the video to anticipate what Francoise is going to say next. Focus on the steps she goes through: clarification of the position of Okus versus the competition - statement of objectives - introduction of agenda - check on roles check on timing/end of day.

7

Get the students to work in pairs or small groups to develop their checklists. Ask them to compare with other groups. Then check their matching against the Answer Keyon page 71 of the Student's Book.

Culture and tactics 1

An effective way to raise awareness here is to ask students to work in pairs. They should identify their place on the continuum from chaotic to inflexible. Ask them to consider what the advantages and disadvantages of being methodical or creative could be. What are the difficulties of working with people who are much more or much less systematic than yourself?

2

This is a lead-in to encourage students to think about company cultures. If you have experience of working in companies, talk about your impressions of company culture and style ofworking. Ask them to consider the four companies. Are they similar to any company they have worked for?

3

The objective of the session should be to get them to describe their working culture. If there are a lot of procedures, systems, and rules, then their culture is universalist and highly systematic. If there are rules but people break them when necessary, then the culture is particularist.

Language knowledge 1

14

UNIT TWO

The six extracts present the full range of styles and language for opening a negotiation. Let the students listen to the whole thing all the way through once for global comprehension and general identification purposes. Then play the extracts one by one, checking to see which elements they include. When you have finished concentrating on the global content of each extract, go back and focus on the specific language used to introduce each element. Stop the tape frequently and ask students to match the phrases they hear against the Language focus section. Use the tapescript for more detailed study.

2

Let the students try and answer as many of the comprehension questions as they can from memory. Then play the extracts through again for them to check their answers.

3

The main difficulty with this type oflanguage is to activate the verb usage. After they have completed the gap fills, ask your students to create similar sentences, prompting them with just the verbs.

4

For this speaking practice exercise, divide the class into three groups and then allocate each group one of the task scenarios. Allow the groups ten minutes to prepare together (they should refer back to the preparation checklist) Ask one member ofeach group to act out their opening scenario. If time, repeat with another student taking the active role. Alternatively, you could ask them to work in pairs and act out all three scenarios.

5

Balancing the issues for negotiation is an important rhetorical feature of the opening to a negotiation, especially when the host sets the scene. This exercise provides some discrete practice in presenting two sides of an argument. Remind students to try to use the sequencing and linking structures given in the Language focus section when they make their presentations.

6

Your students may be able to work out the meaning of these 'ground idioms' without the exercise. Try reading the idioms out first and asking students to write down an equivalent phrase or definition. Then go on to the matching exercise. Get students to compare their original definitions with the ones they choose in the exercise.

7

This exercise could be done in pairs. One member of each pair should read out the situation; the other should try to remember an expression that matches the situation.

Negotiating practice Group work (groups of 4) Divide the class into groups offour. Then assign one of the role-playsNegotiation 1 or Negotiation 2 - to each group. The groups should then be broken down into two pairs and have roles assigned. Allow five minutes to prepare for the actual opening of the negotiation. As with all these negotiation practice activities, the feedback is the most important stage of the lesson. Clarify before the negotiation what you are going to be watching for (e.g. a structured opening). If possible audio- or video-record the opening and then play back for analysis and feedback. Encourage the students themselves to give feedback on their own performance and that of their colleagues.

UNIT TWO

15

Establishing positions

Objectives The primary focu s of this unit is on pr esenting your position and making sure you develop two-way communication as you do so. Culture and tactics looks at the differences between an explicit and direct communication style, and a more implicit and indirect style. The Language knowledge section develop s a range of expression for presenting and obtaining feedba ck. Th e Negotiatingpractice section develops th e skill of pr esenting in an interactive way.

Communication skills Pre-viewing

Viewing

16

UNIT THREE

1

Thi s que stion raises th e possible contrad iction in negotiating strategy: on the on e hand, you want to be po sitive and ope n; on th e other, you may feel that it is better not to pr esent the whole picture. Students need to sepa rate their com munica tio n skills from thei r tactics. It's important to give yourself some roo m for manoeuvre later on , so it would be unwi se, for example, to present your best offer immediately. However, alth ou gh you may decid e not to reveal everything for tactical reason s, this does not mean you should not engage the other team in a full discussion ofyour po sition.

2

The question of how to get effective feedback is the focus of this unit. How do you find out how the other team feel about your offer or position? Wh at are the most effective ways to get feedba ck when you are speaking? Students should be ma de aware of the imp ortanc e of constantly monitoring th eir audience, checking th at th ey understand, and that their interest is being held. Th ey can onl y expect to get feedback if they ask for it. There sho uld be plenty of opportunities for th e audience to com ment on and ask question s abo ut what is being said.

3

Make sure students have understood the main issues for negotiation , particularly the differen ce between Level A and Level B support work.

4

You could show Version 1with the sound down first. Ask your students to comment on th e bod y lan guage ofboth present er and audience. Andrew displays many of the faults of a po or presenter -lack of eye contact, overreliance on his equ ipment, lack of flexibility, etc. His audience's restlessness and inatt ention is also clearly indi cated by their body language. When you

play the extract a second time with the sound up, get the students to focus on Andrew and the characteristics of his presentation style.

Post-viewing

S

As you watch Version 1 for the second time, stop the video frequently 'md ask your students what Andrew should and should not do in order to make his presentation more responsive to his audience.

6

You could also show Version 2 with the sound down the first time and ask students to look at Andrew's different body language. Then play it with the sound up and identify the changes in his presentation style. - He interacts more with the audience. - He maintains more eye-contact. - He allows time for questions. - He checks understanding/agreement and is flexible about addressing issues that the audience want to know about.

7

Stop the video frequently to focus on the moments when Andrew brings the audience into the session and makes sure he achieves two-way communication.

8

This is an initial opportunity to model short presentations on Andrew's more interactive style in Version 2. The subjects have been chosen so that a minimum of content preparation is necessary. Give feedback on how interactive your students' presentations are.

Culture and tactics Ask your students to read the introductory text about direct and indirect style. Discuss the characters in the video. What sort of style do they have? What style do your students like?What style do they try to adopt? Then ask them to work on the two short tasks. They could do this in pairs or individually. Compare their answers and then take a look at the Answer Key.

Language knowledge 1

Play the first extract and then check whether your students think the presenter is talking at or talking with the audience. Ask them what made them decide one or the other. (They should focus on things like interaction with the audience, not making assumptions, asking and answering questions, etc.) Continue in the same way with the other extracts.

2

Play the extracts through, stopping frequently so that the students can pick out both the language functions and the actual language used to perform them for each different meeting. You can refer to the Language focus section to reinforce the expressions. Use the tapescript for further support.

3

You might like to explain to students that directly stating what you want in English can sound abrupt and discourteous. It is more polite to state what you want in a more indirect way, i.e. by deferring, or appearing to defer to your partner's wishes and opinions. (This refers back to the Culture and tactics topic of indirectness and directness.) Thus, Is it OK to go now?, Don't you think we shouldgo now?, Do you mind ifI go now?, which all seem to be

UNIT THREE

17

inviting a response, are politer ways of sayin g I want togo now. This activit y is a tr an sformation exercise where studen ts have to alter sentences so th at they are more inclusive, i.e. seem to be invit ing a response. Students could work in pai rs to change the sentences and then go round the class comparing th eir versions. 4

This is another transformation exercise which works on the same principl e as the previous one . Proposals or suggestions, using we are more acceptable than direct stateme nts using 1. Remind students to refer to the Language focus section for help with st ructures for m aking suggestions and proposals.

5

Students should work in pairs, taking it in turns to make brief introductions to th e given negotiatin g situa tio ns. The second partner should listen , respond when appropriate, an d offer criticism at the end. Emphasize the importance of preparing the introductions properly - and set aside time for the students to do this - before you allow them to start the speaking part of the exercise. After everyone has had time to practise, ask one student to make one of the introductions in front of the whole class.

Negotiating practice Group work 1 Students sho uld be motivated by th e opportu nity to talk about th eir ow n companies. Discuss with them th e m ost useful way to do this exercise. They might like to choo se a particular topic o r aspect of their company, and spe cify th e typ e of audience for th e presentation th ey want to give (e.g, custom ers, suppliers, colleague s, etc.). It is im po rtant to keep the aud ience (the othe r students) focu sed on their role as well, so give them time to think of th ree qu estions which , in th eir role as suppliers or customers, they would want to ask the presenter.

Group work 2 You can add an edge to this activity by m aking it competitive. For example, if they choose the topic 'holiday destination', m ake sure each member of the group presents a different destination o r typ e of holiday. The audience can try to ask difficult questions to keep the presenter on his/her toe s. At the end, get th e class to vote on which hol iday th ey wo uld prefer.

18

UNIT THREE

Clarifying positions

Objectives Unit 4 follows on from the work in the last un it on interactive communication. Having presented your position , the next imp ortant phase is clarifying - making sure th at both sides understand each other. In terms ofcom m unica tion skills, this translates into good listen ing an d effective question ing. The Cultureand tactics sectio n looks at individu alistic versus team-oriented styles of negoti ating. Th e work on listening and qu estion ing is consolidated in the Language knowledge section, and th e unit finishes with practice tasks which tr an sfer bo th skills and language.

Communication skills Pre-viewing

Viewing

1

It is important that you establish that this is a probl em area - most of us don't listen very well. We tend to enter discussions with pr e-formed ideas and just wait for an op po rtunity to express th em. When others are talkin g, we have often already made up our minds to disagree with or ignore wha t they are saying. So, active listeni ng is a state of mind when you allow yourse lf to genuinely try and understand an other po int of view. The advantages oflistenin g well are obvious: you un derstand th e other party's negot iating position better and will be able to develop argum ent s that respond to their needs. Showing genuine interest also encourages respect. Your partner will respond by listening to you and the chances of really effective com municatio n are increased.

2

Th ere are techniques for listening effectively but it is, above all, a state of mind in which you allow yourself to be open to what's being said. Enco uragi ng others to listen to you involves checking, pausing, and allowing people to ask qu estion s and make com ments.

3

Make sure studen ts have understood the main issues for negoti ation, and particularly that they understand th e offers on th e table and the difference between Level A and Level B support work.

4

Versio n 1 illustrates everybody following their own agenda ra ther th an sha ring a com mo n sense of direction. It raises the question of the role of a chairp erson again - sho uld Fran coise take more responsibility for the

UN I T F OU R

19

direction of the meeting? Karen is frustrated because she is unable to sustain the group's attention sufficientl y to get her message across. The y keep sidetracking her with quest ions of their own which are not relevant to what she is saying. She needs to develop better skills in keeping on track and handling awkward interruption s, such as those from Sean.

Post-viewing

S

As you watch Version 1 again, stop th e video at each interruption and discuss how Karen could have reacted better and got her message across more effectively.

6

When watching Version 2 for the first time, focus on Francoise and the type ofqu estion s she asks. They are more reflective questions which show that Fran coise is genuinely listening to Karen and trying to interpret what she is saying. Reflective questions like this help to clarify for everyone what is being said, and facilitate effective communication.

7

For th e second viewing of Version 2, focus on Karen, and in particular how she handles Scan's inte rruptions. She keeps control of th e situation and maintains the direction she wants to go in. Andrew backs her up in thi s and they function well as a team, which further supports posi tive communication.

8

We have estab lished that good listening is mainl y the result ofan open state of mind . This qu estionnaire aims to get students to think about their behaviour when listening. Depending on your group, you may like to mention the results of most research in this area which show that women are mu ch better listeners tha n men! Students should complete the questionnaire as individuals, but th en compare results with a partner. You could ask students to suggest three ways, based on the results of their partner's questionnaire, in which they feel their partner could im prove his or her listening skills.

Culture and tactics Before looking at this section in th e Student's Book, ask your students what they think of the teamwork in the video. Hopefully,they will have noticed that, whilst in the bad versions neither side works as a team , in the good versions the successful communication usua lly comes about as a result of teamwork. 1

Ask students to go through the contrasted statements in pai rs and decide whether their working culture is more individualist or more collectivist. Compare the results with the rest of the class.

2

Ask students to discuss the statements in sma ll groups. After ten minutes, ask a spokesman from each group to give feedback to the rest of the class.

3

Finally, ask the groups to come up with some key advice for inexperienced nego tiators .

Language knowledge 1

20

UN IT FOU R

Play the first extract and then check whether yo ur students think it's an example of good or bad listening. Ask them what made them decide one

way or the other. (They should focus on things like questions asked on the subject, interest shown, questions asked off the subject, etc.) Continue in the same way with the other extracts. 2

Stop the cassette to identify the moments when there are pauses, opportunities to intervene, questions, checking, and encouragement. If necessary, use the tapescript to study exactly how the speakers go through these steps.

3

This is an opportunity for students to practise formulating general enquiry questions. If you feel they need time to practise, play the cassette through once and allow students to write their responses down. When you play the cassette a second time, ask students to cover their written answers and respond orally.

4

Follow the same steps as for exercise 3 above. If students are confident enough, they should try responding orally immediately, without first preparing a written answer.

S

This exercise is more challenging, so you could give the students some time to work on the questions in pairs. Then ask for volunteers to read out their questions to compare with the rest of the class and the solutions in the Answer Key.

6

This is an exercise designed to make it more natural and automatic for students to use these encouraging remarks in their own speech. Before you start, refer the students to the appropriate part of the Language focus section, where the remarks are listed. Demonstrate the appropriate 'positive' intonation and give students some time to practise. Then play the cassette and let students respond orally to what they hear.

7

This activity will take ten minutes to prepare. Put all the Student As in a group together and all the Student Bs in another group. The Student As need to decide what their requirements are (e.g. date, time, number of guests, food, drink, entertainment). The Student Bs need to specify what they can offer (e.g. catering, music, and any other attractions, plus costs and availability). When both sides are ready, the students should get into pairs and carry out the negotiation. They could be audio- recorded for feedback and correction. In this case, students may prefer to practise the dialogue before recording it.

8

You could try and elicit some of this vocabulary from your students. Ask them to cover up the box with the words in it and just look at the sentences. Can they think of synonyms for the words in italics? When they have done as much as they can, let them uncover the box and try matching.

9

This exercise provides an opportunity to practise new vocabulary from the previous exercise. When students are confident about the meaning and usage of the given vocabulary, look at other forms of the words - for example to bill, a charge. You could also look at opposites - rough/accurate, discountedprice/full price, etc. Ask your students to talk about the fees, prices, payment conditions, and so on in their companies.

UNIT FOUR

21

Negotiating practice Pair work Before you start, quickly revise th e techniqu es for enco urag ing others to listen (checking, pausing, allowing tim e for qu estions and comme nts) and for how to listen well (maintaining an open state of mind, clarifying meaning by asking reflective 'pos itive' question s). Give th e pair s tim e to choose th e situation they would pr efer to talk abo ut. During the activity, monitor the perform ance of the students for eviden ce of good listening pr actice. Get the listening partners to summarize before th ey swap roles to becom e th e speaki ng partner. At th e end, ask one pair to give th eir presentation and summary in front of the class.

Group work (groups of 4) This is an exercise in efficient exchange of infor mation facilitated by good listening. Th e two team s will need about twenty minutes to prepare th eir background inform ation . It will probably be helpful to set a strict time limit, so that everyone has to be ready to negotiate when time is up. You should also set a time limit (fifteen to twent y minutes) for the negotiation itself. The pressure of time sho uld, in both cases, encoura ge students to maxim ize effectiveness of comm unication. The negot iation would prob ably take place on the client's premises and, therefore, Baylor and Sons sho uld host the meeting. Followin g the negotiation , only allow five minutes or so for the Human Potenti al team to produce the prop osal for a contract. The object of this is to test the effectiveness of the com m unication th at has taken place. Thi s can be judged by th e extent to which th e pro posal fulfils or do es not fulfil the need s of Baylor and Sons. The Baylor and Sons team can decid e whether or not th e proposal is acceptable, and if any major points have been misunderstood or forgotten.

2.2

U NIT FOUR

Managing conflict

Objectives This unit deals with the heart of a negotiation, the stage where it can all go wrong. Negotiating across cultur es can often come unstuck because of critical misunderstandings. An inability to criticize in a con structive way is frequently at the root of the se br eakdowns. Criticisms are too often taken personally and trust begins to be eroded. The unit looks at how to handle criti cism constru ctively and th e role of conflict in negoti ations . From a language point of view, it looks at how language can be modified to tone down the message. Finally, there are some practice negotiation s to help students to learn to handle conflict through role-play.

Communication skills Pre-viewing

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Th e benefits of conflict could include its potential as a dynamic force, which moves the negoti ation forward more quickl y and decisively. Conflict reveals the differences which need to be resolved in a negotiation, and can therefore promote a greater understanding of the positions of the parties involved. On the other hand, the consequences ofconflict are often destructive. Conflict raises levels of stress, which could have a negative effect on the deal under discussion. If one or both parti es take personal offence, this can lead to a total breakdown in communication.

2

Some people cannot cope with conflict and will avoid it at all costs. Others relish some conflict and see it in a positive light as a tool to help them achieve their aims. It is therefore important to identify th e pros and cons.

3

The breakdown in trust develops out of the need to identi fy what type of work the IT team are carrying out. Make sure your students understand th e distinction between suppo rt work and project work.

4

In the first part of Version 1 we see conflict ari sing over the issue oflogging support work. The conflict then becomes personalized as Andrew takes offence at Sean's remark about inexperience. Karen wants to defuse the situation by taking some time out.

5

After the Okus team have left, we see in the second part of Version 1 that Francoise and Sean are not operating as a team. Th ey have different styles of negotiating and different att itudes towards th e use ofconflict.

UNIT FIVE

23

Post-viewing

6

In Version 2 we see Sean adapting his tactics to th e style of his negot iatin g partners. There is a m om ent when Andrew could take offence. Sean recognizes this mom ent and ton es down th e message. However, he still confro nts th e issue. We can conclude that, altho ugh avoiding person al criti cism is vital, it does not mean that you have to avoid important issues.

7

When we see Francoise and Sean alon e in Version 2, they are again talking tactic s, but now they are working as a team. As you watch this tim e, stop the video and focus on Sean's app roach. He and Prancoise use th e tim e out construc tively to assess progress and identi fy their con cern s. They decide not to pu t any more pressure on th e Okus team with regard to th e logging qu estion , but to wait for Okus to make a proposal.

8

Th is activity brin gs us back to consider th e issues discussed in the opening qu estions. Now th at th ey have watched the video, it is an opp ortunity for students to modify or confirm thei r attitudes toward s conflict. Th e important point is th at th ey appreciate the consequences of taking a conflict ual approach. Students should discuss th e statements in pairs. Th en, ask th em to draw up thr ee statements which summarize their own att itude towards th e issues of conflict and building relation ship s.

Culture and tactics The objective of this section is to fur ther develop the students' own styles of negotiating. The first task allows th em to consid er some stereotypical negotiators. Ask them to work in pair s deciding whi ch one they most identify with , if any. Then ask each pair to explain who they have chosen and why. 2

You could ask your studen ts to bri efly present th eir atti tudes towards the issues listed, or alterna tively,you could ask them to wr ite a thumbn ail sketch of their own style. Discuss with the class any major differences in approach which the task identifies.

Language knowledge Play th e first extract and check if all the class agree whether it is confrontation al or collabo rative. Ask them what made th em decide one way or the other. Continue in th e same way with the other extracts. As the listening continues, your students will recognize that one of th e speakers is confrontational in the first two extracts. All the other speakers have a more collabo rative approach.

24

U N IT F IVE

2

Play the four extracts again, stopping frequently to give th e students th e opportunity to identify th e struc tures in the exercise and to compl ete the gap- fill exercise.

3

Thi s exercise consolidates some of the techniques for modifying and, at the same tim e, provides some pattern practice in intonation . It might be ben eficial for students to adopt a two-step approach. First, th ey sho uld identify the language feature(s ) that need to be mod ified. Th en, with reference to th e LanguageJOCllS section, they can decide how th ey sho uld be

modified. They should realize that, in many cases, there is more than one way in which this can be done - for example, I'm afraid can be added to most ofthe sentences. 4

Again, a two-step approach could be most effective for this exercise. First find the opposites and then consider how the sentences need to be changed to keep the same message.

S

With the students in pairs, you could start them off by getting them to suggest ways of making the first sentence in the dialogue less confrontational (e.g. Yourfigures for lastyear don't looksogood). Then give them some time to modify the whole dialogue. When each pair has recorded their version of the dialogue, and had a chance to listen to it, play the pre-recorded versions and compare them. If it is not possible to audiorecord the dialogue, get students to perform it in front of class.

6

This exercise provides further practice for students in downtoning their language in order to defuse a conflictual situation. Read the introduction as a class, and make sure the students understand the implications of the situation, for example that both departments feel that the other is to blame for the surplus. Then ask the students to work in pairs to write the dialogue in suitable 'modified' language. If they have trouble beginning, you could suggest a suitable first line: Therearerathera lot ofelectrical componentsin the warehouse. When they are satisfied with their own versions, ask them to compare with the version in the Answer Key. They should practise acting out their dialogue using the appropriate intonation.

Negotiating practice Conflict is inherent in both these situations. In terms of their language, your students should think about the difference between internal and external negotiations. One would expect the conflict to be more visible in the internal one.

Group work 1 (groups of 5) Discuss the situation with your students, making sure they fully understand the implications. The object of the negotiation is to avoid having the company taken to court, and possibly prosecuted, for breaking the equal opportunities laws. The team should decide on an alternative course of action which meets the approval of all parties concerned. When you have allocated the roles, give the groups ten minutes to prepare themselves. Allow a maximum of thirty minutes for the meeting.

Group work 2 (groups of4) After reading through the introduction, take time to clarify the problem. Again, the object of the meeting is to safeguard the agreement - that Namaste contract Atali's sales team - and to find some kind of compromise position or course of action that all parties are happy with. The meeting place could be either company's premises. Clearly, this will make a difference as to who hosts, and therefore probably chairs, the meeting. After you have allocated roles, allow the groups ten minutes to prepare. The meeting should last between twenty and thirty minutes.

UNIT FIVE

25

Making and responding to proposals

Objectives Once negotiating positions have been established and clarified, the gap between these positions has to be closed. Proposals and counter-proposals are the usual way of achieving this. This unit deals with the communication skills and language involved in making proposals persuasively and exerting pressure. The Culture and tactics section focuses on emotional versus neutral styles of communication.

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UNIT SIX

1

You could illustrate this stage of a negotiation by reminding students of the situation in the video and the problem of the two levels of support - neither ofwhich satisfies Levien. Which side should now make a new proposal? Normally, the supplier (in this case Okus) would be expected to start this process. The customer then has the advantage because they do not have to reveal anything about their position until they have heard the supplier's proposal. However, making a proposal first may also have its tactical advantages. The team that makes the first proposal sets the parameters for the discussion, and ensures that the negotiation will start out in the direction that interests them.

2

Make sure that the students are familiar with the context of this negotiation, and in particular the details of the problem of the two levels of support.

3

Play Version 1 for the first time with the sound down. Find out what your students think is happening. Then watch it with the sound up. Sean is maintaining his conflictual style, trying to force the Okus team into giving him what he wants. He does not even give Okus a chance to make their proposal.

4

As you watch Version 1 for the second time, ask half the class to concentrate on Sean, the other half on Andrew and Karen. Sean's approach is direct and confrontational. He is following his win-lose philosophy of negotiation: if Okus are not prepared to give him exactly what he wants, there will be no deal. Whilst Karen is disconcerted, Andrew responds at first pompously and then sarcastically.

Post-viewing

5

In Version 2, Karen is able to present the Okus proposal. Sean's response is direct, but he is more polite and less aggressive than in Version 1. Francoise responds positively and helps by suggesting ways in which the proposal could be modified to meet Sean's concerns.

6

During the second viewing of Version 2, stop the video and focus on the exchange between Karen and Francoise. Their approach to negotiating is constructive because it avoids negative feedback, and works through a process of making proposals and asking questions. Karen sees a problem, Francoise proposes a possible solution. Karen and Andrew then ask how this solution would work in practice. Francoise makes another proposal, Karen questions, and Francoise clarifies. Finally, Karen responds positively.

7

This is designed as a short pair work exercise to practise proposal and counter-proposal. Give the students the example scenario of negotiating who is going to pay the bill in a restaurant. For example:

Let me pay this time. No, that's not fair. I'm sure it's my turn. Why don't we split it, then? Give them the first two lines of this exchange, and ask for suggestions as to how it might continue. When you think they have got the idea, ask them to get into pairs and work through the scenarios in the exercise in the same way.

Culture and tactics 1

Give students time to read the text and decide whether their own particular styles are more neutral or emotional. Then ask them for feedback, so that they can compare styles as a group. Encourage them to share any experiences of clashes in situations where they have had to work with someone with a different negotiating style, e.g. loss of temper, frustration, taking offence. What was the effect of having to reconcile the two approaches?

2

Students should discuss the scenarios in pairs, and decide how they think they would feel in these situations and what their reactions would be. The emotional responses may differ greatly from student to student and cover a wide range of feelings - e.g. surprise, shock, embarrassment, anger, outrage. The essential question, however, is to what extent the individual chooses to reveal their feelings.

Language knowledge 1

Check that students understand the situation and know what they are listening for. Play the extract through once, and let students try and complete the comprehension task. If necessary, let them listen a second time to check their answers.

2

Play the extract again and get students to try and write down the language structures used to make the proposals. They can use the tapescript to check their answers.

UNIT SIX

27

3

Before you begin this exercise, make sure that students are familiar with the section on responding to proposals in the Language focus. For the exercise, work as a whole class. Stop the cassette after each proposal and choose a student to make a response.

4

This is a written exercise which provides more practice of the language structures for proposals. Point out that the proposals vary in context and that students will therefore have to choose between formal and less formal ways of making proposals.

5

This speaking exercise provides more practice for students in making and responding to proposals and counter-proposals. After the pairs have developed their dialogues, you could ask for volunteers to perform them in front of the class.

Negotiating practice Group work (groups of 4) First, make sure that everyone understands the situation. The object of the negotiation is for the council and the community to reach agreement about the conditions under which the building is to proceed. Allocate roles and allow time to prepare (ten minutes). Monitor the negotiation for the techniques used in making and responding to proposals.

Pair work Before the students divide into pairs, discuss the situation and the roles as a class. Decide who has called the meeting and in whose office it takes place. Ask students to draw up a plan for the best procedure for the meeting. For example: 1 clarification of the need for redundancieslretirement 2 proposed candidates 3 objections and counter-proposals 4 decision. The object of the negotiation is to come to some sort of an agreement about the proposed staff cuts.

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UNIT SIX

Bargaining

Objectives Once the negotiators have exchanged proposals and counter-proposals, there usually follows a period ofbargaining to hammer out the basis for agreement. It is easy for this to quickly descend into a polarized bargaining session. This unit looks at how to maintain positive communication in a bargaining situation. The Language knowledge section focuses on making conditions and concessions whilst the Culture and tactics section contrasts high-context and low-context cultures, where the degree ofexplicit communication differs greatly.

Communication skills Pre-viewing

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There are a variety of reasons why negotiations fail. Personalities or styles of negotiating clash, competitors elsewhere offer a better deal, or problems just seem too difficult to solve. The tone of the meeting is not the most critical factor, but it will certainly help to maintain positive communication in the essential bargaining stage which precedes reaching an agreement.

2

Make sure your students are familiar with the video negotiating context. It is important that they understand that in an outsourcing contract, the contractor employs the staffwho work on the client's premises.

3

Watch Version 1 and then discuss why it goes wrong. The discussion quickly becomes polarized as Karen and Andrew keep saying 'no' to the points raised by Sean and Francoise, thereby putting up barriers against further progress. Ask your students how they would have handled this situation. IfKaren and Andrew had been able to keep the overall objective in mind, instead of getting bogged down in negative details, they would have found it easier to maintain a positive tone.

4

Watch Version 1 again, stopping the tape each time Karen or Andrew say something. Their way of resisting the pressure from Levien is to focus on what they cannot do and what is not possible. In each case, ask your students how the Okus team could have been more positive in their responses. They should put more emphasis on what they do have to offer and what they can do.

UNIT SEVEN

29

Post-viewi ng

5

In Version 2, the Okus team are much more successful at maintaining positive communication for a number of reasons. A crucial advantage for Karen and Andrew is that they have prepared better - they have a concession up their sleeves which breaks the deadlock. Karen avoids a consistent negative response by emphasizing the overall objective right at the beginning and making sure it remains visible: Our main priority is to givegoodquality, value-far-moneyservice. She is very clear about what Okus can and cannot do, and she expresses their position positively.

6

As you watch Version 2 for the second time, focus on how Karen handles the session. She uses the concession of employing a third member of staff to maintain a positive approach, whilst at the same time ruling out the possibility of taking on all of the existing Levien team. The impact of this at a critical moment in the bargaining process, when it seemed possible that the teams might have reached a deadlock - is considerable. It clears the way for the teams to reach a final agreement.

7

This short group work activity provides practice in maintaining positive communication in a situation where there is a conflict of interests. The objective of the exercise is to negotiate a solution to the problem. When the roles have been allocated, you should allow a short time for individuals to prepare how they are going to present their case, and for the group to agree on an agenda for the meeting. You might like to set a time limit for the meeting (ten to fifteen minutes) in order to help students focus and maximize the effectiveness of their communication. You could also appoint a fourth member for each group to observe how the situation is resolved, and to what extent positive communication is maintained.

Culture and tactics Your students probably have experience ofboth types of culture described in the text. Encourage them to relate anecdotes which illustrate the cultures. The American need for very lengthy legal contracts covering every eventuality clearly illustrates a low-context culture. In parts of Asia, a Westerner will need to read between the lines and rely on intuition as much as explicit exposition. The situations are designed to draw out different attitudes to time, business relationships, and contracts. They can be discussed in pairs, groups, or as a class. Encourage students to tell you about other similar experiences which they may have had.

Language knowledge Play the first extract twice to enable students to identify the concession and condition. Let the group compare their answers and give feedback before playing the other three extracts. Tell the students that in some extracts there are primary and secondary concessions and conditions, but they should focus on the primary issues.

10

UNIT SEVEN

2

Now play the extracts again, this time focusin g on the langu age. Make sure that you give students enough time to write down the language stru ctur es that th ey hear. The y can use the tap escript to check their answers.

3

Thi s exercise provides the opportunity for student s to practise forming and manipulating conditional structures. You may find it useful to revise the formation of conditional structures in class before they attempt it.

4

Thi s is an opportunity to develop a feeling for th e difference between the more direct and more hypothetical conditional sentences. Ask students to compare the effect of changing th e tenses for each sentence. For exam ple:

We can offeryou {l two per cent discount if you guarantee the orders. We could/would be able to offeryou {l twoper cent discoulit ifyou guaranteed the orders. 5

After the students have completed the dialogue, further intonation practice could be given by asking them to read it out loud.

6

Thi s short speaking exercise provides an opportunity for freer pr actice of bargaining and makin g conditions, using the structur es above. When students have scripted their dialogu es, they could audio-record them or perform them in front of the class.

7

You could ask on e student to read out the text, while the oth ers follow in thei r books. Then, indi viduall y or in pairs, carry out the vocabularymat chin g task.

S

Wh en you have given feedback on the matching task, ask the students to do the gap-fill exercise individually. As a follow-up to this exercise, you could choo se some current news of deals from the bu siness press and ask your student s to talk about th em.

Negotiating practice Pair work Check that the students understand the situ ation and the objectives of the negoti ation. The customer and the supplier have to negotiate the actual terms of an IT service contract so th at both parties are satisfied. Once the roles have been allocated , allow th e students ten minutes to pr epare. Remind th em to keep sight of th e objectives. They will also need to decide where the meeting takes place, and which partner undertakes the duties of ho st.

Group work (groups of 4) Again , the objective of this negotiation is to negot iate the actual terms of a contract, this time for the pro vision of management and sales training. Follow the same steps as above, but give the students more preparation time since they have more issues to discuss.

UN I T S EV EN

31

Conclusion and agreement

Objectives The gains of a successful negotiation can diminish if the negotiation is not concluded effectively. This final unit aims to raise awareness of the issues that need to be covered when concluding a negotiation, and to equip students with th e skills and language to do so competently and confidently. The Languagefocus section looks at vocabulary and stru ctures for sum marizing and agreeing follow-up actio n - two important steps in the effective conclusion of a meeting. The Culture and tactics section is concerned with two very different common negotiating philosophies. One sees the negotia tion as an end in itself, the other treats negotiations as the starting point for a lon ger-term relationship between supplier and customer.

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UNIT EIGHT

1

Discuss with your students what normally happens at the end of a negotiation. This should help to raise their awareness of the importance of concluding pr op erly. It is essential to summarize and confirm what has been achieved . Nothing must remain ambiguous, and all decisions should be documented as proofofwhat you have agreed.

2

Make sure your students are familiar with the video context. They should be aware of the differing expectations the individual negotiators have for this last stage of the meeting.

3

As you watch Version 1 for the first time, focus on Francoise. She is in a hurry to leave because her person al aim s have been achieved - Okus has agreed to employ all her staff-and she has a dinner engagement to go to. In her rush to leave, she does not conclude the meeting properly. She should summarize what has been achieved, be prepared to clarify outstanding points, and identify future action. Ideally, she should also set a date for the next meeting.

4

For the second viewing ofVersion 1, focus on Karen and Andrew. Andrew is also in a hurry to leave what he sees as a scene of defeat. He is no longer acting as a team member and fails to back Karen up as she pre sses for conclusion on some final issues. He is afraid that they will end up by conceding even more if they stay longer. Karen is frustrated by Andrew's

attitude and disappointed that she has been unable to clarify the issues she wanted to discuss further.

Post-viewing

5

As you watch Version 2 for the first time, focus on Francoise again. Ask the students to make a list of ways in which she handles the closing differently from in Version 1. Although she is still anxious to wind up the meeting quickly, she is both polite and business-like. She summarizes, clarifies, and plans the next steps. The date for the next meeting is set, and Karen knows that the issues she still wants to address can be discussed then.

6

For the second viewing ofVersion 2, stop the video so that your students can identify the key moments, and make a note of the language that Francoise uses. - She summarizes: So, we haveagreed an initial one-yearcontract... - She agrees action: We will meet again hereto interview ... - She apologizes for leaving quickly: I'm afraid I have togo now. I'm sorryI have to leave soabruptly.

7

The students work in pairs or small groups to draw up their end -ofnegotiation checklists. When they have drawn up their checklist and compared it with the one given in the Answer Key, students should take a look back at the opening checklists developed in Units 1 and 2. Together, these three checklists should provide the basis for the whole negotiation.

Culture and tactics After the students have finished summarizing the two parts of the text in pairs, ask one pair to give their summaries in front of the class. Students can then discuss the tactics section in groups, and you could round offwith a whole-class discussion of the issues that arise. Nowadays the win -win philosophy of negotiating tends to dominate most business practice. However, the business world remains extremely competitive and for every successful deal there are many more failures. It is important not to get too carried away with the win-win ethos. Negotiators need to recognize the right moment to pull out as well as when to concede in order to get the deal. Win-win does not mean avoiding tough negotiations.

Language knowledge 1

Play the first extract and ask your students whether they thought it was an effective ending. Did it include all the elements listed in the task? Work through the other extracts in the same way. The students should tick off the stages that they go through in the table in the Student's Book. Ask them to compare the differences in style and context.

2

Play the extracts again, stopping the tape to allow students to pick out the language used for particular functions. Students can use the tapescript to check their answers, and can refer to the Language focus section for reinforcement.

3

Ask students to try this vocabulary exercise without looking back at the Language focus first. Let them refer to the Language focus afterwards to confirm or correct their answers. UNIT EIGHT

33

4

This exercise provid es practice for stude nts in m aking po sitive feedback remarks. Ask th e st udents to do the voca bulary work in pairs and th en check th e results as a class. Discuss th e di fferen ce of degree indicated by the modifiers, and ask th em if they can think of any ot he rs. Then go on to th e listening and responding. Making such positive remarks often seems unnatural to m an y stude nts, so emphasize th at it's a necessary step to practise such phrases before tran sferrin g them to th e real wo rld.

S

This gap- fill exercise enco urages students to act ivate som e of th e vocabular y they have learnt in thi s unit. When they have completed th e script, it would help them to then spea k it out loud, tr ying to use appropriate intonation.

6

The intention of this short speaking exercise is to provide students with th e opportunity to close a meeting. Working in pairs, the students should take it in turns to chai r the meeting, going through the appro priate step s wh ilst the other partner listen s and responds. Do not get too involved in th e context here. The main ob jective is for th em to str ing a series of closing remarks togeth er.

Negotiating practice Group work (groups of 4) This sim ulat ion pr actises a series of com plete negoti ations but th e emphasis in each case should be on th e closin g phase (h owever, you can't have a closing ph ase unless you've gone through so meth ing substa ntial before). In all th ree negoti ations, Student A has th e dominant role - so you could expand th e roles so th at he/she has an assista nt who shares th e responsibili ty for ne gotiatin g. After th e roles have be en distributed , allow th e students a short tim e to prepare, to decide where each meeting is to be held, and who will have th e duties of h ost. It m ay help students to focus if a st rict time limit is set for each meeting, and if Students B, C, and D kn ow that they must pres ent their proposals, and m ake them sound as att ractive as possible within the time allowed. Tell students to be particularly careful to go through all th e appropriate steps for conclud ing each negoti at ion. They can refer to th e checklist on page 8 1 of th e Student's Book to help th em. At th e end, Stude nt A can anno unce which hotel he/she has dec ided to use and say why.

34

U N IT EIGHT

Negotiating practice extension activities

Introduction

Th e following pages contain addition al cases and role-plays for further negotiating practice. All these negot iations can be done in pairs , or in two teams with two or three students in each team. At the end of each negotiation, there are suggested roles. If students are working in a team, the y can decide which roles the y want to play. It is very important that the y spend time preparing for each meeting by identifying the issues and establishing their position s. Each negoti ation sho uld involve the se steps.

1 Preparation Having selected a negotiation (see Contents), students should read the background information to get an overview of th e context.

2 Opening the negotiation If th e negotiation is int ernal, the students must decid e who is going to chair the meeting and therefore open the negotiation. If th e negoti ation is external, the students must decid e where the meeting will take place. Normally the ho stts) will open th e negotiation.

3 Establishing and clarifying positions Each side should be given time to pre sent their position and allow time for clarification.

4 Proposals and counter-proposals Having identified the gap between the two sides, the y now need to make con structive proposals which close thi s gap.

5 Bargaining In some cases, th is will involve negotiating over price. In others, it may be conditions and concessions about people, system s, etc. which are the focus for bargaining.

6 Closing the negotiation All negotiations, whether th ey are successfully concluded or not, need to be closed effectively.

Thesepages may bephotocopied.

Contents

Page

Title

ExternaV Internal

Business focus

1

The cost of expatriation

external

Human Resources / Training

38

2

The IT project

internal

IT / Marketing / Project

40

3

Sponsorship

external

Marketing / Purchasing

42

4

Promotional offer

external

Purchasing / Training

44

5

Loyalty versus price

external

Purchasing / Administration

46

6

Budget crisis

internal

General Management

48

7

Salary increase

internal

Production / Human Resources

50

8

The new buyer

external

Purchasing / Sales

52

9

The best person for the job

external

Sales / Distribution

54

10

After-sales support contract

external

Customer Service

56

11

Free beer and productivity

internal

Industrial Relations

58

12

A manager's role

internal

General Management

60

Unit

Negotiation 1A The cost of expatriation

Background

I

I

Beaubourg Hygiene, based in Paris, have recently acquired an American ! company, Pitcairn Freezers. They decided to appoint one of their top French managers, Thierry Menton, to take overall responsibility for the . company. To prepare for his posting, Thierry was put in touch with a consultancy company called International Assignments. They put together a three-week intensive programme oflanguage and cross-cultural training, two weeks of which were based in the US. At the end of the training, a report was written stating that Thierry was now ready for his assignment. Thierry took up the job four months ago. The first couple of weeks went well, but since then, Thierry has had major problems with the local management and shop floor workers. Last week he contacted his boss in France and asked to be replaced. Beaubourg Hygiene have asked for an urgent meeting with International Assignments.

Beaubourg Hygiene You feel very disappointed. You understood that Thierry Menton was ready for the assignment. According to local managers, Thierry's English was not good enough and he didn't make any effort to get to know his staff. Naturally, following the acquisition, there is a lot of anxiety in the plant about job losses, and it seems that Thierry was not able to deal with these anxieties. There are now threats of strikes, and Thierry has contacted you to ask for his old job back in France. This job is no longer available. His wife and children were just about to move to America, but Thierry has now cancelled these arrangements. Thierry's training programme with International Assignments cost over $9,000, including expenses. You would like an explanation from them about what went wrong. You would also like them to offer some free on-the-ground support for Thierry. Further language and cross-cultural training would seem to be necessary.

Possible roles Human Resources Manager Training Manager

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Negotiation 18 The cost of expatriation

Background Beaubourg Hygiene, based in Paris, have recently acquired an American company, Pitcairn Freezers. They decided to appoint one of their top French managers, Thierry Menton, to take overall responsibility for the company. To prepare for his posting, Thierrywas put in touch with a consultancy company called International Assignments. They put together a three-week intensive programme oflanguage and crosscultural training, two weeks of which were based in the us. At the end of the training, a report was written stating that Thierry was now ready for his assignment. Thierry took up the job four months ago. The first couple ofweeks went well, but since then, Thierry has had major problems with the local management and shop floor workers. Last week he contacted his boss in France and asked to be replaced. Beaubourg Hygiene have asked for an urgent meeting with International Assignments.

International Assignments Beaubourg Hygiene is a new client ofyours. Your first contract was to prepare one of their French managers for the job of General Manager of Pitcairn Freezers in the us. Thierry Menton followed a three-week intensive programme. At the end of the programme his trainers wrote a report stating that they felt his English was good enough to manage in the us. Apparently, the assignment has gone badly and Beauborg have asked for this meeting to see what can be done about it. Thierry has run into a lot of industrial relations problems and is finding it difficult to cope. Your company was not warned of the possibility of industrial relations problems - if you had been, you could have prepared Thierry specifically for this. As far as his English is concerned, you doubt that it is the real problem. In your experience, expatriations usually go wrong for family reasons. You wonder whether Thierry's family has joined him yet. You could get one of your consultants to visit him in the us and try to get to the bottom of things. If Beaubourg want further training, then that is an option, but you do not feel under any obligation to offer anything for free.

Possible roles Consultant Sales and Marketing Manager

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Negotiation 2A The IT project

Background Marton Pharmaceuticals, a specialist manufacturer of medical products, has grown rapidly in recent years. One of their major internal needs is now for better information systems throughout the company. There is a small IT department which is gradually upgrading existing information systems, but manpower is limited and progress has been slow. The IT Manager has just heard that the Marketing Department has contacted an external computer consultant to start work on a new customer database.

Marketing Department Your department has been waiting for three years for a better customer database system. This is absolutely vital for the work of the department. Customers and prospects have grown rapidly, and you need an up-todate system to manage and take full advantage of customer contacts and opportunities. Two years ago, the company formed its own IT team and you assumed that your needs would be given priority. However, despite frequent requests, nothing has happened. In frustration, the Marketing Director has decided to invite an outside consultant to make recommendations, and has arranged for an old university friend, who runs his own consultancy company, to come in for an initial meeting next Monday. Fees haven't been discussed yet, but it is planned that any work should be funded from the IT budget.

Possible roles Marketing Manager Marketing Assistant Marketing Research Assistant

40

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Negotiation 28 The IT project

Background Marton Pharmaceuticals, a specialist manufacturer of medical products, has grown rapidly in recent years. One of their major internal needs is now for better information systems throughout the company. There is a small IT department which is gradually upgrading existing information systems, but manpower is limited and progress has been slow. The IT Manager has just heard that the Marketing Department has contacted an external computer consultant to start work on a new customer database.

IT Department This department was set up two years ago with a clear brief to upgrade and maintain IT systems throughout the company. So far you have installed a new network, provided Internet access for all departments, and developed an order processing and invoicing system. You have a small team who work very hard to support all the staff in the company. You have kept them informed of your IT development plan which includes work on a customer database for the Marketing Department early next year. You are very upset that the Marketing Department has bypassed you and gone straight to an outside consultant. There is no procedure which allows for this, and no agreed budget. You can understand the frustration of the Marketing Department, but there are several other sections within the company which have equally pressing needs. You are prepared to offer to start some preliminary research into customer database solutions in the next few weeks, but you cannot bring forward the project implementation date. You certainly are not prepared to fund outside consultants from your own IT budget.

Possible roles IT Manager Project Manager(s)

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Negotiation 3A Sponsorship

Background [ames Alien Music is th e main stor e supplyin g musical instruments and sheet music for th e local city community. Once a year, Iames Alien Music or gani zes a cha r ity youth concer t in the local city hall, followed by an even ing reception. Usually lames Alien Music will spo ns or th e who le day, cover ing the cost of advertising and pro motio n, transport for local choirs and o rchestras, hiring the city hall, and - most expensively - providing food and drink for th e evening reception . Ho wever, th e dir ectors of lam es Alien Mu sic have decided th at th e event has grow n too large for just one sp onsor to fund it. They are therefore looking for other businesses to help sup port it. One such business is Gresham Pianos, lames Allen Music's exclusive supplier of pianos.

James Alien Music You have arranged to m eet the director s of Gresham Pianos to persuade them to contrib ute to th e event fund . The total cost of the event is £95,000. You would like to suggest th at Gresha m Pian os is a m ajor spo nso r, contributing at least £10,000. You kn ow th at every year you sell about forty Gresham pianos at an average cost of£4,000 per piano, so you think it is not unreasonable to ask for a contribution of thi s size. Gre sham Pianos would be one ofthe named sponsor s on all the publicity m ateriaL If you cannot persuade Gresha m Pianos to m ake a major contribution, th en you mi ght start to look for altern ative suppliers of pianos.

Possible roles Mr/MsAllen (owner) Store Manager

42

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Negotiation 38 Sponsorship

Background lames Allen Mu sic is the main store supplying musical instruments and sheet music for th e local city community. Once a year, lames Allen Musi c organizes a charity youth concert in the local city hall, followed by an evening reception. Usually lames Allen Music will spo nso r the whole day, coverin g the cost of adverti sing and promotion, transport for local choirs an d orchestras, hiring th e city hall , and - mo st expensively - providing food and drink for th e evening reception. However, the dir ectors of lames Allen Music have decided th at the event has grown too large for just one spo nsor to fund it. The y are th erefore looking for other bu sinesses to help support it. O ne such busin ess is Gresha m Pianos, lame s Allen Music's exclusive supplier of pian os.

Gresham Pianos You have been supplying piano s for sale by lames Allen Music for ten years. They sell aro und forty ofyour piano s every year. The average sale pri ce is £4,000, of which [am es Allen Music take around £ 1,000. Your net profit on each pian o is aro und £400. You have been approa ched by lames Allen Music to help provid e sponsorsh ip for th e annual charity youth concert. You feel you would be happy to offer £ I,000 towards the cost of prize money, and ideally would like to sponsor th e under-IS piano competition. You expect lames Allen Music to ask for more, but you feel that they are a far more profitable business than yours. Also, you have recently been offered a much better deal by another music store in the city, a branch of a n ationwide chain, which would nearly double your pr ofit per piano.

..

Possible roles M r/Ms Gresham (owner) Sales Manager

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Negotiation 4A Promotional offer

Background Westfields is a national garden centre chain. They are about to implement a large-scale stafftraining programme. This will involve on -site customer service training for all shop staff, personnel management training for supervisory staff, and financial control training for management. For the financial control training, they plan to use a company called Mancon. Mancon provide three-day residential courses for financial managers. The final terms of the package have not yet been agreed, but Westfields should put about twenty managers through the programme next year. They have recently appointed a new manager for one of their garden centres who needs this training urgently.

Westfields Alicia Shepherd has just been appointed to manage one of your largest garden centres. She is the right person for the job - she is a trained horticulturalist, and has excellent management skills. However, she lacks training in financial and accounting systems. You would like to put her though the Mancon residential course as soon as possible. The full training programme does not start till next year, so you have no budget for it this year. You would therefore like Mancon to provide this course free in view of the volume of training you are promising them next year. The advertised price is £1,500 plus £800 for accommodation and food. You are not in a position to confirm the training order for next year, but obviously you will be even more inclined to give Mancon the contract if they do you this favour.

Possible roles Training Manager / Human Resources Manager Purchasing Manager

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Negotiation 48 Promotional offer

Background Westfields is a nation al garden centre chain. Th ey are abo ut to implement a large-scale staff tr aining programme. This will involve on-site customer service training for all sho p staff, personnel management training for supervisory staff, and finan cial control training for management. For the financial control tr aining, they plan to use a company called Mancon. Mancon provid e three-d ay residential courses for finan cial managers. The final terms of th e package have not yet been agreed, but Westfields should put abo ut twenty man agers th rou gh th e programme next year. They have recently appoi nted a new manager for one of th eir garden centres who needs this trainin g ur gently.

Mancon Westfields have approached you abo ut the financi al con tro l training package you offer to man agers. Th ey have talked abo ut sending fort y man agers on the course next year. If they do this, you would expect to be able to offer th em a sizeable discount for a bulk booking (up to 15% ). They have asked for a meeting now to discuss sending one manager on the next course. You un derstand that the y have bu dgetary problems this year and ma y well ask you to provide this course free. Your policy is not to offer promotional cours es, but you are prepared to discount it heavily. You have been caught before by companies promising lot s of business but failing to deliver!

Possible roles Sales / Marketing Man ager Key Account Manager

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Negotiation SA Loyalty versus price

Background Manor High School has been cleaned by a private contractor for many years. New local government regulations, however, require that the school puts the contract out to competitive tender. They have received offers from two new cleaning companies, but if possible, they would like to continue with their existing contractor, Benjamin Cleaners.

Manor High School Benjamin Cleaners have always done a very professional job. They are completely trustworthy, which is vital as they have access to some very valuable technical equipment. Their current weekly fee is £690. To do the cleaning they use very efficient local people who have worked at the school for many years. The school provides some of the cleaning equipment, but it is getting a bit old and unreliable. You need Benjamin Cleaners to make an offer which is closer to the ones from its two competitors (see below). If they can do this, the local education authority will probably allow you to continue the existing contract. Cleaneasy

Pyramid Industrial Cleaners

Manor High School contract Total price - £540 per week 30 hours cleaning per week (six days a week) All equipment provided Supervisor to do nightly check on quality

Manor High School contract Total price - £620 per week 30 hours cleaning per week (six days a week) All cleaning material provided

Possible roles Head of Administration Bursar

46

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Negotiation 58 Loyalty versus price

Background Manor High School has been cleaned by a private contractor for many years. New local government regulations, however, require that the scho ol puts the contract out to competitive tender. They have received offers from two new cleaning companies, but if possible, they would like to continue with th eir existing contractor, Benjamin Cleaners.

Benjamin Cleaners You are really shocked that Man or High School could consider changing th eir cleaning contractor. You have done th e job for more th an twenty years and have an excellent relationship with the bursar. You use only local people to do the cleaning. You are very sur prised th at the school is con sidering usin g outsiders like Cleaneasy or Pyramid, as you know they both have a poor reputation for reliability and honesty. You pay your clean ers a competitive hourly rat e. You don't see how you could pay them less, or that the y could work fewer hours and continue to do a good job. You might be able to start using your own equipme nt, but thi s would have to be spr ead over the next six months as some new equipme nt would have to purchased.

Possible roles Mr Benjamin (owner ) Andrew Benjamin (owner's son)

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Negotiation 6 Budget crisis

Background Fieldin g Electronics are a medium-sized business supplying speciali st components to the auto mo tive industry. At the begi nning of each year they agree a budget for the company based on a detai led sales forecast. However, in the middle of this year, one of their main customers was taken over, followed by the closure of one of th eir plants. This has led to a sudden downturn in sales.

Managing Director Th e drop in sales amounts to 10% of the company's forecast turnover. You therefore need to make a 10% cut in depar tmental budgets acro ss th e company. You need to protect the gross profit figure beca use of th e dividend expectations of your shareholders. You wou ld like agreement on this by the end of the meeting.

Finance Director You know that it will be difficult for Production to cut its budget by 10%. Many of their costs are fixed. You feel th at the 'suppo rt' departm ents like Human Resources, Marketing, and Finance, need to make bigger cuts in order to reduce tota l costs by the requ ired 10%. You are prepared to make a 15% cut by freezin g investment in a new accounting software package, and by not renewing the contract of one temporary membe r ofstaff.

Production Director You have calcu lated th at you can make a 6% cut in varia ble costs (i.e. raw m aterials and some labo ur costs), bu t it is impossible to m ake a 10% cut at this stage of the year. It will mean not taking on any pa rt-time worker s over the sum m er, and the existing workforce will have to be flexible abo ut holidays.

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Marketing Director You see it as your job to replace the lost business as soon as possible. This means investing more in trade fairs, prospecting, and PR opportunities. Therefore, you would like approval to increase your budget by 5%.

Human Resources Director You are willing to make a 10% cut in your budget. This will mean running fewer training courses and freezing new recruitment. You feel any more of a cut would be disastrous for the morale of the workforce.

Budget figures (OOOs) Existing budget Total sales

15,410

Revised budget 13,860

Production costs Raw materials Labour Fixed costs

3,200 4,100 3,400

Marketing & sales

650

Finance

740

Human resources

820

Gross profit

2,500

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Negotiation 7 A Salary increase

Background The Barton Corporation's business has just started to pick up after a very tough few years in the export market. During this time a lot ofjobs have been lost, and for the last two years there has been a salary freeze. Barton's competitive prices are beginning to win back market share, but the Board of Directors wants to keep salaries low to maintain their competitive edge. However, there is growing pressure from the workforce for salary increases. They can see that business is picking up, and they have had to tighten their belts for long enough. In particular, the Production Director would like to reward some of his stafffor being very flexible over the last few years. They have either worked long hours without claiming overtime or, during some periods oflow demand, have agreed to work short weeks and reduce their earnings.

Human Resources Department It is your role to maintain morale in the workforce, while at the same time keeping control of salaries. You know that the production staff have been very flexible over the last few years, but then so has everyone in the company - and at least they kept their jobs. It has been agreed with the Board of Directors that total labour costs can rise by a maximum of 2% this year. In addition, there will be a productivity bonus payable at the end of the year, but the amount will depend on the level of profitability achieved. The bonus will be payable across the company. You think it is likely to be worth about an extra two weeks' salary per employee.

Possible roles Managing Director (chair) Financial Director Human Resources Director Production Director

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Negotiation 78 Salary increase

Background The Barton Corporation's business has just started to pick up after a very tough few years in the export market. During this time a lot ofjobs have been lost, and for the last two years there has been a salary freeze. Barton's competitive prices are beginning to win back market share, but the Board of Directors wants to keep salaries low to maintain their competitive edge. However, there is growing pressure from the workforce for salary increases. They can see that business is picking up, and they have had to tighten their belts for long enough. In particular, the Production Director would like to reward some of his staff for being very flexible over the last few years. They have either worked long hours without claiming overtime or, during some periods oflow demand, have agreed to work short weeks and reduce their earnings.

Production Department It is your department which has ensured that the company has survived

over the last three years. You have kept costs to a minimum - this is how the company has stayed in business, and has now regained its competitive edge. If your highly-skilled team are not rewarded now, they are going to start to look for new and better-paid jobs elsewhere. You have heard that the company is going to offer a 2% pay rise across the board. You think that your team should get at least SOlo - even though this would mean that the rest of the workforce would have to accept only 1%.

Possible roles Managing Director (chair) Financial Director Human Resources Director Production Director

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Negotiation SA The new buyer

Background The exclusive wine retailer, Grafton Fine Wines, is famous for the range and quality of its wines. Grafton has for years bought most of its wine through a wholesaler called Dufrais. Until recently the owner, Alastair Grafton, has always dealt with the orders himself. He has now appointed a Wine Buyer who will be responsible for all future purchases. One of the first things the new buyer did was to look in detail at the existing stock and forthcoming orders. He/She has discovered that Grafton has been paying much too high a price for many of their wines, and in addition, have been holding too much wine in stock.

Grafton Fine Wines The Wine Buyer intends to get a much better deal from Dufrais. The total annual spend last year was $345,000, and it appears that Grafton was paying an average of30% above the vineyard price. Wholesale margins in the wine business are between 15% and 30%. At these wholesale prices, Grafton's retail margin is only 20%. It should be at least 30%. Dufrais have been insisting on a minimum order of two cases (twentyfour bottles) of any particular wine. As a result, Grafton's stock levels are unusually high. The Wine Buyer intends to negotiate a much lower minimum order (six bottles). If the right deal is not negotiable, there are other wholesalers who are likely to be interested. Alternatively, Grafton could start buying direct from the vineyards. In this case, prices would be much lower but minimum orders would be much higher (probably twelve cases).

Possible roles Wine Buyer General Manager (one of the Grafton family)

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Negotiation 8B The new buyer

Background The exclusive wine retailer, Grafton Fine Wines, is famous for the range and quality of its wines. Grafton has for years bought most of its wine through a wholesaler called Dufrais. Until recently the owner, Alastair Grafton, has always dealt with the orders himself. He has now appointed a Wine Buyer who will be responsible for all future purchases. One of the first things the new buyer did was to look in detail at the existing stock and forthcoming orders. He/She has discovered that Grafton has been paying much too high a price for many of their wines, and in addition, have been holding too much wine in stock.

Dufrais You have been supplying wine to Grafton for twenty years. You have always dealt directly with the owner, Alastair Grafton. You have just heard that they have recruited a Wine Buyer and that he/she wants to meet you. You expect that this means Grafton will be looking for a much more competitive deal. You have been marking up the vineyard price by 30-35% for Grafton orders. Typical margins with most customers are between 20 and 25%. The lowest margin is with a large supermarket chain, only 14%. If Grafton wants much better prices it will be necessary to agree to an annual contract. Last year the company spent $345,000, but most of the orders were on a weekly basis and for just a few cases - your minimum order is two cases, or twenty- four bottles. You have been looking through their order history and there are around ten wines ofwhich they order over 200 cases a year. If Grafton is willing to guarantee an annual order, you could offer a much better price on these particular wines - around 20% above vineyard prices.

Possible roles Sales Manager Customer Relations Manager

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Negotiation 9A The best person for the job

Background BBS (British Building Supplies, Ltd.) is a nationwide chain of hypermarkets, supplying equipment and materials to both DIY customers and the building industry. It has recently acquired a European-based building and plumbing supplies company, SNP, in order to gain a presence in the expanding European market. A key job in BBS's home operations is that of Distribution Manager. SNP does not have this position, so the new owners would like to send one of their best managers to SNP's head office to take over this role. SNP management feels that this job is already done by their Sales Department, and that there is no need for a new Distribution Manager. If it is necessary to create this new position, they have a young Sales Manager who would do the job very well.

BBS You think your new acquisition - SNP - is very traditional in its approach to managing the business. One of the reasons it was available to buy is because of poor results and loss of market share. Your analysis shows that SNP has failed to deliver on the distribution side, which is critical for the future success of the business. SNP has an extensive chain of supply depots, but the company has a bad reputation for delivery times and stock levels. Patrick Donahan is one ofyour best graduate managers. He has recently worked on the distribution side of the business, but he also has experience of all the key functions. He speaks the local language, and is keen to move to SNP. You feel that this is the only way you are going to transform SNP into a dynamic, forward-looking company. However, you would prefer not to impose your candidate on SNP, but hope to convince them of his value. You are prepared to negotiate about the terms of the job and would like to train local staff to take more responsibility for this area in the medium term.

Possible roles Managing Director Sales & Distribution Director Human Resources Manager

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Negotiation 98 The best person for the job

Background BBS (British Building Supplies, Ltd.) is a nationwide chain of hypermarkets, supplying equipment and materials to both DIY customers and the building industry. It has recently acquired a European-based building and plumbing supplies company, SNP, in order to gain a presence in the expanding European market. A key job in BBS's home operations is that of Distribution Manager. SNP does not have this position, so the new owners would like to send one of their best managers to SNP's head office to take over this role. SNP management feels that this job is already done by their Sales Department, and that there is no need for a new Distribution Manager. If it is necessary to create this new position, they have a young Sales Manager who would do the job very well.

SNP When you were taken over by BBS,you understood that SNP would maintain its independence. You know it's vital to regain market share, but now that you have new money in the business, you feel SNP can invest in a better network of depots and supply lines. The problem is that the company has been starved ofinvestment over the last five years, and that this has led to a gradual decline in the quality of service. The management team is very professional, and with new investment you think you can turn the company around. The last thing you need is a BBS manager coming over to run the distribution side of your business. You have a sales team who can do this very competently. If there is a need for a new position, then Suzanne Pinot, who is already responsible for distribution, could do the job very welL She knows the local market, the suppliers, and the depot managers. A new man or woman from BBS would take at least six months to become familiar with the market, and may cause resentment amongst your staff. The answer may be for BBSto send someone across for a few months to see how SNP operates, and to reassure BBSthat you have the right team to improve the business.

Possible roles Managing Director Sales Director

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Negotiation lOA After-sales support contract

Background Modular HiFi, Ltd. sell customized sound systems to discerning customers at the top end of the market. All their products come with a three- or five-year guarantee. Last year, Modular contracted Customer Care PLC to look after their after-sales and customer support programme. Customer Care provide a Monday-to- Friday helpline plus a repair call-out service. Over the last few months there has been a sudden increase in the number of calls and repairs. Six months ago Modular launched an aggressive marketing campaign and won a lot of new customers. But whereas most of their previous customers had been hi-fi enthusiasts, most new customers have no interest in the technologythey have bought Modular systems because they are sophisticated and non-standard. Because of the increased workload, Customer Care have called for a meeting to renegotiate the terms of the contract.

Modular HiFi, Ltd. Until recently, you have only sold your sound systems to hi-fi enthusiasts. Now your market has expanded, and you have a new type of customerwealthy but not remotely interested in the technology. Customer Care PLC took over all your customer support and repair work last year - a major relief to the company. You agreed to pay a fixed rate per support call ($3.50) and per repair call-out ($45.00). It was estimated that there would be about twenty telephone calls per week, and maybe two repair call-outs per week. You understand that they have asked for this meeting because the support telephone calls are requiring much longer than expected, and the repair call-outs are more frequent and more complex than anticipated. There is six months to run on the existing contract and you don't want to modify it. However, you understand that there may be a need to do so for next year. You certainly want to keep Customer Care working for you, as you don't have the staff to do the after-sales work, especially now that sales have increased so dramatically. Perhaps the answer is to renegotiate the package for next year, building in more flexibility in the charging rates.

Possible roles Sales Manager Finance Manager 56

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Negotiation lOB After-sales support contract

Background Modular HiFi, Ltd. sell customized sound systems to discerning customers at the top end of the market. All their products come with a three- or five-year guarantee. Last year, Modular contracted Customer Care PLC to look after their after-sales and customer support programme. Customer Care provide a Monday-to-Friday helpline plus a repair call-out service. Over the last few months there has been a sudden increase in the number of calls and repairs. Six months ago Modular launched an aggressive marketing campaign and won a lot of new customers. But whereas mo st of their previous customers had been hi-fi enthusiasts, most new customers have no interest in the technologythe y have bought Modular systems because the y are sophisticated and non-standard. Because of the increased workload, Customer Care have called for a meeting to renegotiate the terms of the contract.

Customer Care PLC Modular HiFi, Ltd. is quite a small client for you. You provide an aftersales service for them con sisting of two elements: (1) a telephone helpline for installation and technical problems, and (2) repair call-out for problems which cannot be solved over the phone. Based on your experience with similar clients, you charge Modular $3.50 per support call and $45.00 per repair call-out. Following a very successful marketing campaign, Modular has gained a lot of new customers who need a high level of technical support, and both telephone calls and repair call-cuts are taking twice as long as you expected. You calculate that your costs are 35% higher than forecast. You have signed a one-year contract and legally have no right to change it. However, you know that Modular were very relieved to hand over after-sales care to you, and you feel they should be flexible this year if they want to sign another contract next year. You could propose a two -level support charging system . For longer telephone calls or call-outs you would charge more, enough to cover your higher costs. If you don't get agreement on this, you may not want to continue working with Modular.

Possible roles Client Relations Manager Sound System Advisor Photocopiable © OXFORD UNIV ERSI TY PRESS

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Negotiation 11A Free beer and productivity

Background Mappington Breweries is a producer oftraditional beers, based in the north ofEngland. The management of Mappington's have always prided themselves on good labour relations. Some employees are members of the Brewing Trade Union, but many are not. Every year, one employee is elected to sit on the Board of Directors to represent the interests of the workforce. Last week there was a Workers' Council Meeting, at which two major issues were raised: 1 The ending of the tradition of providing a free barrel ofbeer (twenty-four litres) every month to every employee. 2 The introduction of a productivity bonus as part of the annual wage settlement - in effect, performance-related pay.

The directors The provision of the free barrel of beer was stopped because it was discovered that some employees were selling their barrels to local clubs. This is beginning to disrupt the normal supply of beer in the region. Instead of the free barrel ofbeer, you have introduced a productivity bonus linked to each employee's performance targets. For some employees this could mean an additional 5% on their annual salary. The company's annual salary rise was in line with inflation. You feel that since the employees can buy half-price beer in the company social club, there is no longer a justification for continuing to give away free beer. In any case, many younger employees would prefer to take any bonus in the form of more money or time off. The productivity bonus is a much better way to reward hard work and loyalty to the company.

Possible roles Human Resources Director Finance Director Managing Director

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Negotiation 11B Free beer and productivity

Background Mappington Breweries is a producer of traditional beers, based in the north of England. The management of Mappington's have always prided themselves on good labour relations. Some employees are members of the Brewing Trade Union, but many are not. Every year, one employee is elected to sit on the Board of Directors to represent the interests of the workforce. Last week there was a Workers' Council Meeting, at which two major issues were raised: The ending of the tradition of providing a free barrel ofbeer (twenty-four litres) every month to every employee. 2 The introduction ofa productivity bonus as part of the annual wage settlement - in effect, performance-related pay.

Employee representatives Many employees are very upset by the removal of this 'fringe benefit'. It was part of the tradition of the brewery. It may be true that some employees have been selling beer at halfprice, but that can easily be stopped by talking to the local clubs, and in any case, you don't believe it is a significant problem. The employees do not like the idea of a productivity bonus which only some workers would be eligible to receive. Salary rises and bonuses have always been given to all employees. If there is extra money available, the employees would like a higher overall salary increase. Alternatively, a productivity bonus payable at the end of the year and spread equally among the whole workforce would be acceptable.

Possible roles Employee Board member Staff representatives

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Negotiation 12A A manager's role

Background Last year, Sarah Atkinson was promoted to Key Account Manager at Posthlethwaite, Kinnear, and Baldry (PKB), a medium-sized advertising agency. She had previously worked on the creative side of the business. Her new job means looking after one particular client, Cooper Lilley, a healthcare company. She works mainly with Cooper Lilley's Advertising Manager - her job is to build the business and ensure that Cooper Lilley is completely satisfied with the campaigns that PKB designs for them. Over the last six months, the Cooper Lilley account has grown and client satisfaction has been high. However, within PKB, Sarah has caused a lot of unrest. She is meant to leave the creative side of the Cooper Lilley campaigns to the Creative Director and his team. In fact, she has been working closely with Cooper Lilley's Advertising Manager on all aspects of the account, but particularly on the creative side. PKB's Creative Director thinks she is not doing her job. She is meant to handle the business side of this account (billing, costing, new projects, etc.) and not the creative side.A meeting has been called to discuss the situation and to try and reach an acceptable solution.

Sarah Atkinson You have always enjoyed the creative side of advertising. You were concerned that, when you were promoted to Key Account Manager, you would have to leave that side to the agency's Creative Department. However, you have formed a very good relationship with the Advertising Manager at Cooper Lilley,who has welcomed your input on the creative side. You know that your main task is to build the business, and to ensure that existing business is well-managed, but you feel you are doing this in an indirect way. You leave a lot of the administration of the account, such as billing, to your secretary. You really can't see what the problem is.

Possible roles Sarah Atkinson's boss

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Negotiation 128 A manager's role

Background Last year, Sarah Atkinson was promoted to Key Account Manager at Posthlethwaite, Kinnear, and Baldry (PKB), a medium-sized advertising agency. She had previously worked on the creative side of the business. Her new job means looking after one particular client, Cooper Lilley,a healthcare company. She works mainly with Cooper Lilley's Advertising Manager - her job is to build the business and ensure that Cooper Lilley is completely satisfied with the campaigns that PKB designs for them. Over the last six months, the Cooper Lilley account has grown and client satisfaction has been high. However, within PKB, Sarah has caused a lot of unrest. She is meant to leave the creative side of the Cooper Lilley campaigns to the Creative Director and his team. In fact, she has been working closely with Cooper Lilley's Advertising Manager on all aspects of the account, but particularly on the creative side. PKB's Creative Director thinks she is not doing her job. She is meant to handle the business side of this account (billing, costing, new projects, etc.) and not the creative side.A meeting has been called to discuss the situation and to try and reach an acceptable solution.

Creative Director You find that Sarah has become rather arrogant since she took on her new job. Above all, you feel that her client, Cooper Lilley, is only getting the creative input from one member of the agency - Sarah. They should be getting the full support and creative work ofyour team. You realize that Sarah has a good relationship with the client's Advertising Manager, and that is good for business at the moment. However, in your experience, people move on, and then the future of the account depends not on personal relationships, but the quality of the campaigns and the results they achieve. You feel that Sarah does not have enough experience to realize this. You have also heard Sarah's secretary complain that she is doing much ofSarah's job for her.

Possible roles Creative Director's boss

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