Page 69 - DMGT525_MATERIALS_MANAGEMENT

Materials Management

Notes 5.5.2 Preparation for Negotiation

The negotiator must prepare him for the unpending negotiation in order to be effective. Lack of
time should not come in his way for preparation. An effective negotiation may result in a long
term benefit to the organization on the other hand in effective negotiation may cost time,
money and energy landing the organization into trouble. Pressure of work may not leave
sufficient time with the negotiator and he may tempted to take urgent decision while on the
negotiation table leaving the important one to fade out from in his mind which may land him,
his department and his organization on some irreparable loss. ‘Urgent’ should never take priority
over the important. Urgency is bad and no decision should be taken in haste much less on the
negotiation table. In order to avoid such a haste and urgency some home task is required before
going to negotiation table. Such a home task in preparation to negotiation brings better
understanding of the organization’s requirements and policies, confidence, easy solution to the
problems in hand and better negotiable results.

“A useful rule of thumb” say Peter Baily and David Farmer, “adopted by many experienced
negotiators suggests that for every hour spent in negotiation, six should have been spent in
preparation. No matter how well you perform during the meeting phase, unless your preparation
has been at least adequate you will probably under achieve.”

Self Assessment

Fill in the blanks:
12. Strategy is a plan of ……………

13. ……………. is a means for its implementation.

5.6 Phases of Negotiation

It may prove beneficial if negotiation is divided into the following three phases:
1. Pre-negotiation phase or the preparatory phase

2. Meeting phase
3. Post-negotiation phase
In the pre-negotiation phase, information is received and analyzed, objectives for negotiation
are defined, strategies are developed and preliminary tactics are discussed.
The meeting phase is the stage of actual discussion and negotiation. During this phase explanatory
information are collected and analyzed. This bargaining is done and agreement is arrived at.
The meeting phase may not be completed in one sitting. The negotiation may linger on and
subsequent meetings may be required. If a number of meetings are necessitated it may further
be phased out into the following:
1. The introductory meeting phase or the explanatory meeting phase in which addition
explanatory information may be collected and the meeting be adjourned for analysis,
inner circle discussions, evolution by strategies and discussions on preliminary tactics.
2. After such a meeting another meeting-called decision. Meeting may be called at a mutually
convenient date and time. This meeting may be utilized for full length discussion and
sorting out many problems arising out of discussion and further analysis. Such discussions
are held with a view to arrive to a certain decision so that agreement may be drafted and
contract signed.

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