Reference no: EM133181378
Professional Practice
Part 3: Negotiation
Outcome 1: Understand different types of negotiating outcomes
Outcome 2: Identify key skills that make a good negotiator
• To develop your career and become more employable - negotiation skills are highly in demand from employers
• To ensure you receive a fair deal - negotiating involves seeing the value of a situation and finding a balanced solution that benefits everyone
• To help find the middle ground in a situation - The ability to empathize and see another perspective helps to develop conflict resolution skills.
• To remove pressure and friction from your life -
This benefits everyone.
A union and management are negotiating a pay rise for workers.
Before negotiating what type of information should each party research and prepare?
A union negotiator has told the management party that the union wants a new wage of $15.00 / hr. This is the union negotiator's initial offer. However, she also has a minimum reservation point of $13.25 /hr. This is the lowest wage that she is willing to accept for the union.
Considering the situation from the management side, the management negotiator offers $12.75 as his initial offer. His maximum reservation point, the highest wage that he is prepared to offer the union, is $13.75 / hr.
The bargaining zone is the space between one party's minimum reservation point and the other party's maximum reservation point.
Question 1. What is the phrase used to describe a negotiating team's first proposal?
Question 2. What is the phrase for the lowest price that a party is willing to accept?
Question 3. What is the phrase for the highest price that a party is willing to accept?
Question 4. What is the bargaining zone for the two parties in this example?