Procurement Negotiator and Negotiation Skills Required

The process of negotiation involves several psychological aspects and through the last 30 years, scholars have tried to increase the knowledge about the underlying processes. The subjective emotions under play in a negotiation is mainly cognitive skills, sentiments, motivation, confidence, the power to influence and communicate directly. It can be described primarily as a skillful cooperation in an atmosphere of different ideas and interests coming into a different situation. The parties taking part in a negotiation will have different ideas, claims, and talents and they come together in a management scenario. The underlying reason for a talk is a matter of dispute between the parties involved, and they come together to reach a compromise on the issue of concern. The process if based on the notion that both the parties are ready to talk over the matter and come up with offers and return-offers. And eventually, the dispute is solved only when the parties agree over the proposals put forth.

The researches over the scholarly basis of negotiations can be dated back to 1947 when Von Neumann and Morgenstern conducted studies over how games affect the economic characteristics of humans. This was the origination work and from then on several descriptions and viewpoints were presented for the psychology of negotiations.

In spite of these descriptions, a negotiation involves some key elements, and there are at least two or even more than two opposing parties involved, their ideas form the base of the argument, and they present the alternatives towards the negotiation process and thus produces the final outcome.

“Negotiation is a necessity, a process, and an art.” - Gates, 2015

Several aspects make a business a success and the role of a right deal at the right time is inevitable for the same. In a corporate business, there arise issues between sections of the same grounds and with a good negotiator, he/she will be able to handle it tactically and take the business to great success. With a proper negotiation procedure, it is not just the solution that it evaluated, but the push factor to carry on the agreement details are also included. The profit level of the agreement will include several intermediate concerns like payment processing, terms and conditions, the quantity of work and the delivery of completed goods. So, to clearly define a negotiation as a successful one, it is required to plan efficiently. When there is a negotiation taking place over an acquisition procedure, the basic need is to get maximum profit, and this defines the specific values and numbers involved.

There are even cases where the negotiations over the product prices will take place before considering the quotations. This is true especially when there is a hike in prices. What is negotiated in a procurement process? The price is the primary matter of negotiation, and there are also other elements like discounts in bulk purchase, considerations over packaging charges, shipping reduction, and other applicable discounts. The idea that is conveyed through a negotiation process is not just to reduce the prices but to get the best value for the money spent. Only a talented and skillful person will be able to become a reputed acquisition manager and should be knowledgeable about the cost of the products and the profits to be able to stand shoulder to shoulder with the negotiators. So, basically, negotiation is a process that leads to a decision and involves various steps of organization, analysis, and evaluation.

What are the necessary skill requirements of a procurement negotiator? The requirement is to know the negotiation techniques. He should be to able to work out any issue, get feedback from labor associations, know the power of the opposite party, be able to talk mutually on home grounds, have a clear idea about the concessions and should be able to use the apt diversions when it is required to solve an issue. While closing agreement, the condition should be a mutual benefit for both the parties so that there is no compromise made over the quality or attention towards detail. Such an agreement will cause more harm than good. The need is to come to a win-win negotiation. Several purchase staffs take care of the quality of the final product, and it is the responsibility of the procurement officer to create a good rapt with these staff and inform them about the aims of the purchasing system so that they keep a close check on the delivery.

It is a rather difficult task for a business to look for an efficient procurement negotiator as the person should be qualified to take up the intricate responsibility of making all the deals which will be the foundation of the business enterprise. It is only the experience acquired over time that will improve the characteristic skills and traits of the procurement negotiator. A trait which is a common one found in all great negotiators is the ability to respond well and understand. When you look at all the great negotiators of all time, you can see that empathy has been the most prominent and base skills required for proper communication. This understanding helps the officer to understand the key factors and to focus on it to maintain the business identity. It will give the capability to understand the traits, aims, and morals of the opposite party and display patience to the agreement talks. This empathy shown by the negotiator will be considered back with utmost respect.

Honesty and integrity are other characteristics of a good acquisition negotiator so that the others believe in him while making agreements over the matter of concern. To bring in his integrity, the officer will have to follow the rules strictly, be truthful and stick to the agreement clauses without any external reminders. The final agreement reached should be fair, and the officer should take care that all dealings are handled fairly being beneficial for all people involved. When it comes to negotiations, it is a difficult factor to be fair but essential too so that the positive and responsible outlook of the negotiator are expressed and realized. A strong negotiator is the one who displays the level of dependency that people have vested upon him and accepts it proudly and takes the liability of his actions on himself. This trait of responsibility should be improved upon each step by accepting all challenges, big or small. The negotiator should be able to stand up to the goals put before him without backing off or acquiring any help whatsoever.

It is not necessary that all deals are successful or becomes a successful one. The power to hold on and move on gets the negotiator moving forward with challenges. A good negotiator will not shudder with a failure and will see it as an opportunity to improve oneself to come back with a bang with new offers and to put away the setbacks. The way to success is to keep striving without giving up.

Gikey and Green described that an excellent negotiator is one who has a remarkable personality and carries forward a better communication to come to a good agreement.

But any person with these personality traits cannot become a good procurement negotiator. The post of a purchase negotiator is open only to uniquely skilled individuals who stay above the others by developing their traits and present it in a refined manner. The inexperienced and unpolished features of a procurement officer can lead him to get tangled in talks with a better negotiator on the opposite side and thus fail in completing a successful deal. The trick is to be well prepared by acquiring all the information about the negotiator of the opposing party before the negotiation process starts so that they is no risk of getting caught off guard. A small talk can let an experienced person get a good lot of information about the style and traits of the other person. The major mistake is to make wrong presumptions when dealing with an agreement. Therefore it is necessary to improve the logical analysis and evaluate the other related factors so that the idea can be imparted to the client or the supplier.

By getting a proper logical plan, the negotiator will be able to have the presiding power over the meeting taking up all the communications in the path that he desires. Such a supervising position gives him the control over the meeting and lets him decide when the meeting should stop and even make a reschedule optimally if he wants to make a recheck over the notes of the agreement. Sometimes, a procurement negotiator works with a team and spreads out the roles among the team members to produce the best results.

The proper timing is another essential trait, and it is not the ability of the individual to know what to say, but to realize the best time to say it. There are several cases of negotiations gone berserk over the wrong timing of presentation, pushing the business into loss of huge sums of money. The worst timing is to negotiate after the agreement is reached or before the proposal as it creates a bad image about the company as a whole by not succumbing to the settlements. Unless you are keen on details, an experienced negotiator will easily get your weaker sections and utilize it against you. When you seem in doubt, the other negotiator will quickly pick up the discussion in his favor.

The department of procurement performs different functions for different company definitions. Depending on the precise definition, there are traits which will finally decide the success of the business. These features include several factors like moral values, honesty, awareness, management, observation, understanding, etc.

The responsibilities and skill sets do not come to closure without the mention of the risk management skills. The risks managed can be classified as legal, operational and commercial. Mutual agreements carry fewer risks and deals that end in a loss, or unreasonable ones can be riskier. Proper usage of risk management, time management, and the right decision can help avoid any risks. With a wrong decision, it affects all the people down the line who are waiting to finish their tasks.

The next duty of the procurement negotiator comes in after the successful realization of the agreement. The contract had to be managed properly and analyzed clause-by-clause, point-by-point. The negotiator should be well acquainted with the advancements in technology to gain a firm hold. This can be attained by attending conferences and keeping up to date with the advancements.

In the career of a negotiator, he will have to deal with several different kinds of deals, and they can be handled in a variety of ways. There no such specific set of traits that can make a negotiator perfect in all senses. In simple words, a good negotiator is one who puts on his best approach and provides the best solution at the proper timing.

Need Help Buying A Condo?

It is a dream of every other individual to move from a rental house to their own home, the easiest way to step in that direction is to buy a condo. But, there are several concerns over the purchase of a condominium as it is collectively owned. Buying a condo is not like the purchase of a house and there are several things that one must know before buying a condo.

Arranging a Loan

Loan lending organizations have different terms and conditions for condo buyers. Condos are considered different than single houses, and this is an issue for condo buyers. The Federal Housing Administration strictly implements these regulations before approving loans for condominiums.  FHA approved loans have a lower cost when compared to private lenders, and it is not very reasonable. To attain a loan backed by FHA for your condo purchase, it is required that the single proprietor own a minimum of 80 percent of the condos. Most of the condos are owned by several investors and getting an FHA-backed loan would be impossible. FHA also has a list of approved condos for loan dispersal, and you should confine your choice to those condos to avail the loan even if you have a perfect condo in consideration which does not come under the FHA list. With private lenders, they are not backed by the government and, above the high rates they also require down payments.

Know the Rules of the Condo

With several people staying in a condo, there are rules put into action to ensure proper functioning so that all people can live in harmony. Some condos have restrictions on owning pets. You should also check if you can independently rent out your condo in future if the need arises. There are quiet hours, rules over using the amenities and common spaces. Before you buy one, check all the rules and make sure that you are comfortable with it.

Condo Functioning Charges

The condominium common areas are managed by the condo association which includes the residents and owners. There are several common expenses like repairs which are levied from the people living in the community. You should try to know what are the charges and also understand the use of this money. The charges are levied on a monthly basis and most condos set aside one-third of the amount collected for emergency requirements. Knowing this is necessary because it is required for the association to have backup funds so that when there is structural damage, the association should be able to use this amount. The association will have a clear presentation of income and expenses, and you can ideally ask for this and also check if it is running on debts or is broken.

Check the Meeting Minutes

Condo associations conduct meetings, and they will have a minutes record. You can ask to see it before making the final decision to own the apartment. The minutes will have all information regarding any legal proceedings, issues with tenants, basic culture of the community, know about a particular problem maker and many other details. If you notice any concerns, you can ideally rethink about purchasing. You can also be aware of the atmosphere inside the building before moving in.

Building Maintenance

A condo as mentioned before has common areas, and it is required by the association to hire staff to keep the common areas clean. In case the condo you are planning to buy does not have a proper maintenance system, it is very likely to have a reduced value in the real estate market in future. Without proper maintenance, it can also be irritating to live in such a community.

Some condos consider only the maintenance of the common areas. Any issues that take place inside your house will have to be handled by the owner. Check the level of maintenance support provided for internal issues like a pipe breakage.

HR Work Culture

CEO

The Chief Executive Officer is the most coveted title and person in an organization and there is a common misconception that they are immensely powerful and do what they want. In our company, the CEO is the central character who listens to the needs of every employee right from the top level to even those working in the least significant sections. He handles all the communication with the clients, investors, and the legal sides. He is always open for any discussion with the employees regarding the matter of concern. The CEO personally appreciates the skills and ideas of the employees. All prominent ideas, feedbacks, and challenges are considered with due respect. The job of a CEO is a rather complicated one and in our organizational culture, the CEO works with the employees to ensure proper operation of all sectors of the business.

He takes up the core job of creating an excellent work culture. Only a healthy work culture can sustain enthusiastic individuals giving right outputs. Providing an interesting and attractive workplace is the primary goal of the workplace so that the employees are able to concentrate on their work and stop spending their time worrying about the office atmosphere. The CEO is an outright reachable person and not like most others who sit in a cabin and dominate over the works. He gets along into the operations and interacts with every other individual in the company ensuring that all of them are satisfied with that they get in return for their efforts.

Every move of the CEO is rather calculated, and he makes sure to discuss every change or new element with the fellow employees to get their opinion. He is like a walkie talkie who connects with every person of the organization.

Learning Culture

A new day presents a new challenge teaching you newer things, and you develop your knowledge base every day. We encourage our employees to develop their knowledge and competence continuously. With more modern learning, you become a better person and a better worker. Your knowledge will open up better opportunities for you and the organization. By imbibing a learning culture, we promote an improvement competition among our employees. With each increase in level, you reach out to your succession in a better way. Even the top level employees are forever open to inquiries and ready to share information with others.

We believe that working together to gain better knowledge gives the learning culture a newer definition when compared to individual learning. We organize training schedules, and development plans are put into action from time to time. Every new step towards learning made by the employee is appreciated and encouraged by the company. By increasing the knowledge base of our staff, we try to stay up in the competition in the market. The employees are prompted to ask questions and work in groups to solve problems so that the knowledge acquired by one person is imparted to the other through a healthy communication system.

Goal Orientation Vs Time Orientation

We do not follow a time-based work culture but work by the goals. When a team is supplied with a mission to be accomplished, the job is split out between the team members and then brought together to finish the task successfully. Each task is the responsibility of every member of the team, and they strive their best to complete it with perfection. There is no 9 to 6 clock scheduling. The goal is the primary concern and not the time, and each individual plays a crucial role in the achieving of the main aims of the company.

Usually, companies keep the employees unaware of the goals of the company and this directly affects the output delivered by the employees. They will eventually waste time and resources towards the wrong ultimate goal. In our organizational structure, the CEO has defined clear-cut goals in the corporate vision which are delivered directly to each employee, and they know that they have to work towards the big common goal in spite of the project goals set before them. The goals are not imposed on the staffs. The top executives get down into the team and work alongside to beat down the goal. This is to make sure that the employees are not overloaded with the aims which can create a bad benchmark. The goal orientation helps our staff to stay focused on the final goal and not create bad output due to urgency. Proper tasking and scheduling ensure completion of the goals even before the expected delivery time and without time pressures, our employees can put in maximum research and innovation into the jobs that they are deployed  

100% Work Output

We pay you the full salary amount, and we expect our employees to put their full effort into the work. There is no compromise over work quality and efficiency. All the executives have to deliver their 100% output into the goal put before them. The company provides all infrastructure and facilities that the employee requires to give his best, and they are expected to utilize this opportunity to the maximum level. In the case of any issues, the higher officials and even the CEO can be directly connected to help you face the matter of concern. We push you to perform better for us and eventually when you take a look back at your achievements, you will be rather proud to realize that you were able to face even the toughest goals put before you.

All employees are encouraged to put up their best performance and even appreciated for their good work. But the company will not tolerate any quality issues with the work. We realize and compliment our staff members for every active element from them. We even give bonus amounts to the top executives to make them work better and have a mutual relationship with the top employees so that everyone is boosted to work better. We do not consider our employees to be meager elements. Every person is given a particular place in the decision making, and if the need arises, they are asked to give their suggestions for the betterment of the company. This gives them the sense of responsibility that they are supposed to maintain towards an organization that pays them well, gives them dignity and helps them be a better person each day. We help you realize your goals and aims in life and in turn you are expected to help the company reach its primary goals and the newer goals set forth every other day.

Let Your Hair Down

We accept the power of fun and let you get serious about fun. We believe in maintaining the youthful nature of our employees so that they remain vibrant and energized rather than being lousy. Your co-workers are more like your family, and we try to strengthen this relationship through fun activities and sports events inside and outside the office premises. An organization that is socially connected works better for the development of the company as a whole.

With fun activities, we try to ease the stress from the minds of our employees. We do not want our executives to come to the workplace filled with anxiety about the job in hand. This affects their performance, and they will dread coming to the office. Slight nervousness of tension may arise with some difficult jobs and to face these challenges, it is necessary to provide some relaxation at times, and we do this with games. Only happy employees will be able to deliver better jobs. With these fun activities, we try to improve their motivation factor, thus increasing productivity, bringing down the stress levels, giving them a satisfactory job experience and improving the performance in an overall.

By conducting team based competitions, we attach the team members together regardless of the protocols. We realize that our employees are not one among the machines we use in our office and their need for social interaction. With his social culture, we are giving them a workplace that they cope well with and that they will love to work in. Friendly competitions are conducted on a weekly or monthly basis, and prizes rewarded to the winners. The kind of games differs from intellectual to fun.

Every milestone, goal and mission are celebrated in the best possible manner appreciating and acknowledging all the skilled hands involved in the success of the project.

Automatic Promotion

Career advancement is the primary goal of any employee and it is towards that main goal that they put in their maximum efforts. It is the responsibility of the organization to accept their energy and provide them their benefits for their efforts. Several companies get the toughest works done by their employees who work day in and day out to deliver the project in time and with the utmost quality, but when it comes to the matter of promotion, they company turns its face. We believe that such companies will lose their most talented employees with time, and they will not like to stick to an organization that turns away from recognizing their skills and efforts for the upliftment of the company.

We give the employees, the power to control their own growth. This is a boost factor for the employees as they know that they will be rewarded with a promotion if they work well. We have set performance milestones and in our organizational culture.  Growth and promotion are automated whereby,  the employees decide their promotion on their own.

With each higher step, the employee will be more motivated. Only a motivated employee will be able to work for the development of the company. It works like a mutual benefit, where the employee works better for the company to get promotions based on the milestone achieved and the work quality and increased dedication of the employee benefits the company in return. A development boosts the employee morale, keeps them enlightened, increases productivity and thus the profit of the organization also increases. When all the staff works in the same fashion, the company will surely keep developing, and we look towards this greater goal through our work culture of automatic promotion.

With promotions, the employee tends to develop a loyal feeling towards the company and consider the business like their own trying to increase the business profit as they are getting benefited from their work through the automatic promotion method. Through this, the company identifies the right talents in the workplace and forces them to stay with the projected development system retaining the employees.

Leaders and Champions

Ours is an innovative organization, and we promote innovative work culture. With this, we have gained the name of being an innovation-friendly office developing leaders and champions. Geniuses are those who bring the innovating ideas which later develops into innovation. These people have a different insight towards things around them, and they think differently. They have the power and overview to see beyond the restrictions set before them and look at things from a conventional viewpoint. We accept the ideas of these geniuses and provoke them to think more for the betterment of the company.

By leaders, we are not talking about the managers, but leaders who inspire the people around them and have the leadership skills in their trait list. This leader might not be good at everything, but he has the power to bring together people and exhibit people skills. He tries to solve issues internally and ensures a happy and cooperative work atmosphere. Companies that do not promote such leaders fail to recognize the benefits that they can do to the business. These leaders help in smooth functioning of the business and not every person has such immense leadership skills and we safeguard our leaders.

The leaders help create champions out of people. Some people have tremendous skills embedded in them but are not outspoken to bring it out. Only a good leader will be able to motivate the others around him to bring out the champion. He realizes that the champions in his team will make him succeed. These champions are our assets, and we promote leaders and champions internally.