Posted: October 17th, 2013
Effective Communication for Modern Business
Negotiations with a Monopoly
An annual price review is a process very crucial to the operations of a business. This is because price reviews would mean higher or lower costs of production. The obvious course of action for a businessperson is reduction of costs until the lowest attainable amount. It this case, the negotiations involve a monopoly that does not consider the role of a customer to its success. Caution is necessary in the situation since there may be no other supplier of the product or any other close substitutes for the product. Barriers of entry are the reason for the existence of the monopoly (Cohen, 2002). As difficult as the negotiation sounds, a price review is a risk worth investing in.
Information is power and this concept applies in these negotiations. The more knowledge one has concerning the monopoly, the better placed he is in negotiations. Industry facts, market statistics are some of the necessary information required in the negotiation. These facts tell the situation of the industry and the performance of the whole industry. The information could be gathered from research institutions that collect information from various businesses in an industry to monitor the industry’s progress. Information about the operational costs of the monopoly assists in determining the amount foregone in the reduction of their prices. The information also helps in comparing the prices offered by the monopoly to this particular business and prices offered to other businesses. This strategy helps in negotiating a lower price for a product.
Preparation is essential for a negotiation to show determination in acquisition of a better deal. Information about previous contracts entered into with the monopoly helps determine the logic in asking for the price on the table. Some helpful documents on the previous transactions with the monopoly are required to demonstrate the conduct of the business and the loyalty of the business to the monopoly. It is important that the business representative prepare a presentation on the effects caused by the price adjustments to the business and to the monopoly.
Creating a strong relationship with the monopoly before entering any negotiations is crucial to the consideration of the business’ proposals. Monopolies already know the power they posses and the loss of one customer would have insignificant effect on their sales. A threat approach bears no fruits in such a negotiation since the monopoly will only consider the offers that please it. Building a strong relationship through business events or holding joint social responsibility activities gives the business higher chances of consideration.
Strategies that will lower the business’ cost of production are essential. The price offered by the monopoly for the product is not the only focus for the negotiator. There are other ways to reduce the costs of a business such as cutting down the carriage inwards for the product. Provision of transportation by the monopoly reduces the costs of production for the business. Lowering the quality of the products is another way of cutting the cost of production since a lower quality product is less expensive. Seeking discounts is a beneficial strategy more attainable than price reduction. This is because many people are cost-conscious and placing too much value on the cost blinds them from seeing other associated costs.
Taking a firm position on negotiations influences the consideration of the proposal. The negotiator is required to have a range of prices that he intends to accept. In being tactful, the first price tabled is the lowest price possible, which offers a platform for negotiations for both parties. This tactic helps in maintaining a low range of prices and influences the direction of the negotiations to follow in lowering of prices. Lack of precision negatively affects the consideration of the negotiator’s proposal since it posses him as an unserious negotiator ready to accept any offer issued.
Management and Employee Relations
Managers are psychologists since they have skills of dealing with different kinds of people and manage them effectively. Managers’ work is easier when the transformation of their view on employees by considering them human occurs. Employees are humans who require consideration and appreciation of their input. Appreciation contributes to the motivation of the employees and raises their productivity (Dessler, 2000). Managers should therefore adopt reasonable management strategies for effective management and improved results. These strategies involve increased interactions with employees, which sometimes puts managers in a risky position of losing their distinction as leaders and compromising professional ethics.
As much as management involves the interaction of manager with employees, manager’s job is not to solve employees’ problems. Employees face many problems in their personal lives and it is not the responsibility of the manager to solve them. Every human is bound to experience personal problems and this always happens whether the person is a manager or an employee. Managers should understand that employees always face problems in their lives and this is not their concern. However, personal issues that affect the productivity of an employee require addressing to avoid affecting business operations. This ensures maintenance of professional ethics in dealing with employees’ problems (Drucker & Maciariello, 2008).
Managers are leaders and leaders lead while others follows. This implies that they have a role of guiding the employees on the proper direction to follow. Showing employees that there is a shoulder to cry on in the workplace encourages them in being unproductive. Employees would look for excuses for avoiding their jobs on the false pretence of having problems since they have a manager who listens. Managers have a responsibility of adopting firm measures of dealing with employees with problems. This prevents the establishment of a policy of laxity among employees.
It is wise for managers to refrain from personal involvements with employees. Employees may find it inappropriate if the manager asks personal questions concerning their lives. This kind of lack of professionalism causes conflict between employees and managers. Personal space is important for employees to feel respected. Assumptions made by managers concerning employees’ problems may appear insulting to them. Managers should not assume of their possession of all the facts regarding the personal lives of the employees (Mondy, Noe & Gowan, 2005).
Counseling is a role taken up by managers in their attempt to raise performance standards. The aim of counseling should be the improvement of the input of the employee but not the condoning of lower standards. This does not mean the ignorance of the employees’ complaints but it means solving the complaints. Some employees take advantage of managers willing to lower standards of performance based on the issues raised. Quality is always a necessity regardless of the prevailing conditions. Managers have to address issues raised with urgency to prevent employees from using them as an excuse of poor performance.
Confidentiality is essential in dealing with employees at various levels. Gossiping with an employee over another is inappropriate. Even in solving issues concerning a dispute between employees, taking sides is not advisable since the matter may have a personal dimension to it. Managers are to refrain from the spread of information that may result in disputes among employees. Maintenance of boundaries is essential in the manager-employee relationship. Managers should avoid creating the image of a friend among the employees. Disclosing too much information to the employee erodes their respect level to the manager. This greatly influences the employee’s opinions on the manager and in most cases the opinions are negative (Winston, Albright & Broadie 2001).
I would like to take this opportunity to apologize for my absence at work on April 20 (Worth & Ferguson Publishing Company 2004). My husband and I will be celebrating our third anniversary and it is a very special day for us and for our family. We hold this kind of celebration to appreciate our families and friends for their support throughout the years. However, last year I was unable to take part in the celebrations since I was unwell and had been hospitalized for a whole month. Due to this situation, my family and I have more reason to celebrate and be grateful for our blessings.
The ceremony will be held at our matrimonial home according to our tradition and it will begin at five o’clock in the evening. This will give us time to attend to our usual chores before embarking on the celebrations. I will therefore avail myself for work as usual but due to the circumstances, I will not make it for my overtime shift in the evening. The celebrations are expected to start at this time and a bride cannot bail on her own wedding. Your understanding of the situation will be highly appreciate by my family and I since this is the most important day for our family since it always brings us closer and helps us learn to appreciate one another.
The overtime schedule begins from six o’clock in the evening and extends to nine o’clock at night. I attend my overtime shifts ion a daily basis and have never missed one. This shows my commitment to my job all through the year. This time I would appreciate if offered an opportunity to show the same amount of commitment to my family for helping me get the motivation to work tirelessly. The family is a pillar and the source of strength that enables commitment to the job and the respect for it too.
Our family cordially invites you to our third anniversary celebration since you have greatly supported us since I became an employee at the firm. We appreciate all the support granted to us during the period of illness that was the most difficult time for us. The financial support offered greatly helped in settling the hospital bills and we will never be grateful enough for the generosity demonstrated at that period. That is the reason for the inclusion of your name on the guests list and your presence will be highly appreciated.
In the course of apologizing, I would like to assure you that I would resume work as usual on the following day, April 21 in the morning. I would also like to compensate for the hours lost due to this occurrence of events. If allowed I will work for an extra hour every day to recover the time. The turn of events will not affect the productivity I exhibit at the work place. Thank you in advance.
Cohen, S. (2002). Negotiating skills for managers. New York: McGraw-Hill.
Dessler, G. (2000). Human resource management. Upper Saddle River, NJ: Prentice Hall.
Drucker, P. F., & Maciariello, J. A. (2008). Management. New York, NY: Collins.
Mondy, R. W., Noe, R. M., & Gowan, M. (2005). Human resource management. Upper Saddle River, N.J: Pearson Prentice Hall.
Winston, W. L., Albright, S. C., & Broadie, M. N. (2001). Practical management science. Pacific Grove, CA: Brooks/Cole.
Worth, R., & J.G. Ferguson Publishing Company. (2004). Communication skills. New York: Ferguson.
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