Procurement Process

Procurement is the acquisition of goods or commodities by a company, organization, institution, or a person. This simply means the purchase of goods from suppliers at the lowest possible cost. The best way to do this is to let the suppliers compete with each other so that the expenses of the buyer are kept at a minimum.

Procurement usually involves a bidding process in which the bidders or sellers quote their prices and the buyer accepts the lowest possible bid. This is the most efficient and cost effective method of procuring goods or services if the quality of the goods meets the buyers' requirement.

The process of procurement usually begins when the procurer starts to search the market for bidders. After identifying the suppliers, a request for bids, proposals, quotes, and information can be made. However, direct contact with bidders can also be made instead of advertising the above requests.

Procurement Process

After selecting the suitable bidders, a quality check is essential in order to confirm the suitability of the goods in question. The next step would be negotiation of the terms, conditions, quality, and delivery schedules. Logistics and payment are the next two important processes that determine the safe delivery and the payoff of goods.

If this whole process is carried out on the Internet, then it can be called "e-procurement." The huge market that is accessible on the Internet provides numerous and unprecedented opportunities for sellers and buyers alike. This makes it a very popular tool for researching and consulting for the procurement of goods or services.

The whole process of procurement should be carried out in compliance with the existing laws in order to avoid any legal hassles. There are many consultants on the Internet who provide education and advice regarding the procurement process.

The process of procurement may differ slightly from one company to another, but the process is usually symbiotic in nature. It benefits both the buyer and the seller.

Procurement Process
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Procurement provides detailed information on Procurement, Procurement Software, E Procurement Solutions, Procurement Management and more. Procurement is affiliated with India Offshore Outsourcing.

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Effective Negotiation

INTRODUCTION

The whole cosmic economy is interactive phenomenon of animate and inanimate objects. In addition, the objects are interdependent on each other for growth and survival. Human beings are epitome of Divine Creative Activity. The interactive feature of mankind is vital aspect of Divine Scheme of Creation. A rational-moral human interaction quickens / softens evolution of individuals & groups. Mankind faces multiple challenges during varied interactions. The most complex, harmful, and frequent problem of interactive life is miscommunication. It creates mutual hatred and distrust among individuals / groups / nations and leads towards conspiracies, rivalries, and wars. The very basis of miscommunication are Perceptual Errors.Perceptual errors produce misconception among individuals / groups so that miscommunication is surfaced. Consequently, the people involved brake contacts with each other and opt long silence or confrontation or indifference. The unwanted situation can be solved through negotiation. Negotiation is helpful in every sphere of interactive life; it is used to bridge the gaps between husband and wife, parents and children, entrepreneurs and workers, business partners, political leaders, etc. In order to realize successful negotiation we must understand ins and outs of negotiation. Negotiation is the conflict management process of communication to make a compromise/better solution.The successful negotiation is called Effective Negotiation. Effective negotiation is knowledge based, manner driven, and wisdom led negotiation. It creates pragmatic and satisfactory solutions for each party.

PERCEPTUAL ERRORS

Effective Negotiation

Man is intelligent creation of Absolute Intelligence. The distinctive human trait, intellect or perceptual intelligence, make the human being supreme creation of universe. But, intellect can misjudge/misinterpret due to ignorance or lustful tendencies of human nature. Perceptual errors or intellectual mistakes lead to biases in information processing / final judgments. There may arise three types of perceptual errors in a communication process.

Generalization: -Small amount of information are used to draw universal conclusions, e.g., old people are conservative, this person is old so that is conservative, or a humble person is judged to be more honest than a scowling person, even there is no consistent relationship between conservativeness & age or courtesy and honesty. The multiple social rifts such as family rifts and neighborhood rifts are surfaced due to unscientific generalizations.

Projection: -It occurs when people ascribe to others the characteristics or feelings that they have, for instance, a person feels that he will be frustrated if he were in the other position, then he is likely to perceive that the other person is frustrated. People respond differently to similar situations so that projection of own feeling to other may be incorrect. The multiple political mis-communications are generally due to wrong projections.

Power: - Power is an important leverage during interactions; it gives edge to one party over the other. Power develops the perception that you have power and you can impose a verdict, the power-perception limits viable options or can make someone wrongdoer, because, power has germs of corruption-development - in Acton's words, 'Power tends to corrupt and absolute powers corrupts absolutely.' The major sources of power are - Information and Expertise, Control over resources, Location / Position in an organization. Power tactics should be used only as last resort. Ignoring temporal suitability of power tactics may create chaos in the environment; a chaotic situation has certain aftermath for the power user.

CHARACTERISTICS OF NEGOTIATION PROCESS

The prominent characteristics of a negotiation process are:

Interdependence: - In negotiation both parties need each other to arrive at some solution. This situation is called interdependence. Interdependence leads towards mutual adjustments during negotiation.

Mutual Adjustments: - Negotiating parties know that they can influence the other's outcome and the other can in turn, influence their outcome. This mutual adjustment continues through out the negotiating process. Mutual Adjustments persuade the negotiating parties towards flexibility and concessions.

Flexibility and Concession: - Flexibility and concession is necessary for a settlement. In order to arrive at some acceptable outcome, it is essential to know what we want and what we are prepared to give to get something. It sounds simple but most people enter negotiations without planning their desired outcomes and believe that it is a matter of power or tactics The lopsided approach may lead towards failure. It is noteworthy that a lenient approach on concessions may lead towards unfair demands while strict approach towards concessions may create angry environ. An optimal mix of perceptual intelligence, emotional intelligence, & intentional intelligence is invoked for honest/accurate flexibility and concessions. A negotiation generally encounters two dilemmas:

Dilemma of Honesty: -The dilemma is concerned how much of the truth is to tell to other party. On the one hand, telling the person everything about your situation may give that person the opportunity to take advantage of you. On the other hand, not telling the other person anything about your needs and desires may lead to a deadlock due to lack of information. A principle stand towards information sharing is extremely effective for successful negotiation. It is noteworthy that the forgery of information/emotions is uncovered ultimately. Dilemma of Trust: - The second dilemma is concerned with how much to believe of what the other party tells you. If you believe everything that the other party says, he/she may take advantage of you. If you believe nothing, there would be deadlock. The trust depends on many factors such as reputation of party, past experiences, and present circumstances. The principle, "truth is ever green" is very much relevant for successful negotiation; otherwise one has to speak countless lies to conceal one lie even then truth is exposed ultimately.

PATTERN OF NEGOTIATION PROCESS

There is no standard and scientific pattern of successful negotiation; however, a general outline can be prepared to start any negotiation.

Framing: -It is the conceptual platform by which the parties in a negotiation define the problem. For example, Kashmir issue between India and Pakistan can be negotiated on religious frame or on historical frame.

Goal Setting: -It gives foundation to negotiation. It is necessary for successful negotiation. Goal setting includes stating goals, setting goal priorities, identifying multi-goal packages.

Planning: -Effective planning requires hard work on number of steps, such as:

Defining Issues, (agenda) - Controlling the number and size of issues in the discussion, Desirability of the defined issues - Enhancing the desirability of the options and alternatives that each party presents to the other, Define Common interests / needs - Establishing a common ground on which the parties can find a basis for agreement on issues, Research - It includes consulting related stakeholders, gathering information, developing supporting arguments, and analyzing the party.

Developing Strategy: -Strategy is an intentional work-pattern to achieve some goals. It is based on good planning. Strategy formulation modal of effective negotiation identify four elements to formulate effective strategies:

Choice: - negotiation is voluntary, i.e., a matter of choice and the solution cannot be imposed. Constraints: - Negotiation outcomes are subject to some constraints. The modal suggests pragmatism over doctrine. Interdependence: - Parties motives are interdependent, Imperfect Information: - Parties have imperfect information about each others strengths / weaknesses.

TYPES OF NEGOTIATION

Distributive Negotiation

In win-lose / distributive bargaining parties seek their own maximum advantage through concealing information, misleading or using manipulative tactics. All these actions may lead towards bitterness or hostility. It is noteworthy that effective negotiation is an attempt to resolve a conflict with reason or without force. The second type of distributive bargaining is accommodative or lose-win strategy. One party is ready for some loss for the time being or in short run to achieve some long-run benefits.

Integrative Negotiation

It is win-win / cooperative negotiation. It allows both sides to achieve their goals. The multiple business links such as partnership and varied social linkages such as kinship are generally based on win-win approach, i.e., both parties get benefits from contact. The approach behind integrative negotiation is synergy, i.e., to expand/create possibilities so that benefits will be increased for all parties.

CONCLUDING REMARKS

Negotiation is extremely complex phenomena. It demands knowledge, wisdom, and courtesy to arrive at some acceptable outcome for the negotiating parties. The decision-making process in negotiation passes through four phases:

Orientation - In orientation phase, group members socialize, set up certain rules of communication, and agree on their reason for meeting.

Conflict - In the conflict phase, parties begin to discuss their positions on the problem, the environment is filled with arguments / confrontation / war of words.

Emergence - In the emergence phase, members arrive at some acceptable solution and put aside the differences and objections because they are convinced.

Reinforcement - In the reinforced phase, group feelings are rebuilt, outcomes of negotiation are summarized for each party, and solution is implemented in a way to block future conflicts.

The negotiating parties come up with three solutions - win-win, win-lose, and lose-win. The principle behind the win-win strategy is that the parties in conflict can better solve their problem by working together than by waging war. The principle behind the win-lose strategy is that the parties in conflict can reap more benefits by manipulating the situation than by developing consensus. The decision about manipulation should be based on pure reason subject to certain moral values. Otherwise, it would be harmful for manipulator. The principle behind the lose-win or accommodative strategy is that the one party in conflict can reap more benefits in the long run by accommodating the other party in the short run. The decision about accommodative bargain should be based on pure reason subject to certain scientific evaluation; otherwise, it may be harmful for the accommodating party.

Effective Negotiation
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Six Steps For Negotiation Preparation

The most commonly overlooked aspect of negotiation is preparation. We say things like, "We're just in the negotiation stage of the deal ..." There is no more profitable expenditure of time than the time spent preparing to negotiate. Here's your checklist:

Know what you want and don't want ... Most of us have a general idea of what we want or want to avoid in a deal. Unfortunately, general objectives tend to render general results ... leading to second guessing and dissatisfaction. Instead, write a paragraph describing in detail what you want and don't want from the transaction, then, edit this description furiously until it is laser focused and precise. When we are crystal clear on our objective(s) and rationale(s) for their acquisition, we are most likely to achieve desired results. Know what your counterpart wants and doesn't want ... Now do the same for your counterpart. Write the description of what your opposite is looking for and seeking to avoid. This exercise tends to be a real stumper ... and eventually a real eye-opener. Knowing our counterpart's goals, objectives, and sought after results helps us see commonalities that lead to creative solutions.Know what concessions you are willing to give ... What must you absolutely achieve to consummate a successful bargain? What terms, conditions, extras could you live without? Every great negotiator knows there must be give and take on both sides for agreements that make sense.Know your alternatives ... Remember when you bought your first car? Mine was a 1956 T-Bird. The ,guy I bought mine from told me, "I like you and want to sell you the car ... but there's another person coming over in 30 minutes who also wants the car." Wow, did the dynamics of the negotiation shift on the spot. Having an alternative vendor or supplier really helps your level of confidence.Know your counterpart and your subject matter ... A lot of information is available to us on personality styles, body language, and neuro-linguistic programming. Remember transactions take place between people ... and people view the same facts and appeals differently. Subject matter is simple ... Know it cold-there is no excuse for being ill informed ... and lost credibility is rarely recovered.Rehearse You know how to get to Carnegie Hall! It's the same road to negotiation success - Practice - Practice -Practice! Attend swap meets and flea markets ... They are wonderful opportunities to sharpen your skills. Remember use it or lose it! Most negotiators rarely, if ever, thoroughly prepare to negotiate. But this is the magic! Try this checklist before you negotiate ... Your returns will improve dramatically.

Bio

Six Steps For Negotiation Preparation

Six Steps For Negotiation Preparation
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As a California Criminal Trial Lawyer with 28 years of courtroom experience, JOHN PATRICK DOLAN has handled everything from traffic tickets to death penalty murder cases. Dolan is a recognized California State Bar Certified Specialist in Criminal Law and a true courtroom veteran. He is AV (highest) Martindale-Hubbell rated.

As an author, JOHN PATRICK DOLAN has written twelve, best-selling books, including his classic Negotiate like the Pros™. He is a recognized international authority on negotiation and conflict resolution. And, just to show that he does not take himself too seriously, he is also the co-author of the wildly popular Lawyer's Joke Book™.

A communications veteran, John Patrick Dolan is a radio broadcaster and television legal news analyst appearing frequently on Fox News Channel, MSNBC, and Court TV. He has also been honored by the National Speakers Association as a member of the Professional Speakers Hall of Fame.

In addition to his professional legal experience, John Patrick Dolan serves as CEO of LawTalk™ MCLE, Inc., a continuing legal education company.

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Writing an RFP (Request for Proposal)

A while back, a potential client provided me with some general details of the writing work he wanted me to do for his company. Then he asked me to send him a proposal.

Proposal?! I panicked as I tried to confirm with him what he meant by that since I had never done one before, at least not as a freelancer.

I must've not really wanted to pursue this opportunity since I didn't bother to do research or follow up with the company after submitting a contract instead of a proposal. A little time passed, I came across an article on writing RFPs (Request for Proposal). Ding! The light bulb went on. This guy verbally gave me his RFP and wanted a written response.

Writing an RFP (Request for Proposal)

When a company needs a project to be completed by a contractor or outside source, they write a RFP. This is a formal document describing the project, how the contract companies should respond, how the proposals will be reviewed, and contact information. Often, the company documents the submission guidelines to make it easier for them to compare responses. There are no specific standards or guidelines for creating the RFP, but government agencies usually strict standards they follow when conducting the proposal process.

Outside companies read the RFP and write a proposal (a bid) explaining how they can best provide and meet those needs. When writing the proposal, the company should closely follow the guidelines established in the RFP to avoid being removed from consideration for the potential project.

A typical proposal contains:

Executive summary - summary of the entire proposal Statement of need - why project is necessary Project description - How project will be implemented and evaluated Organization information Project schedule Budget Conclusion

My situation was an informal version of all this. The client gave me a high level overview of what I might do for him. If I knew then what I know now, I would've written up a description of the client's needs and how I would complete the work in meeting those needs.

Small businesses would likely do a proposal in between the one I got and the complex government required ones. Most small businesses will be prompted to write a proposal when approaching a client. The client may ask you to submit a proposal outlining what you can do for them. In this case, write a proposal including the elements of a typical proposal and keep it short and to the point especially if the client is not a large company.

There are examples of RFPs and responses peppered throughout the Web, but which one you can learn from depends on the type of work involved. A proposal can be two pages or as big as a book. Rely on your favorite search engine and do the research to create an unbeatable proposal.

Writing an RFP (Request for Proposal)
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Meryl K. Evans, Content Maven, is Editor-in-Chief of eNewsletter Journal and The Remediator Security Digest. She's a slave to a MarketingProfs weekly column and a Web design reference guide at InformIT. She is the author of the popular e-report, How to Start a Business Blog and Build Traffic. Visit her site at http://www.meryl.net/blog/ for free newsletters, articles, and tips.

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Negotiation - Planning For A Successful Outcome

In any kind of negotiation the planning stage is probably the most important. Too often we go in badly prepared and end up giving concessions that reduce the overall profitability of the final deal. The importance of planning is in having a very clear idea before entering into the negotiation i.e.

o What are my objectives?

o What does the other side wish to achieve?

Negotiation - Planning For A Successful Outcome

o What information will influence the final outcome of the negotiation?

o What concessions can I make?

o How am I going to achieve my objectives?

o What part will other people play in the negotiation?

Generally, the more time that is spent in planning and preparing for the negotiation,
the more beneficial will be the final outcome.

Objectives:

Before entering into the negotiation, you need to have a clear idea of your objectives
and try to work out those of the other side. Ask yourself the following questions:

o What exactly do I wish to achieve from this negotiation?

o Which of my objectives:

- Must I achieve?

- Do I intend to achieve?

- Would I like to achieve?

o What options or alternatives would be acceptable to me?

o What are the other sides. objectives?

o How does the other side see the negotiation?

Information:

It has often been said that information is power. In any negotiation, there will be four types of information that is important to the final outcome.

o What information do I have that the other side has also?

o What information do I have that the other side does not have?

o What information do I need to have before negotiating with the other side?

o What information does the other side need before it can negotiate with me?

This can be particularly important when negotiating with people who concentrate
on price issues.

o What other things are important to this person?

o What pressures does he have on him to conclude the deal?

o How well is his company doing at the moment?

o How important is it that he deals with my company? etc.

The early phases of negotiation consist of both sides finding out more information
before talking about a specific deal or set of alternatives. For example, if you find out
the other side has a time deadline that only your company can meet, it may give you
the chance to negotiate on more favourable price. If you know that the other side
has recently expanded their production capacity, you may be able to negotiate more
favourable terms in return for a commitment to buy certain volumes over an agreed
time period.

By spending time as part of your preparation in listing what you already know and
what you need to know, you will give yourself a better chance to negotiate well on
your company's behalf.

Concessions :

Negotiation is a process of bargaining by which agreement is reached between two
or more parties. It is rare in negotiation for agreement to be reached immediately or
for each side to have identical objectives. More often than not, agreements have to
be worked out where concessions are given and received and this is the area where
the profitability of the final outcome will be decided.

When preparing for negotiation, it is advisable to write down a realistic assessment
of how you perceive the final outcome. Find out the limits of your authority within
the negotiation and decide what you are willing and able to concede in order to
arrive at an agreement, which satisfies all parties.

Concessions have two elements; cost and value. It is possible during negotiations to
concede issues that have little cost to you but have great value to the other side. This
is the best type of concession to make. Avoid, however, conceding on issues that
have a high cost to you irrespective of their value to the other side.

When preparing for negotiations, ask yourself the following questions:

o What is the best deal I could realistically achieve in this negotiation?

o What is the likely outcome of the negotiation?

o What is the limit of my authority?

o At which point should I walk away?

o What concessions are available to me?

o What is the cost of each concession and what value does each have to either side?

Strategy:

Planning your strategy is important in negotiation. Once you know your objectives,
you need to work out how you are going to achieve them. It is also useful to try and
see the negotiation from the other side and try and work out what their strategy will
be.

During the negotiation there will be opportunities to use various tactics and you
need to decide which of these you feel comfortable with and at the same time recognise the tactics being used by the other side. Ask yourself the following questions:

o How am I going to achieve my objectives in this negotiation?

o What is the strategy of the other side likely to be?

o What tactics should I use within the negotiation?

o What tactics are the other side likely to use?

And Finally - Tasks :

If you go into negotiation with a colleague or colleagues, you need to decide during
the preparation phase:

o What role will each team member take in the negotiation?

o How can we work together in the most effective way?

Some teams of negotiators appoint team leaders, note takers, observers and
specialists, each with their own clearly defined authority and roles to perform.
Having a clear understanding of roles within the negotiation will make the team
approach much more effective.

Copyright © 2007 Jonathan Farrington. All rights reserved

Negotiation - Planning For A Successful Outcome
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Negotiation - Understanding Movement, Concessions And Bargaining

Asking questions and listening effectively are important skills both in selling and
negotiating. The first phase of negotiation involves both parties agreeing the
background to the negotiation and fishing for the opening demand or offer.

It is often better to present the opening demand or offer in terms of a hypothetical
question, as this allows the negotiator to retreat to his initial position if necessary.

The opening offer will probably be at or just about the level of the negotiator's
maximum expectation, giving him room to manoeuvre, but not so high that the offer
lacks credibility. Do not attempt to win. at this stage, but hold sufficient back so that
you are able to move, if necessary, at a later stage.

Negotiation - Understanding Movement, Concessions And Bargaining

This is a difficult period in the negotiation process and a professional negotiator will
often use silence or other pressure techniques to solicit information from the other
party.

Further Movement and Concessions:

During negotiations, it can be in the interest of each side to keep asking questions
and raising objections. Many excellent negotiators are low reactors who will proceed
very slowly. However, given that the opening position of each party differs, then there has to be movement and concessions if a deal is to be struck.

Negotiators will tend, at first, to discuss extra demands, trying to get the other side
to agree to these without offering anything in return. They will be reluctant to give
information or will defer decisions in order to increase the pressure on the other
person.

When an offer does come, it will often be on the basis of a quotation based on the
minimum quantity at the lowest possible price. In all this, the negotiator is
attempting to dominate the interview, pressing for maximum advantage, and trying
to force the other person to concede on a major issue.

The skilled negotiator will ask the other side for a complete list of all his, or her
requirements, and will not concede on a single issue until he knows the nature of
the whole package. He will then begin to trade concessions, starting with the
smaller, less important aspects of the package.

Negotiators should avoid making one-sided concessions which will severely weaken
their final position and could affect the overall profitability of the deal.

When movement comes, it begins slowly, and then can be very rapid as both parties
sense a deal is on the cards. Movement does tend to be discontinuous with
either party moving and the other holding up the agreement at any one time. This
leads to short periods of deadlock, which can be brought to an end in different
ways.

Some of these are:

o Period of silence. Wait for the other party to speak.

o Agree to a concession. Always trade concessions by saying"If I do this, will you do that"?

o Adjournment to review positions.

o Agree to leave certain issues to one side for later and concentrate on the rest.

Identify areas of common agreement.

o The use of the relationship with the other side to break the deadlock.

Signals to be aware of that could mean the other side wishes movement to take
place could include:

o Trial movement. One side uses words like "What would you say if ...?"
or uses hypothetical examples.

o Summarises the position to date and asks "Where do we go from here?"

o One side calls for adjournment.

o Appeals to the other side's better nature.

o Asks for more information.

o Uses "crowding" techniques to force movement, e.g. aggressive behaviour, sets
deadlines and time limits, threatens use of the competition.

The use of concessions is a vital part of building a profitable relationship for both
parties in the negotiation. Earlier, we discussed the different elements that could
constitute the final deal. The use of concessions enables negotiators to build a
mutually profitable deal that is not one-sided in the other side's favour i.e. It results in a "win-win" outcome.

And Finally - Bargaining:

When it comes to bargaining try to get the other side to commit themselves first. For
example:

Scenario 1.

Buyer: "I'm willing to reach some sort of deal, but I want a 10% discount".

Salesperson: "Okay, I'll agree a 10% discount, but we'll have to look at a
longer-term agreement".

Buyer: "Well, thanks for the 10% but the 1 year contract we have already
agreed will have to stand".

Scenario 2.

Buyer: "I'm willing to reach some sort of deal, but I want a 10% discount".

Salesperson: "Okay, we may be able to look at our discount structure, but to
do that we'll need to agree a 2 year contract".

Buyer: "Okay, well 2 years may be possible, but can we go to the full 10%?"

In the first scenario an offer of 10% was made, but what was asked for was vague.
Responding to a specific demand like this we need to be vague, but positive: "Okay, we may be able to look at our discount structure". and our counter demand needs to be specific: "But to do that we'll need to agree a 2 year contract"

Remember, when you bargain, offer vague, ask specific.

Copyright © 2007 Jonathan Farrington. All rights reserved

Negotiation - Understanding Movement, Concessions And Bargaining
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You can also read his highly informative and popular weekly blog at: http://www.thejfblogit.co.uk

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How to Make an Offer For Fannie Mae Foreclosures

In foreclosure investing, finding the right Fannie Mae property is only half the task. The crucial step is making sure that you get what you want by submitting offers that are capable of grabbing the serious attention of Fannie Mae. Buying a house and investing in foreclosures is undoubtedly a huge decision that entails a lot of hard work and perseverance. Surely, you do not want all those work wasted because of a misstep in submitting an offer. Read on to learn how to properly make an offer for Fannie Mae foreclosures and ensure that you get the exact property that you want.

Talk To A Real Estate Agent

If you are buying foreclosures from Fannie Mae, you should talk to a professional real estate agent. This agent will help you assess your buying situation and gives you helpful insights on the important factors that you need to consider. An agent will necessarily inquire into the length of time that a certain property has spent on the market and its current condition.

How to Make an Offer For Fannie Mae Foreclosures

He can also acquaint you with the current market conditions as when several buyers are interested in the same property as you are. This is important because when a property attracts a lot of prospective buyers, negotiation can be more difficult and in some instances, can drive the market prices up. Fnma foreclosures normally does not accept offers for a property until such has been listed for at least 3 days. Your agent can help you find the most favorable time to put in your offer.

Submit Complete Documents

As a rule, offers for fnma foreclosures will not be accepted for review if it is incomplete or if there is a missing detail in your offer. Your agent should be able to tell you which documents are important and what attachments are needed to complete your offer. Of course, your offer must be written and should include every required information such as a complete standard or local contract, a Fannie Mae Real Estate Purchase Addendum, an earnest money, and such other financial documents that could serve as your proof of funds such as a preapproval letter.

Once your offer has been approved,Fannie Mae will provide you a 10-day inspection period when you can inspect the property and see for yourself its current state. The 10-day period starts from the day Fannie Mae verbally agreed to your offer which you can confirm on the purchase addendum. It is highly advisable that you hire a professional property assessor to see the needed repairs and submit to you a written cost estimate.

The next steps up to the closing date will depend on several other factors. The important thing is you now know how to submit offers for Fannie Mae foreclosures. Combined with the right attitude, these tips can ensure your success in buying fnma foreclosures.

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Negotiation Skills for Business

Every time we engage in conversation with another individual we are generally negotiating a view, discussion or action. Everyone has different filters from which they perceive the world or their surroundings. These filters are developed throughout one's life as they grow from a child to an adult. Some of the main influences that can develop one's filters are parents, friends, family, social environment, religion, school and experience. As these filters are molded every individual brings a different view point to a negotiation or business discussion. Understanding the angle or view of an individual with whom you are negotiating is key to laying the foundation to work towards a viable solution.

One of the more widely known methods of understanding human negotiation psychology is the Thomas-Kilman Conflict Mode Instrument, also known as the (TKI). This model asserts that an individual's behavior falls along two basic dimensions: assertiveness - the extent to which the individual attempts to satisfy his or her own concerns and cooperativeness - the extent to which the individual attempts to satisfy the other's person's concerns. This instrument then places an individual into five different style methods when it comes to dealing with conflict.

The first negotiation style is competing. Competing is an assertive and uncooperative, power-oriented style. Most individuals that fall into this category tend to pursue their own interests at the expense of other's using whatever methods they can to win the negotiation. The next style is collaborating. Collaborating is both assertive and cooperative. When collaborating, an individual attempts to work with other individuals to find a solution that fully satisfies the concerns of both. It involves digging into an issue to identify the underlying concerns of the two individuals to find an alternative that meets both sets of concerns. Collaborating between two individuals can take the form of exploring a disagreement to learn from each other's insights, resolving some condition that would otherwise have them competing for resources, or confronting and trying to find a creative solution to their conflict.

Negotiation Skills for Business

The next style is compromising. Compromising is generally right in the middle of the assertiveness and cooperativeness dimensions. When compromising, parties look to seek a mutually acceptable solution that can benefit all parties involved. Compromising might mean splitting the difference, exchanging concessions, or seeking a common ground position. However, compromising can also mean that both parties are giving up something to meet on the middle ground and this is not always a positive.

Another type of style is avoiding. Avoiding is unassertive and uncooperative. When avoiding, an individual does not immediately pursue his or her own concerns or those of the other person. The individual is generally side-stepping the true conflict at hand. They generally find ways to withdraw or postpone an issue to avoid a threatening or intense situation. The last style of the five mentioned in TKI model is accommodating. The accommodating style is generally unassertive and cooperative. Generally, an individual that has an accommodating style will neglect his or her own concerns to satisfy the concerns of others. An accommodating style will just accept the view or stance of others and does not try too hard to push their own objectives onto others.

Once an individual identifies what method of negotiation they often fall into, then they can begin to understand what some of their strengths and weaknesses may be during a negotiation. All the different styles or methods have different strengths and weaknesses associated with them.

Competing can be valuable at times when a decisive action is needed and that individual is not afraid to take control of the situation and make an immediate decision. However, some of the negatives of this style are that a lot of the competing individuals always fight for influence and respect. They may not even have the best solution or not know the answer but often push their opinion on others and act more confident that they feel. This style or method can also cause those around you to inquire less about information or opinions and everyone will be less likely to learn from the negotiation or conflicts.

Collaborating seems to be one of the more effective negotiation methods. The main strength of the collaborative style is that they generally find integrative solutions and adhere to the concerns of both parties because they understand that some items may be too important to compromise. This style can also be very good at merging insights from a variety of people with very different perspectives on an issue or problem. This method can also be viewed as a style that still is able to accomplish all their objectives without rolling over the other parties involved. They are able to gain commitment by incorporating everyone's concerns into a consensual decision.

The weaknesses in this style are fairly limited. However, every negotiation or conflict is different so there will always be times when one method will be better suited for that negotiation. The weakness in always collaborating during a negotiation is that it can take a lot of time and effort. There may be situations where you do not have the luxury of time and effort. Some negotiations don't require advanced solutions or the time it can take to understand the ultimate goals and viewpoint of every individual involved in the negotiation.

Everyone has heard the old saying that it is always best to compromise. However, when truly analyzing this method more in depth that may not always be the case. In a compromise all parties involved are giving up something to help the other achieve their goal. Even in a compromise where the results are considered to be Pareto optimal, individuals would still have to give up some of their ultimate goal to have all the others achieve the optimal position for all parties involved. This style can also lead some to unintended costly compromises of principles, values, long-term objectives, or company welfare. The main benefit of this style as many are aware is that it often satisfies the needs of all parties involved in the negotiation. It can also be a good way to achieve a quick resolution to a complex issue.

Avoiding generally has more of a negative connotation to it than some of the other negotiation styles. However, there can be at times, some advantages to the avoidance method of conflict. This can be a viable way to solve a conflict or negotiation if the potential costs of confronting a conflict outweigh the benefits of its resolution. It can also be used if an issue is not important enough to address and time will be wasted if the negotiation about the issue even begins to ensue.

Last but not least in the methods of negotiating is accommodating. Accommodating can often help a negotiation in the future because if one accommodates to others' needs initially they may be viewed very favorable right away by the others involved. Accommodators are also good at reading situations and can realize when they are wrong. They often can allow better positions or decisions to be considered, able to learn from others and demonstrate that they are caring and reasonable to others needs. However, if one is always accommodating then they may be sacrificing many of their beliefs or ultimate goals just to appease the other parties involved.

After one begins to understand the method or style he or she may fall into then it is time to understand the some of the steps needed to reach an agreement. The first step is to understand everyone's goals or objectives. After one is able to understand the other parties motives than they can begin to understand the needs of each individual and starting negotiating towards a common ground. A key in beginning to uncover an individual's needs and form a common ground is to start to ask some open ended questions.

After gaining a strong understanding of the other parties needs then we can begin to understand how closely their needs fall in line with our objectives. In a lot of situations you can start by gaining agreement on a collaborative effort to solve the problem and fulfilling each party's needs. Then once trust has been established and the other party understands that you are not only searching to obtain your own objectives but also helping them to reach theirs it will become easier to negotiate more of the greater details.

The next step after understanding the other party's needs and working towards a common ground is to start surveying the options available to you. An option can be a possible agreement or part of an agreement that can satisfy either party's objectives. By beginning to explore different options both parties will be able to see different solutions to the problem coming to the table. When you create different options you are create value to the negotiation and building blocks to move the negotiation further down the continuum.

Most of the best negotiations are those in which a number of options have been explored. The first resolution to a conflict is not always accepted and not necessarily the best option for all parties involved. The more options that are generated, the greater the chance that one of them will mutually and effectively satisfy the differing needs of all parties involved. Often, by understanding each other's needs, one can begin to formulate some possible ways to execute a strategy that better solutions and give you some more creative bargaining power.

The key behind developing options in a negotiation is to take organized approach at understanding each parties needs and creating a range of options that can fulfill most of them. To do this one must always come to a negotiation with an open mind. If you do not try to understand the other individual's viewpoints then you will never be effectively working towards a strategy that will fulfill both of your goals. The more options you begin to create, the more room or leverage you will have in that negotiation. To create these options you have to continually remind yourself of the needs and common grounds of the other party and also remember to take into account differences in perception or the filters that were mentioned in the beginning of this paper.

The next items to understand in creating options are timing and risk. Some individuals enjoy the rush of risk and have to make tough decisions in a limited amount of time while others cannot stand the idea of it. Everyone has a different tolerance for risk and they are also different on the speed in which they operate, take action and make decisions. When dealing with any of these scenarios in a negotiation the best action is to try and accommodate the timing involved in the decisions that have to be made.

According to Roger Fisher and Danny Ertel, authors of Getting Ready to Negotiate, when people have several of something, they value the last one somewhat less than those that came before. Fisher and Ertel also state that differences in the marginal value to each party, of some of the goods under negotiation, can create opportunities to improve the overall value they each receive. There is no guarantee that these value creating trade-offs will work in every negotiation. However, if one strives to create good options, prepare in advance, and carefully consider opportunities that create value, then possibilities will become available.

As described by William Ury in his book, Getting Past No, an independent standard is a measuring stick that allows us to decide what a fair solution is. Some common standards include: market value, fair and equal treatment, laws, precedents that have been established in the past. Standards can be utilized when one begins to work or negotiate with a new customer. By establishing certain standards it can help to form the common ground in the negotiation that was mentioned earlier in the paper. Without setting standards the negotiation can have no boundaries and will only make it more difficult to come to a viable solution.

Negotiations always differ in complexity and content. Understanding the different style or methods used by different individuals will help to identify their needs and wants. After understanding the needs and wants it is then time to form the common ground. Once common ground is established in the negotiation then it is time to present the options that will help all parties involved achieve their most viable solutions. Keeping an open mind and always trying to understand the argument from the other individuals' viewpoint will always help achieve the main objectives in a negotiation. A good quote by John Lubbock encompasses a lot about negotiations, "what we see depends mainly on what we look for." By keeping an open mind during any negotiation one may be able to find new possibilities that he or she did not even know existed.

Negotiation Skills for Business
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Works Cited

Roger Fisher and Danny Ertel. Getting Ready to Negotiate. Penguin Books. 1995.
K. Thomas and R. Killman, The Conflict Mode Instrument. (Tuxedo Park, NY: XICOM, 1974). Negotiation 6th Edition. Roy J Lewicki, David M. Saunders, Bruce Barry.
Ury, William. Getting past No. Bantam Books. 1993.

This article was written by Jeff Shjarback.
http://www.tradestock.net

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Doing Business in China: Business Lunch, Gift Giving and Negotiation Etiquette

Business lunches and negotiations are obligatory events and nobody denies or calls it in question. What is always necessary to know? What are the basic requirements? At business lunches, seating follows a strict business protocol. That is to say, you cannot just come and take any seat you want. The rule is the following here: the most honorable guest or the head of the negotiations is likely to be seated facing the door. Furthermore, at a business lunch you should never get down to business right away.

That means that you should start with common questions and find common ground with the negotiations participants and then everyone will automatically pass into business talks after a while. During a business lunch, a toast is proposed, first of all by the host and only after that you propose your toast. It is very important to remember. Another rule is "the rule of both hands": always accept and take everything with both hands. That is important, polite and delicate. Now we will be talking about business cards where "the rule of both hands" will be also mentioned. That is what I briefly wanted to say about business lunches.

Gift giving

Doing Business in China: Business Lunch, Gift Giving and Negotiation Etiquette

Small gifts are always appreciated everywhere but in China there are certain rules which specify what kind of gifts may be given and what ones you should not give. These rules are described in a separate range of issues. One thing you always need to keep in mind is that you should not give a clock or a watch as a gift to the Chinese as it would signify the cutting of relationship. Moreover, do not expect your business partner to open your gift immediately for the Chinese never do it in anybody's presence. They are not in European habit of showing what is given them as a gift. Why is it so? Firstly, because a Chinese does not want to be an offense to your feelings and give you any reason to think that your gift is cheap. And secondly, a Chinese does not want to show his emotions as they are hidden. This is what I briefly wanted to say about gift giving.

Doing Business in China: Business Lunch, Gift Giving and Negotiation Etiquette
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Just Because A Man-Woman Says They Need Space Doesn't Always Mean The Relationship Is Over

One day you meet this really fantastic person. There is strong chemistry there and so you think this is it. You immediately put yourself out there and instantly go "overboard" doing too many things to show the object of your interest and attention that you are very much in love. And when you thought it couldn't get any better, he/she says those dreaded words, "I need some space." You lose control of your thoughts and emotionally collapse and lash out. This eventually leads to an ending that is deeply disappointing.

Many men and women miss out on relationships with great potential simply because they assume "I need some space" always means the relationship is over.

"I need some space" is especially very confusing for men and women who grew up in an environment which was unstable. They easily get bothered by sudden changes and the "not knowing" what's going to happen next overwhelms, frustrates and depresses them.

Just Because A Man-Woman Says They Need Space Doesn't Always Mean The Relationship Is Over

The real tragedy here is that when you overwhelm a man or woman with your desperation, neediness and anger, you force him/her to actually think about ending the relationship. Your strong drive and determination to get attention and love is likely to get you into difficult situations because you want things going faster -- your pace, your call. What you get is men and women literally running for their lives, "It's best if we had no contact", or "Just leave me alone," or "You are too much for me".

This is why it's crucial that you understand that "I need some space" doesn't always mean I am no longer attracted to you or the relationship is over. Sometimes when a person says "I need some space" all they are saying to you is that, at this time, the value of what you are offering does not justify me taking a risk or investing more than I already have. Many men and women hesitate because they fear that they might be making the wrong decision and will regret it later.

If he/she asks for his/her "own space" don't automatically assume this is a pre-breakup situation.

1. Give him/her the "space" he he/she needs. This is his/her opportunity to come face to face with his/her feelings for you, don't get in his/her way. This may even be a chance for both of you to reassess what you have and work on what you might have in the future.

2. Ask him/her what possible compromises he/she is willing to make (may be meet once a week, weekends only, every other week? etc.) then give him/her the space he/she needs. If he/she refuses to compromise, then you know for certain that they're looking for ways to end the relationship. A person's body language will tell you more about their particular state of mind.

3. If he/she is willing to make some compromises don't force him or her to pay more attention to you than he/she is willing to. Repeated attempts to get back a man or woman who is "scared" for his/her life is completely useless. Only a significant space of time and a new type of approach will have any effect on someone whose guard is already up and whose sensitivity is razor-sharp.

4. It is important that you understand that giving him/her space does not mean you don't have anything to do with him/her. On the contrary, maintain your contact with him/her, but make the "contact moments" work to your advantage.

The most effective way to do this is employ a little playful resistance or what we commonly know as playing hard-to-get. Keep in mind that not all playing hard-to-get rules and actions are designed to make someone fall in love with you. Many of the popularly promoted playing hard-to-get "techniques" out there actually drive someone away instead of make them want you more.

The best kind of playing hard-to-get is one that creates more love than resistance. Using a little bit of playful resistance, you can create a "FRIENDLY SPACE" for fair negotiation, easily eliminate a man or woman's reservations about the relationship and concerns about making a long-term commitment and motivate him/her to take the action of risk and to want to invest more in you and the relationship.

When you understand this very engaging and bonding game, you can turn the "I need some space" into a "Let's try it again" or even "This is what I want!" Simply saying it to them is not enough, they need to SEE by your actions that you really understand what they want in a relationship.

Just Because A Man-Woman Says They Need Space Doesn't Always Mean The Relationship Is Over
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Christine Akiteng is an internationally renowned Sexual Confidence/Dating Coach and author of e-Books: The Art Of Seducing Out Of Fullness, Breaking A Bad Relationships Pattern, and Playing Hard-To-Get The Love Way.

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