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in terms of the effect that utterances achieve. That effect has implications for both the production аnd the comprehension of an utterance; both modes of performance serve bring the communicative act to its ultimate purpose.

1. What is negotiation?

Negotiation is an essential part of the every-day business life. It can

take place at any time and in any place. Negotiation is a kind of meeting, but contrary to the latter it may be held in some unexpected and uncomfortable place such as the street or on the stairs.

иmodify their demands to achieve a mutually acceptable compromise". Thus, it is "the process of changing both parties' views of their ideal outcome into an attainable outcome".

There are several definitions of negotiation. It is said to be "the process

for resolvingбconflict between two or more parties whereby both or all

The need of negotiation arises when we are not fully in control of

events. Negotiations take place to handle mutual differences or conflict of:

• interests (wages, hours, work conditions, prices: seller vs. buyer);

• rights (different interpretations of an agreement).

Overlap. The situations of negotiation can be shown diagrammatically in terms of ideals and limits.

The limit may be the limit of negotiator's authority, such as a minimum (e.g. price) acceptable. If there is overlap it is possible to settle. The final position within the bargaining area, where settlement takes place, depends on the negotiators' relative strength and skill.

No overlap. The aim of the negotiator is to achieve a result, i.e. to find a solution, within the bargaining area. However, it is possible that both parties set limits which do not provide overlap. In this case the negotiators have to move their limits, otherwise the negotiation will be broken down.

Too much overlap. The opposite case is also possible. When one is careless and settles for less than he could. In this case the limit of the opposite side should be found and the ideal should be revised.

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3. The approach.

There are four main stages of negotiation:

• preparing objectives, information, strategy;

• discussing (argue) and signalling willingness to move;

• propose and bargain;

• close and agree.

СWhile preparing to the negotiation it is important not only to prepare supporting arguments but also to define objectives. Objectives should be realistic and attainable and have certain priorities. It is also necessary to investigate the opponent's plans and priorities, which can be rather difficult. The objectives should be classified basically as follows:

иThe general strategy for negotiation is to have a negotiating team of three people, who will also be involved in the preparation:

• leader;

• summarizer;б

• observer.

The person who will do the talking and conduct the negotiations.

The person who will ask questions and summarize for control. The person not involved in the actual negotiations, whose role is to watch, listen and record 80% of Аthe negotiating time is spent arguing. If it equals 100%, the negotiation will break down. There are two kinds of arguing:

• reasonable and constructive Debates, discussions;

• unreasonable and destructive Emotional quarrels.

The opponent may try toДdivert you by escaping into destructive behaviour. In this case, your behavior should be not to interrupt, but to listen and control your feelings. Even if the battle is won, the war can be lost. A negotiator should be constructive in arguments and try to get information by asking open questions or even leading questions. One thing should be tackled at a time and the opponent should be made justifyИhis case item by item.

It is important to be non-committal and to state only ideals at first. Later, the information about the negotiator's position can be given, and later alternative proposals can be made. Sometimes it is necessary to challenge the opponent, so that he demonstrates his strengths.

Negotiation means movement. It may be that both parties move on one issue. It may be that each moves on different issue. The motive forces are twofold:

•sanctions: the penalty of not agreeing;

•incentives: the benefits of agreeing.

In both cases, the parties seek to protect their self-interests. They will show willingness to move by sending signals. To signal is not to show weakness. But if both parties wait for the other to signal, the result will be deadlock. The opponent's signals will show his willingness to move. So one

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should listen, recognize his signals and interpret them, looking for the qualified words which are evidence of willingness to move.

Another very important point of negotiations is proposing and bargaining. Proposals should be realistic in order not to cause argument and deadlock. The language of the proposal signals one's firmness. Weak language such as "we hope..., we like..., we prefer..." should be avoided.

СInstead, a phrase "we propose..." is appropriate.

The final step in a negotiation is closing and agreeing. There are two aspects to it:

• when to close;

• how to close.

и been squeezed;б

The first is the most difficult moment to recognize. There is a balance

between:

• closing too early: more concessions from the opponent could have

• closing too late: the opponents squeezed excessive concessions.

The aim of closing is to get the opposition to stop bargaining and to

make an agreement. The final thing to do is to write down the agreement and agree what is written down, it is necessary to do this before leaving the negotiating table.

4. Characteristics of an effective negotiator.

What characteristics should one have to be an effective negotiator? The

5. Conclusion.

In spite of the existence of negotiating theories, it is frequently difficult to apply theoretical and conceptual knowledge in a practical situation. In order to be a good negotiator, one should have negotiation skills as well as theoretical knowledge. But without practical experience it is hard to negotiate effectively.

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Interpersonal skills are very important in the negotiation, but what can help a negotiating party while thinking what to do is not an elaborated theory, but rather a simple analysis and Intuition.

Human Resource Management

Motivation: Reward system and the role of compensation

СThe design and management of reward systems present the general

manager with one of the most difficult HRM tasks. This HRM policy area contains the greatest contradictions between the promise of theory and the reality of implementation. Consequently, organizations sometimes go through cycles of innovation and hope as reward systems are developed, иfollowed by disillusionment as these reward systems fail to deliver.

Rewards and employee satisfaction

Gaining an employee's satisfaction with me rewards given is not a simple matter. Rather, it is a function of several factors that organizations must learnбto manage:

1. The individual's satisfaction with rewards is, in part, related to what is expected and how much is received. Feelings of satisfaction or dissatisfaction arise when individuals compare their input - job skills, education, effort, andАperformance - to output - the mix of extrinsic and intrinsic rewards they receive.

2. Employee satisfaction is also affected by comparisons with other people in similar jobs and organizations. In effect, employees compare their own input/output ratio with that of others. People vary considerably in how they weigh various inputs in mat Дcomparison. They tend to weigh their strong points more heavily, such as certain skills or a recent incident of effective performance.

Individuals also tend to overrate their own performance compared with the rating they receive from their supervisors. ИThe problem of unrealistic selfrating exists partly because supervisors in most organizations do not communicate a candid evaluation of their subordinates' performance to them. Such candid communication to subordinates, unless done skillfully, seriously risks damaging their self-esteem. The bigger dilemma, however, is that failure by managers to communicate a candid appraisal of performance makes it difficult for employees to develop a realistic view of their own performance, thus increasing the possibility of dissatisfaction with the pay they are receiving.

3. Employees often misperceive the rewards of others; their misperception can cause the employees to become dissatisfied. Evidence shows that individuals tend to overestimate the pay of fellow workers doing similar jobs and to underestimate their performance (a defense of self- esteem-building mechanism). Misperceptions of the performance and

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rewards of others also occur because organizations do not generally make available accurate information about the salary or performance of others.

4. Finally, overall satisfaction results from a mix of rewards rather than

from any single reward. The evidence suggests that intrinsic rewards and extrinsic rewards are both important and that they cannot be directly substituted by each other. Employees who are paid well for repetitious, boring work will be dissatisfied with the lack of intrinsic rewards, just as employees paid poorly for interesting, challenging work may be dissatisfied with extrinsic rewards.

СFrom the organization's point of view, rewards are intended to motivate иcertain behaviors. But under what conditions will rewards actually motivate employees? To be useful, rewards must be seen as timely and tied to effective performance.

Rewards and motivation

Oneбtheory suggests that the following conditions are necessary for employee motivation:

1. Employees must believe effective performance (or certain specified behavior) will lead to certain rewards. For example, attaining certain results will lead to a bonus or approval from others.

3. Employees Аmust believe a certain level of individual effort will lead to achieving the corporation's standards of performance. As indicated, motivation to exert effort is triggered by the prospect of desired rewards: money, recognition, promotion, and so forth. If effort leads to performance and performance leads to desired rewards, the employee is satisfied and

2. Employees must feel that the rewards offered are attractive. Some employees may desire promotions because they seek power, but others may want a fringe benefit, such as a pension, because they are older and want

retirement security.

intrinsic. Extrinsic rewards come from the organization as money, perquisites, or promotions or from supervisors and coworkers as recognition. Intrinsic rewards accrue from performing the task itself, and may include the satisfaction of accomplishment or a sense of influence. The process of work and the individual's response to it provide the intrinsic rewards. But the organization seeking to increase intrinsic rewards must provide a work environment that allows these satisfactions to occur, therefore, more organizations are redesigning work and delegating responsibility to enhance employee involvement.

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