Reading 1 hourPART ONE
Questions 1 – 8
l Look at the statements below and at the five extracts on the opposite page from an article giving advice to self-employed consultants about negotiating fees for their services.
l Which book (A, B, C,D or E) dose each statement 1 –8 refer to ?
l For each statement ! – 8, make one letter (A, B, C,D or E) on your Answer Sheet .
l You will need to use some of these letters more than once .
0 Lack of self-confidence will put you at a disadvantage in a negotiation .
0A B C D E
1 Trying to negotiate is only worthwhile if there is the prospect of success.
2 The best result of negotiation is when both parties have a sense of satisfaction.
3 Accepting a lower fee might have benefits in the future.
4 It is important to know how much other people are charging for similar work.
5 You should ask for a fee in excess of what you expect to get.
6 Offer the other party incentives to agree to your fee.
7 Other people’s reactions to you are influenced by your body language.
8 It may become obvious that you have come to regret a deal you have made.A
You’re in danger of selling yourself short if you don’t know where the goalposts are, especially when you’re negotiating with a new client. Research the market and find out the going rate. You can do this by networking contacts or talking to small business advisers. Alternatively, ask the competition. Of course your rivals may not tell you, but there’s no harm in asking. Another prerequisite is learning to recognize when there’s scope for negotiation, because without it, you can waste a great deal of time and energy.
B Know the amount you would really like, slightly above what you think they will offer and above what you’d be happy to settle for. Also, know your trade-offs. Create a wish list of all the things you’d like to receive if you lived in a perfect world. That way, if the other side want you to move from your preferred or opening position on an issue to a position nearer the bottom line, you can move in exchange for something from your wish list.
People who are nervous about negotiating over money often let fear tell them they’re no good at these discussions and not worth the fee. You literally can’t afford the luxury of a single negotiating thought. Stand up when making negotiating phone calls: it will make you fell more powerful. If you’re face to face, make steady eye contact, keep your head up and your hands still – these all suggest assertiveness, rather than aggressiveness or passivity, and you’ll be surprised at how much this affects the way that you come across in the negotiation.
You have to know the price below which it would be uneconomical for you to do a job. This could vary from job to job - you may be prepared to do some cheaper in the hope that they’ll lead to better things. But don’t be talked below your bottom line and end up working for nothing. After all, in the long term, there’s little point in agreeing to something that you’re not happy with: you’re likely to feel resentful, and this might even come across in your behaviour.
When negotiating money, there may be non-financial factors you can throw into the mix. For example, why not say, ‘If you pay me such and such, I’ll include a report on the company for you’. Plan these extras beforehand. Make sure that they won’t take forever to do, but are things of value to the other side. This way, you can achieve the ideal outcome: you appear to accept compromise when in fact you’ve got everything you wanted, and they’ll think they got the better of the deal.
PART TWOQuestions9– 14
l Read the text about training progammes.
l Choose the best sentence from the opposite page to fill each of the gaps .
l For each gap 9– 14, mark one letter (A-H) on your Answer Sheet .
l Do not use any letter more than once .
l There is an example at the beginning .(0)
REAL TRAINING FOR ALL-ACTION MANAGERS
Learning by doing is familiar to every manager sent on a training course. Invariably this involves role-play based on studies of long-ago triumphs and disasters from a relevant industry or organization. (0)_H_ The problem is, any experience of decision-making gained from role-play has one obvious shortcoming: it is not real life.
To tackle this dilemma, some of the best-known companies have set up the International Management Development Consortium, which provides a range of executive development programmes for staff members. (9)____ What this means is that they involve ‘action learning’ through real-life situations, and participants work as problem-solving consultants on projects within companies engaged in day-to-day business.
(10)____ Within this they also take training and refresher courses in traditional business skills such as finance, marketing, staff management and strategic planning. These disciplines are taught by a mix of academics, business people and senior managers from Consortium companies who also monitor the consultancy work.
More than 100 of these consultancy projects have been undertaken so far, and many more are to come. (11)____ Generally, those who choose to attend the course come from various countries, reflecting the multi-national nature of companies within the Consortium. (12)____ As a result of this cross-cultural exchange, the people on the course learn a great deal from each other- and often keep in contact on a professional level long after the end of their course.
The Consortium says language difficulties are not a problem when consultancies are undertaken for foreign companies on site. A translator is on hand to deal with difficulties which arise from technical terms or jargon.
(13)____ This is because they are not charged consultancy fees, although a nominal sum is payable for administration. The funding for the scheme is provided by each Consortium member who contributes to the cost of running the training courses, and the amount involved is considerably less than fees charged by leading business schools. (14)____ ‘it is,’ says the Chairman, ‘a real learning experience with techniques that can easily be used back at work..’
A B C D E F G H
A They are being offered by companies who are aware of the benefits of the range of knowledge offered by the people on the course.
B As well as the savings, there are also the dividends it pays in the form of improved staff performance.
C The difference between these programmes and the average executive course, however, is that these courses are based on the concept of ‘live’ consultancy.
D In this way, participants can also benchmark themselves against the best members from a range of Consortium companies.
E This means that within every training group there will be a wide variety of experience, which is discussed and explored by the group.
F Typically, groups of up to six course members undertake projects as part of this development programme.
G Another major advantage is that these companies usually get their problems solved very cheaply.
H Managers are typically cast as key figures in these dramas, the comparisons are made later between how they dealt with the fictional situation and the actual event.