EVALUATION OF THE APPLICATION OF NEGOTIATION TECHNIQUE IN THE PUBLIC SECTOR ORGANIZATION
ABSTRACT
Any organization that wishes to make profit at the long run must critically examine her strength and ability to Negotiate Negotiation is one of the most important task of purchasing professionals. It is also the most delicate and difficult because it involves dealing with a seller whose primary aim is to maximize profit. And without Negotiation there will be no compromise with out proper Negotiation there will be lost of profit. This project work is divided into five chapters. Chapter one deals with introduction of the approach, chapter two is a review of related literature both general purchasing and how it has affected the public sector such as Ministry of Health Owerri. The next chapter (three) out lines the methodology and procedures used in gathering data. Chapter four is where the findings are presented and analyzed. In chapter five summary conclusion and recommendation of the research.
CHAPTER ONE
INTRODUCTION
1.1 GENERAL BACKGROUND TO THE STUDY
The real world is a giant negotiation table and like it or not you are a participate. Every day of oil, lives, we enter into some sort of negotiation with another person or group of person. Sometimes we come away from the exercise with felling of having receive a new deal, perhaps, because we did not negotiation well. In purchasing negotiation, it is important always be on the alert when negotiation, who negotiate on behalf of their organization because invaluable huge amount of materials and human resources could be at risk. Negotiation is one of the most important task of purchasing professionals. It is also the most delicate and difficult. It is delicate because it involves dealing with a seller whose primary aim is to maximize profits hence price, the buyer on the other hand has the opposite objective to hold sellers profits and price to acceptable levels.
DEFINITIONS
Webster defines negotiation broadly as conferring discussing or barging to reach agreement in business transaction. To be fully effective in purchasing, negotiation must be utilized in its broadest context i.e. as a decision making process. In this contest negotiation is a process of planning reviewing and analyzing used by a buyer and a seller to reach acceptable agreement or compromises. These agreement and compromises include all aspects of the business transaction not just price. Zenz (1994:247) defines negotiation as trading or deliberation leading to an agreement. Negotiation refers to more their just price discussion.
Although it is true that price looms large in any procurement negotiation, it is but out of many element subject to discussion between the parties legally any contract must involve agreement by the parties on all aspects of the contract. Thus negotiation should include discussion of the quality and services element of the transaction as well as price. A cynic was once head to suggest that negotiation for supplies is the art of unscrupulous pursuing the unwilling so as to persuade him to perform the impossible immediately at a loss, more accurately negotiation can be define as bargaining or cantering with other for the purpose of coming to an agreement or making an arrangement which is freely acceptable by all the parties concerned. Steele (1986:20) defines negotiation as the give and take trading process by which the condition of a transaction are agreed and acted upon. Attempt by the two parties to complete a transaction through the use of bargaining.
1.2 STATEMENT OF THE PROBLEM
This project work is on the evaluation of the application of negotiation techniques in the public sector organization therefore, the problem are as fellows:
1. There is little or no application of negotiation in the business of the ministry of health in Imo State.
2. The personnel in this ministry lack the necessary skills required to effective carry out the negotiation.
3. A lot of people in the ministry time and therefore prefer competitive bidding and tendering.
4. In the ministry the fail to recognize the key rotes and functions of negotiation.
1.3 OBJECTIVE OF THE STUDY
i. To find why people prefer the uses of competitive bidding and tendering instead of negotiation techniques.
ii. To investigate into the quality of personnel in the organization as to know whether the purpose the right experience to carryout the necessary effective negotiation.
iii. To examine the impart of organizational polities on the application of negotiation.
iv. To find out the rolls of purchasing in the application of negotiation techniques in the ministry of health Imo State.
v. To find out rolls and benefit of negotiation and how enhance the profit of the organization
vi. To find out how buying decision are taken and who takes decision.
1.4 SIGNIFICANCE OF THE STUDY
The study is vital because it will bring the knowledge of public sector organization the numerous advantages and solution to the problem encountered in purchasing offers. The study is also interested in assessing the ways of study is also goes further to recognize the benefits the society drives from negotiation and they are as fellows.
i. A proper limited negotiation technique improves the possibility of getting a fair and reasonable price.
ii. It also helps the supplier to deliver on schedule in accordance with specification; with this the organization obtains standard qualities in materials contents and workmanship.
iii. Inspection method will be used incase of substandard material.
iv. There should be possible changes in cost structures which result from other amendments.
This research is of important benefits to the researcher because of the fact that it will help her meet the necessary requirement for the award of Higher National Diploma in the relevant study. Other study, who will be future researcher or otherwise, will find the project a useful guide in developing theirs.
1.5 RESEARCH QUESTION
This study will counter it finding on the following questions.
i. Do people in the ministry of health see negotiation as a significant activities or whether the find favour in competitive bidding.
ii. Can any one find adequate application of negotiation techniques in the ministry of health?
iii. Do the ministry of health recognize the benefit and function of negotiation techniques.
iv. Do the top personnel in the ministry of health have the necessary negotiation skills and know how?
v. Can proper negotiation enhance the profit of the organization?
vi. Can proper negotiation enhance the profit of the organization?
vii. Is trade off properly observed and implement in the ministry?
1.6 HYPOTHESIS
In order to achieve the objective of the study research, hypothesis will be developed used in analysis of data collection the research hypothesis are:
1. H0: The strength of negotiation in public sector organization is poor.
Hi: The ability to negotiate in the public sector is high.
2. H0: The negotiation techniques has no significant impact in purchasing function in the public sector.
Hi: The negotiation sector organization has a significant or purchasing function in the public sector organization.
3. H0: The adopting of negotiation techniques in the public sector is not effective.
Hi: The adoption of negotiation technique in public sector is effective.
1.7 SCOPE OF THE STUDY
This study on the evaluation of the application of negotiation techniques. It cover the public sector in Owerri area and to be precise ministry of health. It focuses its study on purchasing department and material management department. Conclusion from the study of there units will be used to draw reference on the other public sector.
1.8 LIMITATION OF THE STUDY
Negotiation like other managerial function has its arm peculiar problems, it can be internal or external, the external problem can originate when the management fails to understand when role played by the application of negotiation techniques in procurement officer is specified there would be improvement, however the study is limited by the following factors.
i. Financial constraints on the part of the researcher that made a visit to the case study firm to restricted.
ii. The external of the research ability to arrange the data to reflect the objectives of the study.
iii. The Bureaucracy or due process involved in the understanding of information.
iv. True constraints in this regards most times are channeled to examination preparation.
1.9 OPERATIONAL DEFINITION OF TERMS
Negotiation it can be defined as a situation where business disagreement are rectifiyied, where according to Larmer and Dobler (1983) see negotiation as a process of planning reviewing and analyzing employed by the buyer and the seller to reach an acceptable agreement or compromise.
ii. Trade off: Means a sacrifice made by both buyer and seller to enhance the negotiation processes which helps to limit the negotiation processes.
iii. Lead time: This represent or time goods are order and time the delivery is been accomplish, because time is very essential to the purchasing department.
iv. Fair price: This means a price that is good for both buyer and sellers.
v. Expediting: This means fellow up from the supply to the point of delivery.
