A research cannot be carried out if there is no missing link or
lacunars or it there is no question unanswered. Negotiation skills has
been seriously dealt with in this research work to know it role on
purchasing and contracts management to some unanswered question as to
Chapter one familiarized us with the meaning of Negotiation
skills, statement of problem, objective of the study, important of the
study, limitations and constraints, Historical background of (Fan Milk
Nigeria Plc, Ibadan), organization structure of Fan milk Nigeria Plc,
Ibadan, research question etc.
We can see in chapter two the series of literature we reviewed to
know what the past authors have said about Negotiation skills. The
theories under Negotiation skill were also reviewed.
Chapter three and chapter four dealt with research methodology and
data presentation and analysis respectively. Questionnaire was used to
collect the primary data and researcher employed the use of table and
simple percentage for the use of presentation and analysis. The
hypothesis stated in chapter one was also put to test.
The summary of our findings, recommendation and conclusion were done in chapter five (5).
Negotiation is a fact of life. Everyone negotiates something every
day. Negotiation is a method by which people settle differences.
Negotiation is one of the instruments employed by the buyer organization
in order to reach a fair and reasonable price through sound discussion.
Negotiation forms a substantial part of most purchasing officer or
agent’s needs to be able to analyse and interpret information and be
aware of danger involved in any wrong decisions by the parties
It is also important to recognise that the main task of
the purchasing manager in fulfilling and carrying out his operation of
maintaining suppliers is negotiation. The purchasing manager is a
specialist in satisfying the needs of the company by seeking suitable
sources of supply and negotiating to secure the best terms and services
possible. Negotiation involves two or more parties with the aim of
reaching an agreement of their term dissemination. Whenever it is
required or reconcile two or more differing opinions in order to
initiate the action or continue in mutually agreed condition. It is very
vital that all buying and selling transactions leave both parties
satisfied and hence acceptance on any of the parties.
1.1 STATEMENT OF PROBLEMS
Negotiation is very important between buyers and sellers. This is because it improves buyer-seller relation.
Unfortunately, negotiation is not effectively employed in some organizations.
(a). What are the causes of lack of skilled negotiation personnel?
(b). How can the negotiation situation of both the buyer and the seller affect the relative strength of both parties?
(c). Why is time pressure a problem faced in the course of negotiation?
(d). What are the unpredictable behaviours of the buyer which
the supplier cannot satisfy, that later result into problem between both
1.2 OBJECTIVE OF THE STUDY
The aims of this research work are to:
(i). Examine the roles of negotiation skills in purchasing and contract management of an organization.
(ii). Identify factors critical to successful bargaining.
(iii). Determine how to obtain a fair and reasonable price.
(iv). See how relevant negotiation network is to the buyer and the supplier as a whole.
(v). Determine how organizations can strategically select the best supplier that will help in linking them to target market
(vi). Examine how quality specification can be obtained or achieved.