CONTENT VERSUS PROCESS

Dealings with negotiators from many countries and differing cultures reveal that the main skill of competent negotiators is their ability to separate the negotiation process from the negotiation content.

Content : The facts or substance of the particular negotiation;

the what you are negotiating about, the matter. Process : The method by which negotiations are conducted; the how you are managing the negotiation, the approach.
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Dr. H. Gayathri

Dr. H. Gayathri

For

example,

consider

that

whenever

you

are

deadlocked in a negotiation, most likely it is because you have focused on the content, especially the things you think important, rather than on the process.

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Dr. H. Gayathri

Dr. H. Gayathri

NEED THEORY OF NEGOTIATION When undertaking negotiation it is important to keep reminding ourselves that the key resource we have for influencing others is to build strategies based on a full understanding of their needs and personal motivating drivers. 1. The purpose of negotiation is needs satisfaction. 2. Both parties have needs. 3. Negotiators must fully understand the OPs needs. 4. Failure to understand the OPs needs is the major reason why many negotiations are unsuccessful. The other party is acting for his or her reasons not yours.
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Dr. H. Gayathri

Dr. H. Gayathri

5. Negotiations may be classified into two main types:

Inter-personal (i.e., negotiations between individuals) Inter-group (i.e., negotiations between organizations) 6. Organizations dont act independently they operate through people. In inter-group negotiations, skilled negotiators identify two levels of needs operating.

The (generally stated) group needs of the organization.

The (often unstated) personal needs of the individual.
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Dr. H. Gayathri

Dr. H. Gayathri

7. Skilled negotiations take into account both levels of needs. When planning how to conduct the negotiation strategy they keep asking the most important diagnostic and strategy

planning question ;
What are the needs of the other side ? 8. Once you have clearly identified the needs of the OP, it becomes much easier to match in your needs and locate the COMMON GROUND.
Dr. H. Gayathri

8/4/2013

Dr. H. Gayathri

 Make an inventory of all the differences of your company and the other company
1 Identify if the differences are because of the facts, goals, methods or values.

2. Based on the above, share the required information and discuss. 3. Identify which differences can lead to value trading, or identify opportunities for value creation and claiming between parties. 4. Identify if risk factors are associated with it. 5. Work on solutions for the risk factors. 6. Check if it there is time preferences w.r.t. now and future.
Dr. H. Gayathri

NEGOTIATION STYLE
Negotiation styles may take many forms. For example, a particular style may be characterized as being more (or less)

aggressive, hostile, dominating, constructive, supportive,

accommodating, compliant. When purposefully selecting a particular negotiating style, the most important factor to take into consideration is the anticipated impact the style choice will have on the

OUTCOME of the negotiation

8/4/2013

Dr. H. Gayathri

Dr. H. Gayathri

The Competing Style : As shown in figure 1-b, the competing style focuses on selfinterest or substantive outcome, generally at the expense of the other party and the relationship. It involves:

Persisting until you get what you want.

Prefer to start with tough, often unreasonable demands.

Inflexible
Seek to dominate the OP.
8/4/2013

Dr. H. Gayathri

Dr. H. Gayathri

 Coercive and uses power to influence the outcome of the negotiation.

Demands major concessions, while conceding very little.

Withholding information that might give the other party an

advantage.
Exploiting the other partys weaknesses in a negotiation. Thinks in terms of win / lose outcome.
Dr. H. Gayathri

8/4/2013

Dr. H. Gayathri

The Accommodating Style: The accommodating style is just the opposite of the competing

style: concerned with preserving the relationship, even if it

means giving up substantive outcome. Accommodating can include:

Focusing on the other partys concerns more than your own.

Going along with the other partys suggestions.

Trying to help the other party even if it means giving up

your own needs. Trying to preserve the relationship at all costs.
8/4/2013

Dr. H. Gayathri

Dr. H. Gayathri

 Letting the other party dictate the terms of the agreement.

Trying to keep the other party happy.

Trying not to hurt the other partys feelings.

Focusing on issues that you and the other party agree on

rather than those issues of disagreement.

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Dr. H. Gayathri

Dr. H. Gayathri

Figure 1-b : Negotiation Styles

Concern for the relationship (relational outcome) Accommodating Collaborating

Compromising

Avoiding

Competing

Concern for self interest (substantive outcome)

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Dr. H. Gayathri

Dr. H. Gayathri

The Collaborating Style:

Collaborating involves exploring individual and mutual interests in an effort to satisfy everyones needs. It is through collaboration that win-win solutions are possible. This means: Interacts with OP as equal.

Flexible
Rational and uses less of emotions.

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Bringing issues or concerns into the open.

Dealing with issues that are important to both parties.
Dr. H. Gayathri
Dr. H. Gayathri


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Focus on long term gains Regards OP as associates and not as adversaries. Listens to the other person before you share your views. Seeks to build trust. Seeks to satisfy the needs of both parties. Exchanges information and ideas freely. Thinks in terms win-win outcome.
Dr. H. Gayathri
Dr. H. Gayathri

The Avoiding Style : Avoiding means ---- avoiding not only the issues but the other party or parties and negotiation itself. This category also

includes:
Avoiding contact with difficult negotiators. Avoiding controversy. Avoiding situation that might create tension. Avoiding open discussions of issues and concerns. Withdrawing from negotiations, even when you might win. Postponing facing difficult negotiations.
8/4/2013

Dr. H. Gayathri

Dr. H. Gayathri

The Compromising Style : Finally, compromising is a partial-win, partial-lose proposition, where you get some of what you want but not everything, and

likewise for the other party. This tactic or style includes:

Splitting the difference. Backing off on demands. Giving up something for something in return. Taking an intermediate position (halfway between expectations). Engaging in give-and-take.
8/4/2013

Dr. H. Gayathri

Dr. H. Gayathri