NEGOTIATION

Negotiation definition
Negotiation is the process in
which parties that perceive one
or more incompatibilities between
them, try to find a mutually
acceptable solution.

Negotiation

contd..

It is a process by which two parties

interact to resolve a conflict jointly
a face to face decision making process
between parties concerning a
specific product

 Basic Types of Negotiation

Distributive negotiations
Involve winlose, fixed-amount situations
wherein one partys gain is another partys
loss.
It is also called competitive or win-lose type of
negotiation

Integrative negotiations
Involve joint problem solving to achieve results
both parties
It is also called collaborative or win-win type of
negotiation

Basic steps of Negotiation

Getting to know another

Statement of goals & objectives
Starting the process
Expression of disagreement & conflict
Reassessment & compromise
Agreement in principle or settlement

Planning and Preparation

START BY THINKING THROUGH YOUR OBJECTIVE
Established objectives
Concentrate on your issue
Categorize them as major and minor concern
DEVELOP A TIME PERSPECTIVE
Decide how much time to devote to the effort
Estimate the time factors for your opponent
Time is often a pressure point that can force concessions
that one would prefer not to make.

Planning and Preparation

contd

IDENTIFY SOURCES OF POWER

Power is not defined as the ability to force an action
but rather to influence outcome by logic, validity or
legitimacy of a position
TYPES OF POSITIVE SOURCE OF POWER
PERSISTENCE
EXPERTISE
COMPETITION
ATTITUDE

 PESISTENCE:
Do not concede or back off at the first sign of
resistance.
EXPERTISE
Use what you have. You will receive more
consideration from people who believe that you have
more knowledge, or expertise skills
COMPETITION
There is always competition for what you have,
whether it is money, ideas or products. Never forget
that people always have options.
ATTITUDE
Do not relieve tension on other negotiator. If you need
time to reduce stress, take a break. Try to maintain a
win-win situation

Guidelines for successful negotiation

SET UP GOALS & PLAN NEGOTIATION TIME:
What is the most important goal for me?
What is actually negotiable ?
What are the alternatives?
What do I want as compensation if we come to a
concession ?
Where is the compromise threshold , where should lay
down the line ?

PICK THE RIGHT MOMENT:

When preparing for negotiations, do not just think
about which arguments to use, but think
about when in negotiation process would it be the best
time to use them.
BE FAIR AND OBJECTIVE
Keep cool and do not let your emotions get the best of
you
Wait for a little while, start a new and uncontroversial
point in argument and act as if nothing had happened

VISUALIZE YOUR ARGUMENTS

Make ideas clear with easy to follow steps by using
charts,graphs,diagrams,charts,or overheads.
Visual aids make arguments and calculations easier to
understand and accept.
DEALING WITH DEFEAT
Negotiation is a constant game of give and take.
CONFORMATION AND SUMMARY
Never leave a negotiation without summarizing what
you believe has been agreed upon.

Intercultural Negotiation Skills

Empathize with others
Demonstrate the advantages
Manage stress & cope with ambiguity
Express ones own ideas
Sensitivity

EMPATHIZE WITH OTHERS

To see the world as other people see it
Understand the behavior of other
DEMONSTRATE THE ADVANTAGES
It helps to change position in counterparts in the
negotiation
MANAGE STRESS & COPE WITH AMBIGUITY
Unpredictable demands that are often part of
intercultural negotiation

 EXPRESS ONES OWN IDEAS

It helps to understand the objectives and intentions at
stakes
SENSITIVITY
It helps to adjust ones objectives and intentions in
accordance with existing constrains and limitation

THANK YOU