Templates for PowerPoint

FIA 1383: BUSINESS COMMUNICATION

Subtopic
1. Negotiation
Definition
Features of Negotiation
Reasons for Negotiation
 P’s of Negotiation

Essentials of negotiation are called as P’s of negotiation. They are as

follows:

Purpose : aim is required otherwise it will result in wastage of money,

manpower & time.

Plan : main agenda on which negotiation is to be carried on.

Pace : main points should be covered in discussions, also proper

breaks must be introduced to maintain interest of peoples involved.

Personalities : negotiator initiating negotiation must have convincing

power, effective communication skills, can influence people & process
of negotiation.
 Factors Affecting Negotiation
• PLACE: Familiarity with surrounding helps in boosting
confidence.

• TIME: Time should be adequate for smooth exchange of

ideas & securing agreement before it is too late .

• ATTITUDE: Attitude of both parties should be positive,

(i.e willingness to make an agreement or deal).

 SUBJECTIVE FACTORS: For example, relation of two

parties involved, status difference, information &
expertise.
 Negotiation Strategies
1. Win-win strategy – aims to meet the needs of both
parties, not to win positions or gain victories at one party’s
expense. Both parties are satisfied with the settlement
negotiated. The win-win result is hard to achieve but can
be successful if both parties concentrate on problem-
solving strategies and communicate well.

2. Win-lose strategy – results in the party who initiates the

conflict being satisfied and the other dissatisfied. This
strategy focuses on the initiator’s problem to the exclusion
of the other’s. The initiator wins. Many people who adopt
this strategy use a confusing presentation or a dominating
style of speech and body language, making the other party
to be just as difficult or withdraw from the conflict.
 Negotiation Strategies
3. Lose-win strategy – a situation in which the initiator is
dissatisfied and the other is satisfied. The losing party usually
makes too many concessions. In an extreme case, the win-lose
and the lose-win styles of negotiation can lead to a deadlock
followed by the lose-lose result. Deadlocks can occur when
neither part is satisfied by the negotiations.

4. Lose-lose strategy – result from a situation in which the

objective of both parties are too rigid, or when both parties are
unable to collaborate, or are unaware of the opportunity to do
so. The result is that both parties walk away from the
negotiation dissatisfied. When agreement cannot be reached, a
third party may mediate to help them reach a solution, or
arbitrate and make the decision on behalf of both parties. Both
sides may lose.
 Types of Negotiation

DISTRIBUTIVE NEGOTIATION INTEGRATIVE NEGOTIATION

 Distributive Negotiation
• Often referred to as ‘The Fixed Pie’.
• Usually involves people who have never had a previous
interactive relationship, nor are they likely to do so again
in the near future (e.g. purchasing products or services,
like when we buy a car or a house).
• The gain made by one person is a loss incurred by the
other person.
• Each person involved in the negotiation defines ultimate
point where the settlement will be made.
• The sellers goal is to negotiate as high a price as
possible; the buyers intention is to negotiate as low a
price as possible.
• Win –Lose Situation
 Integrative Negotiation

• The process generally involves some form or

combination of making value for value concessions, in
conjunction with creative problem solving.
• Form a long term relationship to create mutual gain.
• Parties cooperate to achieve maximize benefits by
integrating their interests.
• Both parties involved in negotiation process jointly look
at the problem, try to search for alternatives and try to
evaluate them and reach a mutually acceptable
decision or solution.
• Win-Win Situation
Distributive vs Integrative Negotiation
 Negotiation Process

OFFER

COUNTER
AGREEMENT OFFER

COMPROMISE CONCESSION
 Negotiation Process
1. OFFER: First proposal made by one party to another in
the negotiation stage.

2. COUNTER OFFER: Offer made by second party to first

party, or proposing their offer against first party offer.

3. CONCESSION: Increase or decrease made in the offer

or change in the idea.

4. COMPROMISE: Sacrifice made by both or one party.

5. AGREEMENT: Point where both parties agrees, which is

beneficial to both.
 Guidelines for Successful Negotiation

1. Positive attitudes
2. Narrow down to few points of dispute / conflict
controversy
3. Step-by-step approach
4. Find out the other parties state of mind, culture,
background, likes & dislikes
5. Hide your prove desire
6. Don’t disclose your deadlines
7. Think before you speak
8. Know your market information
9. Bring your own expert
 Obstacles to Negotiation (1)
• Sometimes people fail to negotiate because they do not
recognize that they are in a bargaining position.
• Or they may recognize the need for bargaining but may
bargain poorly because they do not fully understand the
process and lack negotiating skills.

Therefore:
• Parties must be aware of their alternatives to a negotiated
settlement.
• Weaker parties must feel assured that they will not be
overpowered in a negotiation.
• Parties must trust that their needs and interests will be fairly
considered in the negotiation process.
 Obstacles to Negotiation (2)
• Negotiation seems to bring conflicts.
• Any misunderstanding that arises between them
will reinforce their prejudices and arouse their
emotions.

Therefore:
• To combat perceptual bias and hostility,
negotiators should attempt to gain a better
understanding of the other party’s perspective and
try to see the situation as the other side sees it.
 Obstacles to Negotiation (3)
• If the “right” people are not involved in negotiations,
the process is not likely to succeed.

Therefore:
• Agreements can be successfully implemented only
if the relevant parties and interests have been
represented in the negotiations.
• So, all of the interested and affected parties must
be represented.
• Negotiators must truly represent and have the trust
of those they are representing.
 2. Conflict Management

 This conflict can arise because each person or group holds

different ideas, opinions, needs and desires. This leads to
tension, and a confrontation is inevitable.
Importance of Conflict Management
Conflict at the Workplace
Organizational Conflict
 Impact of Conflict
When is conflict constructive/good?:
• Results in clarification of important
problems and issues
• Results in solutions to problems
• Involves people in resolving issues
important to them
• Causes authentic communication
• Helps release emotion, anxiety, and
stress
• Builds cooperation among people
through learning more about each
other
• Joining in resolving the conflict
• Helps individuals develop
understanding and skills
When is conflict destructive/bad?:
• Takes attention away from other
important activities
• Undermines morale or self-concept
• Polarizes people and groups,
reducing cooperation
• Increases or sharpens difference
• Leads to irresponsible and harmful
behavior, such as fighting and
name-calling
 Managing Conflict

In situations of crisis and potential conflict always remember star

STAR

We need to: STOP

THINK
ANALYSE
RESPOND
 The Five Steps in Resolving Conflict:
• Talk about the Problem
Together
• Clarify the Issues – Focus on
the Needs and Goals
• Understand Each Other’s
Perspective
• Break the Conflict into Small
Steps
• Give and Take
 Conflict Management Skills
• Good and a patient listener
• Take care of the pitch and tone of voice used
• Adopt a positive attitude
• Never criticize anyone or make him feel small
• Prefer the conference room, board room or any
suitable place for presentations, seminars and
discussions
• The superiors must ensure that the team members
are assigned responsibilities according to their
KRAs and specializations
• Avoid gossips and rumors
Ways of Dealing with Conflict
 Healthy & Unhealthy Ways of Managing and
Resolving Conflict
Unhealthy Healthy
Inability to compromise or Ability to seek compromise
see other person’s side and avoid punishing
Explosive, angry, hurtful, Calm, non-defensive and
resentful reactions respectful reactions
Withdrawal of love Readiness to forgive and
resulting in rejection, forget and to move past
isolation and abandonment the conflict without holding
resentments or anger
Fear and avoidance of Belief that facing conflict
conflict; the expectation of head on is the best thing
bad outcomes for both sides
3. Decision Making & Problem Solving
• Each of us faces the need to solve problems and make
decisions in our everyday lives.

• The processes of problem solving and decision making overlap

considerably – decisions are often problematic, while problems
require one to make decisions of some kind.

• In other words, in the process of solving problems, decisions

must be made.

• Good decisions require focusing on the most relevant

information, asking the right questions, and separating reliable
facts from false assumptions – all elements of critical thinking.
 Definition

• Decision making: It is a complex, cognitive process in

identifying and choosing a particular course of action
such as making choices or reaching conclusions.

• Problem solving: It is part of decision making and is a

systematic process that focuses on analyzing a difficult
situation.

• Many people use both terms synonymously, but there is

a small yet important difference between the two.
 Seven-step Problem Solving & Decision Making
Process

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 i. Identify the Problem

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 ii. Gather Information

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 iii. Develop Courses of Action

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 iv. Analyze & Compare Courses of Action

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 v. Make a Decision

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 vi. Make a Plan

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 vii. Implement the Plan

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 4. Active Listening Process
• Listening is vital to good communication.
• Many people believe that hearing what is said is the same as
listening to what is said. In reality, they are distinctly different.
• ‘Hearing’ is a physical yet passive act involving the process
and function of perceiving sound.
• ‘Listening’ is hearing the sounds with deliberate intention.
Therefore, it is a skill that improves conscious effort and
practice.
• Good listening skills can be learned and developed.
• Listening with empathy helps you to identify both the content
of the other person’s message, and their feelings.
• One way to create empathy is to check that you have
understood the speaker’s message by restating or
summarizing: “So, what you’re saying is…”
Benefits of Active Listening
The Active Listening Process
The Active Listening Process
The Active Listening Process
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