3. What is
Negotiation?
Simply put, “the process of getting what you want
from another person.”
“Negotiating is the art of reaching an agreement by
resolving differences through creativity.”
-Stephen Kozhicki
“A process whereby two parties, with differing
views initially, attempt to reach by an agreement on
a common objective by the selective use of
different methods of persuasion.”
-Stephen Robbins
5. Distributive
Negotiation
• The most distributive feature is that it operates
under a zero sum game.
• The gain made by one person is loss incurred by
another person.
• Each person involved in the negotiation defines
ultimate point where the settlement will be
made.
• The seller’s goal is to negotiate as high as a
price possible, the buyers intention is to
negotiate a price as low as possible.
• Win-Lose situation.
6. Integrative
Negotiation
• Negotiation that seeks one or more settlement.
• Parties cooperate to achieve maximize benefits
by integrating their interests.
• Both parties involved in a 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.
9. Preparation
and Planning
Determine your and the other
side’s best alternative to
a negotiated agreement, BATNA
Before the start of negations, one must
be aware of the conflict, the history leading
to the negotiation, the people involved and
their perception of the conflict expectations
from the negotiations etc.
10. Definition of
Ground Rules
Who will do the negotiating?
Where will it take place?
What time constraints, if any, will apply?
To what issues will negotiation be limited?
11. Clarification
and
Justification
Opportunity for educating and informing
each other on the issues , why they are
important and how each arrived at their
initial demands.
Provide the other party with any
documentation that helps support your
position.
13. Closure and
Implementation
Formalize the agreement you have worked
out and develop any procedures necessary
for implementing and monitoring it.
For most cases, however, closure of the
negotiation process is nothing more formal
than a handshake.
14. Factors
Influencing
Negotiation
A. PERSONALITY TRAITS
• Negotiators who are agreeable or extraverted are
not very successful in distributive bargaining.
• The best distributive bargainer appears to be a
disagreeable introvert—someone more interested
in his or her own outcomes than in pleasing the
other party and having a pleasant social exchange.
• People who are highly interested in having
positive relationships with other people, and who
are not very concerned about their own outcomes,
are especially poor negotiators.
15. Factors
Influencing
Negotiation
B. MOODS / EMOTIONS
• In distributive negotiations, negotiators in a
position of equal status who show anger
negotiate better outcomes.
• Angry negotiators feel more focused and
assertive in striking a bargain.
• Being angry has a spillover effect : perceived
as “tough”
• Anxious negotiators expect lower outcomes,
respond to offers more quickly, which leads
them to obtain worse outcomes.
16. Factors
Influencing
Negotiation
C. CULTURE
• People generally negotiate more effectively
within cultures than between them.
• Indians have less trust in their negotiation
counterparts than U.S. negotiators.
• Lower levels of trust are associated with lower
discovery of common interests between parties,
which occurs because Indian negotiators have
less willing to disclose and solicit information.
17. Factors
Influencing
Negotiation
D. GENDER DIFFERENCES
• Men have been found to negotiate better
outcomes than women, although the difference
is relatively small.
• Women emphasize on forming and maintaining
an interpersonal relationship.
• Women are expected to be “nice” and men
“tough”
18. Negotiation
Strategy
•Strategy: The overall plan to achieve one’s goals
in a negotiation.
•Tactics: Short-term, adaptive moves designed to
enact or pursue broad strategies.
•Planning: The “action” component of the strategy
process; i.e. how will I implement the strategy?
19. Dual Concerns
Model
Choice of strategy is reflected in the
answers to two questions:
–How much concern do I have in
achieving my desired outcomes at stake
in the negotiation?
–How much concern do I have for the
current and future quality of the
relationship with the other party?
20. The Dual Concerns Model
• Avoidance: Don’t negotiate
• Competition: I gain, ignore
relationship
• Collaboration: I gain, you
gain, enhance relationship
• Accommodation: I let you
win, enhance relationship
21. Effective Negotiation Skills
1. Analyze and cultivate your BATNA.
2. Preparation
3. Active Listening
4. Ask good questions.
5. Be aware of the anchoring bias.
6. Present multiple equivalent offers simultaneously (MEOS)
7. Try a contingent contract.
22. Communication
Skills
• Communication skills are crucial.
• Good communication is the cornerstone of any
productive negotiation.
• Particularly important are :
Oral communication
Non-verbal communication
23. Oral
Communication
• It not only refers to speaking but includes the
ability to listen as well.
• Specific examples of oral communication
include:
Face to face communication in conversation,
direct or telephone conversation, meetings,
interviews, speeches, presentations, discussions
etc.
• Oral communication is significant in building
rapport and trust with customers.
24. Oral
Communication
When communicating with your prospects and
customers:
Slow down your speech and pronounce your
words clearly and correctly.
Organize your thoughts and ideas before
speaking (e.g. write notes on what you want to
say)
Respond non-verbally to show understanding
and interest when communicating.
Be specific when asking questions and giving
answers.
Phrase your words properly; it makes a
difference.
25. Salary Negotiation
• Salary negotiation is a process where
one party (usually the employee)
negotiates the amount of their pay,
income, salary, wages, annual
review, or salary raise with another
party (usually a representative of the
employer, such as their manager).
26. Rules for Salary
Negotiation
• Don't underestimate the importance
of likability.
• Get it straight.
• Understand the person across the
table.
• Understand their constraints.
• Don't negotiate just to negotiate.
• Stay at the table.
27. Common
mistakes to be
avoided in
Negotiation
• Inadequate preparation
• Use of intimidating behavior
• Impatience
• Loss of temper
• Talking too much, listening too little, and
remaining indifferent to body language.
• Arguing instead of influencing.
28. "Success is going from failure to failure, without loss of ENTHUSIASM."
-Winston Churchill
