Conflicts are inevitable and unavoidable part of our every day professional and personal lives. Whether a relationship is healthy or unhealthy depends not so much on the number of conflicts between participants but on how the conflicts are resolved. Negotiation is the best form of conflict resolutions.

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7. CONFLICT ARE FUNCTIONAL
• All conflicts are not unproductive
• Conflicts can be useful, constructive
and positive
• In fact, a relationship with frequent
conflicts may be healthier than one
with no observable conflict

8. CONFLICT ARE FUNCTIONAL
• Conflict can promote innovation, creativity and
development of new ideas, which make
organizational growth possible.
• If it is handled well, conflict can be productive
leading to deeper understanding, mutual respect and
closeness
• The reality is all the major reforms and changes
occur as a consequence of conflict

10. BASICALLY CONFLICT IS AN
ISSUE OF PERCEPTION
3 MAIN COMPONENTS TO CONFLICT
• PERCIEVED INCOMPATIBITY OF INTERESTS
• SOME INTERDEPENDENCE OF THE
PARTIES/GROUPS
• SOME FORM OF INTERACTION

11. INTERPERSONAL RELATIONS
NEGOTIATION
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12. NEGOTIATION SKILLS
• Negotiation- Introduction
• Negotiation style – Self assessment
• The Negotiation process
• Soft skills
• Negotiation strategies
• Negotiation tactics
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13. INTRODUCTION
• Recollect two instances when you were
involved in negotiation at home
• Recollect two instances when you were
involved in negotiation in every day life
• Recollect two instances when you were
involved in negotiation at work
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15. Introduction
• World is a giant negotiating table
• Everybody negotiates all the time
-Traffic cop poised to write Challan
-With children over a deadline to come home
-With a store reluctant to agree to exchange an item
-With a potential employer over a salary package
• For some it seems easy
• For some it is a source of conflict to be
resisted and avoided
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16. WHAT IS NEGOTIATION?
NEGOTIATION CAN BE DEFINED AS A
PROCESS IN WHICH TWO OR MORE
PARTIES EXCHANGE GOODS OR
SERVICES AND ATTEMPT TO AGREE
ON THE EXCHANGE RATE FOR THEM
-J.A.WALL,Jr.,
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17. WHAT IS NEGOTIATION?
Negotiation is a process by which two
parties communicate with each other in
order to reach an outcome on which
they mutually agree
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18. WE DONOT GET WHAT WE
WANT IN THIS LIFE, WE GET
WHAT WE NEGOTIATE
- Garg Karaas
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19. NEGOTAITION IS A PROCESS IN WHICH
TWO OR MORE PARTIES SEEK TO
DECIDE AN ISSUE JOINTLY SO THAT
BOTH COME OUT BETTER THAN THEY
WOULD WITHOUT NEGOTIATING
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20. Negotiation requires the management
of three tensions with in a system
• Creating value v/s Distributing value
• Assertion v/s Empathy
• Principals v/s Agents
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21. Creating value
• Creating value focuses on developing
mutually beneficial agreements
• It is based on the interests of the
disputing parties
• Interests include the needs, desires,
concerns and fears of both parties
• These are the reasons for a conflict
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22. Creating value contd…
• It results in creating joint value or
enlarging the pie
• This is possible when multiple issues
are involved
• To make tradeoffs to satisfy both
parties
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23. Distributing value
• Competitive negotiation strategy
• Distribute fixed resources
• Parties believe that the pie cannot be
expanded
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24. Assertion v/s Empathy
• Assertiveness is ability to express
one’s own needs
• Empathy is understanding other’s
needs
• Not necessary to agree or sympathize
• Reduces needless defensiveness and
escalation
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25. Principals v/s Agents
• Direct negotiation between two
principals
• Negotiating on behalf of others
• Radical shift is required to conduct
negotiation
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26. 3 Crucial variables in Negotiation
• Power: Muscle or Mind
• Time: Your pace or Mine
• Information
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27. POWER
• Power is ability to get things done
• Power is a neutral force
• You have to perceive that you have
power
• We all have power
• Understand and use it effectively
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28. Time
• Time and tide waits for none
• Time affects the negotiation process
• We choose doing things at the last
moment
• The 80/20 time principle
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29. INFORMATION
• Information is the heart of negotiation
• Negotiation is not an event but a
process
• Time plays a crucial role in gathering
information
• Negotiating parties conceal their time
and interests
• Information is power
• Gather enough information
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30. ACTIVITY-MAXIMISING PROFITS
The Situation so far
Three branches of IOB have sent representatives to a 3
way negotiation. The representatives have learnt that
there are benefits in working together.
If all the groups reach an agreement, benefits totaling 121
crore will be split among teams according to the
agreement
If only two of the teams reach an agreement, the total
benefits to split will be less than 121 crore and the
excluded team will be left with nothing
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31. MAXIMISING PROFITS
-If branch “A” and “B” work together they will amass a profit
of 118 crore.
-If branch “A” and “C” collaborate they make a profit of 84
crore.
-If branch “B” and “C” work together they will attain a profit
of 50 crore
-Any team works alone they get nothing
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32. INSTRUCTIONS
-There will be 3 rounds of negotiation at the end of which
an agreement has to be reached between teams.
-Only one representative from each team will be present at
the negotiating table
-Each round of negotiation is for 5 minutes
-Before each round, groups can have 5 minutes to discuss.
-The objective is to attain maximum profit
-Each group has to write down the expected profit they
would like to gain before starting first negotiation.
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33. NEGOTIATION STYLES
-SELF ASSESSMENT

34. NEGOTIATING STYLES
1.Distributive bargaining
• Win-lose exercise
• The sole purpose is to maximize his
own outcomes
• This is known as assertiveness
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35. 2.MUTUAL GAIN BARGAINING
• Mutual problem solving exercise
• Open communication, trust and mutual
respect
• Focuses on fulfilling mutual interests
• This is known as cooperativeness
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36.
Competition Collaboration
(win-loose) (Win-win)
COMPROMISE
Avoidance Accommodation
(Loose-loose) (Loose-win)
Cooperativeness
(Mutual gain bargaining)
HIGH
LOW HIGH
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NEGOTIATING STYLES
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37. 1.COMPETING
• Result oriented
• Self confident and assertive
• Focused on bottom-line
• Tendency to impose their views
• Extreme can become aggressive and
domineering
• High on assertiveness and low on
cooperativeness
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38. 2.AVOIDING
• Passive
• Prefer to avoid conflict
• Make attempts to withdraw
• Pass responsibility on other party
• Fail to make an honest attempt to get a
solution
• Low in assertiveness and
cooperativeness
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39. 3.COLLABORATING
• Open and honest communication
• Focus on creative solutions
• Satisfy both parties
• New and novel solutions
• Suggests many alternatives for
consideration
• High on assertiveness and
cooperativeness
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40. 4. ACCOMMODATING
• Attempts to maintain relationships
• Smooth over conflicts
• Down plays differences
• Concerned with satisfying needs of
others
• Low in assertiveness and high on
cooperativeness
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41. 5.COMPROMISING
• Find middle ground
• Split the differences between positions
• Engage in give and take tradeoffs
• Moderate satisfaction of both parties
• Moderate in assertiveness and
cooperativeness
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42. THE NEGOTIATION PROCESS
• Negotiations are complex and drawn-
out processes
• Each is unique
• Broad range of factors
• Institutionalized procedures
• Number of parties and representatives
• The scope of issues
• Broader framework of negotiations
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43. STEPS IN NEGOTIATION
PROCESS
1. PREPARATION AND PLANNING
2. DEFINITION OF GROUND RULES
3. CLARIFICATION AND JUSTIFICATION
4. BARGAINING AND PROBLEM
SOLVING
5. CLOSURE AND IMPLEMENTATION
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44. 1.PREPARATION AND PLANNING
• Do the homework
• Nature of the conflict
• The history up to negotiation
• People involved
• Their perception of conflict
• Your goals of negotiation
• Keep your attention focused
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45. 1.Preparation and planning
contd…
• Assessment of goals of others
• What they are likely to ask
• Intangible and hidden interests
• Gather information to support your position
• Develop a strategy
• Determine other side’s best
• BATNA (Best alternative to a negotiated
settlement)
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46. 2.DEFINITION OF GROUND RULES
• Who will do the negotiation?
• Where will it takes place
• Time constraints if any
• To what issues the negotiation is
limited
• Specific procedures if any, in case
impasse is reached
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47. 3.CLARIFICATION AND
JUSTIFICATION
• Exchange of initial positions
• Clarification and justification for
demands
• Need not be confrontational
• Opportunity for educating and
informing
• Provide documentation to support your
position
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48. 4.BARGAINING AND PROBLEM SOLVING
• Give and take to reach an agreement
• Concessions need to be made by both
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49. 5.CLOSURE AND IMPLEMENTATION
• Formalizing the agreement.
• Develop procedures for implementation
and monitoring.
• Hammering out specifics in a formal
contract
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50. BATNA
• Best alternative to a negotiated agreement
• Coined by Roger Fischer and Williams in
1981
• Critical to negotiations
• It is the standard to protect from
accepting unfavorable terms and rejecting
favorable terms
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51. BATNA contd…
• If the proposed agreement is better
than BATNA accept it
• BATNA increases your negotiating
power
• Know when the opponent is desperate
• Perception matters
• BATNA may not be readily apparent
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52. BATNA contd…
• Develop a list of actions if agreement is
not reached
• Improve promising ideas
• Select one best option
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53. ZOPA
• Zone of possible agreement
• If there is a potential agreement that
benefits both sides
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54. Preparing for a successful
negotiation
Think through the following points before
starting negotiation
1.Goals
2.Trading
3.Alternatives
4.The relationship
5.Expected outcomes
6.The consequences
7.Power
8.Possible solutions
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55. The Three dimensions of Negotiation
FOCUS COMMON BARRIERS APPROACH
Tactics
(People and processes)
Interpersonal issues
Poor communication
‘Hard ball’ attitudes
Act ‘At the table’ to
improve interpersonal
processes & tactics
Deal design
(value & substance)
Lack of feasible or
desirable agreements
Go back to the ‘drawing
Board’ to design deals
that unlock value that
lasts
Setup
(Scope & sequence)
Parties, issues, BATNA
& other elements don’t
support a viable process
or valuable agreement
Make moves ‘Away from
the table’ to create a
more favorable scope
and sequence
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56. SOFT SKILLS
• Empathy
• Active listening
• Persuasion
• Trust
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57. Empathy
• Ability to recognize, perceive and
directly feel the emotions of another
• Ability to ‘put oneself into another’s
shoes’
• Facilitates communication and
understanding
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58. ACTIVE LISTENING
• Listening and responding to another
person
• Improves mutual understanding and
trust
• Reduces tension
• Creates safe environment
• Helps uncover “Hidden” information
• Helps in clarifying thoughts
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59. PERSUASION
• It’s a form of influence
• Guiding people to adopt an idea,
attitude or action
• Rational and symbolic approach
• Not always logical
• Strategy of problem solving based on
‘appeals’ rather than force
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60. TRUST
• Relationship of reliance
• Need not involve belief in the good
character or morals of others
• Persons engaged in criminal activity
may trust each other
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62. POSITIONAL BARGAINING V/S
INTEGRATIVE BARGAINING
POSITIONAL
BARGAINING
INTEGRATIVE BARGAINING
Disputants are adversaries Disputants are joint problem solvers
Goal is victory Goal is wise decision
Demand concessions Work together to determine who gets
what
Dig into position Focus on interests, not positions
Mislead, use tricks Be open about interests, use fair
principles
Insist on your position Insist on objective criteria. Consider
multiple answers
Apply pressure Yield to principle, not pressure
Look for win for you alone Look for win-win opportunities
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63. POSITIONAL BRGAINING
• Holding on to a fixed idea or position
• Underlying interests are not in focus
• This is the first strategy people adopt
• Mechanical splinting of difference
• Less constructive and less efficient
• Less likely to result in win-win
• You vs. me approach
• May result in bad feelings
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64. Advantages of positional bargaining
• Consideration of all interests is
unnecessary and counter productive
• Issues are universal
• Interests are specific
• Negotiate on specifics and go for
compromise
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65. PRINCIPLED NEGOTIATION
• Interest based negotiation
• Based on 4 principles
1.Separate the people from problems
2.Focus on interests, not positions
3.Invent options for mutual gain
4.Insist on objective criteria
• People problems involve perception, emotions
and communication
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67. Negotiation Tactics
• BE FLEXIBLE
• KEEP EVERY ONE INFORMED - DO
NOT GET CAUGHT ON THE WRONG
FOOT IF SOMETHING GOES WRONG
IN YOUR BRANCH/OFFICE
• IF A DEADLOCK ARISES- DO NOT END
ABRUPTLY- SUGGEST
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68. Golden rules of negotiation
• Never give a concession, trade it
reluctantly (do not give anything for
nothing)
• Enhance and Reduce every concession:
enhance if you are giving concession;
reduce if you are being given
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69. Enhance your concession
means:
• I am doing this only for you
• Refer to the need that your concession will solve
• Refer to History (Old demand…..)
• Clarify that you may be in trouble for giving this
concession
• Stress the cost of concession citing examples
• Stress that you have agreed for the sake of
nourishing relationships
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70. Reduce their concession
means:
• Do it carefully
• Do not overplay
• Do not antagonize
• Acknowledge their concession, but reduce it
• Treat them as given
• Deny any real value
• Underplay the expressions
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71. Body language during negotiation
• Should not be energetic nor passive but
expressive
• Eye contact should be direct
• Posture should be upright
• Facial expression should be pleasant
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72. In case of aggressiveness by the other
side…..
Do not lose your nerve, keep calm and follow these
• Use silence, silence speaks more at times-- let
the opposite party come with more information
during silence
• Listen,listen and listen more
• Let them complete what they want to say
• Keep thinking
• Keep the best till the last
• Do not hang-upon deadlines
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73. NEVER END ABRUPTLY……...
• FIX DEADLINE FOR CONCLUDING
NEGOTIATIONS WHICH PUT PRESSURE ON
THE OTHER SIDE
• CAREFUL AND PLANNED THREATS AND
ULTIMATUM ALSO WORKS
• FALSE SUMMING UP TO CREATE
PRESSURE TO CLOSE THE NEGOTIATION
“OK, WE HAVE NOT AGREED ON ANYTHING.
LET US SUM UP………”
• BARGAINING IS MULTIFACETED AND THE
BEST WAY TO SUCCEED
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74. CLOSING (LANDING OF THE PLANE)
• DO NOT CLOSE ABRUPTLY, OUT OF
FEAR OR ANGER
• GIVE LAST MINUTE CONCESSIONS
AND CLINCH THE DEAL
• DO NOT DEFER SIGNING THE DEAL
• GET LEGAL MAN INVOLVED IN
DRAFTING THE DEAL
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75. NEGOTIATION IS TO BE SEENNEGOTIATION IS TO BE SEEN
AS AN OPPORTUNITY AND NOTAS AN OPPORTUNITY AND NOT
THREAT AS IT LEADS TOTHREAT AS IT LEADS TO
BETTER UNDERSTANDINGBETTER UNDERSTANDING
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76. Negotiation Skills
• “Let us never negotiate out of fear, but
let us never fear to negotiate.”
-JOHN F.KENNEDY
• “Never give in, never give in, never,
never, never- in nothing great or small,
large or petty- never give in except to
convictions of honor and good sense.”
- WINSTON CHURCHILL
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