Negotiation on ITEC 2011.

1. NEGOTIATION
1

2. OBJECTIVE OF THE SESSION
• Negotiation
• Approaches of Negotiation
• Negotiation process
• Principles of Negotiation
• Issues in Negotiation Process
• Managing intergroup Relations
• Qualities of Good Negotiator

3. WHAT IS NEGOTIATION
“Negotiating is the art of
reaching an agreement by
resolving differences through
creativity”

4. NEGOTIATION
• The best way to resolve conflict is through
negotiations.
• Negotiation is a process in which one party
agrees to exchange a product or service with
another party in return for something.
• Approaches to negotiation are
• Distributive bargaining & integrative
bargaining

5. Distributive Bargaining
• Assumes that there can not be any solution that
could result in win-win situation
• Operates under Zero- sum condition
• Whenever a one party gains a certain amount
another party suffers an equivalent loss.
• Form of a win-lose situation.
• Each party has a target point
• Resistance point represents lowest acceptable
outcomes.
• If the outcome is below its resistance point the party
prefers to break off negotiations.
• The area between the target & the resistance point
represents the target range of each of the parties

6. INTEGRATIVE BARGAINING
• Existence of one or more solutions to a problem that
results in win-win situation.
• Helps to develop long term relationships between the
negotiating parties,eliminate differences & ensures
cooperation of other party in future.

7. Negotiation process
Preparation & planning:
• Understands the nature & background of the
situation.
• Identifies the self goals as well as other parties
goals.
• The negotiator prepares the strategy to be
adopted by collecting possible information.
• Understanding priority objectives of the other
party.

8. Negotiation process
Defining Rules :
• Both parties arrive at the negotiation
table & establish the basic rules &
procedures that will guide the
negotiation process.
Clarification & justification:
• Both parties exchange their demands &
justify them.
• Present documents in support of their
position

9. Negotiation process
Bargaining & problem solving:
• The parties start bargaining with each
other.
• Each party gives concession to another
party.
• Negotiating parties should take a break to
avoid heated arguments.
Closure & implementation:
• The bargaining process is complete & the
final agreement is written & signed.
• Monitoring & implementation of
agreement.

10. Principles
• There are no
rules
– Establish an
agenda
• Everything is
negotiable
• Ask for a better
deal
• Be creative
• Learn to say “NO”
yourself

11. ISSUES IN THE NEGOTIATION PROCESS
Biases in decision making:
• Ex: Making commitments without
considering their feasibility.
• Believes like women negotiators are
soft
• Decision based on only available
information.
Personality trait:
• While preparing for the negotiation
process the focus should be on
bargaining issues and the situational
factors rather than personality traits.

12. ISSUES IN THE NEGOTIATION PROCESS
Consultant:
• Encourages the parties & develops positive
attitude & builds long term relationship.
• Use his communication & analytical skills to
motivate the parties
• Does not provide a solution but acts as a
facilitator

13. A Good Negotiator Is..
• Creative
• Versatile
• Motivated
• Has the ability to
walk away

14. Thank You…!!!