NEGOTIATION SKILLS y What is Negotiation?

o Two parties trying to reach an agreement through discussion, or a meeting where this sort of discussion takes place. o Bargaining to achieve mutually satisfactory agreement When does Negotiation happen o Issue involving more than one person- multiple opinions o Parties are willing to discuss to reach consensus rather than use power or force or authority o Doesn t happen- one party/parties accept the other s suggestion immediately o One party/parties refuses to consider or discuss suggestion Characteristics of Negotiation o A minimum of two parties o Both parties have pre-determined goals o Clash of the goals o Expectation of outcome by both parties o Outcome believed to be satisfactory o Willingness to compromise Types of Negotiation o Formal: preannounced meeting, agenda is fixed, both parties know what is going to be discussed, multiple persons generally involved, time to prepare and fix roles, find out strengths of arguments of opposite party o Informal: unannounced, casual, involving two persons, no time to prepare, friendly approach meant to influence decision, no time to study strength or weakness of other side Process of Negotiation o Step 1- Preparation  Gather information  Leverage evaluation  Understand the people involved  Rapport  Know your objectives  Anticipate the type of negotiation expected  Decide on approach and plan o Step 2- Opening phase  Parties present case to each other  Sets the tone for negotiation  Psychologically critical  Defining the issues and the scope o Step 3- Bargaining phase  Logic and arguments

 Disagreement and conflict  Reassessment and Compromise  Offers and counter-offers o Step 4- Closure  Reaching mutually agreeable conclusion  Review the negotiation  Sealing the agreement  Formalization in the form of a letter or contract Factors influencing Negotiation o Place o Time o Personal relationship o Fear o Future considerations o Mutual obligations o Practical wisdom o Status difference o Information and expertise o Personal likes and dislikes o Confidence o Persuasion skills o Attitude o Goals and interests of the parties o Interdependence of parties o Personalities Approaches to Negotiation o Distributive or Win-Lose o Lose-lose o Compromise o Integrative or Collaborative or Win-Win Barriers to successful Negotiation o Negative outlook o Try to win at all costs attitude o Over exhibition of emotions o Lack of empathy o Wrong focus o Blame game Negotiation Strategies o Initial strategies  Plan according to psychological needs  Gain maximum information about views and objectives of the otherparty

 Set a tone focusing on need to reach conclusion  Sell from benefits viewpoint of other side  Alter your position within limits if needed  Develop a dialogue- do not hog the conversation o During the Discussion  Do not state the whole case in the beginning- develop as discussion proceeds  Listen to the other speaker s argument- verbal, non-verbal  Do not interrupt  Put searching questions to verify factual correctness  If you doubt factual accuracy, don t accuse, ask indirectly  Avoid confrontational tone  Use impersonal terminology to point out corrections  Use breaks to consider new points & change mood of discussion  Use concessions and compromise  Use conditional compromise- non-commitment basis  See that concessions suggested from your side seem to belong to moves from the other side o Reaching an agreement  Final is final  Be tactful and persuasive- ensure other party sees outcome as beneficial  Emphasize the other s benefits out of the conclusion  Appreciate other parties cooperation and good suggestions  Summarizing- with mutual agreement, preferably written General guidelines for successful Negotiation o Be sensitive to the other party s concerns o State clearly what you need and why o Be ready with alternative options o Be assertive and polite, not dominating o Avoid arguments o Timing is important o Aim high o Remain flexible o Don t try to be manipulative o Open the negotiation on a positive note o Try to build rapport with the opposite party o Keep emotions in control o Observe non-verbal cues o Show respect for the other person s views o Be patient- think before you speak o Maintaining silence at the right time o Consider long-term impact BATNA

o Best Alternative To a Negotiated Agreement o Reservation price o Walkaway price o What you will do if the negotiation fails or if you do not reach an agreement o Need to be ready with it beforehand o Not easy to decide- multiple alternatives Handling a breakdown in Negotiations o Re-commitment o De-escalating tension o Restrict number of issues o Focusing on similarities rather than differences o Third-party intervention Cross-cultural Negotiation o Know as much as possible about the other culture o Avoid stereotypes o Develop ability to empathize with others o Develop ability to demonstrate advantages to the other party o Manage stress, ambiguity and unpredictability o Express your ideas in ways that will help the other person to fully understand o Sensitivity o Avoid pressuring the other party o Avoid narrow perspective of self-interest o Avoid asking for concessions or compromises that are politically or culturally sensitive o Be flexible in priorities and agenda o Avoid jargon, colloquialisms, culture specific terms o Avoid asking for a decision if the other party is not able to commit