NEGO TIA TION

Negotiation “definition”

Negotiation is the process in

which parties that perceive one
or more incompatibilities between
them, try to find a mutually
acceptable solution.
 Negotiation contd..
• It is a process by which two parties
interact to resolve a conflict jointly

• “a face to face decision making process

between parties concerning a
specific product”
• Basic Types of Negotiation

• Distributive negotiations
• Involve win–lose, fixed-amount situations
wherein one party’s gain is another party’s
loss….
• It is also called competitive or win-lose type of
negotiation
• Integrative negotiations
• Involve joint problem solving to achieve results
both parties
• It is also called collaborative or win-win type of
negotiation
 Basic steps of Negotiation

Getting to know another

Statement of goals & objectives
Starting the process
Expression of disagreement & conflict
Reassessment & compromise
Agreement in principle or settlement
 Planning and Preparation

START BY THINKING THROUGH YOUR OBJECTIVE

• Established objectives
• Concentrate on your issue
• Categorize them as major and minor concern

DEVELOP A TIME PERSPECTIVE

• Decide how much time to devote to the effort
• Estimate the time factors for your opponent
• Time is often a pressure point that can force
concessions that one would prefer not to make.
 Planning and Preparation cont’d

IDENTIFY SOURCES OF POWER

• Power is not defined as the ability to force an action
but rather to influence outcome by logic, validity or
legitimacy of a position

TYPES OF POSITIVE SOURCE OF POWER

• PERSISTENCE
• EXPERTISE
• COMPETITION
• ATTITUDE
• PESISTENCE:
Do not concede or back off at the first sign of
resistance.
• EXPERTISE
Use what you have. You will receive more
consideration from people who believe that you have
more knowledge, or expertise skills
• COMPETITION
There is always competition for what you have,
whether it is money, ideas or products. Never forget
that people always have options.
• ATTITUDE
Do not relieve tension on other negotiator. If you need
time to reduce stress, take a break. Try to maintain a
win-win situation
 Guidelines for successful negotiation

SET UP GOALS & PLAN NEGOTIATION TIME:

•What is the most important goal for me?
•What is actually negotiable ?
•What are the alternatives?
•What do I want as compensation if we come to a
concession ?
•Where is the compromise threshold , where should lay
down the line ?
PICK THE RIGHT MOMENT:

• When preparing for negotiations, do not just think

about which arguments to use, but
think about when in negotiation process would it be
the best time to use them.

BE FAIR AND OBJECTIVE

• Keep cool and do not let your emotions get the best
of you
• Wait for a little while, start a new and uncontroversial
point in argument and act as if nothing had happened
VISUALIZE YOUR ARGUMENTS
• Make ideas clear with easy to follow steps by using
charts,graphs,diagrams,charts,or overheads.
• Visual aids make arguments and calculations easier to
understand and accept.

DEALING WITH DEFEAT

• Negotiation is a constant game of give and take.

CONFORMATION AND SUMMARY

• Never leave a negotiation without summarizing what
you believe has been agreed upon.
 Intercultural Negotiation Skills

 Empathize with others

 Demonstrate the advantages
 Manage stress & cope with ambiguity
 Express one’s own ideas
 Sensitivity
EMPATHIZE WITH OTHERS
• To see the world as other people see it
• Understand the behavior of other

DEMONSTRATE THE ADVANTAGES

• It helps to change position in counterparts in the
negotiation

MANAGE STRESS & COPE WITH AMBIGUITY

• Unpredictable demands that are often part of
intercultural negotiation
 EXPRESS ONE’S OWN IDEAS
• It helps to understand the objectives and intentions at
stakes

 SENSITIVITY
• It helps to adjust one’s objectives and intentions in
accordance with existing constrains and limitation
THANK YOU