NEGOTIATION

SKILLS
Meaning and Definition
Features
Goal of Negotiations
Guidelines for successful negotiations
Process
Objectives of negotiations
Principles of negotiations
Key elements and strategies
Starting and Closing the negotiations

Meaning and Definition of

Negotiation
Negotiation is the process of securing an
agreement between parties with different
needs and goals, but each having something
to offer the other, and each benefiting from
establishing an agreement, though the
balance of power can be dependent upon
whether one party's needs are significantly
greater than the other.

Characteristics of
Negotiators
Empathy
Sensitivity
Neutrality
Objectivity

Goal of Negotiations
Everyone Wins

Effective negotiation is a two-way process that

encourages both sides to actively participate
in making decisions. It also provides a way for
people to learn to understand each other
better and to grow in their relationships.
Negotiation helps to create a healthy balance
between "giving" and "getting." Everyone
becomes a "winner" through negotiation.

How Can Everyone Win?

The key to effective negotiation

communication.
Communication
three important skills:
Speaking
Listening
Understanding

is clear
involves

Guidelines for Successful

Negotiation

Recognize and define the problem

Seek a variety of solutions
Collaborate
Be reliable
Preserve the relationship

Process of Negotiation
Negotiation is the process of securing an
agreement between parties. The intention
behind
negotiation
is
to
solve
the
conflict/problem. An effective problem solving
method will have the following steps/process:
Analyze the problem
Develop possible solutions
Weigh the advantages and disadvantages
Implement the solution and monitor

Objectives of negotiation
It is important to set precise objectives for a
commercial negotiation. Some of the objectives
are:
To ensure that all the topics on which you wish to
negotiate are included in the agenda
To ensure that those topics which you do not wish
to be raised
are countered effectively and
discarded
To ascertain just what it is that your opponent
expects to get out of the discussion
To ensure that your own preferred strategy is
followed during the preliminary stages as well as
when you are face to face

Principles of Negotiation
1. Negotiation is voluntary activity.
2. A negotiation usually starts because at least one of the
parties wants to change the status quo
3. Entering negotiations implies acceptance by both parties
4. Timing is critical factor in negotiation.
5. A successful outcome in negotiation is not always wining
at any cost or even 'winning' but getting what both sides
want.
6. The progress of all types of negotiation, even when it is
conducted through third parties, is strongly influenced by
the personal values, skills, perceptions, attitudes and
emotions of the people at the bargaining table

The most common mistakes in

Negotiations
1. Entering negotiations with a preset mental mindset.
2. Not knowing who has final negotiating authority.
3. Entering a negotiation with only a general goal to be obtained
upon the final outcome of the negotiation.
4. Entering a negotiation with only a general goal to be obtained
upon the final outcome of the negotiation
5. Failing to advance positions and arguments of substance.
6. Losing control over seemingly unimportant factors such as
timings and ordering issues.
7. Failing to let the other side make the first offer.
8. Ignoring time and location as a negotiation weapon.
9. Giving up when negotiation seems to have reached a deadlock.
10. Not knowing the right time to close.

Key Elements of
Negotiation
Contrasting Needs
Resources
Time
Assumptions
Information
Power
Consequences

Key Strategies in Approaching Negotiations

Building

Positive

Attitude

Negotiating
Developing a Win /Win Philosophy
Using Creative Problem Solving
Developing Empathy and Trust
Using Courtesy
Developing Patience
Developing Persistence

Towards

Starting the Negotiations

Using a Positive Approach
Determining the Opposition's Mood and Style
Assessing the Opposition's Approach and

Interest
Finding Areas of Commonality and Agreement
Developing Objective Criteria
Planning Your Time Strategy

Progress of the
Negotiations
Using Interpersonal Sensitivity
Structuring the Negotiation
Keeping Your Long-term Goals in Mind

Negotiation Pitfalls

Making Issue Personal

Using Positional Bargaining
Using Confrontational Language
Winning the Small Points
Talking Too Much
Creating Deadlock

Closing the Negotiations

Using Trail Closes
Overcoming Objections
Giving Follow-up Assurances
Checking the Final Agreement
Holding Follow-up Meetings
Using Rescheduling and Delay