NEGOTIATION UNIT - I

DR. ANSHITA TYAGI

Negotiation:

We do not get what we want in this life, we get what we negotiate ----Garg Karras

Meaning

A negotiation takes place every time when two or more people are communicating and at least one has a goal in his mind. We constantly negotiate consciously or unconsciously. It may be crying of a child for mothers milk, The prayer of a devotee

Cont.

Argument of two friends for share in an apple, The very teaching of a professor in the class, A business agreement or a contract, A political treaty, etc.; We negotiate to resolve conflict and solve problem in our favor. Negotiation is a process of adjusting both parties views of their ideal outcomes to an attainable outcome.

Reasons for Negotiations:

To agree on how to share or divide a limited resource, such as land, or property, or time To create something new that neither party could do on his or her own or To resolve a problem or dispute between the parties.

Characteristics of negotiation:

There are two or more parties. There is a conflict of interest between two or more parties The parties negotiate because they think they can use some form of influence to get a better deal Negotiate is largely a voluntary process

Cont

When we negotiate, we expect give and take Successful negotiation involves the management of intangibles.

Process of Negotiation:

Agenda setting Building confidence and comfort Utilizing your interest map Bargaining Building Long term commitment Objective Criteria ZOPA (Zone of Possible Agreement)

Cont

Expectations and Concessions Compromise/ Collaborate Follow-up

Objectives of Negotiation:

Prolonging an existing arrangement. Putting an end to violent conflict. Demanding for change on ones own favor, at the expense of the other. Setting new relationships among the parties. Some of the Effects not concerning agreements like propaganda, intelligence or dissuading the opponent.

Important Rules of conduct in Negotiation:

There should be opportunity on both the sides. Needs of all parties have to be satisfied. Be ready to compromise. Good Manners. Relaxed (Be cool). Stick to your core needs. Know what you have and promote it.

Cont..

Dont rush to agree(Moving Away). Control your reactions. Relaxed but very watchful and alert. Be self confident. Phrase questions for yes answers. Dont over do self criticism. Be yourself

Cont.

Be positive. Try to take charge. Clarify each point of agreement. Except positive reactions. Agree to the next steps. Keep small negotiating teams.

Strategy And Tactics of Integrative Negotiation

DR. ANSHITA TYAGI

Getting to Yes
The Seven Elements of Negotiation

INTERESTS What do people really want? OPTIONS What are possible agreements or bits of an agreement? ALTERNATIVES What will I do if we do not agree? LEGITIMACY What criteria will I use to persuade each of us that we are not being ripped off?

The Seven Elements of Negotiation (contd)

COMMUNICATION Am I ready to listen and talk effectively? RELATIONSHIP Am I ready to deal with the relationship? COMMITMENT What commitments should I seek or make?

PROCESSES THAT DISTINGUISH INTEGRATIVE FROM DISTRIBUTIVE NEGOTIATION

INTEGRATIVE
Flow of information Free & open flow; share information openly Attempt to understand what the other side really wants & needs Emphasize common goals, objectives, interests Search for solutions that meet the needs of both (all) sides

DISTRIBUTIVE
Conceal information, or use it selectively or strategically Make no effort to understand, or use the information to gain strategic advantage Emphasize differences in goals, objectives, interests Search for solutions that meet own needs or block other from meeting their needs

Understanding the other

Attention to commonalities and differences Focus on solutions

What Makes Integrative Negotiation Different?

Focus on commonalties rather than differences Address needs and interests, not positions Commit to meeting the needs of all involved parties Exchange information and ideas Invent options for mutual gain Use objective criteria to set standards

Overview of the Integrative Negotiation Process

Create a free flow of information Attempt to understand the other negotiators real needs and objectives Emphasize the commonalties between the parties and minimize the differences Search for solutions that meet the goals and objectives of both sides

Key Steps in the Integrative Negotiation Process

Identify and define the problem Understand the problem fully

identify interests and needs on both sides

Generate alternative solutions Evaluate and select among alternatives

Identify and Define the Problem

Define the problem in a way that is mutually acceptable to both sides State the problem with an eye toward practicality and comprehensiveness State the problem as a goal and identify the obstacles in attaining this goal Separate the problem definition from the search for solutions

Strategy of Integrative Negotiation:

Build Trust and Share Information. Ask Diagnostic Questions. Provide Information. Unbundled the issues. Make Package deals, not Single-issue offers. Make Multiple offers Simultaneously.

Tactics of Integrative Negotiation:

Forbearance. Trial Balloon. Alternative Positions. Acceptance Time. Brainstorming. Salami. Bracketing.

Factors That Facilitate Successful Integrative Negotiation

Some common objective or goal Faith in ones own problem-solving ability A belief in the validity of ones own position and the others perspective The motivation and commitment to work together

Factors That Facilitate Successful Integrative Negotiation

Trust Clear and accurate communication An understanding of the dynamics of integrative negotiation

THE PRAM MODEL

Planning. Relationships. Agreements. Maintenance.

Strategy and Tactics of Distributive Bargaining

Dr Anshita Tyagi

Distributive Bargaining ( Win Loss Negotiation)

In this type of negotiation one partys gain is another partys loss. It occurs when a fixed amount of resources are to be divided in situations where there is no understanding between the negotiating parties on the major issues.

Strategies used in Distributive Bargaining:

I want it all. Time wrap. Good cop, bad cop. Ultimatum.

Strategies for Distributive Bargaining:

Preparation. Opening Offers. Exchanging information and arguments. Concessions and Decisions.

Tactics of Distributive Bargaining:

Good Guy/ Bad Guy. High Ball/ Low Ball Tactic. Bogey Tactic. Nibble Tactic. Chicken Tactic. Intimidation/ Aggressive Behavior Tactic. Snow Job Tactic.

STRATEGY AND PLANNING FOR NEGOTIATIONS:

Goal Strategy Planning

GOAL:

The first step in developing a negotiation strategy is to determine ones goals. Negotiators should have the ability to anticipate the goals of negotiations and the ways and methods by which they can be achieved. A preparation which is effective would include a thorough, thoughtful and meaningful approach to the goals.

STRATEGY:

A strategy is a blueprint, layout, design, or idea used to accomplish a specific goal.

PLANNING FOR NEGOTIATION:

At the first stage the parties should aim at understanding the nature and characteristics of the conflict. The next step would be to identify the issues which can be negotiated. After identification of the issues one should prioritize the issues and they should be solved depending on the urgency of the matters.

Cont.

After prioritizing the issues the next step is to develop a possible alternatives package through which the issues can be resolved. Understanding the other party is also important. All the information should be gathered regarding the partys goals and their priority lists.

Importance of Planning:

Preparation and Planning are the two important pillars of negotiation, without these negotiation can not be done in a proper manner. If negotiators skip planning then they experience the following drawbacks:

Cont.

Failure to determine goals and objectives Inability to formulate clear and convincing arguments. Failure to consider other partys needs and negotiating history. Inability to defend positions during negotiations.

Planning for Negotiation:

Objectives Information Concessions Strategy And Finally-Tasks

Different Types of Planning:

Strategic Tactical Administration