whatisnegotiation-130420193830-phpapp01.ppt

Its about negotiating fundamentals

1. By Mam Bushra

2. •Thewordnegotiationmeanstoconfer,bargain,
tobringaboutanagreementorarrangeatreaty
orprizebyconferring.
•Whenwenegotiatewithsomeone,wetryto
conferwiththemtoreachanagreementonterms
orarrangementsaffectingbothparties.
•Negotiationmeanstheprocessofnegotiating.

3. Negotiation is a goal
oriented process involving
face-to-face interactions.

4. ArtofNegotiation:-
Negotiationisindeedapartofeveryday
businesslife.Thepartiesinvolvedinthe
negotiationprocesswillhavetoindulgeina
continuousprocessofexchangeofmessages.
Someoftheexpressionsusedinthecontextof
negotiationarediscussion,exploration,
consultation,bargaining,persuasionand
resolution.

5. All the parties concerned should feel
that they have won or secured a
good deal under the given
circumstances.
Negotiation is often hard bargaining
and successful resolution of
conflicting interests in a spirit of
accommodation and a give –and-take
approach.

6. DOS-
1.Be well prepared and set clear objectives.
2.Be flexible in your approach. Remember that it is
a give and take.
3.Listen actively and attentively
4.Maintain discipline and decorum. Give respect
and take respect.
5.Show patience.
6.Be open minded and pragmatic.
7.Ask questions and seek clarifications.
8.Be enthusiastic, reasonable and convincing.
9.Be soft yet firm.
10.Supplement your words with appropriate body
language.

7. Avoid cynicism and hurtful comments.
Do not indulge in loose talk and casual
approach.
Do not raise trivial or insignificant issues.
Do not get emotional or egoistic.
Do not get into avoidable arguments.
Do not interrupt others and jump to
conclusions.
Do not insult people.
Do not yell or raise your voice.
Do not react or comment in a hurry.
Do not lie or be inconsistent.

8. There are essentially two
types of negotiations-
1.Integrative
2.Distributive

9. Integrative approach is also known as the
win-win syndrome. In this each party
appreciates that one should not try to have
an upper hand to the detriment of the other.
The approach is one in which each group
tries to be accommodative and conciliatory. It
is based on a problem solving approach.
There is a mutual understanding and
collective efforts are made to ensure that
issues are resolved to mutual satisfaction.

10. Example: For your price of Rs19,000, I'd like
you to include three years of free servicing. If
you do that, I'll pay you 50 percent of the
price up front, and the rest over just two
years".

11. In a distributive process, on the other hand
,one party gains at the expense of the other.
It is also known as the win-lose syndrome. It
is also understood as a zero –sum game. The
total sum being limited, the more one gets ,
the less there is for the other. It is the
process of distribution. Styles of negotiations
used here are authoritarian .One party tries to
intimidate the other to accept what is offered.

12. A great example of distributive negotiation
ishaggling over the price of a car at a
dealership. It's likely that arguing for a lower
price may benefit you, but cost the
dealership. It's also likely that you're not
going to buy another car any time soon, so
you “win” without any future.

13. Negotiation fails when either party approaches
the process of negotiation with totally
unreasonable demands or extremely high
expectations. If the starting point of both the
parties is too divergent, negotiation may not lead
to a meeting point. Similarly, negotiation fails if
the spirit of cooperation or give-and –take is
lacking. If one party wants to make only gains
and is unwilling to accept compromises or make
sacrifices, negotiation can not make much
headway.

14. Negotiation is widely
recognized to be a four-step
process. There are
1.preparation,
2.opening,
3.bargaining and
4.closing.

15. The first stage in a negotiation process
relates to planning and preparation. It is the
stage where the parties decide what they
want, what are their minimum expectations,
how much they will yield and how they will go
about the negotiations. Each party will also
try to visualize what the other party will be
expecting from the negotiation.

16. The second stage in the negotiation process
concerns opening. This is when the parties
concerned come to the negotiation table and
meet each other. Opening has two steps-
rapport building and probing.
Rapport building is the process of getting to
know each other. Thus, introductions are
made, pleasantries are exchanged and names
and backgrounds are noted.

17. Care should be taken to address the persons by
their correct names. Even if someone in the
other group is already known, too much of
familiarity or intimacy should be avoided.
Negotiations should start on a friendly note, but
with a professional approach. While meeting
people and interacting with them, perception do
matter. Make sure that negotiations begin on the
right note. Be polite and pleasant. Use
appropriate words. Be open minded. Show
enthusiasm. Listen attentively.

18. It is the stage when the negotiating
teams really sit down and talk it out.
They state their positions and put
forth the supporting arguments. In
any negotiation, the question
uppermost is, ‘What’s there in it for
me? Bargaining is nothing but a give
and take.

19. Finally, you enter the settlement stage
and work towards a ‘close’. After
completing all the bargaining, the
negotiation parties come to the stage
of settlement or agreement. The final
terms as agreed upon are documented
and the agreement gets signed.
Negotiations by their very nature
involve some compromises and
sacrifices.

20. 1. Do not be an open book. Try to be
enigmatic or not easy to read when
required. Let not the other party read
your mind or emotions easily. Keep
them guessing till you finalize the
terms.
2. At the same time, good
negotiators make every effort to read
and understand their opponents.

21. During discussions, certain topics
may have to be kept confidential.
This should not be done by telling
deliberate lies. It would be better to
make statements like ‘ I cannot
answer right now.’ ‘ I have no
comments at this juncture.

22. Given its complexity, several factors
affect the process of negotiation.
We may broadly group them into
six-
1.Authority
2.Credibility
3.Information
4.Time
5.Emotional control
6.Communication skills.