Negotiation

PLEASE READ CAREFULLY • A guy was sitting in a restraunt. After finishing his dinner, he approaches to a pretty looking girl sitting on corner table. • He asked her “will u sleep with me tonight?” • Girl got angry and started abusing him. • Guy politely offers “I’ll pay you 1 lakh rupees for 1 night.”

CONTINUE READING… • Girl gets up to leave. • Guy raises his offer and says “OK, I’ll pay you 10 lakh for 1 night.” • Girl now starts thinking, but is very hesitant and starts mumbling “ but my family…?? my boyfriend…….??” • Guy puts his final offer “ I’ll pay you 100 lakh for 1 night.”

AND FINALLY….. • Girl agrees shyly and says “OK.” • Guy now sits down beside her and relaxes a bit, after a pause of 2 minutes he says “how about 100 rupees for 1 night?” • Girl gets mad at this new development and shouts “ what do you think, am I a prostitute?” • Guy laughs and says “ I have already proved that. Now we are just NEGOTIATING over the price…”

NEGOTIATION

ENABLING OBJECTIVES • Define negotiation. • Explain the elements of negotiations. • Describe the stages in negotiation. • Enumerate the five negotiating roles. • Identify the styles of negotiating. 2

EVERYONE NEGOTIATES • Buying a car, house or other object for which the price may not be fixed • Establishing a salary, workplace tasks, office conditions, etc. • Organizing team tasks or priorities • Allocating household tasks • Deciding how to spend a free evening

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SCOPE • Definition • Elements of negotiation • Stages in negotiation • Negotiating roles • Styles of negotiating 4

DEFINITION • Process of bargaining to reach a mutually acceptable agreement. • Art of reaching an agreement by resolving differences through creativity. • Attempted trade-off between getting what you want and getting along with people. 5

ELEMENTS OF NEGOTIATION • Power • Time • Information

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POWER • Power of expertise

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POWER • Power of expertise • Power of investment

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POWER • Power of expertise • Power of investment • Power of rewarding or punishing

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POWER • • • •

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Power of expertise Power of investment Power of rewarding or punishing Power of identification

POWER • • • • •

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Power of expertise Power of investment Power of rewarding or punishing Power of identification Power of morality

POWER • • • • • •

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Power of expertise Power of investment Power of rewarding or punishing Power of identification Power of morality Power of persuasive capacity

POWER • • • • • • • 7

Power of expertise Power of investment Power of rewarding or punishing Power of identification Power of morality Power of persuasive capacity Power of attitude

TIME • If I know your deadline and you don’t know mine. Who has the advantage? - I WILL.

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INFORMATION • Knowledge of other party’s true interests, needs and priorities.

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INFORMATION • Knowledge of other party’s true interests, needs and priorities. • An experienced negotiator never gives away such information during negotiation.

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INFORMATION • Knowledge of other party’s true interests, needs and priorities. • An experienced negotiator never gives away such information during negotiation. • Better way is to gather this information from other sources.

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STAGES IN NEGOTIATION • Prepare

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STAGES IN NEGOTIATION • Prepare • Discuss

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STAGES IN NEGOTIATION • Prepare • Discuss • Propose

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STAGES IN NEGOTIATION • Prepare • Discuss • Propose • Bargain

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STAGES IN NEGOTIATION • Prepare • Discuss • Propose • Bargain • Agreement 1

NEGOTIATING ROLES • The Factual Negotiator

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NEGOTIATING ROLES • The Factual Negotiator • The Relational Negotiator

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NEGOTIATING ROLES • The Factual Negotiator • The Relational Negotiator • The Intuitive Negotiator

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NEGOTIATING ROLES • The Factual Negotiator • The Relational Negotiator • The Intuitive Negotiator • The Logical Negotiator

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NEGOTIATING ROLES • The Factual Negotiator • The Relational Negotiator • The Intuitive Negotiator • The Logical Negotiator • The Lead Negotiator 1

STYLES OF NEGOTIATING • Competitive Style - winning at all cost

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STYLES OF NEGOTIATING • Competitive Style - winning at all cost • Collaborative Style - negotiating for mutual satisfaction

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COMPETITIVE STYLE Characteristics are:-

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COMPETITIVE STYLE Characteristics are:• Extreme initial position

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COMPETITIVE STYLE Characteristics are:• Extreme initial position • Limited authority

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COMPETITIVE STYLE Characteristics are:• Extreme initial position • Limited authority • Emotional tactics

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COMPETITIVE STYLE Characteristics are:• Extreme initial position • Limited authority • Emotional tactics • Adversary concessions viewed as weakness

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COMPETITIVE STYLE Characteristics are:• Extreme initial position • Limited authority • Emotional tactics • Adversary concessions viewed as weakness • Stingy in their concessions 1

COMPETITIVE STYLE Characteristics are:• Extreme initial position • Limited authority • Emotional tactics • Adversary concessions viewed as weakness • Stingy in their concessions • No value for time 1

COLLABORATIVE STYLE Characteristics are:-

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COLLABORATIVE STYLE Characteristics are:• Building Trust

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COLLABORATIVE STYLE Characteristics are:• Building Trust • Gaining Commitment

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COLLABORATIVE STYLE Characteristics are:• Building Trust • Gaining Commitment • Managing Opposition

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SUMMARY • Definition • Elements of negotiation • Stages in negotiation • Negotiating roles • Styles of negotiating 1

HOME ASSIGNMENT • Find out basic procedure of defence purchases. • Relate negotiations in the context of defence purchases.

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FURTHER STUDY • ‘You can negotiate anything’ by Herb Cohen, 1983 • Successful Negotiations, Peter Flaming, Barrons, 1997. • Negotiate to succeed, Julie Lewthwaite, Thorogood Ltd, London, 2003. • How to be a better negotiator, John Mattock and Jons Ehrenborg, Kogen Page, 1996. 1

THANK YOU !