Negotiation

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

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