NEGOTIATIONNEGOTIATION

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Definition of NegotiationDefinition of Negotiation

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It is a dialogue between two or more people

or parties, intended to reach an

understanding, resolve point of difference or understanding, resolve point of difference or

gain advantage in outcome of dialogue, so as

to satisfy the various interests of the people

or parties involved in negotiation process

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Key Elements of Negotiation ProcessProcess

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It is concerned with resolving conflict between two or

more parties, usually by the exchange of concessions

It can be competitive known as win-loose negotiation, or it

can be cooperative, known as win-win

It should be regarded as a potentially beneficial activities It should be regarded as a potentially beneficial activities

for both parties

Each party involved in negotiating tries to gain an

advantage for themselves by the end of the process

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It occurs in business, non-profit organizations, government

branches, legal proceedings, among nations

Professional negotiators are often specialized, such

as union negotiators, leverage buyout negotiators, peace

negotiators, hostage negotiators

They usually work under other titles, such as Diplomats,

Legislators or Brokers

According to Robert Fisher and William Ury, Negotiation

is a basic means of getting what you want from others

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Preparation and Planning

Clarification and Justification

Definition and Ground Rules

Clarification and Justification

Bargaining and Problem Solving

Closure and Implementation

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Features of NegotiationFeatures of Negotiation

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Minimum of 2 parties are present

Both parties have predetermined works

There is an outcome

Both parties believe the outcome of the negotiation may be

satisfactorysatisfactory

Both parties are willing to modify their position

The parties understand the purpose of negotiation

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Skills of a Successful NegotiatorSuccessful Negotiator

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Good manners and relaxed attitude

Patience

Be open-minded

Not rushing to agree

Not being passive Not being passive

Being positive

Ready to compromise

Clarifying each point of agreement

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Negotiation StrategiesNegotiation Strategies

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Distributive Negotiation

The term distributive implies that there is a finite amount

of a thing being distributed or divided among the people

involved

Sometimes this type of negotiation is referred to as the Sometimes this type of negotiation is referred to as the

distribution of a fixed pie.

There is only so much to go around, but the proportion to

be distributed is variable

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Distributive negotiation is also sometimes called win-lose

because of the assumption that one person's gain results in

another person's loss.

A distributive negotiation often involves people who have

never had a previous interactive relationship; nor are theynever had a previous interactive relationship; nor are they

likely to do so again in the near future

Simple everyday examples would be buying a car or a

house

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Integrative Negotiation

The word integrative implies some cooperation

Integrative negotiation often involves a higher degree of

trust and the forming of a relationship.

It can also involve creative problem-solving that aims to It can also involve creative problem-solving that aims to

achieve mutual gains.

It is also sometimes called win-win negotiation or interest-

based or principled negotiation

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It provides an alternative to traditional distributive

negotiation techniques.

Distributive negotiation assumes there is a fixed amount of

value (a fixed pie) to be divided between the parties

Integrative negotiation often attempts to create value in Integrative negotiation often attempts to create value in

the course of the negotiation (expand the pie).

It focuses on the underlying interests of the parties rather

than their arbitrary starting positions, approaches

negotiation as a shared problem rather than a personalized

battle

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Types of Negotiation TechniquesTechniques

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Haggling:

It is the orthodox procedure of labor negotiation

Piecemeal Approach:

In this approach issues are settled one by one that is from

beginning to end of the draft demand.beginning to end of the draft demand.

Total approach:

In this approach the issues are thought to be interrelated

and interdependent .

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Boulwarism :

In this procedure the company refuses to play the

haggling game.

The company makes its first offer a full and final one.

In addition to meeting with union representatives, the

company conducts an extensive communication program

It tries to sell its offers directly to the employees and

urges them to make there view known to their union

officials

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Negotiation StylesNegotiation Styles

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Individuals can often have strong dispositions towards

numerous styles

The style used during a negotiation depends primarily on

the context and the interests of the party

More importantly, styles can change over time More importantly, styles can change over time

Negotiation styles are broadly classified into 5 main

categories

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Accommodating

Avoiding

Collaborating

Competing

Compromising

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Accommodating

Individuals who enjoy solving the other partys problems and

preserving personal relationships

Accommodators are sensitive to the emotional states, body

language, and verbal signals of the other parties

However, they feel taken advantage of in situations when

the other party places little emphasis on the relationship

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Avoiding

Individuals who do not like to negotiate and dont do it

unless warranted

When negotiating, avoiders tend to defer and dodge the

confrontational aspects of negotiating

However, they may be perceived as tactful and diplomatic

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Collaborating

Individuals who enjoy negotiations that involve solving

tough problems in creative ways

Collaborators are good at using negotiations to understand

the concerns and interests of the other partiesthe concerns and interests of the other parties

However, they can create problems by transforming

simple situations into more complex ones

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Competing

Individuals who enjoy negotiations because it presents an

opportunity to win something

Competitive negotiators have strong instincts for all

aspects of negotiating and are often strategic

competitive negotiators often neglect the importance of

relationships because of their dominating style

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Compromising

Individuals who are eager to close the deal by doing what

is fair and equal for all parties involved in the negotiation

Compromisers can be useful when there is limited time to

complete the deal

However, compromisers often unnecessarily rush the

negotiation process and make concessions too quick

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Types of NegotiatorsTypes of Negotiators

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Three basic kinds of negotiators have been identified by

researchers involved in The Harvard Negotiation Project

These types of negotiators are:

Soft Negotiators

Hard Negotiators Hard Negotiators

Principled Negotiators

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Soft bargainers

They choose a gentle style of bargaining and make offers

which are not in their best interests

They yield to others demands, avoid confrontation, and they

maintain good relations with fellow negotiatorsmaintain good relations with fellow negotiators

Their perception of others is one of friendship, and their goal

is agreement

They insist on agreement, offering solutions and easily trusting

others and changing their opinions

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Hard Negotiators

They use contentious strategies and utilize phrases such as

this is my final offer and take it or leave it

They make threats, are distrustful of others, insist on their

position, and apply pressure to negotiate

They see others as adversaries and their ultimate goal is

victory

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Principled Negotiators

They focus on the problem rather than the intentions, motives,

and needs of the people involved

They separate the people from the problem, explore interests,

avoid bottom lines, and reach results based on standardsavoid bottom lines, and reach results based on standards

They base their choices on objective criteria rather than power,

pressure, self interest, or an arbitrary decisional procedure

The objective criteria may be drawn from moral standards,

principles of fairness, professional standards, tradition etc.,

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Thank You!!!Thank You!!!

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