negotiation

“The goal is not to get a deal. The goal is to get a good

deal.”

What is …

• Negotiation is the process of conferring to arrive at an Agreement Between different parties ,each with their own interest and Preferences

• A give and take decision making process involving interdependent parties with different Preferences

DEFINITIONS

ROBBINS- “A process in which two or more parties exchange goods and services and attempt to agree upon the exchange rate for them.”

Minton( 2001) “The degree to which the interests of the parties are aligned can facilitate the range and type of outcomes available for resolution.”

Four principles of best practice Negotiation

• Preparation: understanding the issues and the people and equipping the team for the process

• Relationship: developing a strategy for maintaining the relationship before, during and after negotiations

• Communication: building trust by applying an open communication style

• Problem-solving: exploring options and strategies for reaching agreement

Features Of Negotiation

• Two Parties • Predetermined Goals• Expecting an Outcome• Parties willing to modify their

Positions• Parties should understand the

purpose of their negotiation

Reasons For Negotiation

• To Reach An Agreement

• To Make A Point

• To Settle An Argument

• To Compromise

• To Beat The Opposition

Types Of Negotiation

DISTRIBUTIVE NEGOTIATION INTEGRATIVE NEGOTIATION

Distributive Negotiation• The most distributive feature is that it

operates under a zero sum game• the gain made by one person is loss

incurred by the other person.• Each person involved in the negotiation

defines ultimate point where the settlement will be made.

• The sellers goal is to negotiate as high a price as possible; the Buyers intention is to negotiate as low a price as possible

• Win –Lose Situation

Integrative Negotiation

• Parties cooperate to achieve maximize benefits by integrating their interests

• Both parties involved in negotiation process jointly look at the problem, try to search for alternatives and try to evaluate them and reach a mutually acceptable decision or solution.

• Win-Win Situation

Distributive Verses Integrative

Four Steps To Achieving A Successful Negotiation.

AssessDo the benefits of engaging in this negotiation outweigh the costs? Can you have influence in this situation? What is the price you are willing to pay to avoid negotiating ?

PrepareWhat are your interests in this negotiation? What are the interests of your counterpart?

AskEngage with your counterpart. You have unique information your counterpart needs. Your conversations with your counterparts give you the opportunity to share this information as well as listen to their perspective.

PackageMake proposals that package together issues and solutions. Start with the results you can deliver to your counterparts, your team, or your organization. Do not negotiate issue by issue. “if/then” statements as a tool to present your “Ask.”

Three Questions To Prepare Before Entering Into A Negotiation.

1. Why are you asking?2. How are you asking?

3. For whom are you asking?

Roles and Responsibilities of Negotiator

• Negotiation is a dialog intended to resolve disputes and reach to an agreement

• It is the primary method of alternative dispute resolution

• Negotiation can also be done to satisfy individual interests

• Negotiations are daily affairs in business, legal proceedings, government affairs, and other such activities

“ Thank-you “

‘Keep Negotiating ‘