PRESENTATION ON NEGOTIATION

Submitted To :-Divya Mam

Submitted By :- Jitendra SinghMBA(RMAT) Sem-ııı

something that we do all the time , not only for business purposes.

usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible.

not always between only two people: it can involve several members from two parties.

INTRODUCTION

Conti….

Negotiation is the process of bargaining, Where two parties ,trying to reach an agreement on mutually accepted terms to acquire each others wants.

Example:

- Customer trying to negotiate with buyer over a price of a product.

- Negotiation for salary between

employee & employer.

DEFINITIONS OF NEGOTIATION

In the words of Bill Scott ,” a negotiation is a form of meeting between two parties: OUR PARTIES & OTHER PARTIES”.

According to J.A. Wall, ”negotiation is a process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.”

NATURE OF NEGOTIATION

It requires involvement of two parties. Requires flexibility. A process not an event. Needs effective communication. Continuous process( i.e. between buyer & seller,

employer & employee for wages, working hours etc) Win- win situation for parties involved.

Two relatively distinct types of negotiation

Distributive negotiations

Integrative negotiations

Distributive Negotiations often referred to as 'The Fixed Pie' usually involves people who have never had a

previous interactive relationship, nor are they likely to do so again in the near future.

example: Purchasing products or services, like when we buy a car or a house

Ours and their interests are usually self serving

Integrative NegotiationThe process generally involves some form or

combination of making value for value concessions, in conjunction with creative problem solving.

Form a long term relationship to create mutual gain.

often described as the win-win scenario

P’s OF NEGOTIATION

FACTORS AFFECTING NEGOTIATION PLACE: Familiarity with surrounding helps in boosting

confidence.TIME: Time should be adequate for smooth exchange of

ideas & securing agreement before it is to late . ATTITUDE: Attitude of both parties should be positive,

i . e, willingness to make an agreement or deal. SUBJECTIVE FACTORS: Like relation of two

parties involved, status difference, information & expertise.

NEGOTIATION PROCESS

OFFER

COUNTER OFFER

CONCESSIONCOMPROMISE

AGREEMENT

OFFER: First proposal made by one party to another in the negotiation stage.

COUNTER OFFER: Offer made by second party to first party, or proposing their offer against first party offer.

CONCESSION: Increase or decrease made in the offer or change in the idea.

COMPROMISE: Sacrifice made by both or one party.

AGREEMENT: Point where both parties agrees, which is beneficial to both.

The Result of a Negotiation

Loss/Loss : Take the cake away so that neither party gets it.

Win/Lose : Give it to one party or cut it unevenly.Draw : Cut the cake down the middle.Win/Win : Make two cakes which are of a much

larger size than the present size.

Guidelines For Successful Negotiations

Positive Attitudes Narrow down to few points of dispute /conflict controversyStep By step approachFind out the other parties state of mind culture background's Likes & dislikes

Hide your prove desire

Don’t disclose your deadlines

Think before you speak

Know your market information

Bring your own expert

THANKYOU