Ec Nego Skills4

8/10/2019 Ec Nego Skills4

1/43

NEGOTIATION SKILLS

EFFECTIVE COMMUNICATION UWB 10202


2/43

INTRODUCTION

a method by which people settle differences. a process by which compromise or agreement is

reached while avoiding argument.

the principles of fairness, seeking mutual benefitand maintaining a relationship


3/43


4/43

WHY NEGOTIATE?

conflict and disagreement will arise as thediffering needs, wants, aims and beliefs of peopleare brought together.

conflicts may lead to argument and resentmentresulting in feeling dissatisfied.

to reach agreements without causing futurebarriers to communications.


5/43


6/43

CHARACTERISTICS OF NEGOTIATION

(i) There are a minimum of two parties present inany negotiation.

(ii) Both the parties have pre-determined goalswhich they wish to achieve.

(iii) There is a clash of pre-determined goals, thatis, some of the pre-determined goals are notshared by both the parties.


7/43

(iv) There is an expectation of outcome by both

the parties in any negotiation.

(v) Both the parties believe the outcome of the

negotiation to be satisfactory.


8/43

(vi) Both parties are willing to compromise, that is,modify their position.

(vii) The incompatibility of goals may make themodification of positions difficult.

(viii) The parties understand the purpose ofnegotiation
http://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.htmlhttp://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.htmlhttp://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.htmlhttp://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.html


9/43

2.1 The Process of Negotiation

Structured approach to negotiation1. Preparation

2. Discussion

3. Clarification of goals4. Negotiate towards a Win-Win outcome

5. Agreement

6. Implementation of a course of action


10/43

1. Preparation

a decision needs to be taken as to:

- when and where a meeting will take place todiscuss the problem

- and who will attend.- Set limited time scale to prevent the

disagreement continuing.

Ensure all the pertinent facts of the situation areknown to clarify your position.


11/43

2. Discussion

members of each side put forward the case as theysee it, i.e. their understanding of the situation.

Key skills during this stage arequestioning,listeningandclarifying.

It is extremely important to listen, as when disagreement takes place it is easy to

make the mistake - saying too much and listeningtoo little.
http://www.skillsyouneed.com/ips/questioning.htmlhttp://www.skillsyouneed.com/ips/questioning.htmlhttp://www.skillsyouneed.com/ips/listening-skills.htmlhttp://www.skillsyouneed.com/ips/listening-skills.htmlhttp://www.skillsyouneed.com/ips/clarification.htmlhttp://www.skillsyouneed.com/ips/clarification.htmlhttp://www.skillsyouneed.com/ips/clarification.htmlhttp://www.skillsyouneed.com/ips/clarification.htmlhttp://www.skillsyouneed.com/ips/listening-skills.htmlhttp://www.skillsyouneed.com/ips/listening-skills.htmlhttp://www.skillsyouneed.com/ips/questioning.htmlhttp://www.skillsyouneed.com/ips/questioning.html


12/43


13/43

4. Negotiate Towards a Win-Win

Outcome

both sides feel they have gained somethingpositive

both sides feel their point of view has been takeninto consideration.


14/43

5. Agreement

Agreement can be achieved once understandingof both sides viewpoints and interests have beenconsidered.

Any agreement needs to be made perfectly clearso that both sides know what has been decided.


15/43

6. Implementing a Course of Action

In any negotiation, the following three elementsare important and likely to affect the ultimateoutcome of the negotiation:

1. Attitudes : towards the issues.

2. Knowledge : the more knowledge, the greateryour participation.

3. Interpersonal Skills : e.g- effective verbal comm,listening skills, building rapport, problem solving,etc.


16/43


17/43

2.2 Basic Approaches

1. Distributive Negotiation or Win-Lose

Approach2. 2. Lose-Lose Approach

3. 3. Compromise Approach

4. 4. Integrative Negotiation or Win-WinApproach


18/43

1. Win-Lose Approach

competitive, zero sum, or claiming value approach

one person can win only at the expense of the

other. seeks to gain advantage through

- concealing information,

- misleading or- using manipulative actions.


19/43


20/43

(iv) The dominant concern in this type ofbargaining is usually to maximize ones own

interests.

(v) The dominant strategies in this mode includemanipulation, forcing and withholding

information.


21/43


22/43


23/43


24/43

3. Compromise Approach

To avoid a lose-lose situation

both parties give up a part of what they had

originally sought.

A compromise is the best way out when it is

impossible for both parties to convince each otheror when the disputed resources are limited.


25/43


26/43

4. Win-Win Approach

called as collaborative or creating value approach.

results in both the parties feeling that they are

achieving what they wanted.


27/43

Characteristics:

(i) There are a sufficient amount of resources to bedivided and both sides can win

(ii) The dominant concern here is to maximize jointoutcomes.

(iii) The dominant strategies include cooperation,sharing information, and mutual problem-solving.


28/43


29/43

2.2.1 Four Negotiation Strategies

1. Yielding

2. Compromising

3. Competing

4. Problem solving


30/43

1. Yielding

to not negotiate. accepts the first offer or assumes the price is

fixed.

to avoid inner discomfort from thoughts of takingadvantage of someone else .

fear of some form of conflict or other

unpleasantness. assume other people are more important and

powerful than them


31/43

2. Compromising

seeks some fair balance where both partiesappear to get an equitable deal.

this approach is to 'split the difference.

see others as worthy and equal to them, and

hence seek fair play.

see themselves as equal to others rather than

inferior.


32/43

3. Competing

aggressive approach.

their goal is to get as much as possible at

whatever cost to the other party.

often assume they are superior or feel inferior but

need to appear superior.


33/43

4. Problem-solving

closer to Compromising approach. Does not see the other person as competitor or

threat,

but rather as a person who has legitimate wantsand needs,

more to work together on an equitable andreasonable solution.

seek to understand the other person's situation,explain their own, and then creatively seek asolution where both can get what they need.


34/43

2.3 Phases of Negotiation

1. preparation,

2. opening,

3. bargaining

4. closure.


35/43

Stage 1: Preparation

(i) Gathering Information- what info is neededfrom the other side.

(ii) Leverage Evaluation evaluate the otherpartys leverage.

(iii) Understand the people involved- with whomyou are dealing with.


36/43

(iv) Rapport- determine how cooperative theopponent is.

(v) Know your objectives- what your priorities are.

(vi) Type of negotiation- highly competitive/cooperative? By face to face/ fax/ throughmediator?

(vii)Plan- decide the approach and plan accordingly.


37/43


38/43

Stage 2: Opening Phase

Here the two sides come face to face.

Each party tries to make an impression on the

other side and influence their thinking at the firstopportunity.

It involves both negotiating parties presentingtheir case to each other.


39/43

Stage 3: Bargaining Phase

involves coming closer to the objective youintended to achieve.

the basic strategy is to convince the other side ofthe appropriateness of your demands .

then persuading the other party to concede tothose demands.


40/43

l h


41/43

Stage 4: Closure Phase represents the opportunity to capitalize on all of

the work done in the earlier phases.

involves the sealing of the agreement in which

both parties formalize the agreement in a writtencontract .

to review each element and find out what wentwell and what needs to be improved


42/43


43/43

Ec Nego Skills4

Documents

Transcript of Ec Nego Skills4