NEGOTIATION

MEENAKSHI GUPTARAHUL VARMAARUN EABHISHEK JAINRITESH BOOB

GROUP MEMBERS

A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.

A communication process in which two or more people in which they consider alternatives to arrive at mutually agreeable solutions or mutually satisfactory objectives

Negotiation

A BATNA

Best

Alternative

To a

Negotiated

Agreement

BATNA

Know your BATNA.

Work with all the BATNA’S.

Be ready to walk.

BATNA

BATNA is an realistic alternative if we cannot come out with a deal.

The lowest acceptable value (outcome) to an individual for a negotiated agreement.

The more attractive your BATNA is compared with the proposals you receive , the more POWER you have ; the less attractive your BATNA is compared to the deal on offer , the less POWER you have.

BATNA

List what you would do if you fail to reach an agreement.

Convert most promising options into a practical choice.

Select a single best option that is your BATNA.

Compare your BATNA to all the proposals. If your offer is better than your BATNA ,

then consider improving or accepting it. If your offer is worse than your BATNA ,

then reject it. If they will not improve their offer consider

exercising your BATNA.

DEVELOPING BATNA

1. Preparation

2. Objectivity

3. Strategy

4. Technique

NEGOTIATION COMPONENTS

1. Preparation: Prepare for negotiation if you want to succeed.

2. Objectivity:Assess your strengths, weaknesses, and goals. Successful negotiators make a point to "accentuate the positive."

3. Strategy:Plan a realistic course of action based on sound preparation and objective appraisal of resources.

4. Technique:Combine a wide range of skills; draw on experience and self-discipline.

1. Day-to-day/ Managerial Negotiations

Different levels of Management

In between colleagues Trade unions

Legal advisers

EXAMPLES : Negotiation for pay, terms and working conditions. Description of the job and fixation of responsibility. Increasing productivity.

TYPES OF NEGOTIATION

2. Commercial Negotiation

Management Suppliers Government Customers Trade unions Legal advisors Public

EXAMPLES :

Striking a contract with the customer. Negotiations for the price and quality of goods to be

purchased. Negotiations with financial institutions as regarding the

availability of capital

3. Legal Negotiation

Government Management Customers

Example : Adhering to the laws of the local and

national government.

Time – The person that has the most time wins. You are not pressured into making decisions.

Information – The more knowledgeable your are, the better a deal you will get.

Options - Always keep your options open. Have a fallback position. At the same time, don't give the other side too many options. It helps to negotiate one issue at a time.

DISTINCT FORCES OF NEGOTIATION

Approach - "People like to help nice people. They like to hurt jerks." So be nice! Be friendly! -Prepare, prepare, prepare! -Never let your ego negotiate. -Always let the other person save face. -Don't name a price first. -Never accept the first offer

Distributive negotiation. It is the one that involves holding on to a fixed idea, or

position, of what you want and arguing for it and it alone,

regardless of any underlying interests. Integrative negotiation. . Parties collaborate to find a WIN-WIN solution.

. This strategy focuses on developing mutually

beneficial agreements based on the interests of

the disputants.

.Interest include the needs , desires , concerns and

fears important to each other.

Different strategies.

Distributive negotiation.◦ The key questions is: “Who is going to get this resource?”◦ “Hard” distributive negotiation.

Each party holds out to get its own way.◦ “Soft” distributive negotiation.

One party is willing to make concessions to the other party to get things over.

Strategies cont..

Distributive negotiation — cont. ◦ Bargaining zone.

The range between one party’s minimum reservation point and the other party’s maximum reservation point.

A positive bargaining zone exists when the two parties’ points overlap.

A positive bargaining zone provides room for negotiation.

Strategies cont..

Integrative negotiation.◦ The key questions is: “How can the resource best be utilized?”◦ Is less confrontational than distributive negotiation, and

permits a broader range of alternative solutions to be considered.

◦ Opportunity for a true win-win solution.

Strategies cont..

Integrative negotiation — cont.◦ Range of feasible negotiation tactics.

Selective avoidance.

Compromise.

True collaboration.

Strategies cont..

Gaining truly integrative agreements rests on:◦ Supportive attitudes.

◦ Constructive behaviors.

◦ Good information.

Strategies cont..

Good information.

◦ Each negotiation party must know what he/she will do if an

agreement can’t be reached.

◦ Each party must understand the relative importance of the

other party’s interests.

Strategies cont..

Conciliator

A trusted third party who provides an informal communication link between the negotiator and the opponent.

Consultant An impartial third party, skilled in conflict management , who attempts to facilitate creative problem solving through communication and analysis.

Third-party roles in negotiation.

Know what your interests are and why you value them.

What is the issue at hand? What are the ”needs” vs. “wants”? Know the strengths and weaknesses of your position

and self. Self awareness, personality characteristics,emotional intelligence.

Negotiation processPreparation:

See things from the other side’s point of view- why they are negotiating?

Research the interest of the other side. What are their needs (security, autonomy,

recognition)? Be aware of the unpleasant consequences for both

sides if your idea/proposal is not accepted If you succeed who else might be affected, harmed,

advanced?

Preparation:

Brainstorm all alternatives that could satisfy your needs

Be creative and expand the pie Know who is supportive and who is not/less Does this person has the authority to make the

decision? Are there any penalties for bluffing? Are there time limits associated with negotiations?

Planning:

Imagine how it would feel to achieve your goal Role play your opening with a trusted colleague and

rehearse the problematic areas Be the devil’s advocate Plan ways to break it/Buy time “I need to think over what you just said so can I have

a couple of minutes?”

Planning:

Focus on interests. Not people, not gains. Use objective criteria to make. decisions and be sure the other party does as well. Redirect personal attacks onto the. problem at hand.

During

Bring the list of your main points and a set of questions.

Try not to interrupt; the more they reveal, the more you’ll learn.

Stay open to new information. Take notes.

During

Listen actively and reflectively. Listen also for what is not said. Learn from what the other side says. Stay open to new information. Synthesize the information you hear and use it in

your own argument.

During