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    Negotiation1 Negotiation1 Presentation Transcript

    • Negotiation
    • Negotiation
      • Negotiation is a process in which groups with conflicting interests meet together to make offers, counteroffers, and concessions to each other in an effort to resolve their differences.
      • Third-party negotiator is an outsider skilled in handling bargaining and negotiation.
      Mediator - a neutral third party who tries to help parties in conflict reconcile their differences.
      Arbiter - a third party who has the authority to impose a solution to a dispute.
    • Characteristics of Negotiation
      An explicit and deliberate event
      Takes place between the representatives of the parties concerned
      The process which intends to settle the disputes and differences between parties involved
      Outcome of negotiation is dependent on the relative power relationship between the parties involved
    • Importance of Negotiation
      Dynamic nature of business
      Information age
    • Pre-conditions for Negotiations
      Two or more parties which have either conflict or disagreement
      Perceived conflict of needs, positions and interests
      Interdependence so that the outcome must be satisfying to all parties
      Agreement must be required to be reached within reasonable time so that it becomes beneficial to both parties
      The success of negotiation depends on the facts that the issue is negotiable; the negotiators are not only taking but giving also; trust between negotiating parties; fear that failure may lead to crisis
    • Assumptions in Negotiation
      It is a process of give and take with no room for threat and coercion
      People come for negotiation believing that the other group can be persuaded
      Equal status of the parties during negotiation
      Fairness in the process of negotiation
      Negotiation is more beneficial for resolving differences compared to other methods
    • Planning for negotiation
    • Three stages of negotiation plan
      Pre-negotiation planning
      During negotiation behaviour
      Post-negotiation understanding
    • Pre-negotiation Planning
      It requires consideration of following factors
      Know yourself
      Know the adversary
      Specify your goals and objectives
      Develop arguments and alternatives
      Agenda/ procedures
    • Behaviour during negotiation
      Opening move
      Frequency and size of proposal (Negotiation Dance)
      Influence mechanisms (referent power and expert power)
    • Post-negotiation understanding
      Implementation plan
      Role responsibilities
      Review teams
    • Strategies and tactics of negotiation
    • Bargaining Strategies
    • Distributive versus Integrative Bargaining
    • Distributive Negotiation
      Tactics used in distributive negotiation are:
      Snow job (giving long list of issues for discussion)
      Temper tantrums
      Limited authority
    • Staking Out the Bargaining Zone
    • Bargaining Zone and Negotiation Dance
      Principles for slicing the pie
      Assess your Best Alternative to Negotiated Agreement (BATNA) and improve it
      Determine your reservation point but do not reveal it
      Reach the other party’s BATNA and estimate their reservation point
      Set high aspirations but that are realistic
      Make the first offer if you are prepared
      Immediately re-anchor if the other party offers first
      Plan your concessions
      Pattern of concessions
      Magnitude of concessions
      Timing of concessions
      Use an objective-appearing rationale to support your offers
      Appeal to norms of fairness
    • Wise – pie - slicing
      Qualities to live by while slicing the pie
    • Integrative Negotiation
      Pitfalls in integrative negotiation
      No fixed pie, can be expanded to the maximum advantage of all parties
      Focus may shift from issue to position, ego and face saving
      Overconfidence in one’s own position may lead to neglecting the need of other people
    • Beliefs conducive to integrative bargaining
      Belief in availability of a mutually acceptable solution
      Belief in cooperation rather than competition
      Belief that everyone is of equal value and status
      Belief in the view expressed by others
      Belief that differences in opinion are helpful
      Belief in the trustworthiness of the other member
      Belief that other party can compete but chooses to cooperate
    • Steps in Integrative Negotiation Process
      Identify and define the problem
      Define the problem in the way mutually acceptable to both sides
      Understand the problems
      State problem with eye towards practicality and comprehensiveness
      State the problem as a goal and identify obstacles to attaining the goal
      De-personalise the problem
      Bring interests and needs to the surface
      Separate the problem definition from the search from solutions
      Generate alternative solutions to the problem
      Expand the pie
      Use non-specific compensation
      Cut the costs for compliance
      Find a bridge solution
      Generating alternative solutions
    • Contd.
      Evaluate and select alternatives
      Narrow the range of solution options
      Evaluate solutions on the basis of quality, standards, and acceptability
      Agree to the criteria in advance for evaluating options
      Use sub groups to evaluate complex options
    • Win-win negotiation is not:
      Even split
      Feeling good
      Building a relationship
    • The Negotiation Process
    • Common mistakes to be avoided
      Inadequate Preparation
      Ignoring the give/get principle
      Use of intimidating behavior.
      Loss of temper.
      Talking too much, listening too little, and remaining indifferent to body language.
      Arguing instead of influencing.
      Ignoring conflict.
    • Third-Party Negotiations
    • Third-Party Negotiations (cont’d)