Negotiation – Definition:
‘The process by
which we search for
the terms to obtain
what we want from
Confer with others to
reach a compromise or
Concise Oxford Dictionary
is to trade
‘Negotiation is an
between people who
want something from
Some decision making tools for negotiation:
Persuasion: Usually the first method we choose when we want
something. When opinions and interests are same
we can use this method.
Giving in: This is not the best way , and sometimes we have to
drop the idea if the cost (in any terms) is too high.
Coercion: Talking forcefully can lead right up to threats, which
in turn can erupt in full blown battles.
Problem Solving: This can be used when both parties trust each other
and share the problem.
There are three types of behaviour that we can display or
encounter during a negotiation:-
RED BLUE PURPLE
• Always seeking the best for you
• No concern for person you are negotiating with
People behave in this manner when they fear that they are being
exploited by the other party.
• Win win approach
Kennedy talks of a ‘behavioural dilemma’, do you cooperate (blue)
or defect (red)?Trusting too much can be risky and on the other hand
not trusting at all can be seen as deceitful behaviour.
The answer is to merge blue and red behaviour into purple.
• Give me some of what I want (red)
• I’ll give you some of what you want (blue)
• Deal with people as they are not how you think they are
• Good intentions
• Two way exchange
• Tit for tat strategies
• People know where they stand
• Determination to solve problems by both sets of criteria of
the merits of the case and/or the terms of a negotiated
The Four Phases of Negotiation
• My needs?
• Their needs?
• What will I trade for?
• What are the available options of the trade?
• What will be the implications of each option?
• Set objectives in terms of acceptable limits.
• Visualise possible gains, not losses.
• Be aware of the other party’s hidden agenda.
• Positive Powerful opening – confident body language, tone and words.
• Break the ice and discuss neutral topics .
• Cover: Why we are here, what we are going to do, how long it will take.
• Listen to what the other party say and how they say it.
• Observe non-verbal signals.
• Sit at a place from where you can see everyone.
•Summarize their views too, to demonstrate you have understood.
• Decide whether you will speak your proposal first or respond to the
proposal from the other party.
• Leave room for manoeuvre in your proposal.
•If you don’t agree, avoid ‘amateur dramatics’, slamming the table,
storming out etc. This is typical RED behavior.
•PURPLE behavior, means responding positively. Welcome the fact a
proposal has been made, you don’t have to agree with the content.
•If agreement is hard to find keep looking for a solution until one is
•You then have to either agree to disagree and call a halt to
• Be prepared to make concessions, offer the smallest concessions
first – you may not need to go any further.
• Compromise without losing face. If you have had to backtrack on
a point you had as your final position you could say ‘Since you
have changed your position on… I may be able to change mine
• Make eye contact to emphasise that each concession is a serious
loss for you.
• Do not ignore issues in order to speed up negotiations.
• Record fully all agreements finalised at the negotiations close.
• The New Negotiating Edge. The Behavioural Approach for
Results and Relationships by Gavin Kennedy.
• Essential Managers Negotiating Skills by Tim Hindle.
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