Submitted To :- Submitted By :-Divya Mam Jitendra Singh MBA(RMAT) Sem-ııı
INTRODUCTION 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.
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 ofnegotiation 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 Negotiation The 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 Like P’s of Marketing, essentials of negotiation are called as P’s of negotiation. They are as follows: Purpose : aim is required otherwise it will result in wastage of money, manpower & time.Plan : main agenda on which negotiation is to be carried on.Pace : main points should be covered in discussions, also proper breaks mustbe introduced to maintain interest of peoples involved.Personalities : negotiator initiating negotiation must have convincing power, effectivecommunication skills, can influence people & process 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 AGREEMENT OFFER COMPROMIS E CONCESSION
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.
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.
Positive AttitudesNarrow down to few points of dispute /conflict controversyStep By step approachFind out the other parties state of mind culture backgrounds Likes &dislikesHide your prove desireDon’t disclose your deadlinesThink before you speakKnow your market informationBring your own expert