OBJECTIVE OF THE SESSION• Negotiation• Approaches of Negotiation• Negotiation process• Principles of Negotiation• Issues in Negotiation Process• Managing intergroup Relations• Qualities of Good Negotiator
WHAT IS NEGOTIATION“Negotiating is the art of reaching an agreement by resolving differences through creativity”
NEGOTIATION• The best way to resolve conflict is through negotiations.• Negotiation is a process in which one party agrees to exchange a product or service with another party in return for something.• Approaches to negotiation are• Distributive bargaining & integrative bargaining
Distributive Bargaining• Assumes that there can not be any solution that could result in win-win situation• Operates under Zero- sum condition• Whenever a one party gains a certain amount another party suffers an equivalent loss.• Form of a win-lose situation.• Each party has a target point• Resistance point represents lowest acceptable outcomes.• If the outcome is below its resistance point the party prefers to break off negotiations.• The area between the target & the resistance point represents the target range of each of the parties
INTEGRATIVE BARGAINING• Existence of one or more solutions to a problem that results in win-win situation.• Helps to develop long term relationships between the negotiating parties,eliminate differences & ensures cooperation of other party in future.
Negotiation processPreparation & planning:• Understands the nature & background of the situation.• Identifies the self goals as well as other parties goals.• The negotiator prepares the strategy to be adopted by collecting possible information.• Understanding priority objectives of the other party.
Negotiation processDefining Rules :• Both parties arrive at the negotiation table & establish the basic rules & procedures that will guide the negotiation process.Clarification & justification:• Both parties exchange their demands & justify them.• Present documents in support of their position
Negotiation processBargaining & problem solving:• The parties start bargaining with each other.• Each party gives concession to another party.• Negotiating parties should take a break to avoid heated arguments.Closure & implementation:• The bargaining process is complete & the final agreement is written & signed.• Monitoring & implementation of agreement.
Principles • There are no rules – Establish an agenda • Everything is negotiable • Ask for a better deal • Be creative • Learn to say “NO” yourself
ISSUES IN THE NEGOTIATION PROCESSBiases in decision making:• Ex: Making commitments without considering their feasibility.• Believes like women negotiators are soft• Decision based on only available information.Personality trait:• While preparing for the negotiation process the focus should be on bargaining issues and the situational factors rather than personality traits.
ISSUES IN THE NEGOTIATION PROCESSConsultant:• Encourages the parties & develops positive attitude & builds long term relationship.• Use his communication & analytical skills to motivate the parties• Does not provide a solution but acts as a facilitator
A Good Negotiator Is..• Creative• Versatile• Motivated• Has the ability to walk away