Negotiation is a dialogue between two parties to resolve conflicts or issues so that both parties find the solution acceptable. Usually, it is a compromise involving give and take. Negotiation results when each party compromises to resolve a conflict for everyone's benefits. In the workplace, negotiations may take place between managers, departments, colleagues or between a team member and a manager. Even before you join the workplace, you may negotiate the job offer with the interviewer or HR manager.
In this Presentation, we will discuss what negotiation skills are, its benefits, examples and tips for improving your negotiation skills.
2. Rex Classes
Today’sTopic
1. Why negotiation is important ?
2. Different negotiation behavior.
3. Phases of Negotiation
4. Activities
5. StepsTo powerful Negotiation.
6. Role Play.
7. Tricky response.
8. How to deal with difficult negotiators?
9. Effective Body Language in Negotiation
10. Group Quiz.
5. Rex Classes
Win win approach
Cooperation
Trusting
Pacifying
Relational
Giving
For better result merge blue and red behaviour into purple.
9
6. Rex Classes
RED Behaviour
• Manipulation
• Aggressive
• Intimidation
• Exploitation
• Always seeking the best from you
• No concern for person you are negotiating with
• Taking
People behave in this manner when they fear exploitation by the other
party, but by behaving this way to protect themselves, they provoke the
behaviour they are trying to avoid.
8
7. Rex Classes
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
Open
People know where they stand
To the red behaviourist the message is loud and clear, ‘You will get nothing
from me unless and until I get something from you’.
10
9. Rex Classes
Why are you negotiating?What do you expect to gain and why is it
important to you?What do you think you will have to offer to achieve
this?
Decide on your starting position and your "bottom line," or lowest
point you will accept in the deal.
Consider the objectives and emotional motivation of the other party.
Be prepared with information, facts, comparable prices or costs, etc.
Tailor your response
Practice at every opportunity.
14
1. Plan
10. Rex Classes
• Positive Powerful opening – confident body language, tone and words
• 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 where you can see everyone
19
2. Probing
11. Rex Classes
PROPOSE
• Decide whether you will speak your proposal first or respond to the
proposal from the other party.
• Start by discussing a mutually agreed upon point of the negotiation —
something both parties will readily say yes to.
•Make your arguments and proposals incrementally and strategically.
Avoid going immediately to your lowest point of acceptance, or bottom-
line.
•Think win-win Negotiation
•Be assertive remember PURPLE. (Not RED or BLUE) Use ‘If
you…Then I’ not ‘If we… will you’ this avoids a question proposal.
24
3. Propose
12. Rex Classes
Submissive Assertive
1. How about you give us 10% discount ? If you make it a 10% discount, then we will
order in lots of 100,000.
2. Ok I will gift you a cycle this year. If you score 85% in 10th board then I will gift
you a cycle.
3. I hope you can save 10000 Rs. this month. If you save 10000 Rs. then I will buy you a
designer saree.
4. It’ll be tough to meet that deadline but ok
we’ll give it a go
If you pay us 50% advance in first week then
we’ll go for that deadline.
26
3. Propose
13. Rex Classes
Avoid – ‘wish’, ‘hope’, ‘would like’ – this is not assertive
Proposals consist of 2 elements: the condition plus the
offer and can be best presented with the ‘If ….Then’
technique.
Both the condition and the offer can be couched vaguely.
But it is better to state your condition first.
27
14. Rex Classes
Example 1: ‘If you change your terms of business, then I
could consider some amendments to our payment
schedule.’
Is example 1.
A.Vague-vague (vague in condition and offer)
B. Specific-vague (specific in condition and vague in offer)
Answer: Vague-Vague.
27
15. Rex Classes
Example 2: ‘If you amended the penalty period from 14 to 7
days then I could consider some amendments to our payment
schedule’
Is example 2:
A. Vague-vague (vague in condition and offer)
B. Specific-vague (specific in condition and vague in offer)
Answer: Specific-Vague.
28
16. Rex Classes
Be prepared to make concessions, offer the smallest concessions first
– you may not need to go any further.
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 on…’
Make eye contact to emphasise that each concession is a serious loss
for you
competitors should be scheduled in back-to-back appointments .
Record fully all agreements finalised at the negotiations close.
34
4. Bargain
17. Rex Classes
Summary Close
Adjournment Close
Final Final offer close
35
5. Closing
20. Rex Classes
Dealing withTricky negotiators
•Exaggerated Bluff “You can’t be serious!!!”
•The Invisible Competition “Your competitor quoted
lower.”
•No-way “It’s against our agency policy.”
•Blowing Hot and Cold (Initial enthusiasm, sudden
cooling off)
•Family Discounts “Look how much I’ve done for you?”
(presenting concessions as a personal favor)
21. Rex Classes
Dealing withTricky negotiators
•It’s none of my business but…” (complaints about
your agency’s service or attitude)
•I don’t have the authority.” (need to refer to the
decision maker)
•My Way or the Highway “And that’s my final offer!”
•Over My Dead Body -refusal/preconditions
26. Rex Classes
1. Maintain 60% eye contact.
2. More wide –opened eyes = more interested the person.
3. Their heads are inclined forward.
4. Nodding head
5. feet are pointing towards you
6. They smile frequently.
28. Rex Classes
1. hands are flat on the table.
2. palms are open.
3. stroking chin
4. heads are inclined forward.
5. Nodding head
6. legs are spaced out from each other.
7. smile frequently.
8. Unbutton jackets
9. Place their hands in their chest
10. hands are open
29. Rex Classes
Useful tips in body language during Negotiation
Step to the left of a rectangular desk
Use person’s name twice in first 15
seconds
Never talk more than 30 seconds at a
time
lean forward a little in case person’s
ask something
You can tilt your head a little
31. Rex Classes
1.When you have no time to prepare for a negotiation,
do you:
a. Rely on your experience of similar situations?
b. React to what the other person has said?
c. Listen to them and adjourn at the first opportunity?
Ans = C
32. Rex Classes
18
2. The other negotiator makes a statement with which
you profoundly disagree. Do you:
Ans = b
a. Tell him that he is mistaken and explain why?
b. Ask him why he believes that his statement is true?
33. Rex Classes
3. If you ready to meet target of 2 lacs Rs per
month then company will get agree to fix your
salary to 30000 Rs.
23
a. Vague - Vague
b. Specific-Specific
c. Specific – Vague
d. Vague - Specific
Ans = b
34. Rex Classes
4. You want to sell your car and you know that you
would be very fortunate to get as much as 225 000 Rs
for it. While you are considering placing the
advertisement, a keen customer approaches you and
offers 250 000 Rs in cash immediately for your Car.
Do you:
A. Accept his offer without further discussion?
B. Tell him to wait until the car is advertised?
C. Probing about the offer?
Ans = C
35. Rex Classes
5. A young talented actor wants to get into the ‘big time’ and she
meets a television producer who is desirous of securing her
services for an important part in a detective film. He tells her
that she cannot get top rates until she is ‘known’ but if she does
this one ‘cheap’ and gets famous, she will see ‘train loads of
money’ coming her way for her future work. Should she..
A. Leave the opportunity?
B. Agree, as she has to start somewhere?
C. Demand top rates if she is to do a top job?
Ans = C
36. Rex Classes
6. You are looking for the place on rent because you want
to start your business. You see a board written with
To Let and also mentioned the rent 10000 Rs per
month but you can afford only 8000 Rs per month.
You mention that you could only give 8000 Rs. He
agrees to give you that place for that sum. Is this:
A. An offer you cannot refuse?
B. A lousy situation?
C. An occasion to celebrate your bargain?
Ans = B