S T U D E N T N A M E : S A S H I V P R A S S A T H
S T U D E N T I D : 1 2 0 2 2 1 3 0 0 8
L E C T U R E R : D R S H U H A I M I M O H D S A U H
Vertical to horizontal decision making
Vertical is power/higher authority decision making
Horizontal is one-level decision making as it defines everybody having a say
Horizontal decision making is negotiation
Purpose of negotiation: satisfy your interests either personal or the other party
Definition of negotiation: the act of back-and-forth communication when two parties are trying to reach
agreement. Some interests are common, and some are not.
Parties could be family members, spouse, colleagues, customers and even yourself.
Usually, people spent over 50% of time in negotiation.
The study of the subject is called negotiation theory. Professional negotiators are often specialized, such
as union negotiators, leverage buyout negotiators, peace negotiators, hostage negotiators, or may work
under other titles, such as diplomats, legislators or brokers
Whom are the parties?
What is the issue in hand?
What they want?
What you want?
Distributive negotiation (win-lose): It is a competitive bargaining strategy in which one party gains
only if the other party loses something. It is used as a negotiation strategy to distribute fixed
resources such as money, resources, assets, etc. between both the parties. Distributive negotiation
is best applied when: There are advantages on your side that place you in a strong bargaining
position. The bargaining resource is limited. For example, if you go to the supermarket and buy
some products, you won't be able to bargain because they have a fixed price. Either you can buy
the product or leave it.
Integrative negotiation (win-win): It is a negotiation strategy in which the involved parties work
together to find a solution that satisfies the needs and concerns of each. Integrative negotiation is
possible when the parties have some shared interests or opportunities to realize mutual gains
through trades across multiple issues. Honesty can also promote successful integrative negotiation
because it can lead to a comprehensive understanding of the issue and what each party needs to
be satisfied with the result.
TYPES AND APPROACH
Types of Negotiation:
Internal Negotiation: Between family
members, inside the organization between
members (more challenging)
External Negotiation: External
Balcony ( A place of self-control / to keep the eye on the prize, ex. music)
BATNA ( Best Alternative to Negotiation Agreement / trying to find the best alternative if you are not able to
reach agreement with the other party/ this helps translate into power)
Listen ( Its more listening than talking in negotiations/ Put yourself in their shoes and listen to understand)
Reframe ( Greatest powers of negotiation/ Helps us change focus to interest option and ask problem-solving
Positive NO (Positive NO is better than a negative NO/ sometimes its difficult to say NO especially when it
comes to internal negotiation/ include a yes to a respectful constructive proposal)
Golden Bridge (Successful negotiation is to attract/ make it attractive for the other party to say YES/ build a
Identify type of Negotiations:
- Negotiating goal: Contract or relationship?
- Negotiating attitude: Win-Lose or Win-Win?
- Personal style: Informal or formal?
- Communication: Direct or indirect?
- Sensitivity to time: High or low?