Negotiations

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Negotiations

  1. 1. NEGOTIATION http://in.linkedin.com/in/gurpindersingh
  2. 2. What is Negotiation? Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument
  3. 3. Why Negotiate? • To avoid resentments due to conflict and disagreement • Negotiation is to try to reach agreements without causing future barriers to communications
  4. 4. Stages of Negotiation Preparation Discussion Clarification of Goals Negotiation towards WIN-WIN situation Agreement Implementation of Course of Action
  5. 5. 1. Preparation • Venue to discuss the problem and who will attend • Setting a limited timescale can prevent the continuation of disagreement • Ensure that you have knowledge of all the pertinent facts of the situation are known in order to clarify your own position • This would include knowing the ‘rules’ of your organization
  6. 6. 2. Discussion • During this stage, individuals or members of each side put forward the case as they see it, that is their understanding of the situation. • Key skills are questioning, listening and clarifying. • Take notes during the discussion stage to record all points put forward in case there is need for further clarification. • It is extremely important to listen, • Each side should have an equal opportunity to present their case
  7. 7. 3. Clarifying Goals • From the discussion, the goals, interests and viewpoints of both sides of the disagreement need to be clarified. • List these in order of priority. • Through clarification it is often possible to identify or establish common ground.
  8. 8. 4. Negotiate for a WIN-WIN Outcome • This stage focuses on what is termed a WIN-WIN outcome where both sides feel they have gained something positive • A WIN-WIN outcome is usually the best outcome • Suggestions of alternative strategies and compromises need to be considered at this point. • Compromises are often positive alternatives which can often achieve greater benefit for all concerned rather than holding to the original positions.
  9. 9. 5. Agreement • Agreement can be achieved once understanding of both sides’ viewpoints and interests have been considered. • It is essential to keep an open mind in order to achieve a solution. • Any agreement needs to be made perfectly clear so that both sides know what has been decided.
  10. 10. 6. Implementing a Course of Action • From the agreement, a course of action has to be implemented, to carry through the decision. • Failure to Agree: process of negotiation breaks down and agreement cannot be reached, then re-scheduling a further meeting is called for.
  11. 11. Three Essential Elements • Attitudes • Interpersonal Skills • Knowledge
  12. 12. Attitudes • All negotiation is strongly influenced by underlying attitudes to the process itself • Negotiation is not an arena for the realization of individual achievements. • Certain features of negotiation may influence a person’s behavior, for example some people may become defensive.
  13. 13. Interpersonal Skills Skills You Need: • Communication • Listening • Reflecting, Clarifying and Summarising • Problem Solving • Decision Making • Assertiveness • Stress Management • Dealing with Aggression
  14. 14. Knowledge • Good preparation is essential. • The way issues are negotiated must be understood as negotiating will require different methods in different situations
  15. 15. Assertive Types of Negotiation Styles Win / Lose Win / Win (Collaborating) Unassertive Compromise Avoidance Uncooperative Accommodating Cooperative
  16. 16. Win - Lose Style • The win-lose is the most common style of negotiation wherein a person pursues his or her own interests at the expense of other party. • Under this style negotiation is viewed as a game to be won. Losing may be taken as failure, weakness, and a loss of status. • When engaged in this style, the parties may use different tactics to win like: persuasion, argument, power, or even threats.
  17. 17. Avoidance Style • Avoiding the conflict in certain situations – not negotiating at all – is also negotiation. • People may physically withdraw by simply leaving the scene of conflict or they can refuse to get involved by using silence, or changing the topic of conversation. • Psychologically, avoiders can also deny the existence of conflict. • During formal negotiation, avoidance style is exercised by turning a deaf ear and / or a blind eye to the conflicting points or issues.
  18. 18. Accommodating Style • Accommodating style of negotiation entails giving in to the wishes of the opponent party. • Like avoidance, accommodating the other party almost in a onesided way, is also a negotiation. • Unlike avoiders, the accommodators enter into negotiation and give in a way that strengthens the relationships. • During negotiation, giving in totally / partially may be part of negotiating game plan.
  19. 19. Compromising Style • Compromising, the most common style of conflict resolution, entails splitting the differences and reaching an acceptable middle ground solution through give-and-take whereby each party should gain something and may have to lose something. • Parties under this style of negotiation, generally use techniques like trading, bargaining, smoothing over differences, & voting etc. • While most negotiations start with win-lose style, they may end up with a compromise.
  20. 20. Collaborating (Win-Win) Style • Collaborating is based on a willingness to accept other party’s needs while asserting your own needs as well. • It assumes that there is some reasonable chance that a solution can be found to satisfy both parties in conflict without losing much. • Solutions which satisfy all parties , are generally not possible, but a collaborator believes that it is worth trying to find that.
  21. 21. Key Points • Focus on maintaining good relationships • Focus on the interest not position • Generate a variety of options that offer gains to both sides before making decisions • Avoid misunderstanding – clarify the goal, problem, viewpoints, meanings

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