1. NEGOTIATION SKILLS
Negotiations are a part of everyday life.
Acc to Walton and McKers
“ Negotiation is the process of the deliberate interaction of two or more complex
social units which are attempting to define or redefine the terms of their
interdependence.‟
Gottschalk defines negotiation process as “an occasion where one or more
representatives of two or more parties interact in an explicit attempt to reach a
jointly acceptable position on one or more divisive issues.”
It is an explicit and deliberate event conducted by the representatives on behalf of
their respective parties – employers and employees. The process is intended to
reconcile differences between the parties involved. Negotiation is not simply
„ritual‟ but a process, which allows the representatives of different interest groups
to reach a mutually acceptable settlement of an issue while, at the same time,
seeking to maximise the advantage to be gained for their interest group.
DIFFERENCE BETWEEN ‘SELLING ‘ AND ‘NEGOTIATING’
SELLING: Can be described as the Process of identifying customers, then getting
through to them and persuading them to act, or accept our propositions.
Whereas NEGOTIATING is a : Process of getting the best terms, once the other
side starts to act on their interest.
NEGOTIATION GUIDELINES
The following are the guidelines for negotiation:
Don‟t be afraid to negotiate. “Let us never negotiate out of fear. But let us
never fear to negotiate.”
Don‟t negotiate when you have nothing to bargain with, or when broader
objectives might be prejudiced.
Mutual respect and trust are fundamental requirements, especially
with a win-win strategy.
The style of negotiation will depend in part on the qualities and skills of the
parties involved. Skilled negotiators will conclude better deals.
Identify the decision-maker on the other side.
2. Identify the concessions you might offer and extend maximum benefit to
the other side with the least cost to you.
Remember, concessions should always be traded, not donated. Encourage
the other side to give you concessions by setting deadlines.
Recognize that a win-win outcome can never be assumed until the other side
also signals its compliance.
Be firm but fair. Do not make „unreasonable‟ demands.
Select your team carefully, allocates the key tasks, and specifies authority
levels.
Leave the other side thinking that they have won a good deal.
In order to win the best result from a negotiation, a blend of three important
attributes is necessary: skill, aspiration, and power.
You have nothing to lose by asking for a better deal.
Most things are negotiable.
Make specific proposals, solutions or remedies. Don‟t just complain.
Prepare fully, and with care. Preparation and planning lie at the heart of a
successful negotiation. Don‟t negotiate if you are not prepared.
Don‟t negotiate unless you have something to gain. Make initial concessions
small and tentative.
Listen carefully to the words and analyze.
Keep the meeting on the track.
Don‟t react too unfavorably to your own mistakes.
Make promises with caution.
Don‟t worry about the end result.
Be prepared for a deadlock. If necessary, change the timing, the tempo, the
topic, and even the team.
