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NEGOTIATION
Mukul Gupta
(Faculty of Management)
Trainer PD & English Communication Skills
(Khandewal College of Management Science & Technology)
concept
Negotiation starts with a discussion.
concept
A usual activity of ordinary life.
concept
Negotiation includes a combination of compromise,
collaboration, and possibly some pressure on vital issues.
concept
Negotiation process is commonly used for resolving
differences, allocating resources, and taking other decisions.
concept
The term negotiations and the term bargaining are generally
used interchangeably, but has different meaning in business
terminology.
concept
Bargaining is: -
WIN LOSE
concept
Negotiation is:-
WINWIN
characteristics
Two or More Parties
characteristics
Conflicts between Needs and Desires
characteristics
Negotiation contributes in better results.
characteristics
Surplus Equalizing Process
characteristics
Parties seeks for an Agreement with Mutual Adjustment
NATURE
A Continuous Process
NATURE
A Persuasive Activity
NATURE
A Psychological Approach Oriented process
NATURE
Soft skill that a manger need
NATURE
Process that contributes in Economic Balance
TYPES OF
NEGOTIATION
INTEGRATIVE
NEGOTIATION
DISTRIBUTIVE
NEGOTIATION
INTEGRATIVE
NEGOTIATION
The Concept of Integrative
negotiation is based on the concept of
SYNERGY.
INTEGRATIVE
NEGOTIATION
Parties cooperate to achieve
maximize benefits by integrating their
interests.
INTEGRATIVE
NEGOTIATION
Both parties involved in negotiation
process jointly look at the problem,
try to search for alternatives and try
to evaluate them and reach a mutually
acceptable decision or solution.
INTEGRATIVE
NEGOTIATION
WINWIN
DISTRIBUTIVE
NEGOTIATION
It may be called as Bargaining.
DISTRIBUTIVE
NEGOTIATION
Based on the concept that the gain made
by one person is loss incurred by the
other person.
DISTRIBUTIVE
NEGOTIATION
WIN LOSE
Comparison
planning for negotiation
Planning in its simplest form is thinking in advance to
respond to W factor accordingly…
planning for negotiation
Preparation
Relationship Building
Information Gathering
Prediction
Pre-Negotiation
planning for negotiation
Looking for the Possibility
Bidding
Closing the Deal
Negotiation
planning for negotiation
Implementing the Agreement
Follow-up
Post-
Negotiation
STRATEGIES for negotiation
The overall plan to achieve one’s goals in
Negotiation.
How is it differ from Tactics & Planning?
Approaches to Strategies
BilateralUnilateral
Strategic Model
of Negotiation
This model is known as “Dual Concern Model”
Strategic Model
of Negotiation
How much concern do I have in achieving my desired
outcomes at stake in the negotiation?
Strategic Model
of Negotiation
How much concern do I have for the current and future
quality of the relationship with the other party?
Strategic Model
of Negotiation
GAIN
RELATION
Active-engagement
Strategies
GAIN
RELATION
Collaboration Accommodation
Competition
NON-engagement
Strategies
GAIN
RELATION
Avoidance
Strategies & Tactics
of Distributive Negotiation
Why understanding of distributive negotiation is
important?
Multiple Situation
Counter Moves
Skill level required
Strategies & Tactics
of Distributive Negotiation
Situations of Distributive Negotiations are-
Goals of one party are in fundamental & direct conflict
to another party
Strategies & Tactics
of Distributive Negotiation
Situations of Distributive Negotiations are-
Resources are fixed and limited
Strategies & Tactics
of Distributive Negotiation
Situations of Distributive Negotiations are-
Maximizing one’s own share of resources is the goal for
both the parties.
Strategies & Tactics
of Distributive Negotiation
Situations includes-
Starting Point (Initial Offer)
Target Points
Resistance Points (Walkaway)
Alternative Outcome
Strategies & Tactics
of Distributive Negotiation
Situations includes-
Starting Point (Initial Offer)
Target Points
Resistance Points (Walkaway)
Alternative Outcome
Strategies & Tactics
of Distributive Negotiation
Role of alternatives to a negotiated agreement-
Alternatives gives the negotiator power to walk away
from the negotiation.
Strategies & Tactics
of Distributive Negotiation
Role of alternatives to a negotiated agreement-
Attractive Unattractive
Setting Higher Goals
Making fewer concession
Negotiators have much
less bargaining power
Strategies & Tactics
of Distributive Negotiation
Fundamental Strategies-
Push for settlement near opponent’s resistance point
Strategies & Tactics
of Distributive Negotiation
Fundamental Strategies-
Get the other party changing their resistance point
Strategies & Tactics
of Distributive Negotiation
Fundamental Strategies-
Changing own resistance point
Strategies & Tactics
of Distributive Negotiation
Fundamental Strategies-
Convincing other party that the settlement is best
possible.
Strategies & Tactics
of Distributive Negotiation
Keys to Fundamental Strategies-
Discovering the other party’s resistance point
Strategies & Tactics
of Distributive Negotiation
Keys to Fundamental Strategies-
Influencing the other party’s resistance point
Strategies & Tactics
of Distributive Negotiation
Tactics may be used in distributive bargaining:-
Tactics we use in distributive bargaining are called as
Hard Ball Tactics.
Strategies & Tactics
of Distributive Negotiation
Tactics may be used in distributive bargaining:-
They are designed to pressure targeted parties to do things
they would not other wise do.
They are tactics which work on poorly prepared
negotiators
Strategies & Tactics
of Distributive Negotiation
Hard Ball Tactics of Distributive Bargaining –
 Good Guy/Bad Guy
 Highball/Lowball
 Bogey
 Nibble
 Chicken
 Intimidation
 Snow Job
Strategies & Tactics
of Distributive Negotiation
Good Guy/Bad Guy
Named after police interrogation technique.
Negotiators using this tactic can become so involve with their game
and act they fail to concentrate on obtaining their goals.
Strategies & Tactics
of Distributive Negotiation
Highball/Lowball
Starts with a ridiculously high opening offer that know they will never
achieve.
The tactics goal is to have the other party reevaluate their opening
offer and move closer to the resistance point.
The risk is the other party will think negotiating is a waste of time.
Strategies & Tactics
of Distributive Negotiation
Bogey
When a negotiator pretends an issue important and it is not.
It only works well IF they pick a issue that is important to the other
side.
Strategies & Tactics
of Distributive Negotiation
Nibble
Is a tactic used to get small concession without negotiating.
The concession is too small to lose the deal over, but large enough to
upset the other side.
Strategies & Tactics
of Distributive Negotiation
Chicken
Negotiators who use this tactic combine a large bluff and threaten
actions.
Strategies & Tactics
of Distributive Negotiation
Intimidation
It is guilt, anger, legitimacy, fear, what ever gives you power over
the other party.
Strategies & Tactics
of Distributive Negotiation
Snow Job
It is the overwhelming of information that you have trouble
determining which facts are real or important.
Strategies & Tactics
of integrative Negotiation
What Integrative Bargaining includes?
Commit to the needs of all involved parties
Exchange information & ideas
Invent options for mutual gain
Strategies & Tactics
of Integrative Negotiation
Integrative negotiation aims at seeking mutually
satisfying solutions with essence of free flow
communication and mutual understanding.
Strategies & Tactics
of Integrative Negotiation
Integrative Negotiations have some key steps: -
 Defining Problem
 Understanding
 Generate alternative solutions
 Evaluation and Selection
Strategies & Tactics
of Integrative Negotiation
Claiming and Creating Value
Strategies & Tactics
of integrative Negotiation
Identify & Defining Problem
It should be mutually acceptable
It should be stated as goal with obstacle identification
Strategies & Tactics
of integrative Negotiation
Understanding
Concerns, needs, desires, or fears.
Process = path to settlement
Principles: Doing what is fair, right, acceptable, and ethical
Strategies & Tactics
of integrative Negotiation
Generating Alternative Solution
Create options by redefining the problem set:
Compromise
Logroll – (Concession)
Modify the pie
Find a bridge solution
Strategies & Tactics
of integrative Negotiation
Generating Alternative Solution
 Creating solutions via: -
 Brainstorming
 Surveys
Strategies & Tactics
of integrative Negotiation
Evaluation & Selection
Evaluate by:
 Quality
 Objective standards
 Acceptability
Advance criteria agreement
Justify personal preferences
Unit – 1 (END)
Thank Yu
mukulguptahr@gmail.com

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