This document discusses improving negotiation skills. It defines negotiation as a process of building common interests and reducing differences to arrive at an agreement acceptable to both parties. Successful negotiation requires skills like communication, analysis, understanding other perspectives, and asserting one's own interests. Various styles and elements of negotiation are described, as well as tips for effective preparation, bargaining techniques, and implementing agreements.

1. IMPROVING NEGOTIATION SKILLS

2. NEGOTIATION ALL OF US IN COMMERCIAL ORGANISATIONS BY AND LARGE ARE ENGAGED IN DAY TO DAY NEGOTIATIONS. EVEN OUR DAILY HAPPENINGS DEMAND BEST NEGOTISATING SKILLS. THE MOST COMMON EXAMPLE OF NEGOTIATION IS BUYING AND SELLING. IN BUYING AND SELLING THE POWER LIES WITH THE BUYER : THEREFORE WE GENERALLY CONCENTRATE ON SELLING SKILLS THAN ON BUYING. CONSULTATION NEEDS TO BE DISTINGUISHED FROM NEGOTIATIONS. WE DO NOT NEGOTIATE UNLESS IT IS EITHER NECESSARY OR SOME ADVANTAGE IS OBTAINED BY IT .

3. NEGOTIATION IN OUR WORKING LIFE ALLOTING WORK TO OUR JUNIORS MEETING EXTRA DEMANDS OF OUR STAFF, ASSIGINING DIFFICULT / CUMBERSOME WORK. DIFFERING VIEWS ON PRIORITISATION OF WORK. ON SELECTION OF A PARTICULAR CUSTOMER / BORROWER. IMPOSING DISCIPLINE IN OUR OFFICE.

4. WHY TODAY WE TALK ABOUT NEGOTIATION ORGANISATION’S MAIN ASSETS ARE STAFF. ONLY PEOPLE NOT MACHINES OR PROCEDURES CAN ACHIEVE EXCELLENCE. PEOPLE WILL HAVE TO FILL THE GAPS IN EXCELLENCE AND THEIR OWN STRONGLY HELD VALUES AND BELIEFS. EXCELLENCE IS NOT ONLY REQUIRES KNOWLEDGE BUT ALSO PERSONAL QUALITIES.

5. WHY?… WHENEVER THERE ARE PEOPLE THERE WILL BE CONFLICTING IDEAS, VALUES, BELIEFS, STYLES AND STANDARDS. HANDLING THEM IS AN IMPORTANT SKILL IN ALL WALKS OF LIFE. IT IS VITAL IN A BUSINESS WHICH IS BASED ON PEOPLE RATHER THAN THINGS.

6. WHAT IS NEGOTIATION? IT IS A PROCESS OF BUILDING ON COMMON INTERESTS AND REDUCING DIFFERENCES WITH A PURPOSE TO ARRIVE AT AN AGREEMENT WHICH IS MINIMALLY ACCEPTABLE TO THE CONCERNED PARTIES. IT IS A MEANS OF GETTING WHAT YOU WANT FROM OTHERS . IT IS A PROCESS OF INTERACTION BETWEEN TWO OR MORE PARTIES IN ORDER TO ACHIEVE A MUTUALLY ACCEPTABLE SOLUTION. SKILLED NEGOTIATIORS ATTEMT TO FOCUS EARLY ATTENTION ON COMMON GROUND ISSUES, THEREBY SETTING STAGE FOR TACKLING ISSUES OF DIFFERENCE.

7. NEGOTIATION SIMPLY MEANS… GOING ABOUT YOUR WORK AND PURSUING YOUR INTERESTS IN A WAY WHICH INTERACTS WITH THE WORK AND INTEREST OF OTHERS. THESE ARE NOT METHODS OF WINNING ARGUMENTS BUT ARE DESIGNS FOR THE PURSUIT OF MUTUAL GAIN AND GOOD WORKING CONDITIONS.

8. NEGOTIATION SKILLS ARE USED IN VARIOUS AREAS LIKE CREDIT DELIVERY, NPA RECOVERY, GETTING A GOOD BORROWER / DEPOSITOR ETC. IT REQUIRES A SPECIAL SKILL AND WELL DRILLED PRACTICE. IT IS HEAVILY DEPENDENT ON VERBAL COMMUNICATION AND ETHICS. HERE WE SHALL DISCUSS THE BEHAVIOURAL ASPECT OF NEGOTIATION. NEGOTIATION ;BACKGROUND WE ARE CONCERNED ABOUT HIGH LEVEL OF NPA ON ONE HAND AND INCREASING ACCOUNTABILITY ON THE OTHER, MOREOVER RECOVERY METHODS ADOPTED SO FAR ARE TIME CONSUMING.

9. NEGOTIATION INVOLVES… TWO OR MORE PARTIES, SHARING A HIGH DEGREE OF INTERESTS. PERSUADING OTHER PARTY TO MODIFY ITS ORIGINAL POSITION. ARRIVING AT AN ACCEPTABLE FINAL AGREEMENT. DIRECT INTERACTION BETWEEN PARTIES INFLUENCED BY EMOTIONS , FEELINGS AND ATTITUDES .

10. TYPICAL COMMENTS WE MAKE… I DON’T HAVE TIME TO DISCUSS IT TOO LONG. A CAN NOT KEEP PATIENCE, I AM NOT SURE MY BOSS WILL BACK ME UP. MY JOB IS NOT TO GIVE MUCH TO THEM. I WILL HAVE TO GIVE UP IN THE END.

11. ELEMENTS OF NEGOTIATION CO-OPERATION CONFLICT GIVING TAKING SOME INDIVIDUALS ARE MORE READILYCO-OPERATIVE THAN OTHERS. SOME ENJOY CONFLICTS. SOME ARE EXTREMELY GENEROUS.

12. ELEMENTS OF NEGOTIATION “ GIVERS” ARE DISTINCT MINORITY; THEY ARE IDEALISTIC PEOPLE WHO ARE RELIGIOUS AND SOCIAL WELFARE MINDED. MOST BUSINESS PEOPLE ARE WILLING TO GIVE AS WELL AS TO TAKE. THEY ARE READY TO COOPERATE WITH OTHERS WHEN THEY CAN. THAY ARE PREPARED TO ENTER INTO CONFLICT WHEN THE SITUATION DEMANDS. THOSE WHO BELIEVE IN SHORT TERM RATHER THAN LONG TERM RELATIONSHIPS- ENJOY CONFLICT..

13. OBJECTIVES OF NEGOTIATION…. TO REACH A SATISFACTORY OUTCOME PREFERABLY WITHOUT UNPLEASANTNESS. THE AGREEMENT SHOULD ACCRUE SOME BENEFIT TO BOTH PARTIES. REMEMBER THAT NEGOTIATION IS A COMPROMISE PROCESS

14. SKILLS REQUIRED… INTERACTIVE SKILLS COMMUNICATING SKILL ANALYTICAL SKILL ALL THESE SKILLS CAN BE LEARNT,INTERNALISED AND TRANSLATED INTO ACTION AS AND WHEN AN OPPORTUNITY ARISES.

15. IN NEGOTIATION COMMUNICATE WELL CONTROL EMOTIONS UNDERSTAND PEOPLE SEE VALUES AND PERCEPTIONS OF OTHERS SKILL OF NEGOTIATION

16. THE UNNEGOTIABLE.. WITH RULES AND REGULATIONS. PERSONAL PREFERENCES WHICH MAY BE DISCRIMINATORY. MANAGEMENT DECISIONS THAT ARE TO BE IMPLEMENTED. AGREEMENTS ALREADY ARRIVED BY YOUR MANAGERIAL COLLEAGUES.

17. STAGES IN NEGOTIATION PREPARATION AND PLANNING DEFINING GROUND RULES. CLARIFICATIONS & JUSTIFICATIONS, BARGAINING & PROBLEM SOLVING CLOSURE & IMPLEMENTATION.

18. KEY AREAS OF NEGOTIATION DEFINING A RANGE OF OBJECTIVES AND BECOME FLEXIBLE ABOUT SOME OF THEM. EXPLORING WIDE RANGE OF OPTIONS. INTERACTING COMPETENTLY (LISTENING AND QUESTIONING). PRIORITISATION

19. CLEARING COMMUNICATIONS LINES “ I ASSUME GOOD FAITH,I NEITHER QUESTION YOUR SINCERITY NOR YOUR SANITY.” “ I CARE ABOUT OUR RELATIONSHIP AND WANT TO RESOLVE DIFFERENCES.” “ I AM OPEN AND PREPARED TO CHANGE” LISTEN TO UNDERSTAND. SPEAK TO BE UNDERSTOOD START WITH COMMON POINTS AND MOVE SLOWLY INTO AREAS OF DISAGREEMENT

20. BE ASSERTIVE … MAKE SURE THAT THE OTHER PARTY UNDERSTANDS WHAT YOU CONSIDER IMPORTANT AND HOW MUCH VALUE YOU ATTACH TO IT. STATE CLEARLY AND FIRMLY WHAT YOU WANT TO ACHIEVE. DO NOT START WITH WORDS LIKE:-- I’M SORRY ABOUT THIS BUT……. A’M IN A DIFFICULT POSITION….. I WANT TO AGREE TO THAT BUT…….. YOU KNOW I REALLY WON’T LIKE TO DO……..

21. NEGOTIATING STYLE COLLABORATION ACCOMODATION COMPROMISE AVOIDANCE COMPETING

22. NEGOTIATING STYLES TO INTEGRATE DIFFERENT POINTS OF VIEW. RELATION- -SHIP TO BE MAINTAINED ISSUE IS IMPORTANT TIME PRESSURE NO OTHER SOLUTION YOU ARE WRONG TO MINIMISE THE LOSS ISSUES ARE MORE IMPORTANT TO OTHER PARTY UNIMPORTANT ISSUES NO CHANCE OF SUCCEESS TIME NEEDE D FOR INFORMATION COLLECTION. OTHERS CAN RESOLVE BETTER. COMPETE COLLABORATION COMPROMISE ACCOMMODATION AVOIDANCE WIN LOSE .

23. The BARGAINING ZONE Settlement range A’s target B’s target B’s Resistance point A’s Resistance point A’s aspiration B’s aspiration THE LOWEST ACCEPTABLE VALUE TO AN INDIVUIDUAL FOR A NEGOTIATED AGREEMENT

24. IT MAY NOT ALWAYS BE POSSIBLE, BUT IT SHOULD BE THE OBJECTIVE. EXAMINE CAREFULLY THE POSSIBILITY OF CREATING A WIN-WIN SITUATION. NEVER CREATE A LOSE-LOSE SITUATION AVOID WIN-LOSE WHEVER YOU CAN LET BOTH SIDES WIN THESE ARE OPPORTUNITIES TO PROGRESS RATHER THAN JUST RETURNING TO STATUS QUO

25. TESTING SITUATIONS IN NEGOTIATIONS… THE LESS TIME YOU HAVE FOR FACE TO FACE CONTACT MORE DIFFICULT IT WILL BE TO IMPRESS OR INFLUENCE OTHER. WHEN PARTIES HAVE CONFLICTING OBJECTIVES,IT BECOMES DIFFICULT TO REACH AN AGREEMENT. WHEN FELINGS ARE RUNNING HIGH IT BECOMES DIFFICULT TO RESOLVE . THE BEST WAY IS TO BALANCE ALL THREE.

26. TO TAKE PSYCHOLOGICAL ADVANTAGE … THE NEGOTIATION SHOULD BE DONE AT YOUR OWN OFFICE THE ORDER IN WHICH TOPICS ARE DISCUSSED SHOULD BE CONTROLLED. LOWER THE PARTY’S EXPECTATION BEFORE YOU BEGIN. LET HIM DO MOST OF THE TALKING. HAVE ALL FACTS & FIGURES READY MAKE THE NEW OPTION LESS ATTRACTIVE THAN PREVIOUS ONE. CONSIDER THE PSYCHOLOGICAL NEEDS OF OTHER SIDE. QUICK DEALS ARE GENERALLY POOR DEALS. DEADLINES ARE CRUCIAL AREA OF CONCESSIONS.

27. NEGOTIATION--SOME DON’TS DON’T APPEAR SHORT TEMPERED AND FRUSTRATED WHILE NEGOTIATING. DON’T IGNORE OTHER PERSON’S TONE OF VOICE AND WORDS. DON’T MAKE TOO MANY CONCESSIONS AT AN EARLY STAGE. DON’T ENTER NEGOTIATION WITH A PRESET MIND. DON’T GIVE UP WHEN THINGS SEEM TO BE DEADLOCKED.

28. SUCCESSFUL NEGOTIATION BE PREPARED FOR COMPROMISE. BE FLEXIBLE--IT IS A SIGN OF STRENGTH. IT DEPENDS ON IDENTIFYING WANTS AND FOCUSSING ATTENTION TOWARDS BENEFITS / REWARDS /PUNISHMENTS. IT DEPENDS ON INFORMATION ABOUT OTHER PARTY,COMMON INTEREST OF BOTH PARTIES. IT GIVES GOOD RESULTS WHEN BOTH PARTIES ARE HURT ENOUGH AND WANT A WAY OUT. POSITIVE VOCABULARY IS LIKELY TO GIVE RESULTS.

29. NEGOTIATION DO MAKE CONDITIONAL OFFERS,SUCH AS “IF YOU DO THIS WE WILL DO THAT”. INDICATE THAT EVERY CONCESSION YOU ARE MAKING IS A MAJOR LOSS TO YOU. EXPLAIN TO THE OTHER PARTY THE BENEFITS OF THE PROPOSED DEAL TO HIM. THINK TWICE BEFORE USING A MEDIATOR. CONSIDER THE IMPACT OF PRESENT NEGOTIATION ON FUTURE ONES. AIM FOR A COLLABORATIVE STYLE BUT BE PREPARED FOR CONFRONTATION.

30. NEGOTIATION... A TEAM OF TWO-THREE CAN NEGOTIATE MORE EFFECTIVELY. PREDICT THE ARGUMENTS AND FACTS THE OTHER PARTY CAN USE DURING NEGOTIATION. CONSIDER THE POSSIBILITY OF EXISTENCE OF HIDDEN AGENDA OF THE PARTY.

31. IMPLEMENTATING THE AGREEMENT NEGOTIATION IS NOT COMPLETE UNTIL IT IS EFFECTIVELY IMPLEMENTED. THE IMPLEMENTATION PROGRAM SHOULD DEFINE WHAT HAS TO BE DONE BY WHOM AND WHEN. THIS CAN BE IN WRITING WITH ADEQUATE INFORMATION AND EXPLANATIONS.

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