This document discusses the key aspects of negotiation including definitions, objectives, approaches, styles, models, processes, participants, and challenges. Specifically, it defines negotiation as a decision-making process between interdependent parties with differing preferences. It outlines the objectives of understanding negotiations and developing effective strategies. And it notes that the challenge for negotiators is to represent principal parties not directly involved while keeping them informed of the negotiation's progress.

1. Negotiation
“Let us never negotiate out
of fear, but let us never fear
to negotiate.”
ACHLA TYAGI 1

2. Negotiation
• Negotiation: It is a decision making process
among interdependent parties who do not
share identical preferences. It is through
negotiation that the parties will decide what
each will give & take in their relationship/s.
• “It is a face-to-face decision making process
between parties concerning a specific
issues.”
ACHLA TYAGI 2

3. Negotiation
• Features of Negotiation:
 There are a minimum of two parties present.
 Both parties have predetermined goals.
 Some of the predetermined goals are not
shared by both the parties.
 There is an expectation of outcome.
 Both parties believe that the outcome of
negotiation may be satisfactory.
ACHLA TYAGI 3

4. Negotiation
 Both the parties are willing to modify their
positions.
 The parties’ incompatible positions might
make modification of position difficult.
 The parties understand the purpose of
negotiation.
ACHLA TYAGI 4

5. Negotiation
• Objectives of Negotiation:
 Understand what negotiations are all about.
 Select a strategy to negotiate effectively.
 Learn the range of negotiation approaches &
their results based on your interaction/s.
 Plan for negotiation session.
 Use communication techniques to avert potential
conflicts.
 Practice your general negotiation technique.
ACHLA TYAGI 5

6. Negotiation
Negotiation – Remember two elements are
essential:
1.Reasonableness
2.Flexibility
ACHLA TYAGI 6

7. Negotiation
• The basic components:
 Preparation
 Objectivity
 Strategy
 Technique.
ACHLA TYAGI 7

8. Negotiation
• Identification of issues – Factors to consider:
 The Facts
 The Problem
 The Result
 The Reason
ACHLA TYAGI 8

9. Negotiation
• Types of Negotiation: On the basis of stability
aspect of negotiated settlement, the
negotiation processes have been divided into
two categories:
1.Integrative Approach (Win-Win Strategy)
2.Distributive approach (Win-Loose Strategy/
Zero-Sum Strategy)
ACHLA TYAGI 9

10. Negotiation
• Principles to Integrative Approach:
1. Separate people from problem
2. Focus on interest, not positions.
3. Invent options for mutual gains.
4. Insist on using objective criteria.
ACHLA TYAGI 10

11. Negotiation
• Principles to Distributive approach:
1.I want it all.
2.Time wrap
3.Good cop – bad cop
4.Ultimatum
ACHLA TYAGI 11

12. Negotiation
• The five elements of Negotiation:
1.The parties & their interests.
2.Interdependency
3.Common Goals
4.Flexibility
5.Decision – making ability/authority
ACHLA TYAGI 12

13. Negotiation
• Need of developing Negotiating Skills:
Following are the key concern areas that are needed
to be focused while one begins to build these
negotiating skills –
1. Negotiations are rarely pure win-lose or win-win
propositions
2. Negotiations takes place under conditions of
ambiguity & uncertainty.
3. Most negotiations involve existing or potential
sources of conflict that impede reaching an
agreement.
ACHLA TYAGI 13

14. Negotiation
4. Negotiations are chaotic & seldom pass sequentially
through distinct phases such as pre-negotiation,
deal structuring, detailed bargaining & agreement.
5. Most negotiations are linked to other negotiations.
6. Negotiation process comes in, stops & restarts.
7. Most complex negotiations takes place between
agents of groups & not the group themselves.
8. Complex negotiations often involves a team
approach.
9. Negotiating skills can be learned.
ACHLA TYAGI 14

15. Bargaining Styles
People have different organizing styles –
varying from relatively stable to
personality driven clusters of behavior
and their reaction/s. These styles, when
followed in a set pattern leads to the
formation of certain specific models
known as models of negotiation.
ACHLA TYAGI 15

16. Dual Concern Model
• This was proposed by Dean G. Pruitt, Jeffery
Z. Rubin & Sung Hee Kin. This model explains
how one’s behavior while bargaining or during
conflict, is influenced by two concerns:
1.The desire to satisfy oneself.
2.The desire to satisfy the other party.
ACHLA TYAGI 16

17. Dual Concern Model
The bargaining styles associated with Dual
Concern Model stems from two personality
dimensions:
1. Assertiveness
2. Co-operation
These two concerns yield five negotiating styles:
i. Avoiding
ii. Accommodating
iii. Compromising
iv. Competing
v. Collaborating
ACHLA TYAGI 17

18. Five Factor Model
• This is also known as Big-5 Personality
Dimension, presented by Zhenzhong Ma. He
sought to determine whether personality
factors could predict an individual’s bargaining
style & whether one’s bargaining style
adequately predicts bargaining behavior?
The dimensions of personality are also
referred to as OCEAN Approach.
ACHLA TYAGI 18

19. PRAM Model
• Ross & Long developed the PRAM Model to
put win-win approach into practice. This
model guides the negotiator through four
steps of:
1.Planning for Agreement
2.Building Relationship/s
3.Reaching Agreement/s
4.Maintaining Relationship/s
ACHLA TYAGI 19

20. The Negotiation Process
The process of negotiation has following
4 stages:
• Stage I: Preparation
• Stage II: Opening Session
• Stage III: Bargaining
• Stage IV: Settlement
ACHLA TYAGI 20

21. The Negotiation Process
• Stage I: Preparation
Identify all the issues
Set priorities
Develop supportive arguments
ACHLA TYAGI 21

22. The Negotiation Process
• Stage II: Opening Session
Ground Rules
Framework for Success
Initial Offers
Posturing
ACHLA TYAGI 22

23. The Negotiation Process
• Stage III: Bargaining
Single Issue Negotiation
Multiple Issue Negotiation
ACHLA TYAGI 23

24. The Negotiation Process
• Stage IV: Settlement
Impasse
Third Party Intervention
The Closing
ACHLA TYAGI 24

25. The Negotiators/ Agents
Negotiation/s can take place between two
individuals who are representing their own
interests such as:
 Individual & his lawyer who are representing
negotiating deal.
 Between a group of people engaged in decision
making process.
 Between parties representing interest other than
their own as is typically found in a business
transaction between a company & its suppliers.
ACHLA TYAGI 25

26. Types of Negotiators/ Agents
Broadly we classify the negotiators as:
1.Independent Agents
2.Non – Independent Agents
ACHLA TYAGI 26

27. The Challenge
 Bargaining is a process that includes:
1.Gathering general information
2.Learning the priorities of the other side in a
specific negotiation
3.Assessing the strengths & weakness of their
own positions.
ACHLA TYAGI 27

28. The Challenge(cont..)
 The challenge in being an agent of the
principal party who is not into negotiation, is
to make sure the principal party is aware of
how the negotiation process is progressing. If
the principal party is not a direct part of that
process, the agent must discuss the
information gathered at the negotiating table
& get direction from the principal party on
how to proceed.
ACHLA TYAGI 28