Negotiation is a process where two parties try to reach an agreement by bargaining over terms to satisfy each other's wants. It requires flexibility and effective communication as the parties aim for a win-win compromise. Factors like time, attitude, relationship between parties, and information available can affect negotiations. The negotiation process typically involves an initial offer, a counteroffer, concessions from both sides, and eventual agreement. Guidelines for successful negotiations include maintaining a positive attitude, learning about the other party, hiding your desires, thinking carefully before speaking, and bringing expertise to the discussion.

2. NEGOTIATION
MOHAMMED IRSHAD.P

3. INTRODUCTION
 Negotiation is the process of bargaining,
Where two parties ,trying to reach an
agreement on mutually accepted terms to
acquire each others wants.
Example:- Customer trying to negotiate
with buyer over a price of a product.
Negotiation for salary between employee
& employer.

4. DEFINITIONS OF NEGOTIATION
 In the words of Bill Scott
“a negotiation is a form of meeting between
two parties: OUR PARTIES & OTHER
PARTIES”.
 According to J.A. Wall ”negotiation is a
process in which two or more parties
exchange goods or services and attempt
to agree on the exchange rate for them.”

5. NATURE OF NEGOTIATION
 It requires involvement of two parties.
 Requires flexibility.
 A process not an event.
 Needs effective communication.
 Continuous process( between buyer & seller, employer
& employee for wages, working hours etc)
 Win- win situation for parties involved.

6. FACTORS AFFECTING NEGOTIATION
 PLACE:
Familiarity with surrounding helps in boosting confidence.
 TIME :
Time should be adequate for smooth exchange of ideas &
securing agreement before it is to late .
 ATTITUDE :
Attitude of both parties should be positive , ie . , willingness
to make an agreement or deal.
 SUBJECTIVE FACTORS :
Like relation of two parties involved, status difference,
information &expertise.

7. NEGOTIATION PROCESS
 OFFER
 COUNTER OFFER
 CONCESSION
 COMPROMISE
 AGREEMENT

8.  OFFER:
First proposal made by one party to another in the negotiation
stage.
 COUNTER OFFER:
Offer made by second party to first party, or proposing their
offer against first party offer.
 CONCESSION:
Increase or decrease made in the offer or change in the idea.
 COMPROMISE:
Sacrifice made by both or one party.
 AGREEMENT:
Point where both parties agrees , which is beneficial to both.

9. GUIDELINES FOR SUCCESSFUL NEGOTIATION
 Positive Attitudes
 Step By step approach
 Find out the other parties state of mind
culture background's Likes & dislikes
 Hide your prove desire
 Don’t disclose your deadlines
 Think before you speak
 Know your market information
 Bring your own expert