This presentation contains a brief description about negotiation.

1. NEGOTIATION

2. 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.

3. DEFINITIONS OF NEGOTIATONS
• 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.
• "Winston’s Advanced Dictionary,” the discussions & bargaining that goes on between
parties before a contract is settled or deal is agreed upon”.

4.  The most distributive feature is that it
operates under a zero-sum game.
 The gain made by one person is the loss
incurred by the other person.
 Each person involved in the negotiation
defines ultimate point where the settlement
will be made.
 The sellers goal is to negotiate as high a price
is possible; the buyers intention is to
negotiate as low a price as possible.
 It is a win-lose situation.
INTEGRATIVE NEGOTIATION
Parties cooperate to achieve maximize
benefits by integrating their interests.
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.
It is a win-win situation.
TYPES OF NEGOTIATIONS
DISTRIBUTIVE NEGOTIATION

5. SITUATION REQIRING NEGOTIATIONS
Negotiation is necessary
when an issue involves
more than one person and
problem cannot be solved
by one person.
There are Formal and
Informal Negotiations.
Formal Negotiations -
Prearranged meetings of
two or more parties, agenda
is already fixed, there is
time to prepare and assign
roles etc.
Informal Negotiations -
These are unannounced
and casual, involves two
persons, won’t get time to
study. This approach may
influence outcome.

6. PRINCIPLE OF
NEGOTIATION
(P's of negotiations)
PURPOSE - aim is required otherwise it
will result in wastage of money,
manpower & time
PLAN - main agenda on which
negotiation is to be carried on.
PACE - main points should be covered in
discussions, also proper breaks must be
introduced to maintain interest of peoples
involved.
PERSONALITIES - negotiator initiating
negotiation must have convincing power,
effective communication skills, can
influence people & process of negotiation

7. 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 too late.
 SUBJECTIVE FACTORS:-
A) Personal relationships
B) Fear
C) Mutual obligation
D) Future consideration

8. PROCESS
OF
NEGOTIATION
OFFER - First
proposal made by one
party to another in the
negotiation stage.
COUNTEROFFER -
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. OUTCOMES OF
NEGOTIATION
WIN - LOSE
situation ( domination )
LOSE – LOSE
situation ( withdrawing )
LOSE – WIN situation
( submission )
WIN – WIN situation
( mutual gain )
BATNA ( Best Alternative
To a Negotiated Agreement )

10. NEGOTIATION
SKILLS
Listening skills
Analytical skills
Communication skills
Problem solving skills
Persuasive skills
Planning skills
Strategizing skills

11. THANK YOU
KEEP
NEGOTIATING!!