Negotiation is a dialoguebetween two or more people or parties intended to reach a beneficial outcome over one or more issues where a conflict exists with respect to at least one of these issues. This beneficial outcome can be for all of the parties involved, or just for one or some of them. Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument and dispute. In any disagreement, individuals understandably aim to achieve the best possible outcome for their position (or perhaps an organization they represent). However, the principles of fairness, seeking mutual benefit and maintaining a relationship are the keys to a successful outcome. Specific forms of negotiation are used in many situations: international affairs, the legal system, government, industrial disputes or domestic relationships as examples. However, general negotiation skills can be learned and applied in a wide range of activities. Negotiation skills can be of great benefit in resolving any differences that arise between you and others.

1. Assignment
On
Negotiation
Course Title: Industrial Relation
Course Code: HRM-6190
Submitted to:
M. Abdullah AL Mamun
Asst. Professor
School of Business Studies
Southeast University
Joint Secretary & Fellow, (BSHRM)
Professional Member, (SHRM), USA
Submitted by:
Setu Karmokar
ID: 2016-11-000-4007
Shaila Sharmin Pew
ID: 2015-01-000-2007
Masudul Hasan
ID: 2015-01-000-2006
Rashidul Islam
ID: 2016-21-000-4079
Date of submission- 03/08/2017

2. NEGOTIATION

3. CONTENT PAGE
SL NO. TITLE PAGE NO.
1 INTRODUCTION 1
2 CHARECTERISTICS OF NEGOTIATOR 2
3 SKILLS OF A NEGOTIATOR 3
4 ELEMENTS OF NEGOTIATION 4
5 NEGOTIATION ISSUES 5
6 EMOTION IN NEGOTIATION 6
7 MODELS OF NEGOTIATION 7
8 NEGOTIATION TECHNIQUES 10
9
CHALLENGE FOR AN EFFECTIVE
NEGOTIATION
11
10 NEGOTIATION PROCESS (STEPS) 12
11 SITUATIONS REQUIRING NEGOTIATIONS 13
12 ISSUES FOR SUCCESSFUL NEGOTIATION 14
13 STEPS TO PREPARATION SUCCESS 15
14
EFFECTIVE NEGOTIATION REQUIRES WORK
BEFORE, DURING, AND AFTER
16
15 PREPARE FOR WIN WIN NEGOTIATION 17
16 CONCLUSION 18
17 REFERENCES 19

4. INTRODUCTION
Negotiation is a dialoguebetween two or more people or parties intended to reach a beneficial outcome over
one or more issues where a conflict exists with respect to at least one of these issues. This beneficial
outcome can be for all of the parties involved, or just for one or some of them.
Negotiation is a method by which people settle differences. It is a process by which compromise or
agreement is reached while avoiding argument and dispute.
In any disagreement, individuals understandably aim to achieve the best possible outcome for their position
(or perhaps an organization they represent). However, the principles of fairness, seeking mutual benefit and
maintaining a relationship are the keys to a successful outcome.
Specific forms of negotiation are used in many situations: international affairs, the legal system,
government, industrial disputes or domestic relationships as examples. However, general negotiation skills
can be learned and applied in a wide range of activities. Negotiation skills can be of great benefit in
resolving any differences that arise between you and others.
Negotiation is the process where interested parties resolve disputes, agree upon courses of action, bargain
for individual or collective advantage, and/or attempt to craft outcomes which serve their mutual interests.
Negotiation is usually regarded as a form of alternative dispute resolution. The first step in negotiation is to
determine whether the situation is in fact a negotiation. The essential qualities of negotiation are: the
existence of two parties who share an important objective but have some significant difference(s). The
purpose of the negotiating conference to seek to compromise the difference(s). The outcome of the
negotiating conference may be a compromise satisfactory to both sides, a standoff (failure to reach a
satisfactory compromise) or a standoff with an agreement to try again at a later time. Negotiation is
something that we do all the time and is not only used for business purposes.
For example, we use it in our social lives perhaps for deciding a time to meet, or where to go on a rainy day.
Negotiation is usually considered as a compromise to settle an argument or issue to benefit ourselves as
much as possible.

5. CHARECTERISTICS OF NEGOTIATOR
Negotiator is a person who discusses a problem with the aim of achieving agreement between different
people or groups of people.
There are some characteristics of negotiator such as:
 Preparation and planning skill.
 Knowledge of the subject matter being negotiated.
 Ability to think clearly and rapidly under pressure and uncertainty.
 Ability to express thoughts verbally.
 Listening skill.
 Judgment and general intelligence.
 Iintegrity.
 Ability to persuade others.
 Patience.
 Decisiveness.
 Considers lots of options.
 Aware of the process and style of the other person.
 Is flexible.
 Thinks and talks about possible areas of agreement.

6. SKILLS OF A NEGOTIATOR
GoodNegotiating skills demand severalskills sets to be executedwith precisionsuch
as:
 Empathy.
 Listening.
 Questioning.
 Remembering.
 Attention.
 Language.
 Non-verbal cues.
Having goodNegotiating skills means that can avoid:
 Self-sacrificing behavior.
 Losing control of when to negotiate.
 Making unnecessary concessions.

7. ELEMENTS OF NEGOTIATION
Negotiation
Process
The way individuals negotiate with each other is called the process of negotiation. The process includes the
various techniques and strategies employed to negotiate and reach to a solution.
Behavior
How two parties behave with each other during the process of negotiation is referred to as behaviour. The
way they interact with each other, the way they communicate with each other to make their points clear all
come under behavior.
Substance
There has to be an agenda (Topic) on which individuals negotiate. A topic is important for negotiation.
PROCESS BEHAVIOUR SUBSTANCE
(AGENDA/
TOPIC)

8. NEGOTIATION ISSUES
When Negotiation Is Not Appropriate:
 Not worth time.
 When leverage is super weak.
 When negotiating sends the wrong signal.
 When negotiating is culturally inappropriate.
Ethical Issues Related to Negotiation:
 Trust.
 Relationship Fair.
 Honest and Openness.
 Reflection.
Strengths and weakness of different negotiation:
Strengths:
 Relationship with customer
 Knowledge of customer’s need
 Experience
 Market position
 Financial resources
 Knowledgeable staffing
 Product strengths over competition
Weakness:
 Staffing
 Loss of key staff
 Margins too low
 Market position
 Product weaknesses
 Financial resources
 Increased competition

9. EMOTION IN NEGOTIATION
 Emotions play an important part in the negotiation process.
 Emotions have the potential to play either a positive or negative role in negotiation.
 During negotiations, the decision as to whether or not to settle, rests in part on emotional factors.
 Positive and negative discrete emotions can be strategically displayed to influence task and relational
outcomes.
Role of Emotions in Negotiation:
 If one is in a happy mood, everything seems perfect and good to him.
 Anger is one of the most negative emotions acting as a hurdle to an effective negotiation.
 One needs to be friendly with the second party.
 Negotiations must be with a clear and a tension free mind.
 One should be calm and composed.
 Don’t stress librarian itself at the time of negotiation.
 Avoid being clever.
 Being positive always helps.

10. MODELS OF NEGOTIATION
WinWin Model:
In Win Win Model, each and every individual involved in negotiation wins. Nobody is at loss in this model
and everyone is benefited out of the negotiation. This is the most accepted model of negotiation.
Example:
Mrs. SetuKarmaker wanted to buy a “Labor Law 2006” book but it was an expensive book. She went to the
shop and negotiated with the publisher to discount the price. Initially the publisher was unwilling but after
several rounds of discussions and arguments, he gave a discount best suited to him as well as Mrs.
SetuKarmaker. SetuKarmakerwas extremely satisfied as she could now purchase the book without burning a
hole in her budget.
Win Lose Model:
In Win Lose Model one party wins and the other party loses. In such a model, after several rounds of
discussions and negotiations, one party benefits while the party remains dissatisfied.
Example:
Let us see the above example once again where Mrs. SetuKarmaker wanted to buy “Labor Law 2006” book.
In this example, both Mrs. SetuKarmakerand the publisher were benefited out of the deal. Let us suppose
Mrs. SetuKarmakercould not even afford the price quoted by the publisher and requests him to give
discount on the book. If the publisher further discounts the book, he would not be able to earn his profits but
Mrs. SetuKarmakerwould be very happy. Thus after the negotiation, Mrs. SetuKarmaker would be satisfied,
but the publisher would not be satisfied.
In a win lose model, both the two parties are not satisfied, only one of the two walks away with the benefit.
LoseLose Model
In LoseLose Model, the outcome of negotiation is zero. No party is benefited out of this model. In this
model, generally the two parties are not willing to accept each other’s views and are reluctant to
compromise. No discussions help.
Example:
Had Mrs. SetuKarmaker not purchased the book after several rounds of negotiation, neither she nor the
publisher would have got anything out of the deal? Mrs. SetuKarmakerwould return empty handed and the
publisher would obviously not earn anything.

11. RADPAC Model of Negotiation
RADPAC Model of Negotiation is a widely used model of negotiation incorporates.
Every alphabet in this model signifies something:
R - Rapport
A - Analysis
D - Debate
P - Propose
A - Agreement
C - Close
R - Rapport: As the name suggests, it signifies the relation between parties involved in negotiation. The
parties involved in negotiation ideally should be comfortable with each other and share a good rapport with
each other.
A - Analysis: One party must understand the second party well. It is important that the individual
understand each other’s needs and interest.
D - Debate: Nothing can be achieved without discussions. This round includes discussing issues among the
parties involved in negotiation. The pros and cons of an idea are evaluated in this round. People debate with
each other and each one tries to convince the other. One must not lose his temper in this round but remain
calm and composed.
P - Propose: Each individual proposes his best idea in this round. Each one tries his level best to come up
with the best possible idea and reach to a conclusion acceptable by all.
A - Agreement: Individuals come to a conclusion at this stage and agree to the best possible alternative.
C - Close: The negotiation is complete and individuals return back satisfied

12. Partisan perceptual biases
Even the most experienced business negotiator makes mistakes after all, we are all human. There are a few
common negotiation mistakes that can derail a negotiation, according to Harvard Business School Professor
James K. Sebenius. Prof. Sebenius says these six mistakes are:
 Neglecting the other side’s problem.
 Letting price bulldoze other interests.
 Letting positions drive out interests.
 Searching too hard for common ground.
 Neglecting BATNAs (acronym for “best alternative to negotiated agreement”).
 Failing to correct for skewed vision.
To avoid partisan perception, recognize it as a phenomenon, and:
 Imagine myself taking the other side's position. Try to see the issue from the perspective of the
other party. This will help to see the other side's partisan viewpoints.
 Carefully frame the problem. When conveying one’s position to the other party, pose the problem
as it appears to one’s, and ask how they would view it.
 Pose the issue to others. Explain the situation without telling others which side one’s on and solicit
others opinions.
 Involve a neutral third party. Suggest bringing in a neutral third party or expert to provide
unbiased guidance.

13. NEGOTIATION TECHNIQUES
Negotiation is referred to as the style of discussing things among individuals in an effort to come to a
conclusion satisfying all the parties involved. Discussions should be on an open forum for everyone to not
only participate but also express their views and reach to an alternative acceptable to all.
Negotiation must be in a dignified way. One has to be extremely patient and also understand the second
party’s needs and interests as well. Never impose your ideas on anyone. Let everyone speak their mind and
decide something which would favour one and all.
Example:
Mrs. SetuKarmakerwanted to purchase new books for the whole academic year. She checked out the prices
of almost all the leading publishers along with their quotas before going to give a final order. Setu went well
prepared and thus managed to crack the best deal and took the best quality books with the maximum
possible discount.
Some negotiation techniques uses are:
 Take good care of your posture as well as your body movements.
 Be very focused.
 Never keep things to yourself and crib later.
 Be a patient listener.
 Be realistic.
 Don’t be in a hurry to close the deal.
 Know where to compromise.
 Communication is also important in negotiation.
 For a third party it’s always better to sign a contract.

14. CHALLENGE FOR AN EFFECTIVE NEGOTIATION
 Individuals are not ready to understand the second party at all.
 Lack of time.
 Going unprepared for a negotiation.
 Lack of patience.
 Criticism, sarcasm, derogatory remarks.
 Avoid last minute changes.
 Being too rigid.
 Lack of confidence.

15. NEGOTIATION PROCESS (STEPS)
 Preparation and Planning.
 Definition of Ground Rules.
 Clarification and Justification.
 Bargaining and Problem Solving.
 Closure and Implementation.
Preparation and Planning
Before the start of negations, one must be aware of the conflict, the history leading to the negotiation the
people involved and their perception of the conflict expectations from the negotiations etc.
Definition of Ground Rules
Once the planning and strategy are developed, one has to begin defining the ground rules and procedures
with the other party over the negotiation itself that will do the negotiation. Where will it take place?
What time constraints, if any will apply? To what issues will negotiations be limited? Will there be a
specific procedure to follow in an impasse is reached? During this phase, the parties will also exchange their
initial proposals or demands.
Clarification and Justification
When initial positions have been exchanged both the parties will explain amplify, clarify, bolster and justify
their original demands. This need not be confrontational.
Rather it is an opportunity for educating and informing each other on the issues why they are important and
how each arrived at their initial demands.
This is the point where one party might want to provide the other party with any documentation that helps
support its position.
Bargaining and Problem Solving
The essence of the negotiation process is the actual give and take in trying to hash out an agreement, proper
bargain is here where concessions will undoubtedly need to be made by both parties.
Closure and Implementation
The final step in the negotiation process is formalization the agreement that has been worked out and
developing and procedures that are necessary for implementation and monitoring.
For major negotiations – this will require hammering out the specifics in a formal contract.

16. SITUATIONS REQUIRING NEGOTIATIONS
Informal situations:
 Allocation of work.
 Problem-solving meeting.
 Target setting.
 Performance counseling.
 One-to-one discipline meetings.
 Routine meeting with employees or their representatives.
Formal situations:
 Performance-review discussion.
 Appraisal interviews.
 Section interviews.
 Budgetary meetings.
 Agenda-based meetings with unions or employees.
 Grievance meetings.
 Works committee meetings.
 Joint council meetings.
Unstructured situations:
 Problem-solving meetings.
 Target setting.
 Performance counseling.
 One-to-one discipline meetings.
 Grievance meetings.
 One-to-one discipline meetings.
 Routine meeting with employees or their representatives.
Structured situations:
 Performance-review discussion.
 Appraisal interviews.
 Section interviews.
 Budgetary meetings.
 Agenda-based meetings with unions or employees.
 Works committee meetings.
 Joint council meetings.

17. ISSUES FOR SUCCESSFUL NEGOTIATION
 Preparation.
 Stay alert.
 Confidence.
 Be cautious.
 Avoid delays.
 Understand the other person well.
 Don’t cheat anyone.
 Always have an alternate plan.
 One must know the purpose of negotiation.
 Don’t get too involved in the negotiation.
 Maintain the decorum of the place.
 Be a good communicator.
 Be patient.
 Don’t drag the conversation too long.
 Should not act pricy or pretend things.
 Chose a proper room for better negotiations.

18. STEPS TO PREPARATION SUCCESS
 Know Your Strategy.
 Negotiating Style.
 Identify Goals.
 Prepare a SWOT Analysis.
 Pre-Meeting Questions.
 Options / Deal design.
 Trading Plan.
 Set the Agenda.
 Build a Team.

19. EFFECTIVE NEGOTIATION REQUIRES WORK
BEFORE, DURING, AND AFTER
Before
Before negotiating, research the position or the person you are negotiating with. This should let you know
what he or she expects the right compensation to be. You should also know the compensation you expect.
Once those two things are known to you, build a bridge so both parties connect, and try to meet at the right
point.
During
Listening is key during the actual negotiation, so use active listening techniques that include taking notes
and nodding your head. Understand that adjusting to the situation and being open-minded are important
versus a “one size fits all” model. Put yourself in the shoes of the person doing the hiring so you can clearly
understand how he or she benefits from this negotiation. In addition, be on the lookout for unexpected
opportunities that may present themselves, and be open to these. It’s a must to always be professional.
Proactively seek to clarify and simplify, and always support your experience with specific examples.
Making a situation a “win-win” is a great goal to shoot for.
After
After a negotiation, it is very helpful to clarify things in writing and confirm a new timetable as soon as
possible. Assess what took place during the negotiation so you can learn from your experience and
strengthen your negotiation skills for the next time.

20. PREPAREFOR WIN WIN NEGOTIATION
 Should be very specific about his expectations from the negotiation.
 Should always be ready with an alternate plan.
 Be transparent and honest with the second party.
 Be very confident.
 Understand the second party well.
 Be a good communicator.
 Take care of your dressing as well.
 An individual should learn to compromise to his best extent possible.
 When done with the negotiation, do sign contracts and agreements in the presence of both the
parties.
 One must go with a positive attitude for a win win negotiation.

21. CONCLUSION
Negotiation is simply a technique, a discussion among individuals to reach to a mutual agreement where
everyone gains something or the other and conflicts are avoided. Negotiation is referred to as the style of
discussing things among individuals in an effort to come to a conclusion satisfying all the parties involved.
Negotiating will help to work more effectively and can also help to get a pay rise, time off, a new job, more
help or more recognition. It is a skill everyone can apply in almost every aspect of our life, right down to
our personal relationships.

22. REFERENCES
“The Negotiation Book” 2nd edition, by “Steve Gates”, Published by “John Wileyand Sons Ltd.” in
2011, pp - (1-15) & (50-55).
“BargainingFor Advantage” 2nd edition, by “G. Richard Shell”, Published by “Penguin Books” in 1999,
pp - (50-75) & (215-275).
An Overview on Negotiation, Retrieved November 2, 2012, from ,
http://managementstudyguide.com/negotiation.htm
The Pinnacle Peek, SWOT in Negotiations, Written by Bill Stuckey, from:
http://www.pinnacletelecom.com/blog/bid/287899/swot-in-negotiations
How to negotiate situations that feel hopeless, by Carmen Nobel, Published at 25th Jan 2016
http://hbswk.hbs.edu/Pages/browse.aspx?HBSTopic=Negotiation
Values creation in negotiations, by Steve Jones, Negotiation Styles by Calum Coburn, What every
negotiator must know before they negotiate, by Steve Roberts,
https://www.negotiations.com/articles/