Art of Negotiation in various deals

1. THE ART OF NEGOTIATION

3. A DIALOGUE BETN TWO OR
MORE PARTIES WITH THE
INTENT OF COMING TO A
MUTUALLY AGREEABLE
SOLN, BECAUSE EACH
PARTY HAS SOMETHING
THE OTHER WANTS.
A COMN PROCESS BETN
TWO OR MORE PEOPLE IN
WHICH THEY CONSIDER
ALT TO ARR AT MUTUALLY
AGREEABLE SOLN OR
MUTUALLY SATISFACTORY
OBJS.
NEGOTIATION IS…….

4. SOME OTHER THOUGHTS !!!
NEGOTIATION OCCURS IN BUSINESS, NON-PROFIT
ORGANIZATIONS, GOVERNMENT BRANCHES, LEGAL
PROCEEDINGS, AMONG NATIONS AND IN PERSONAL
SITUATIONS SUCH AS MARRIAGE, DIVORCE,
PARENTING, AND EVERYDAY LIFE.
PROFESSIONAL NEGOTIATORS ARE OFTEN SPECIALIZED,
SUCH AS UNION NEGOTIATORS, LEVERAGE BUYOUT
NEGOTIATORS, PEACE NEGOTIATORS, HOSTAGE
NEGOTIATORS, OR MAY WORK UNDER OTHER TITLES,
SUCH AS DIPLOMATS, LEGISLATORS OR BROKERS

5. 6
BEST
ALTERNATIVE
TO A
NEGOTIATED
AGREEMENT
(BATNA)
RESISTANCE PT
ZONE
OF
POSSIBLE
AGREEMENT
(ZOPA)
SOME TERMINOLOGIES

6. EXAMPLE
• ‘A’ wants to sell his 3 yr old car. Min price
expected by him is Rs 1.7 lac
• ‘B’ has already sold his old car and has Rs 1.8
lac as floating capital to buy another sec hand
car.

7. 8
BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT (FISHER AND URY,1991)
BATNA IS WHAT YOU WALK AWAY TO IF YOU CHOOSE NOT TO NEGOTIATE
HOW DO THE PROPOSALS MATCH YOUR REALISTIC ALTERNATIVES IF YOU
CANNOT COME TO A DEAL.
YOUR ALTERNATIVE TO NEGOTIATIONS
KNOWING AND APPRECIATING YOUR “BATNA” ALSO HELPS TO DEVELOP
YOUR STRATEGY
THE MORE ATTRACTIVE YOUR BATNA IS COMPARED WITH THE PROPOSALS
YOU RECEIVE, THE MORE POWER YOU HAVE AND VICE VERSA.
NORMALLY, A STRONG ALTERNATIVE TO NEGOTIATION MEANS A STRONG
NEGOTIATING POSITION.
WHAT IS BATNA???

8. 9
LIST WHAT YOU WOULD DO IF YOU FAIL TO REACH AN AGREEMENT.
CONVERT THE MOST PROMISING OPTIONS INTO PRAC CHOICES.
SELECT THE SINGLE BEST OPTION – THAT IS YOUR BATNA.
COMPARE YOUR BATNA TO OTHER PROPOSALS.
IF AN OFFER IS BETTER THAN YOUR BATNA – CONSIDER IMPROVING OR
ACCEPTING IT.
IF AN OFFER IS WORSE THAN YOUR BATNA, CONSIDER REJECTING IT.
DEVELOPING BATNA

9. SO WHAT’S YOUR BATNA???
• ANY ONE OF THE FWG:-
– CAR POOL.
– CAB.
– BUS.
– LOOK FOR ANOTHER DEALER(You might end up
getting a higher price tag for the same vintage and
condition of veh)
• All these alternatives depict a weak BATNA – i.e.
your urgency and compulsion to buy a sec hand
car earliest.

10. 11
THE POINT (VALUE) AT WHICH THE PERSON WOULD NOT GO
BEYOND AND WOULD RATHER BREAK OFF NEGOTIATIONS
(LEWICKI, 2004)
THE LEAST THE SELLER WOULD ACCEPT OR THE MOST A BUYER
WOULD PAY
CAN BE INFLUENCED
NOT YOUR BATNA
RESISTANCE PT(RP) OR “BOTTOM LINE”

11. 12
ZONE OF POTENTIAL AGREEMENT (LEWICKI, 2004)
AKA: BARGAINING RG OR SETTLEMENT RG
THE SPREAD BETWEEN THE RESISTANCE PTS
MUST EXIST TO NEGOTIATE (BUYER’S RP MUST BE
GREATER THAN THE SELLER’S RP)
ZOPA!!!

12. 13
Seller’s
Buyer’s
1.5 Lac 2.0 Lac1.7 Lac 1.8 Lac
Resistance point
Resistance point
ZOPA
EXAMPLE – CAR SALE

13. NEGOTIATION STRATEGIES

14. (Lewicki, et al, 2004) 15
RELATIONSHIP
OUTCOME
COMPETE
AVOID
COLLABORATE
YIELD
NEGOTIATION STRATEGIES
(INTERDEPENDENCE)

15. • Distributive—competitive, win-lose
• Integrative—collaborative, win-win 16
TYPES OF NEGOTIATIONS
COMPETE
AVOID
COLLABORATE
YIELD

16. 17
ONE SIDE WINS AND ONE SIDE LOSES.
FIXED RESOURCES DIVIDED SO THAT THE MORE ONE
SIDE RECEIVES, THE LESS THE OTHER DOES.
ONE PERSON’S INTERESTS OPPOSE THE OTHERS.
DOMINANT CONCERN IS USUALLY MAXIMIZING ONE’S
OWN INTERESTS.
DOMINANT STRATEGIES INCLUDE MANIPULATION,
FORCING, AND WITHHOLDING INFO.
FACE-TO-FACE ARGUING OVER POSITION.
DISTRIBUTIVE NEGOTIATION

17. 18
VARIABLE AMOUNT OF RESOURCES TO BE DIVIDED AND
BOTH SIDES CAN WIN.
DOMINANT CONCERN IS TO MAXIMIZE JOINT OUTCOMES.
DOMINANT STRATEGIES INCLUDE COOPERATION,
SHARING INFO, AND MUTUAL PROBLEM SOLVING.
SIDE-BY-SIDE PROBLEM SOLVING WITH A FOCUS TOWARD
MUTUAL INTERESTS.
INTEGRATIVE NEGOTIATION

18. 21
GOOD LEARNER, OBSERVER AND
LISTENER.
ANALYSE BODY LANGUAGE.
BE OPEN AND FLEXIBLE AND YET
FIRM.
EX GREAT PATIENCE, COOLNESS
AND MATURITY.
CONT YOUR EMOTIONS AND DO
NOT EXPOSE WEAKNESSES.
CHARACTERISTICS OF A GOOD NEGOTIATOR

19. 22
BARGAIN FROM POSN OF STR.
ANTICIPATE PROS AND CONS OF
EACH MOV.
BUILD TRUST AND CONFIDENCE.
PLAN AND PREP THOROUGHLY -
HAVE CLEAR CUT OBJS AND GOALS.
HUMAN PSY AND FACE READING.
CHARACTERISTICS OF A GOOD NEGOTIATOR

20. COMPETITION
COLLABORATION
AVOIDANCEACCOMODATION
COMPROMISE
TIPS FOR LEADERS AND LEADERS TO BE

21. WHEN QUICK ,
DECISIVE ACTION
IS VITAL(IN
EMERGENCY) ON
IMP ISSUES.
WHERE
UNPOPULAR
ACTIONS NEED
IMPLENTATION
E.G DISCP ISSUES
ETC.
ISSUES VITAL TO
ORG INTEREST.
WHEN
CONVINCED THAT
YOU ARE RIGHT.
AGAINST PEOPLE
WHO TAKE
ADVANTAGE OF
UNCOMPETITIVE
BEHAVIOUR.
USE………..COMPETITION

22. TO FIND AN
INTEGRATIVE SOLN
WHEN BOTH
CONCERNS ARE
TOO IMPORTANT
TO BE
COMPROMISED.
WHEN YOUR OBJ
IS TO LEARN.
TO MERGE
INSIGHTS FROM
PEOPLE WITH
DIFFERENT
PERSPECTIVES.
TO GAIN
COMMITMENT BY
INCORPORATING
CONCERNS INTO A
CONSENSUS.
TO WK THROUGH
FEELINGS THAT
HAVE INTERFERED
WITH A
RELATIONSHIP.
USE………..COLLABORATION

23. ON TRIVIAL
ISSUES WHEN
ANALYSED
AGAINST IMP
PRESSING ISSUES.
WHEN POTENTIAL
DISRUPTION
OUTWEIGHS
BENEFITS OF
RESOLUTION.
LET PEOPLE CALM
DOWN AND
REGAIN
PERSPECTIVE.
WHEN OTHERS
CAN RESOLVE
CONFLICT EFF.
USE………..AVOIDANCE

24. USE………..ACCOMODATION

25. USE………..COMPROMISE