This document discusses various aspects of negotiation skills. It defines negotiation as a process of conferring between parties to reach an agreement, with each party having their own interests. There are two main types of negotiation - distributive, where parties compete over a fixed resource, and integrative, where parties cooperate to find mutually beneficial solutions. Key characteristics of an effective negotiator include preparation, flexibility, patience, understanding psychology, and building trust. The document also outlines various negotiation processes within organizations, such as managerial, commercial, and legal negotiations.

1. Negotiation Skills
Abhijith R
S

2. Negotiation
 The word "negotiation" originated from the Latin
expression, "negotiatus", which means "to carry
on business".
 The process of conferring to arrive at an agreement between different
parties, each with their own interests and preferences.
 “A give-and-take decision-making process
involving interdependent parties with different
preferences.”

3. Definition
“Negotiating is the process of
communicating back and forth, for the
purpose of reaching a joint agreement
about differing needs or ideas.”

4. Features of Negotiation
S Minimum two parties
S Predetermined goals
S Expecting an outcome
S Resolution and Consensus
S Parties willing to modify their positions
S Parties should understand the purpose of
negotiation

5. Why Do We Negotiate?
S To reach an agreement
S To beat the opposition
S To compromise
S To settle an argument
S To make a point

6. Types Of Negotiation
Distributive Negotiation
Integrative Negotiation

7. Distributive Negotiation
S Parties compete over the distribution of a
fixed sum of value. The key question in a
distributed negotiation is, “Who will claim the
most value?” A gain by one side is made at
the expanse of other.
S The Seller’s goal is to negotiate as high a
price as possible; the Buyer’s goal is to
negotiate as low a price as possible.

8. Integrative Negotiation
S In Integrative Negotiation, parties cooperate to
achieve maximize benefits by integrating their
interests into an agreement. This is also known as
a win-win negotiation.
S In an integrative negotiation,, there are many
items and issues to be negotiated, and the goal of
each side is to “create” as much value as possible
for itself and the other side.

9. Distributive Versus Integrative Negotiation
Type
Distributive Negotiation
Integrative Negotiation
Outcome
Win-Lose
Win-Win
Motivation
Individual Gain
Interests
Opposed
Joint &
Individual Gain
Different. But not
always opposite.
Relationship
Short-term
Long-term
Issues involved
Single
Multiple
Solution
Not Creative
Creative

10. Negotiation Process

11. Basic Principles Common To
All Forms Of Negotiation
 There are minimum 2 parties involved in the
negotiation process. There exists some common
interest, either in the subject matter of the
negotiation or in the negotiating context, that puts
or keeps the parties in contact.
 Though the parties have the same degree of
interest, they initially start with different opinions
and objectives which hinders the outcome in
general.

12.  In the beginning, parties consider that
negotiation is a better way of trying to solve their
differences.
 Each party is under an impression that there is a
possibility of persuading the other party to
modify their original position, as initially parties
feel that they shall maintain their opening
position and persuade the other to change.

13. S During the process, the ideal outcome proves
unattainable but parties retain their hope of an
acceptable final agreement.
S Each party has some influence or power – real or
assumed – over the other’s ability to act.
S The process of negotiation is that of interaction
between people – usually this is direct and verbal
interchange.

14. Characteristics Of An Effective
Negotiator
S He should be a good learner and observer.
S Should know the body language of the people at
the negotiation process.
S Should be open and flexible and yet firm.
S Exercise great patience, coolness and maturity.
S Should possess leadership qualities.

15. S Should control emotions and not show his
weaknesses.
S Should bargain from the position of strength.
S Should know and anticipate the pros and cons of
his each move and its repercussions.
S Should know how to create the momentum for
the negotiations and must know when to exit and
where to exit by closing the talks successfully.

16. S Should build trust and confidence.
S Should be confident and optimist.
S Should have clear cut goals and objectives.
S If necessary, he should provide a face saving
formula for his counter party.
S Should be able to grasp the situation from many
dimensions.
S Should know human psychology and face reading

17. S Should not be a doubting Thomas.
S Should be a patient listener.
S Should plan and prepare thoroughly with
relevant data and information to avoid
blank mind in the process.
S Should radiate energy and enthusiasm and
must be in a position to empathize with
his opponents.

18. Types Of Negotiation In
Organizations
S

19. Managerial Negotiations
Types
Day-to-day/
Managerial
Negotiations
Parties
Involved
Examples
1. Different levels of
Management
1. Negotiation for pay,
terms and working
conditions.
2. In between colleagues
3. Trade unions
4. Legal advisers
2. Description of the job
and fixation of
responsibility.
3. Increasing
productivity.

20. Commercial Negotiations
Types
Parties
Involved
Examples
Commercial
Negotiations
1. Management
2. Suppliers
3. Government
4. Customers
5. Trade unions
6. Legal advisors
7. Public
1. Striking a contract
with the customer.
2. Negotiations for the
price and quality of
goods to be
purchased.
3. Negotiations with
financial institutions
as regarding the

21. Legal Negotiations
Types
Legal Negotiations
Parties
Involved
1. Government
2. Management
3. Customers
Examples
1. Adhering to the
laws of the local
and national
government.

22. 10 Techniques for Better
Negotiation
S

23. 1)
Prepare, prepare, prepare
2)
Pay attention to timing
3)
Leave behind your ego.
4)
Ramp up your listening skills.
5)
If you don't ask, you don't get

24. 6.
Anticipate compromise
7.
Offer and expect
commitment
8.
Don't absorb their problems
9.
Stick to your principles
10. Close with confirmation.