2. OBJECTIVES
• To know what is negotiation process
• To know the factors affecting Negotiation
• To know the subjective factors that affect negotiation outcomes
• To know the stages in Negotiation process
• To identify different skills of initiating, discussing, and concluding the process of
bargaining
• To know how to handle deadlocks
3. NEGOTIATION
• It is the process of bargaining in which two parties, each of which
has something that the other wants, try to reach an agreement on
mutually accepted terms.
E.g. A salesperson trying to arrange a meeting with prospective
wholesaler/ dealer.
4. SITUATIONS REQUIRING 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 2 or more parties, agenda is already fixed, there is
time to prepare and assign roles etc.
• Informal Negotiations
These are unannounced and casual, involves 2 persons, won’t get time to
study, This approach may influence outcome.
5. Factors affecting Negotiation
• Location
• Timing
• Subjective Factors
a) Individual Relationships
b) Fear of authority
c) Future and practical considerations
d) Mutual Obligations
e) Practical Considerations
6. Stages in Negotiation process
The preparation phase
• Preparation & Planning
• Exchanging initial views
The negotiation phase
• Exploring possible compromises
• Searching for common ground
The implementation phase
• Securing an agreement
• Implementing the agreement
7. NEGOTIATION STRATEGIES
• Identifying different skills of initiating, discussing & concluding of bargaining
• Instead of talking compulsively, a good negotiator allows the other party to say
what they wish & develop a dialogue with them
• The strategy should be to allow the discussion to move towards agreement. For
this one must psychologically encourage cooperation throughout the discussion
• Both parties should use impersonal terminologies to printout corrections rather
than making personnel criticisms
• Be tactful & persuasive to ensure that the final outcome which is of advantage
to you is also seen by other party as benefit to them
8. Deadlocks
• Reaching a mutually satisfactory end is the basic objective of any negotiation.
A deadlock is a situation in which two or more competing actions are each
waiting for the other to finish, and thus neither ever does.
• E.g.‘When two trains approach each other at a crossing, both shall come to a full
stop and neither shall start up again until the other has gone’
