Negotiation - Managing self and others.

1. NEGOTIATION

3. Definition
‘A process of securing an agreement between parties with
different needs and goals, but each having something to offer
to the other, and each benefitting from establishing an
agreement, though the balance of power can be dependent
upon whether one party’s needs are significantly greater than
the other’
or
‘A process that occurs when two or more parties decide how to
allocate scarce resources’

4. Types of Negotiation :
 Distributive Negotiation
Win – Lose
 Integrative Negotiation
Win-Win

5. Distributive Negotiation :
 Negotiation that seeks to divide up a fixed resources; a
win-lose situation.
 Get as much as pie possible.
 Opposing nature between the parties.
 Information sharing is low.
 Creates short term relationship.

6. Integrative Negotiation :
 Negotiation that seeks one or more settlements that can
create a win-win solution.
 Expand the pie as much as possible so that each parties can be
satisfied.
 Congruent nature between parties.
 Information sharing is high.
 Creates long term relationship.

7. Negotiation Process
Preparation and Planning
Definition of Ground rules
Clarification and Justification
Bargaining and Problem Solving
Closure and Implementation

8. Preparation and Planning :
 Assessing relative strength of two parties.
 Set negotiating objectives – ask, ‘What are real issues?’ ‘Which
parties should be involved?’.
 It saves you from surprise and unexpected when other party
introduces unexpected facts and figures.
 Plan the best way to argue your case.
 Assess your and other parties bargaining power.

9. Definition of Ground Rules :
 Defining with the other party the ground rules and
procedures to follow.
 Who will do the negotiating?
 Where will it take place? Any time constraints,
if any, apply?
 To what issues will negotiation be limited?
 Will follow a specific procedure if an impasse is reached?

10. Clarification and Justification :
 Explain, Amplify, Clarify, Bolster and Justify the demands.
 Its an opportunity for knowing the issues of each other.
 Why these issues are important.
 How you arrived at your initial demands.
 Provide the other party with any documentation to support
your position.

11. Bargaining and Problem Solving:
 Actual give and take in trying to hash out an agreement.
 Both the parties undoubtedly need to make concessions.
 The way to influence deal .
 Making concessions.
 Breaking an impasse.
 Towards a settlement.

12. Closure and Implementation:
 Check, recheck.
 Legal Aspects.
 Give reasonable assurance.
 Formalizing the agreement you have worked out.
 Developing procedures necessary for implementing and
monitoring it.

13. Individual Differences in negotiation Effectiveness.
 Personality Traits in Negotiation.
 Moods/Emotions in Negotiation.
 Culture in Negotiations.
 Gender Difference in Negotiations.

14. Third Party Negotiations:
 Mediator : is a neutral third party who facilitates a negotiated
solution by using reasoning and persuasion, suggesting
alternatives.
 Arbitrator : is a third party who have the authority to dictate an
agreement.
 Conciliator : is a trusted third party who provides an informal
communication link between negotiator and the opponent.

15. Negotiation Tactics:
 Negotiation decoy – later negotiate with other party.
 Extreme offers – Non-verbal bewilderment /surprise.
 Cherry-picking – “This is what other companies are
offering., so you will need to at least match those.”

16.  Mandated authority – “Oh! That will not be acceptable to the
Chairman.”
 “Take it or leave it”
 The negotiation nibble - Last moment, “Transportation and
insurance is included, isn’t it?? “If you are willing to pay the
extra 3% we will include these two items.”

17.  Negotiation deadline
 Moral appeal – ‘It will help the workers / society.
 All I have is only 60 % - to bargain.
 Lubrication – smooth talk, flattery and so on.
 Golf Club, dinner meeting etc.

18. Thank you !!!

19. Reference:
 Organizational Behavior 15th Edition, 2013
Stephen P Robbins.
Timothy A Judge.
Neharika Vohra.
 changingminds.org
 hbr.org

20. sreenathb9@gmail.com
slideshare.net/sreenathb