Negotation.pptx

8/10/2019 Negotation.pptx

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Negotiation

Dr. T. Raja


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Definition

Negotiation is a process of communication in which

the parties aim to send a message to the other side and

influence each other.


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What is it?

something that we do all the time , not only for

business purposes. usually considered as a compromise to settle an

argument or issue to benefit ourselves as much as possible.

not always between only two people: it can involveseveral members from two parties.


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Types

Distributive negotiations

Integrative negotiations


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Distributive often referred to as 'The Fixed Pie' usually involves people who have never had a

previous interactive relationship, nor are they

likely to do so again in the near future. example: Purchasing products or services, like

when we buy a car or a house

Ours and their interests are usually self serving


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Integrative The process generally involves some form or

combination of making value for valueconcessions, in conjunction with creative problem

solving. Form a long term relationship to create mutual

gain. often described as the win-win scenario


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Three stages of Negotiation

Initial Stages

Middle Stages

Ending Stages


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Initial stages

Plan thoroughly. Organize the issues. Focus on mutual principles and concerns. Be aware that the first offer is often above

expectations. Focus on long- term goals and consequences.


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Middle stages Revise strategies. Consider other options. Increase power by getting the other side to commit

first. Add credibility by getting agreements in writing. To get through with dead ends, just set it aside

momentarily. When asked for a concession, ask for a tradeoff.


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Ending stages

Counter a persistent negotiator by withdrawing anoffer.

Do not expect in verbal promises. Congratulate the other side.


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Obstacles

Sometimes people fail to negotiate because they donot recognize that they are in a bargaining position.

Or, they may recognize the need for bargaining butmay bargain poorly because they do not fullyunderstand the process and lack good negotiatingskills.


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Therefore.., parties must be aware of their alternatives to a

negotiated settlement Weaker parties must feel assured that they will not be

overpowered in a negotiation

- parties must trust that their needs and interestswill be fairly considered in the negotiation

process.- Negotiation seems to bring conflicts . Any

misunderstanding that arises between them willreinforce their prejudices and arouse theiremotions.


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Contd., To combat perceptual bias and hostility, negotiators

should attempt to gain a better understanding of theother party's perspective and try to see the situation as

the other side sees it.


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Cont., if the people are not involved in negotiations, the

process is not likely to succeed. Agreements can be successfully implemented only

if the relevant parties and interests have beenrepresented in the negotiations.

So, all of the interested and affected parties must be represented. And, negotiators must trulyrepresent and have the trust of those they arerepresenting.


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Win- Win negotiations

For a negotiation to be win- win, both parties

should feel positive about the negotiation once itsover.


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Goals

What you want to get out of the negotiation

What you think the other person wants


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Trades

What you and the other person have that can betraded for the purpose of negotiation.

What do you each have that the other wants?

What are you each comfortable giving away?


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Alternatives If you dont reach agreement with the other

person, what alternatives do you have? Are these good or bad? How much does it matter if you dont reach

agreement? Does failure to reach agreement cut you out of

future opportunities? What alternatives the other person might have?


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Relationships W hat is the history of the relationship? Could or should this history impact the

negotiation? Will there be any hidden issues that may influence

the negotiation? How will you handle these?


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OutcomesExpected outcomes What outcome will people be expecting from the negotiation? What has the outcome been in the past, and what precedents have been

set? Consequences

What are the consequences for you of winning or losing thisnegotiation? What are the consequences for the other person?

Power Who has what power in the relationship?

Who controls resources? Who stands to lose the most if agreement isnt reached? What power does the other person have to deliver what you hope for?


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Documents

Negotation.pptx