chapter 2 B.ppt
- 2. 2 Ch.2- Negotiating Negotiation is a process in which two or more parties try to resolve differences, solve problems and reach aggreement. Effective negotiation meets as many interests as possible in an agreement that is durable. Negotiation strategies: Although negotiation has a specific aim – to reach agreement – not all negotiation achieves this aim. 1. Win-win strategy 2. Win-lose strategy 3. Lose-win strategy 4. Lose-lose strategy 2
- 3. 3 Ch.-2 Negotiating Win-win strategy: This gives a situation in which both parties are satisfied with the settlement negotiated. It is a process that seeks to meet the needs of both parties. Win-lose strategy: This gives a situation in which one party is satisfied and one is dissatisfied. The focus is on the party’s problem to the exclusion of the other’s, until one side gives in or is defeated. People who adopt this strategy often use a confusing presentation or a dominant speaking style and body movement. 3
- 4. 4 Ch.2- Negotiating Lose-win strategy: This gives a situation in which a party is dissatisfied and the other is satisfied. In an extreme case, win-lose style of negotiation and the lose-win style of negotiation can lead to a deadlock followed by the lose-lose situation. Lose-lose strategy: This results from a situation in which the objectives of both parties are too rigid, or when both parties are unable to collaborate, or unaware of the opportunity to do so. When agreement cannot be reached, a third party may mediate to help the parties reach their own solution. 4
- 5. 5 Psychological barriers: When you are negotiating, psychological barriers may arise. These may include 1. Fear of being taken for a ride 2. Waiting to be liked 3. Guilt about wanting to be assertive 4. Need to be nice 5. Feeling intimidated by so-called powerful people 6. Fear of conflict or confrontation 7. Fear of losing face with the boss or colleagues 8. Lack of self-confidence 5 Ch.2- Negotiating
- 6. Negotiating Characteristics of a skilled negotiator: He will initiate co-operation by emphasising on common ground before moving on to differences He will consider opportunities for problem solving that will benefit both sides. He will be open minded and creative rather than inflexible He will deal with concrete practical details as opposed to abstract principles 6
- 7. Negotiating He will have as much information as possible on the subject and share it frankly He not form hasty decisions, nor allow hasty disagreements He will draw attention to previous success agreements and relationships he will clear minor disagreements before moving on to major ones. He will discuss differences rationally and without emotion 7
- 8. Cont’d He will deal patiently with others ‘ emotional outburst He will try to guide and educate less experienced negotiators He will give praise to the other side whenever possible He will minimize the feeling of ‘loss ‘ among the parties – he will make sure the other party does not feel like it has lost its face. He will resort to force only as a last resort and ensure that there are no empty threats. 8
- 9. 9 A five step approach to negotiation: 1. Plan: Create a set of clear objectives to steer you in the right direction to achieve the results you want. 2. Discuss: Identify areas of agreement and try to establish some rapport with the other party. 3. Purpose: Define the issues at a time. Attempt to stay with the issue rather than generalizing into other situations. 4. Negotiate the issue: Start by asking for what you want, but accept that your goals may have to be modified. Link compromises to other objectives. 5. . 9 Negotiating
- 10. Cont’d Check: Check the agreement that you have just concluded and confirm that each party is committed to the agreement 10
- 11. 11 Principled Bargaining. To implement it you need to; State your case clearly and persuasively Organize your facts well Be aware of the timing and speed of the talks Access the others’needs properly Have patience Not be unduly worried by conflict Be committed to a win-win philosophy 11 Ch.2- Negotiating
- 12. 12 BATNA stands for the Best Alternative to a Negotiated Agreement. If an agreement cannot be achieved by negotiation, the alternative action to be taken is identified in the BATNA. WATNA stands for the Worst Alternative to a Negotiated Agreement. If the person you are negotiating with is your manager or supervisor you may have to think about WATNA. Becasue the other person has the legitimate power, or because because you want the relationship to continue as it is, you may decide on less than your preferred outcome. 12 Ch.2- Negotiating
- 13. 13 Problem solving by negotiating: It is necessary that the relationship is important to both parties and there is a genuine desire to solve the problem rather than to win. 1. Select best time 2. Define needs 3. Brainstorm solutions 4. Evaluate solutions 5. Choose solutions 6. Implement solutions Ch.2- Negotiating
- 14. 14 Negotiating options: In the negotiation process, the parties involved may use different negotiation styles or options. A skillfull negotiator is able to identify each of the five options and recognize the style being used by other party. 1. Compromise: the settlement of differences through concessions/compromise by one or both parties. 2. Collaboration: it results when people cooperate to produce a solution satisfactory to both parties. 3. Competition: it leads to one party gaining the advantage over the other. 4.Accomodation: is a negotiation style where one party is willing to oblige or adapt to meet the needs of other party. 5. Withdrawal or avoidance: it is a negotiation style where both parties lose. In this style, one party retracts their point of view or backs away from the situation. (lose-lose) Ch.2- Negotiating
- 15. Conflict occurs when two people, teams or groups have differing wants or goals and one party interferes with the other’s attempts to satisfy their wants or goals. Levels of Conflict: Conflict moves through different levels before it reaches the crisis level. 1. Discomfort 2. Incidents 3. Misunderstandings 4. Tension 5. Crisis 15 Ch.2- Negotiating
- 16. Discomforts: Perhaps nothing is said yet. Things don’t feel right. It may be difficult to identify what the problem is. Do you feel uncomfortable about a situaition, but not quite sure. Incidents: Here a short, sharp exchange occurs without any lasting internal reaction. Has someting occured between you and someone else that has left you upset, irritated or with a result you did not want. Misunderstandings: Here motives and facts are often confused or misperceived. Do your thoughts keep returning frequently to the 16 Ch.2- Negotiating
- 17. Tension: Here relationships are weighed down by negative attitudes and fixed opinions. Has the way you feel about and regard the other person significantly changed for the worse? Is the relationship a source of constant worry and concern? Crisis: Behavior is affected, normal functioning becomes difficult, extreme gestures are contemplated or executed. Are you dealing with a major event like a possible rupture in a relationship, leaving a 17 Ch.2- Negotiating
- 18. Constructive responses to conflict: Responses to conflict are learnt early in our childhood. These responses become habits and reactions used without thought in our adult life. 1. Assertion 2. Nonverbal messages 3. Listening with emphaty 18 Ch.2- Negotiating
- 19. Ch.2- Negotiating END OF PRESENTATION 19