Negotiation skills , TYPES

NEGOTIATION
SKILLS
Richard Thomas k

NEGOTIATION SKILLS
 What is negotiation
 Elements of negotiation
 Different types of negotiation

NEGOTIATION
 Negotiation is an interactive communication
process that may take place whenever you want
something from somebody else or they want
something from you . It is a dialog intended to
resolve disputes , to produce an agreement upon
courses of action , to bargain for individual or
collective advantage or to find outcomes that satisfy
various interests . Negotiation is an important part
of communication

 “Negotiation is about getting the best possible deal
in the best possible way.”
 James c. freund says “you cannot learn
negotiation techniques from a book or from a
lecture , you must actually negotiate”
 Means art of negotiation requires more practice than theory

 Negotiation occurs in business , non-profit
organizations , legal proceedings or even personal
situations .
 In business , negotiation frequently occurs in
conflict of bargaining in sales or purchase deal , etc
. In negotiation , both parties want to arrive at the
agreement of conflict or want to buy or sell the
goods or other things .

 Negotiation involves being clear about one’s
objectives and to understand the position of the
other party as well as one’s own offering and
accepting proposals to reach the agreement
 Since it is a delicate process , it should be handled
with great care .

ELEMENTS OF NEGOTIATION
 Negotiation involves three basic elements
1. Process
2. Behavior
3. substance

 Process
The process refers to how the parties
negotiate the context of the negotiations , the
tactics used by the parties and the sequence
and stages in which all of these play out .

 Behavior
The behavior refers to the relationship among these
parties , the communication process among those
parties and the style adopt .
 Substance
the substance refers to what the parties negotiate
over : the agenda , the issues , the options and the
agreement reached at the end

TYPES OF NEGOTIATION
 Distributive negotiation
 Integrative negotiation

DISTRIBUTIVE NEGOTIATION
 A distributive negotiation is a negotiation in which
the parties complete over the distribution of a fixed
sum of value . The issue in a distributive negotiation
is who will claim the most value out of the fixed
value . This is also referred as zero-sum or
constant-sum negotiation . Here relationship and
reputation mean little in this tug of war . Information
plays an important role in this type of negotiation.
The less the other side knows about weakness and
real preferences , and more it knows about your
bargaining strength , the better will be your position
.

 Example:
 1.
The sale of clothes , carpet , etc where the buyer
and the seller do not know each other . There is no
relationship , all that matters is the price , and each
side haggles for the best deal . One party’s gain is
equal to the loss of the other party .
 -

 Example:
 2.
wage negotiation between business owners and
their union employees . The owners know that
amount conceded to the labour union shall come out
of their own pockets and vice versa

TO ACHIEVE SUCCESS DISTRIBUTIVE NEGOTIATION , ONE
SHOULD REMEMBER THE FOLLOWING
 The first offer can become a strong psychological
anchor point , one that sets the bargaining range .
Always start at the right price and place .
 Do not close any significant information about your
circumstances-including why you want to make a
deal , your real interests or business constraints ,
your preferences among issues or options .

 It is beneficial to know the other side’s picture .
Learn as much as possible about the other side’s
circumstances and preferences-including their
motive to deal , their real interests and business
constrains , and their preferences among issues or
options .
 Do not overshoot . If you claim aggresively or
greedily , the other side may walk away . You may
not have to repent of losing the opportunity to make
deal .

INTEGRATIVE NEGOTIATION
 In an integrative negotiation , the parties cooperate
to achieve maximum benefits by integrating their
interests into an agreement while competing to
divide the value . Here both parties strive to create
values and claim it . The example of integrative
negotiation is a situation where buyer of marble is
approaching the seller and both are sharing their
interests and requirements . Seller is offering the
tacit knowledge of marble that can help the buyer to
enhance the beauty of floor besides catering his
requirements

TO MAKE INTEGRATIVE NEGOTIATION SUCCESSFUL 0NE
SHOULD REMEMBER THE FOLLOWING
 Provide significant information about the
circumstances and reasons of making a deal .
 Talk about their real interests or business constrains
.
 Reveal and explain in general terms their
preferences among issues or options .

 Consider and reveal any additional capabilities or
resources they have that might meet the other
side’s interests and could be added to the deal
 Find the creative option that will meet the interests
of both parties to the greatest extent possible

Negotiation skills , TYPES

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