whatisnegotiation-130420193830-phpapp01.ppt
- 2. •The word negotiation means to confer, bargain, to bring about an agreement or arrange a treaty or prize by conferring. •When we negotiate with someone, we try to confer with them to reach an agreement on terms or arrangements affecting both parties. •Negotiation means the process of negotiating.
- 3. Negotiation is a goal oriented process involving face-to-face interactions.
- 4. Art of Negotiation :- Negotiation is indeed a part of everyday business life. The parties involved in the negotiation process will have to indulge in a continuous process of exchange of messages. Some of the expressions used in the context of negotiation are discussion, exploration, consultation, bargaining, persuasion and resolution.
- 5. All the parties concerned should feel that they have won or secured a good deal under the given circumstances. Negotiation is often hard bargaining and successful resolution of conflicting interests in a spirit of accommodation and a give –and-take approach.
- 6. DOS- 1. Be well prepared and set clear objectives. 2. Be flexible in your approach. Remember that it is a give and take. 3. Listen actively and attentively 4. Maintain discipline and decorum. Give respect and take respect. 5. Show patience. 6. Be open minded and pragmatic. 7. Ask questions and seek clarifications. 8. Be enthusiastic, reasonable and convincing. 9. Be soft yet firm. 10. Supplement your words with appropriate body language.
- 7. Avoid cynicism and hurtful comments. Do not indulge in loose talk and casual approach. Do not raise trivial or insignificant issues. Do not get emotional or egoistic. Do not get into avoidable arguments. Do not interrupt others and jump to conclusions. Do not insult people. Do not yell or raise your voice. Do not react or comment in a hurry. Do not lie or be inconsistent.
- 8. There are essentially two types of negotiations- 1. Integrative 2. Distributive
- 9. Integrative approach is also known as the win-win syndrome. In this each party appreciates that one should not try to have an upper hand to the detriment of the other. The approach is one in which each group tries to be accommodative and conciliatory. It is based on a problem solving approach. There is a mutual understanding and collective efforts are made to ensure that issues are resolved to mutual satisfaction.
- 10. Example: For your price of Rs19,000, I'd like you to include three years of free servicing. If you do that, I'll pay you 50 percent of the price up front, and the rest over just two years".
- 11. In a distributive process, on the other hand ,one party gains at the expense of the other. It is also known as the win- lose syndrome. It is also understood as a zero –sum game. The total sum being limited, the more one gets , the less there is for the other. It is the process of distribution. Styles of negotiations used here are authoritarian .One party tries to intimidate the other to accept what is offered.
- 12. A great example of distributive negotiation is haggling over the price of a car at a dealership. It's likely that arguing for a lower price may benefit you, but cost the dealership. It's also likely that you're not going to buy another car any time soon, so you “win” without any future.
- 13. Negotiation fails when either party approaches the process of negotiation with totally unreasonable demands or extremely high expectations. If the starting point of both the parties is too divergent, negotiation may not lead to a meeting point. Similarly, negotiation fails if the spirit of cooperation or give-and –take is lacking. If one party wants to make only gains and is unwilling to accept compromises or make sacrifices, negotiation can not make much headway.
- 14. Negotiation is widely recognized to be a four-step process. There are 1. preparation, 2. opening, 3. bargaining and 4. closing.
- 15. The first stage in a negotiation process relates to planning and preparation. It is the stage where the parties decide what they want, what are their minimum expectations, how much they will yield and how they will go about the negotiations. Each party will also try to visualize what the other party will be expecting from the negotiation.
- 16. The second stage in the negotiation process concerns opening. This is when the parties concerned come to the negotiation table and meet each other. Opening has two steps- rapport building and probing. Rapport building is the process of getting to know each other. Thus, introductions are made, pleasantries are exchanged and names and backgrounds are noted.
- 17. Care should be taken to address the persons by their correct names. Even if someone in the other group is already known, too much of familiarity or intimacy should be avoided. Negotiations should start on a friendly note, but with a professional approach. While meeting people and interacting with them, perception do matter. Make sure that negotiations begin on the right note. Be polite and pleasant. Use appropriate words. Be open minded. Show enthusiasm. Listen attentively.
- 18. It is the stage when the negotiating teams really sit down and talk it out. They state their positions and put forth the supporting arguments. In any negotiation, the question uppermost is, ‘What’s there in it for me? Bargaining is nothing but a give and take.
- 19. Finally, you enter the settlement stage and work towards a ‘close’. After completing all the bargaining, the negotiation parties come to the stage of settlement or agreement. The final terms as agreed upon are documented and the agreement gets signed. Negotiations by their very nature involve some compromises and sacrifices.
- 20. 1. Do not be an open book. Try to be enigmatic or not easy to read when required. Let not the other party read your mind or emotions easily. Keep them guessing till you finalize the terms. 2. At the same time, good negotiators make every effort to read and understand their opponents.
- 21. During discussions, certain topics may have to be kept confidential. This should not be done by telling deliberate lies. It would be better to make statements like ‘ I cannot answer right now.’ ‘ I have no comments at this juncture.
- 22. Given its complexity, several factors affect the process of negotiation. We may broadly group them into six- 1. Authority 2. Credibility 3. Information 4. Time 5. Emotional control 6. Communication skills.