BBG2303

Basic Principles in
Negotiation
By:
Wan Azlinda Wan Mohamed
 What is Negotiation?
• Negotiation a field of knowledge that
focuses on gaining the favor of people
from whom we want things. -Herb Cohen
 Negotiating defined
• A special form of communication.
• Communication is the basic process, the
flow of information between people that
informs, instructs, and more.
• Persuasive communications
• Process of bargaining
 We negotiate when …….
• Whenever we want to influence another person
through exchange of ideas, or some material value.
• Negotiation is the process we use to satisfy our
needs when some else controls what we want.
• Every wish we would like to fulfill, every need we
compelled to satisfy, are potential situations for
negotiation.
• Bargaining, haggling, mediating, or bartering
 We negotiate when …….
• Negotiation between companies, groups
or individuals normally occurs because
one has something the other person wants
and is willing to bargain to get it
 Examples of negotiation
• Most of us are constantly negotiating.
Example:
• When people meet to draw up contracts;
• Buy or sell anything;
• Resolve differences;
• Make mutual decisions;
• Agree to work plans;
• Deciding to have lunch.
 Examples of negotiation
• Where we will spend our first Hari Raya at
with our family
• Buy a car
• Try to get into a class that is full
• Buy a piece of land
 Basic Principles
• Negotiation is a voluntary activity in the sense
that either party can break away from or refuse
to enter into discussion at any time

• A negotiation usually starts because at least one

of the parties wants to change the status quo
and believes that a mutually satisfactory
agreement is possible
 Basic Principles
• Entering negotiation implies acceptance by both
parties that agreement between them is required
(desirable) before a decision is will be
implemented. If the decision can be decided
unilaterally by one of the parties, they may be no
point in committing one self in the negotiating
process.
 Basic Principles
• Timing is a critical factor in negotiation. It plays an
important role in influencing the overall climate and
directly affects the ultimate outcome of the decision.

• A successful outcome in negotiation is not always

winning at any course or even ‘winning’, but getting
what both sides want
 Basic Principles

• The progress of all types of negotiation, even when it is

conducted through parties, is strongly influenced by the
personal values, skills, perceptions, attitudes and
emotions at the bargaining table.
 Characteristics of a negotiation
situation
• There are two or more parties – that is, two or
more individuals, groups, or organizations.

• There is a conflict of interest between two or

more parties – that is, what one wants is not
necessarily what the other wants- and the
parties must search for a way to resolve the
conflict.
 Characteristics of a negotiation
situation
• The parties negotiate because they think they
can use some form of influence to get a better
deal that way than simply taking what the other
side will voluntarily give them or let them have.
Negotiation is largely a voluntary process. It is
strategy pursued by choice; seldom are we
required to negotiate
 Characteristics of a negotiation
situation
• The parties, at least for the moment, prefer to search for
agreement rather than to fight openly. Negotiation occurs
when there is no system- no fixed or established set of
rules or procedures for resolving the conflict.

• When we negotiate, we expect give and take. We expect

that both parties will modify or give in some what on their
opening statements, request, or demands. Creative
negotiations may not require compromise; instead the
parties may invent a solution that meet the objectives of
all side
 Characteristics of a negotiation
situation
• Successful negotiation involves the
management of intangibles (psychological
motivations that may directly or indirectly
influence the parties during a negotiation. e.g
the need to “look good” to the people you
represent, core beliefs and values) as well as
resolving the tangibles (e.g price or the terms of
conditions)
 Implications
• Negotiation does not have to be a verbal tug of
war to be successful.

• Successful negotiation involves the ability to

1. determine through observation and analysis the
best means of persuasion and
2. put the persuasion approach into practice at the
appropriate time.
 Implications
• Not all situations warrant ‘negotiating treatment’. It may not
be possible or desirable to enter negotiations when:
1. You are not in a position to bargain.
2. You have the power or authority to impose your views.
3. You do not have time to prepare effectively,
4. Negotiating may damage your long-term objectives.
5. You are too weak or inexperienced to deal with the other
party.
6. You are facing what you know is an unanswerable demand.
 Implications

• Because timing is important in negotiation,

you need to recognize where you are in the
negotiating process, and plan your actions
(journey) accordingly.
 When you shouldn’t negotiate
• When you could lose everything
• When you’re sold out
• When demands are unethical
• When you don’t care
• When you don’t have time
• When trust has been broken
• When waiting would improve your position
• When you are not prepared
 Common Negotiating Mistakes
• Based on John Illish (1992) personal experience as
a negotiator
1. Entering negotiations with a preset mental mindset.
2. Not knowing who has final negotiating authority.
3. Not knowing precisely what power they possess
and how to use it effectively
4. Entering a negotiation with only a general goal to
be obtained upon the final outcome of negotiation.
5. Failing to advance positions and arguments of
substance.
 Common Negotiating Mistakes
• Based on John Illish (1992) personal experience as a
negotiator
6. Losing control over seemingly unimportant factors
such as timing and ordering of issues.
7. Failing to let the side make the first offer.
8. Ignoring time and location as a negotiating weapon.
9. Giving up when negotiation seems to reached a
deadlock.
10. Not knowing the right time to close.
• Negotiation which ‘go wrong’ often do for a
similar reasons. These reasons called
‘syndromes’
• The ‘one track’ syndrome
• The ‘win-lose’ syndrome
• The ‘random walk’ syndrome
• The ‘conflict avoidance’ syndrome
• The ‘time capsule’ syndrome
 The ‘one track’ syndrome
• Negotiators have already decided what the facts
of the case are and the required solution before
negotiating begins.
• Convinced that the other party will accept their
solution.
• ‘ A train running along one mental track, with no
option for turning left or right to avoid obstacles
and pitfalls that are certain to occur along the
way during every negotiation consequences’.
 Main Symptom
• One of the negotiators begins the negotiation by
stating that there are number of key points to be
covered and arranges them in apparently logical
order. These points are then worked through in a
mechanical fashion, at a relatively high speed,
covering a lot of points, none in any great depth,
regardless of the other party.
• Frequent interruptions to prevent the other party
from talking at length on /irrelevant’ matters.
• Clear signs of frustration and/or non-acceptance
on the part of he other party.
 Potential Remedies
• View agendas as frameworks, which are useful
as guides or checklists, but which need not be
rigidly adhered to at all times.
• Ask the other party to suggest items on the
agenda and formulate a joint working plan for the
discussions.
• Treat information as hypothesis rather than fact.
• Use interim summaries and restatements and
revies at the end of each topic/meeting to check
understanding points raised by other party.
• Listen actively and look out for non-verbal cues
of agreements, disagreement, frustration, etc as
well as the verbal content.
 The ‘win-lose syndrome’

• The negotiators view, or come to view, the

discussions as a contest or a debate
which they are determined to win.
 Main Symptom
• Refusal to accept the validity of the other’s
view, claims and arguments.
• A large number of critical statements,
personal attacks and emotional outburst.
• A lot of closed questions and leading
statements to gain compliance with
preconceived ideas (eg, “You must accept
that…., or /You do not seem able to
understand that…”)
 Potential Remedies
• Ask more open questions to elicit the other
party’s views.
• Be prepared to listen to the other party.
• Avoid getting into defense-attack spirals.
• Resists the urge to reject or undermine every
argument of other party, even when you agree.
• Look for common ground.
• Lists points of agreement and disagreement.
• Ask yourself: what are my real interests in this
dispute? How important is the long-term
relationship with the other party? How can I
make the other party concede without losing
face?
 The ‘random walk’ syndrome
• This is when negotiation frequently jumps
from one topic to another before coming to
an agreed conclusion, or when the
negotiators periodically return to the same
topic without adding anything to
discussions.
 Main symptoms
• There is no summary of the issues agreed
or discussed at the end of a meeting.
• When one of the negotiators attempts to
summarize, the other party objects that
s/he never agreed to these points.
 Potential remedies
• Think through likely problem areas before the
discussion.
• Delay closure on a topic until full agreed solution
is arrived at.
• Use more probes to obtain detailed information
about the problem area under discussion.
• Use more summarizing and paraphrasing to
ensure that the other party understands your
point of view.
 Potential remedies
• Be more tolerant of silence, allowing some
thinking time or forcing the other party to talk.
• Spend more time on defining what the problem
is.
• Have more adjournments to review the
discussion and consider the way forward.
• Devote greater attention to the agenda setting
before the discussion of issues begins.
 The ‘conflict avoidance’ syndrome

• In this situation, the party do not talk about

the issues underlying their conflicts or are
merely paying lip-service to them.
 Main symptoms
• No agenda setting
• Asking open questions with no follow
through.
• Rapid switches to more ‘comfortable’
topics.
• Unconditional concession making
• Proposals are made as a ‘gift’.
 Potential Remedies
• If the conflict is genuinely not serious, no
remedial actions are needed.
• If the conflict is serious, attempt to influence the
motivation of parties.
• A recognition that giving in will not necessarily
produce good solution.
• Use of information gathering skills to identify and
agree areas where agreement could be reached,
and specific ways to achieve it.
• Where necessary, use of threats and promise to
obtain commitment to achieving a joint solution.
 The ‘time capsule’ syndrome
• This is when the negotiators do not consider the
circumstances or context in which the
negotiation is taking place, either in terms of the
pressures on themselves or the other party, or
the history of the relationship.
• They treat the situation in isolation and are
surprised if the other person does not see the
negotiation in the same light as themselves or
introduces elements from the past encounters
especially if they were considered to be (lost)
battles.
 Main Symptons
• One negotiator treats the encounter with
great deal more gravity than others, and
get frustrated when the other party does
not see things in similar serious light.
• One party is more highly charged
emotional state.
• One party raises an issue that the other
person thinks has nothing to do with the
current issue.
 Potential Remedies
• At the beginning of each negotiation
session, be clear about where the
relationship stands.
• Consider the other party’s priorities and
pressures before and during negotiations.
• Continuously check understanding of the
other ‘s point of view.
• Try to find solution about which both
parties can feel positive.
 Key points for avoiding common
mistakes
• Do not interrupt other party. Talk less and listen
actively.
• Ask open ended questions to build
understanding.
• Use paraphrasing, humour and positive
comment.
• Use adjournments to keep control over your
team and discussions.
• See yourself a clear, specific and realistics gal
before entering a meeting.
• Summarize regularly.
 Key points for avoiding common
mistakes
• List the points of explaination, interpretation,
and understanding.
• Avoid weak language, such as ‘We hope’,
‘We like’, ‘We prefer’.
• Don’t always criticize the other party. Look
for common ground.
• Avoid irritators. Value loaded words like
‘unfair’ or ‘unreasonable’ tends to provoke a
defensive or aggressive response.
 Key points for avoiding common
mistakes
• Avoid diluting your own arguments by giving
too many reasons for your proposal. It is
better to have one or two good reason for all
your claims than to have ten weak reasons
for each claim.
• Avoid emotional outbursts, blaming,
personal attacks or sarcasm.
Thank You