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Negotiation Skills

Negotiation is a communication process where parties aim to reach an agreement by exchanging messages and influencing each other. It involves compromise to settle issues in a way that benefits both sides. Effective negotiation requires preparation, understanding different negotiation styles, listening skills, and finding solutions where both parties are satisfied. Key aspects of successful negotiation include understanding goals, alternatives, power dynamics, and having a plan to reach a win-win outcome.

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Jyoti Barwar
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35 views28 pages

Negotiation Skills

Negotiation is a communication process where parties aim to reach an agreement by exchanging messages and influencing each other. It involves compromise to settle issues in a way that benefits both sides. Effective negotiation requires preparation, understanding different negotiation styles, listening skills, and finding solutions where both parties are satisfied. Key aspects of successful negotiation include understanding goals, alternatives, power dynamics, and having a plan to reach a win-win outcome.

Uploaded by

Jyoti Barwar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Negotiation skills…….

Fisher and Ury define negotiations as “Back and


forth communication to reach agreement where
some interests are shared and some interests are
opposed. “ Getting to Yes”
What is negotiation?
• Definition: Negotiation is a process of
communication in which the parties aim to
send a message to the other side and
influence each other.
Cont…..
• 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 involve several members from
two parties.
Negotiating is about WHY , not
WHAT
• The purpose of negotiating is seeing if you
can get your interests met through and
agreement, versus an alternative.
• Positions are WHAT we want
• Interests are WHY we want something
• Negotiate the WHY ….not the WHAT
Types of negotiation:
• Distributive negotiations
• Integrative negotiations
Distributive negotiations
• 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
Integrative negotiations
• The process generally involves some form
or combination of making value for value
concessions, in conjunction with creative
problem solving.
• Form a long term relationship to create
mutual gain.
• often described as the win-win
scenario
The Four Phases of Negotiation
• PLAN
• DEBATE
• PROPOSE
• BARGAIN
Step One - Prepare
• Research
• LIST your objectives and their objectives
• Those you INTEND to get
• Those you MUST get
Step Two - Debate

• Listen carefully
• Ask questions
• Clarify
• Summarise
• Don’t argue, interrupt or assume
• ...BUT
Step Three - Propose

• Make proposals
• State conditions
• Express concerns
• Search for common interests
• Use positive body language
• AND
Step Four - Bargain

• Key words are IF and THEN


• Start making concession:
– Every concession should have a condition (IF you …
THEN I will … )
– Conserve your concessions - don’t give everything
away too soon
– You don’t have to share every piece of information
with the opposing side!
– Don’t be afraid to say no
Three stages of negotiation:
• Initial Stages
• Middle Stages
• Ending Stages
Initial stage
• 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.
Middle stage
• 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.
Ending stage
• Counter a persistent negotiator by
withdrawing an offer.
• Do not expect in verbal promises.
• Congratulate the other side.
Barriers to negotiation
• Sometimes people fail to negotiate because they do not
recognize that they are in a bargaining position.
• Or, they may recognize the need for bargaining but may
bargain poorly because they do not fully understand the
process and lack good negotiating skills.
• Negotiation seems to bring conflicts . Any
misunderstanding that arises between them will reinforce
their prejudices and arouse their emotions
• if the right people are not involved in negotiations, the
process is not likely to succeed.
Overcome barriers:
• 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 interests will be
fairly considered in the negotiation process.
• To combat perceptual bias and hostility, negotiators
should attempt to gain a better understanding of the
other party's perspective and try to see the situation as
the other side sees it.
• Agreements can be successfully implemented only if the
relevant parties and interests have been represented in
the negotiations.
• So, all of the interested and affected parties must be
represented. And, negotiators must truly represent and
have the trust of those they are representing.
To brush up your
‘win-win’ negotiation
skills…

Preparation is needed……
What is win-win negotiation?
• For a negotiation to be win-win“, both
parties should feel positive about the
negotiation once it’s over.
Goals…..
• What you want to get out of the
negotiation
• What you think the other
person wants
Alternatives:
• If you don’t reach agreement with the other
person, what alternatives do you have?
• Are these good or bad?
• How much does it matter if you don’t reach
agreement?
• Does failure to reach agreement cut you out of
future opportunities?
• What alternatives the other person might
have?
Relationship:
• What 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?
Expected outcome:
• What outcome will people be expecting
from the negotiation?
• What has the outcome been in the past,
and what precedents have been set?
The consequences:
• What are the consequences for you of
winning or losing this negotiation?
• What are the consequences for the other
person?
Powers:
• Who has what power in the relationship?
• Who controls resources?
• Who stands to lose the most if agreement
isn’t reached?
• What power does the other person have to
deliver what you hope for?
Possible solution:
• Based on all the consideration….
• What possible solutions might there be?
Improving negotiation skills:
Negotiating is not Compromising :

It is joint problem solving and to conclude on a positive


note. What is your “preferred style” of
• communicating?
What is the “style” of the other person with whom you will
be negotiating? People Skills Make the Difference
Listening is the most powerful negotiating skill
• It begins with effective communication…understanding
your preferred method and learning the method of the
other party.
• Communicate with them in a way that will be most
effective with their style
• This helps to eliminate the possibility of
misunderstanding, as we communicate in many ways
• But before you can listen, you have to be skilled
at asking questions:
Three critical questioning skills :
• Know where your questions are going
• Ask for permission to ask questions
• State why you want to ask questions
Have a game plan before beginning to negotiate
Few people plan before beginning to negotiate If
you cannot walk away from the negotiation at
any time, you will lose. Knowing your options
outside of the negotiation is a direct function of
preparation.

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