Negotiation - 2- 2010-11 Batch

8/22/2019 Negotiation - 2- 2010-11 Batch

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Dr. H. Gayathri

CONTENT VERSUS PROCESS

Dealings with negotiators from many countries and differingcultures reveal that the main skill of competent negotiators is their

ability to separate the negotiation process from the negotiation

content.

Content : The facts or substance of the particular negotiation;

the what you are negotiating about, the matter.

Process : The method by which negotiations are conducted;

the how you are managing the negotiation, the approach.

8/4/2013 Dr. H. Gayathri


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Dr. H. Gayathri8/4/2013 Dr. H. Gayathri

For example, consider that whenever you are

deadlocked in a negotiation, most likely it is because

you have focused on the content, especially the things

you think important, rather than on the process.


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NEED THEORY OF NEGOTIATION

When undertaking negotiation it is important to keep reminding

ourselves that the key resource we have for influencing others

is to build strategies based on a full understanding of their

needs and personal motivating drivers.

1. The purpose of negotiation is needs satisfaction.

2. Both parties have needs.

3. Negotiators must fully understand the OPs needs.

4. Failure to understand the OPs needs is the major reason

why many negotiations are unsuccessful.

The other party is acting for his or her reasons not yours.


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5. Negotiations may be classified into two main types:

Inter-personal (i.e., negotiations between individuals)

Inter-group (i.e., negotiations between organizations)

6. Organizations dont act independently they operate

through people.

In inter-group negotiations, skilled negotiators identify two

levels of needs operating.

The (generally stated) group needs of the organization.

The (often unstated) personal needs of the individual.


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7. Skilled negotiations take into account both levels of needs.

When planning how to conduct the negotiation strategy they

keep asking the most important diagnostic and strategy

planning question ;

What are the needs of the other side ?

8. Once you have clearly identified the needs of the OP, it

becomes much easier to match in your needs and locate the

COMMON GROUND.


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Dr. H. Gayathri

Make an inventory of all the differences of your

companyand the othercompany

1 Identify if the differences are because of the facts, goals,

methods or values.

2. Based on the above, share the required information and

discuss.3. Identify which differences can lead to value trading, or

identify opportunities for value creation and claiming

between parties.

4. Identify if risk factors are associated with it.

5. Work on solutions for the riskfactors.

6. Check if it there is time preferences w.r.t. nowand future.


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Negotiation styles may take many forms. For example, a

particular style may be characterized as being more (or less)

aggressive, hostile, dominating, constructive, supportive,

accommodating, compliant.

When purposefully selecting a particular negotiating style, the

most important factor to take into consideration is the

anticipated impact the style choice will have on the

OUTCOME of the negotiation

NEGOTIATION STYLE


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The Competing Style :

As shown in figure 1-b, the competing style focuses on self-

interest or substantive outcome, generally at the expense of

the other party and the relationship. It involves:

Persisting until you get what you want.

Prefer to start with tough, often unreasonable demands.

Inflexible

Seek to dominate the OP.


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Coercive and uses power to influence the outcome of the

negotiation.

Demands major concessions, while conceding very little.

Withholding information that might give the other party an

advantage.

Exploiting the otherpartys weaknesses in a negotiation.

Thinks in terms of win / lose outcome.


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The Accommodating Style:

The accommodating style is just the opposite of the competing

style: concerned with preserving the relationship, even if it

means giving up substantive outcome. Accommodating can

include:

Focusing on the otherpartys concerns more than your own.

Going along with the otherpartys suggestions.

Trying to help the other party even if it means giving up

your own needs.

Trying to preserve the relationship at all costs.


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Letting the other party dictate the terms of the agreement.

Trying to keep the other party happy.

Trying not to hurt the otherpartys feelings.

Focusing on issues that you and the other party agree on

rather than those issues of disagreement.


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Figure 1-b : Negotiation Styles

Accommodating Collaborating

Avoiding Competing

Compromising

Concern for selfinterest (substantive outcome)

C

oncernfortherelationship

(relational

outcome)


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The Collaborating Style:

Collaborating involves exploring individual and mutual

interests in an effort to satisfy everyones needs. It is through

collaboration that win-win solutions are possible. This means:

Interacts with OP as equal.

Flexible

Rational and uses less of emotions.

Bringing issues or concerns into the open.

Dealing with issues that are important to both parties.


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Focus on long term gains

Regards OP as associates and not as adversaries.

Listens to the other person before you share your views.

Seeks to build trust.

Seeks to satisfy the needs of both parties.

Exchanges information and ideas freely.

Thinks in terms win-win outcome.


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The Avoiding Style :

Avoiding means ---- avoiding not only the issues but the other

party or parties and negotiation itself. This category also

includes:

Avoiding contact with difficult negotiators.

Avoiding controversy.

Avoiding situation that might create tension.

Avoiding open discussions of issues and concerns. Withdrawing from negotiations, even when you might win.

Postponing facing difficult negotiations.


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The Compromising Style :

Finally, compromising is a partial-win, partial-lose proposition,

where you get some of what you want but not everything, and

likewise for the other party. This tactic or style includes:

Splitting the difference.

Backing off on demands.

Giving up something for something in return.

Taking an intermediate position (halfway betweenexpectations).

Engaging in give-and-take.

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Negotiation - 2- 2010-11 Batch