Negotiation Skills Classroom_1

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    Negotiation Skills

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    What is Negotiation

    Negotiation is a method by which people settledifferences. It is a process by which compromise oragreement is reached while avoiding argument.

    Negotiating is the process of communicating back and

    forth, for the purpose of reaching a joint agreementabout differing needs or ideas.

    Negotiation is finding a way for all parties to gainsomething they value from the resolution of a positionof conflict.

    It is a collection of behaviours that involvescommunication, sales, marketing, psychology,sociology, assertiveness and conflict resolution.

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    What is Negotiation

    A negotiator may be a buyer or seller, a

    customer or supplier, a boss or employee, a

    business partner, a diplomat or a civil servant.

    On a more personal level negotiation takes

    place between spouse, parents or children.

    You negotiate when you want to resolve

    something and both parties have somethingto gain from the interaction and exchange.

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    Negotiations Mixer

    TASK: In your teams of 3 (or 4), negotiate withyour partners to decide how you would divide thisRs. 100 among you.

    Once you have agreement, all 3 of you stand up. Anyone not happy with the division of money? You have 60 seconds to negotiate. Are you ready

    to begin? Go!

    Who reached a win-win agreement in 45seconds?

    What made this a difficult task?

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    What is Influencing

    Where one party power over another party

    A child can influence his / her parents to buy

    an ice cream but has little power to negotiate.

    When child uses emotions it is negotiating

    with his / her parents using emotions.

    If one party loses and the other party gains itis not negotiating that is practiced but it is

    Influencing.

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    What is Bargaining

    Where there is give and take from both sides.

    It is a form of Barter and normally done on

    specifics like price.

    It is a sub set of Negotiation

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    Characteristics of Negotiation Situation

    There are two or more parties: That means there

    are two or more individuals or groups or

    organizations who are negotiating within

    themselves.

    There is conflict of interest between two or

    more parties: Parties involved in the negotiation

    process have their individual interest and theyare negotiating to resolve the conflict which is

    arising from their individual interests.

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    Characteristics of Negotiation Situation

    The parties negotiate because they think that by

    influencing the other party they will get better

    deal than by simply voluntarily accepting the deal

    offered by the other party.

    When we negotiate, we expect give and take:

    Both the parties involved in negotiation will

    modify their earlier offerings and demands andwill reach to some conclusion acceptable to both

    the parties at the end of the negotiation.

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    What makes a Good Negotiator

    Behavioural Criteria:

    a) High observation skills: Able to listen,

    observe and record activities of others, also

    should pick up the non verbal clues given

    through body language.

    b) Planning and organising: Must be able to

    decide in advance what they expect from the

    negotiations and also know their own limits.

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    What makes a Good Negotiator

    Behavioural Criteria:

    c) Able to move blockages: Must identifybarriers and work systematically through the

    barriers that are encountered during thenegotiations.

    d) Develop rapport: Must quickly establish and

    maintain the rapport by appreciating otherspoint of view while emphasizing on our ownview.

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    What makes a Good Negotiator

    Behavioural Criteria:

    e) Flexible attitude: Able to accept others view

    points and arguments.

    f) Creativity: Must think creatively and helping

    to solve the issue.

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    Access your current skill as a Negotiator

    Rank yourself from 1 poor to 5 highly skilled in

    terms of your negotiating ability.

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    Different Phases of Negotiation

    Pre-negotiation: Before any negotiation takes

    place, a decision needs to be taken as to when

    and where a meeting will take place to discuss

    the problem and who will attend.

    This stage involves ensuring all the related

    facts of the situation are known in order to

    clarify your own position.

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    During Pre-negotiation stage Negotiators shouldknow:

    1) Rules or Policies of their organization

    2) Deciding who will negotiate

    3) What exactly is your own position?

    4) What is the other person likely to want?5) What, as close as you can get, is the other

    personsposition?

    6) When to refuse or accept an offer

    Undertaking Pre-negotiation or preparationbefore discussing the disagreement will help toavoid further conflict and unnecessary wastingtime during the meeting.

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    Opening: Each party should start by clearly

    and assertively stating how they currently see

    things.

    There should be no judgment and no personal

    attacks. Each party should listen carefully to

    the other without interruptions.

    Your (Opening) initial position should be

    reasonable and not too extreme.

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    Information sharing: During this stage,

    individuals or members of each side put

    forward the case as they see it, that is their

    understanding of the situation.

    Key skills during this stage are

    Questioning,

    Listeningand

    Clarifying

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    Problem solving: As the discussion proceeds,

    each party may wish to suggest changes to the

    initial positions, either to their own initial

    position or to the initial position of the otherparty.

    The discussion continues in this way, with the

    parties trying to maintain an element of flexibilityuntil they can solve the problem and reach an

    agreement that is acceptable to both.

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    Agreement: When agreement has been

    reached it is most helpful to make a written

    record of it, including how the implementation

    of the agreement will be monitored.

    Both parties should agree the content of the

    written record and sign it.

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    Breakdown in negotiation: Sometimes

    negotiations break down and the partiesconcerned are unable to reach an agreement.

    This may be for a variety of reasons, but in anyevent some further strategy then needs to beintroduced because the conflict cannot beallowed to continue unresolved.

    Often this is a time at which to introduce a thirdparty mediator.

    It may also be possible to ask a more seniormanager to make a decision binding on bothparties (arbitration)although the two parties inthe dispute then have no control over theoutcome.

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    Barriers that create impasse/deadlock

    during Negotiation

    Failure to communicate

    Gaps in Information

    Insufficient focus upon underlying interests Inability to align other parties interests

    Poor Negotiating Skills

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    Overcoming Barriers Negotiate for a WIN-WIN Outcome: WIN-WIN outcome

    could be achieved where both sides feel they have gained

    something positive through the process of negotiation and

    both sides feel their point of view has been taken into

    consideration.

    A WIN-WIN outcome is usually the best outcome, however

    it may not always be possible but through negotiation it

    should be the ultimate goal.

    Suggestions of alternative strategies and compromises

    need to be considered at this point.

    Compromises are often positive alternatives which can

    often achieve greater benefit for all concerned rather than

    holding to the original positions.