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8/21/2019 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.