lecture 1 and 2_the introduction

7/29/2019 Lecture 1 and 2_The Introduction

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Negotiation TeqniquesSHP 2423

LILY SURIANI MOHD ARIF

Lecture 1


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INTRODUCTION TO NEGOTIATION


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INTRODUCTION

People negotiate ALL THE TIME.


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INTRODUCTION TO NEGOTIATION

How would you define negotiation?

What other words do you associate with negotiation?

Terminology used in negotiations


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WHEN TO NEGOTIATE?

As a HR Manager we negotiate with:

Colleagues, employees and/or supervisors;

Union officials;


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WHEN TO NEGOTIATE?

About such Matters as:

Contracts

Job Performance, benefits and working hours

Responsibilities, conditions and grievances


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WHAT ARE NEGOTIATIONS?

an attempt to influence others by exchangingideas or bartering;

the process we use to satisfy our needs whensomeone else controls what we want;

a process of compromise with each sidegiving something in order to getsomething that they want.


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Or in other words, negotiation is about effective communication. InWinning at Business Negotiations. A Guide to Profitable DealMaking, Colin Robinson says that

The essence of negotiations is that it is not aboutwinning or losing- it is about striking a dealwhich is satisfactory to both sides. Of course,your efforts should be directed towards ensuringthat it is more satisfactory to your side than tothe other.


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Negotiation is a basic means of getting what you want from others.It is a back-and-forth communication designed to reach anagreement when you and the other side have some interests thatare shared and others that are opposed. Negotiation serves two

primary purposes :

(1) a method of resolving conflict and

(2) an integral part of the team decision-making process.


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Characteristics of a Negotiation Situation

1. There are two or more parties

2. There is a conflict of interest between the two or moreparties

3. The parties negotiate because they think they can usesome form of influence to get a better deal that waythan simply taking what the other side will voluntarilygive them and let them have.


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INTRODUCTION: Characteristics of a Negotiation Situation

4. The parties, at least for the moment, prefer to reach foragreement rather than fight openly, have one side capitulate,permanently break off contact, or take their dispute to a higherauthority to resolve it.

5. When we negotiate we expect give and take.

6. Successful negotations involves the management of intangibles aswell as the resolving of tangibles.


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NEGOTIATION: SOME INITIAL IMPLICATIONS

1. Negotiation is a mix ofCOMPETITIVENESS and COOPERATION- competitiveness because each negotiator is standing in the way of the otherachieving their goal but at the same time , cooperation is needed becausewithout the others help neither will achieve anything at all.

2. Negotiation is about an ISSUEwhat the differences are between the partiesbut it is also a PROCESS- how the parties will try to resolve their differences.Therefore, negotiators have to manage both the issue and the process toachieve good outcome.

3. Negotiation involves CHOICE.Although negotiators constantly make choicesabout how the negotiation should proceed, they do not have control.


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NEGOTIATION: SOME INITIAL IMPLICATIONS

4. Negotiation is TWO SIDED. Ignoring the other party is a mistakethat even effective negotiators make.

5. Negotiation process is MESSY


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Negotiations: SOME INTIAL

IMPLICATIONS

6. Interdependence

a. Interdependent relationships are characterized by interlocking goals.- theparties need each other in order to accomplish their goals one who isdependent on another must accept and accommodate the other partys demandand idiosyncracies.

b. The structure of the interdependence between negotiating parties

determines the range of possible outcomes of the negotiation andsuggests the appropriate strategies and tactics that the negotiator should usei.e win-lose (purchasing a product/vehicle), win-win (joint ventures).


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IMPLICATIONS

6. Interdependence

c. The interdependence of peoples goal is the basis for much social interaction-

we can estimate what type of behavior is more likely toemerge.

-a competitive situation- situation when individuals goals are so linkedtogether that there is a negative correlation between their goal attainment.

-a mutual gains situation situation when one persons goal achievement

helps others to achieve their goals (positive correlation)i

The nature of the interdependence will have a major impact on thenature of the relationship, the way negotiations are conducted, and theoutcomes of a negotiations.


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Negotiations: SOME INTIAL IMPLICATIONS

6. Interdependence

d. BATNA(Best Alternatives to a Negotiated Agreement) Knowing anddeveloping alternatives to reaching an agreement with the other party in a

negotiation is an important source of power.


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IMPLICATIONS

7. Mutual Adjustment

a. It is important to recognize that negotiation is a process that transforms overtime, and mutual adjustments is one of the key causes that occur during anegotiation.

i. ANTICIPATION- Behavior in an interdependent relationship isfrequently calculated on the premise that the more information one hasabout the other person, the better. There is possibility however, that too

much knowledge only confuses, or it may accentuate differences inperceived fairness.


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IMPLICATIONS

7. Mutual Adjustment

ii. PROBLEM SOLVING essentially a process of specifying the elements of adesired outcome, examining the components available to produce theoutcome, and searching for a way to fit them together.

- It is possible for a person to approach problem solving in negotiation from hisor her own perspective and attempt to solve the problem by considering theonly component that affect his or her own desired outcome.

- When approaching the situation as a joint problem solving effort, the desiresof the other party must be taken into account.

* A necessary step in all negotiation is to clarify and share information aboutwhat both parties really want as outcomes.


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IMPLICATIONS

7. Mutual Adjustment: The DILEMMA

a. Dilemma of Honesty

- concerns how much of the truth to tell the other party.

b. Dilemma of Trust

- concerns how much to believe of what the other party tells you.


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When NOT to NEGOTIATE

1. When you are in a position to lose everything, choose otheroption rather than negotiate.

2. When you are running at capacity, dont deal.

3. When the demands are unethical.4. When you dont care.

5. When you dont have time.

6. When the other party (s) act in bad faith.

7. When waiting would improve your position.

8. When you are not prepared.


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BAD NEGOTIATORS.

Robinson advises not to:

1. Believe everything is negotiable

2. Start negotiating unless you have at least areasonable expectations of coming out better thanyou went in

3. Grant concessions without gaining them

4. Forget to ensure you have a clear fallback position5. Underestimate either your own, or your opponents

strengths and weakness


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BAD NEGOTIATORS.

Poole cites, among the less useful traits are:

1. Eager to please others

2. Being nave and over trusting

3. Being too emotional and temperamental

4. Being aggressive, argumentative, belligerent

5. Being insecure6. Being unable to cope with uncertainty.


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BAD NEGOTIATORS.

Maddux lists eight critical mistakes frequently made during

negotiations

1. Inadequate preparation2. Ignoring principle of give

3. Using intimidating behavior

4. Impatience

5. Loss of temper6. Talking too much and listening too little

7. Arguing instead of influencing

8. Ignoring conflict


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GOOD NEGOTIATORS.

i. Know how to perceive and emploit power;

ii. Notice when the balance shifts and take advantageof it;

iii. Be able to take charge and not be afraid to graspthe initiative;

iv. Have self-awareness and self control

v. Be able to distinguish major and minor issues

vi. Be persuasive and flexiblevii. Be ambitious and set high goals and standards

viii. Not settle too easily or take the line of leastresistance

ix. Be firm


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GOOD NEGOTIATORS.

x. Project himself as someone who knows what hewants;

xi. Be reasonable, rational and realistic;

xii. Be courteous, pleasant and tactful

xiii. Know when to stop


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NEGOTIATION STYLES AND

OUTCOMES.

1. Bargaining Orientation

2. Lose-Lose Orientation

3. Compromise

4. Win-Win Orientation


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OUTCOMES.

1. Bargaining Orientation

an approach usually taken by competitive

communicators. It is a win-lose orientation- a victory by one party

will be matched by the others loss.


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OUTCOMES.

2. Lose-Lose Orientation

A conflict plays out in a way that damages both parties to

such a degree that everyone feels like a loser.

Nobody starts out seeking a lose-lose outcome, butsometimes when people feel that a negotiating partner isblocking them, they wind up seeking revenge.

Lose-lose outcomes occur when negotiating partners ignoreanothers needs.


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OUTCOMES.

3. Compromise

Sometimes it seems better to compromise than to

fight battles in a bargaining manner and risk alose-lose outcomes.

By definition the outcome of compromise approachis that both parties lose at least some of what theywere seeking.


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OUTCOMES.

4. Win-win Orientation

When the goals of the negotiating parties are

compatible or similar, a win-win solution in whicheveryone is satisfied becomes possible.


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OUTCOMES.

4. Win-win Orientation

When the goals of the negotiating parties are

compatible or similar, a win-win solution in whicheveryone is satisfied becomes possible.


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WHEN TO USE BARGAINING AND WIN-

WIN NEGOTIATION STYLES

Use a Bargaining Approach

i. When your interests and the other partys clearlyconflict

ii. When the other party insists on taking a win-loseapproach

iii. When you do not need a long term harmoniousrelationship

iv. When you are powerful enough to prevail


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WHEN TO USE BARGAINING AND WIN-

WIN NEGOTIATION STYLES

Use a Win-Win Approach

i. When you and the other party have common interestii. When the other party is willing to consider a win-win

situation

iii. When a continuing, harmonious relationship is

importantiv. When you are weaker or power is approximately

equal


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MAJOR ISSUES CRUCIAL TO

EFFECTIVE NEGOTIATIONS

1. Find out how much authority your opponentshave. You must know who you are negotiating withand the amount of decision-making authority they

have, and whether or not they will have to take anyagreement reached back to others for ratification and

possible alteration.


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2. Prepare your facts. Find out as much as you canabout the implications of your own proposals toyourself and the other side. Find out as much as youcan about their views and attitudes, what theirpossible objections might be, how far they might beprepared to go towards meeting your requirements.Find out about their company policy but also find outas much as you can about the individuals with whom

you will be negotiating, their own strengths andweaknesses, what they personally stand to gain orlose and what their past experience is of negotiation.Find out what you can about their style.


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3. Set the ground rules immediately. Be aware ofmulti-subject agendas which could bury importantissues among less important ones so they lose their

potency. This tactics is good if youve done it, bad ifthe other side has done it


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4. Learn what you can about common ploys andtechniques, decide which ones you might feelcomfortable using and determine both your

objectives and your tactics before you go in.Know which are your primary and secondaryobjectives, that is, which are negotiable.


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5. Be flexible but firm.

6. Work out in advance how to counter someone whohas read the same books you have. Plan some

scenarios and work out what you would do in each sothat you are not caught out. Be alert and aware andallowing for the fact that the opposition is trying to doexactly the same thing you are and neither of you

wants to give away any more than necessary.


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7. Be aware of both your own and oppositions attitude tothe negotiations. Are they win/win, with both sidesstanding to gain or are they win/lose, with both side

wanting to come out clearly on top?8. Be polite and patient.


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9. Be Aware of both your own and the oppositionsperceptions, messages (verbal and nonverbal) andbody language, deliberate or otherwise. Make

allowances for misinformation, giving out themessages you want to give out as well as those youwould prefer the other side not to notice. Watchothers reactions to what you say and do. Look andlisten to what they are saying and doing, makingallowances for the fact that they may be feeding youmisinformation or trying to cover up attitudes, ideas,beliefs that they do not want you to be aware of.


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10. Do not make snap decisions or concessions; if caughtout, ask for a recess to think things over.

11. Never admit a mistake; agree to investigate, stall,

concede that you have learned something but neveradmit that you were wrong.

12. Establish a timetable. Agreeing a finishing time givessomething to work towards. Some negotiators will set

their watches out on the table in front of time.


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13. Consider, before you begin, who you think should gofirst

14. Know when to stop when each of you is better offwith the agreement being proposed than with noagreement and when one or both of you believe thereare no more concessions to follow.

lecture 1 and 2_the introduction

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