NEGOTIATION

SUBMITTED BY:-MEENU GOYALROLL NO:-351MBA 2ND SEM

WHAT IS NEGOTIATION ?

Negotiation is :-

• one of the most common approaches used to make decisions and manage disputes

• a dialogue intended to resolve disputes• to produce an agreement upon courses of action• to bargain for individual or collective advantage• or to craft outcomes to satisfy various interests

• the primary method of alternative dispute resolution

Negotiation occurs in :-

• business

• non-profit organizations

• government branches

• legal proceedings

• among nations

• personal situations such as marriage, divorce, parenting • and everyday life

CONDITIONS FOR NEGOTIATION :-

• Identifiable parties who are willing to participate. • Interdependence.

• Readiness to negotiate.

• Means of influence or leverage.

• Agreement on some issues and interests • No major psychological barriers to settlement.  • The people must have the authority to decide.

CONTINUE..

• Will to settle.

• Unpredictability of outcome

• Resources to negotiate.

• External factors favorable to settlement.

• The agreement must be reasonable and implementable

• A sense of urgency and deadline

REASONS FOR CHOOSING NEGOTIATIONS:-

 •  Test the strength of other parties

•  Obtain information about issues, interests and positions of other parties

•   Educate all sides about a particular view of an issue or concern

•   Ventilate emotions about issues or people

•   Change perceptions 

CONTINUE…

 •     Mobilize public support •     Buy time •     Bring about a desired change in a relationship; •     Develop new procedures for handling problems; •     Make substantive gains; •     Solve a problem.

REASONS FOR REFUSING NEGOTIATION:-   •   Parties are fearful of being perceived as weak by a constituency,

by their adversary or by the public; •    Discussions are premature. There may be other alternatives

available--informal communications, small private meetings, policy revision, decree, elections;

 •    Meeting could provide false hope to an adversary or to one's

own constituency; •    Meeting could increase the visibility of the dispute; •    Negotiating could intensify the dispute; •    Parties lack confidence in the process; 

CONTINUE…

 

•   There is a lack of jurisdictional authority;

 

•   Authoritative powers are unavailable or reluctant to meet;

 

•   Meeting is too time-consuming;

 

•   Parties need additional time to prepare;

 

•   Parties want to avoid locking themselves into a position; there is still time to escalate demands and to intensify conflict to their advantage.

 

APPROCHES OF NEGOTIATION:-

•  positional bargaining

• interest-based bargaining

STAGES OF NEGOTIATION:-

Stage 1: Evaluate and Select a Strategy to Guide Problem solving

Stage 2: Make Contact with Other Party or Parties

Stage 3: Collect and Analyze Background Information

Stage 4: Design a Detailed Plan for Negotiation

Stage 5: Build Trust and Cooperation

Stage 6: Beginning the Negotiation Session

CONTINUE..

Stage 7: Define Issues and Set an Agenda

Stage 8: Uncover Hidden Interests

Stage 9: Generate Options for Settlement

Stage 10: Assess Options for Settlement

Stage 11: Final Bargaining

Stage 12: Achieving Formal Settlement

Tips for negotiation :-

• Don't be afraid to ask

• Never negotiate against yourself

• Get it in writing

• Establish a fall-back plan

• Avoid form contracts

• Listen to the other side

THANK YOU…