negotiation skills
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A in-depth presentation on Negotiation Skills by Prof. Rahul Jadhav & Prof. Prashant Chaudhary of Sinhgad School Of Business Studies, PuneTRANSCRIPT
NEGOTIATION SKILLS NEGOTIATION SKILLS
BYPROF. RAHUL JADHAV &
PROF. PRASHANT CHAUDHARY
SINHGAD SCHOOL OF BUSINESS STUDIES, PUNEFor
VISHWAKARMA PUBLICATIONS (www.vpindia.co.in)
NEGOTIATION
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Characterized by two or more interdependent parties who have a conflict of interest, and who choose to address that conflict by striving to reach an agreement through a process of mutual adjustment of each party’s demand and concessions.
Behavioral definition of Negotiation- The process by which we search for the terms to
what we want from somebody who wants something from us.
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Negotiation is……
A dialogue or discussion between two or more people or parties, intended to reach an understanding, resolve point of difference, and/or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two opponents involved in negotiation process.
Process of exchanging offers and counter offers- “exchange of concessions” - for arriving at a compromise by which both parties reach to an agreed positions and outcomes.Prof. Rahul Jadhav & Prof.
Prashant Chaudhary, Vishwakarma Publications
Characteristics of a good negotiator- Expert Opinion
Meticulous preparation and planning skills.Expert in forming perceived positive opinion.Knowledge of the subject matter being negotiated.Ability to analyze properly, think clearly and rapidly under
pressure and in the situation of uncertainty.Ability to perceive and exploit power.Professional communication & soft skills.Good listening skills.Should possess ability to judge the situation with general
intelligence.Analytical skills with convincing power.Ability to estimate & evaluate various options with
multidimensional thinking!
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
NEW NEGOTIATING EDGE(NEGOTIATION STYLES)
• Red Style
• Blue Style
• Purple Style
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
RED STYLE
They believe manipulation is normal and they behave as
they believe
Main attitudes:Aggressive IntimidatoryManipulatory
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
BLUE STYLELooking for both winning of two sides.
Main attitudes: Cooperative Trusting Conciliatory
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
PURPLE STYLE
Win-Win Approach“Give me some of what (red style),I will give
you what you want (blue style)”
“Taking while giving”“It is a two way exchange”
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Types of Negotiation • Distributive Negotiation-
Opponents compete over the fixed sum or value. The key question is who will win the bigger part of the pie. A gain of one party is made at the expense of the other.
• Integrative negotiation- The word integrative implies some cooperation and hence often involves a higher degree of trust and the forming of mutually beneficial long term relationship. It can also involve creative problem-solving that aims to achieve mutual trust and gains. For the same reason it is also called win-win negotiation.
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Negotiation Styles
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Five major conceptual instruments of negotiation
• BATNA – Best Alternative to Negotiated Agreement
• Reservation price: Walk away price • ZOPA – Zone of Possible Agreement
• Value creation through trade-offs
• Real & perceived Negotiating power
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Pyramid of Time-Power-Information
Interestingly enough the most important is not the Power itself but how it is perceived.
Power in some sense is similar to beauty that lies in the eye of the beholder.
Another way to put it is, if you are perceived in the position of Power, you have it.
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Negotiation Process
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Preparation for negotiation - The checklist
Answer the following before getting into a negotiation: Why we entering into the negotiation? What are our objective? Who will we be negotiating with? When will suit us best to hold the negotiations? What should be our choice of style? How high should we pitch our initial demands? What order should we set for offering our concessions &
what else might we be prepared to include? Who do we need to include in our team? What will their
respective roles be? How much time will we need to reserve? What assumptions have we made in our planning?
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Negotiation is about the resolution of conflicts, usually by the exchange of
concessions. Identify the decision maker from the opposing team.
Formalize your objectives in terms of priorities.
Establish what their objectives & priorities might be.
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Aim high Consider all the variables in the other side’s case & estimate
the probable cost to them if they concede any of those to you.
Finally value the benefits of the other side’s variables to you.
If both sides are to move from their starting position by trading concessions, the initial offer you open with- must be more favorable to you than where you hope to settle eventually.
Otherwise you will be having nothing to exchange.
Hence in setting out your opening gambit, you need to include a negotiating margin & aim high.Prof. Rahul Jadhav & Prof.
Prashant Chaudhary, Vishwakarma Publications
Exploring information- by Probing
The more you explore, the less the other side will be able or get opportunity to explore your case or position and hence more you will be able to control the course of the discussion.
In the due course of probing, try to obtain the full shopping list of items/issues they want to negotiate.
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Deadlock– Breaking and Overcoming the impasse
Deadlock is one of the most counterproductive and undesirable of all the situations and conclusions of negotiation that can result in the breakdown.
The negotiators should always be alert for its possibilities and try to avoid it.
The only exception is where the negotiator use deadlock as a tactic to galvanize the opponent to take the favourable action.
Breaking the deadlock-
A)Try to avoid the immovable positions.
B)Bridging the GAP
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Arguments- Soldiers of negotiation Army
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Summarize
• An excellent negotiation practice/tactic is to:
1) Summarize from time to time, what
your discussion has covered.
2) Probe ambiguities before
they become
misunderstandings.
• It also gives time for new ideas & re-appraisal of old ones.
• This acts as a recess.
Closing
• Golden Rule - Goal commitment not only agreement.
• Use a pause in your speech prior to making any offer- between the lines.
• If you can meet, accept or deliver the following conditions 1…, 2…, 3…, n…, we will be prepared to consider offering the following: 1…, 2…, and 3…, n….. Our reason for doing so is a…, b…, c…, …z…
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Difficult People
Difficult people exist everywhere. They come in every variety and no workplace is without them. How difficult a person is for you to deal with, depends on your self-esteem, your self-confidence and your professional skills and courage.
It’s far better to address the difficult person while you can maintain some objectivity, patience and emotional control.
Types of Difficult People-
The “Sherman Tank”The “Exploder”The “Complainer”The "Clam"The “Wet Blanket”The “Know-It-All”The “Staller”
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Dealing with Opposition
• Idea Opponent- An idea opponent
is one who disagrees on a particular issue or alternative on the basis of rational and logical facts.
• Visceral Opponent-
Visceral opponent is an emotional adversary, who not only disagrees with your point of view, but also as a human being.
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
Ethics in negotiation• Ethics is a system of moral principles or values.
• Typically, these people feel that negotiation is what a salesperson does to get them to buy or try to push off his/her products and services. But this is not the reality. In fact, every one of us negotiates in almost all walks of our day to day life.
• There are 9 tips will ensure that you build all your negotiations on the foundation of ethics--which will, by the way, increase your possibility of achieving win-win outcomes
Prof. Rahul Jadhav & Prof. Prashant Chaudhary,
Vishwakarma Publications
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