Negotiation Skills

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Key Points

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• Negotiation is not a game

• Negotiation is a critical life skill

• Negotiation is a give and take process

• Negotiation does not end with the agreement

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Definition

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Negotiation is a basic means of

getting what you want from others

by interactive communication

designed to reach an agreement

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Basics of Negotiation

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There must be at least two or more

parties involved.

Have definite goals and

objectives

Allow adequate time for the

process.

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The Four Stages of Negotiation

Clarify the other

party’s objective

Information

Gathering

Action plan

1.Analyse the situation

2.Develop a strategy

3.Determine time frame

The actual Negotiatio

n

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Major influences on the stages of Negotiation

Issues Attitude

TimeRelationship

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Basic Elements of Successful Negotiation

1. •Positive Attitude

2. •Knowledge of Negotiation process

3. •An understanding of people

4. •A grasp of people

5. •Creativity

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Information is the key to success in Negotiation

•Asking questions

•Where and when you meet your client is a deciding factor

•Check the validity of the information

•Remember you are not the only one collecting information.

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Negotiation Process : REPA

RELATE : Building a relationship

EXPLORE : Interests of both sides

PROPOSE : One concrete proposal address all underlying interests

AGREE : Compromise and creating alternatives

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Planning for Negotiation

1. BENEFITS

AVOID SURPRISES

PROVIDE MORE OPTIONS

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PROCESS

. Rational : Why we negotiate

Objectives : Goals/Priorities

Differences : Possible Conflicts

Mode of Negotiation : Bargaining, Time Frame

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KNOW YOUR BATNA

Best Alternative To a Negotiated Agreement

to produce something better 

The better your BATNA the greater your power

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BATNA List your alternatives - Evaluate your alternatives

Establish your best as your BATNA

Have a Reservation Point – the least you will accept

List their alternatives – their BATNA

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Negotiating Behaviour

Negotiating Behavior by Gavin Kennedy

(The New Negotiating Edge)

describe 3 types of behavior that we can display and encounter when in a negotiating

situation Red Blue Purple

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Red behaviorManipulation Aggressive Intimidation Exploitation Always seeking the best for you No concern for person you are negotiating with

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Blue behavior

Cooperation Win -win approach Trusting Pacifying RelationalGiving

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PURPLE behaviour

Give me some of what I want ( red) I’ll give you some of what you want(blue) Deal with people as they are not how you think they are Two way exchange Open People know where they stand Determination to solve problems by both sets of criteria of the merits of the case and/or the terms of a negotiated exchange.

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Negotiation Styles

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 Negotiation Styles:

1. Win – Lose Style2. Avoiding Style3. Accommodating Style4. Compromising Style5. Collaborating (Win-Win) Style

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Win – Lose Style

Win – Lose Style :

Assertive and uncooperative Tend to pursue their own goals at the expense of the other party. Like to be surrounded by “yes men.” Look for a win for themselves, a loss for the other person.

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Avoiding Style:

Avoiding Style: Unassertive and uncooperative Do not attempt to fulfill their own needs or the needs of others. In essence, they refuse to address the conflict. They do not strive for any agreement

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Accommodating Style:

Accommodating Style :Unassertive but highly cooperative Tend to neglect their own goals in order to satisfy the concerns of the other party. They may seek a win-lose agreement where they are the losers! Display excessive generosity and easily yield to another’s point of view.

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Compromising Style 

Compromising Style :These people are “in the middle” in terms of assertiveness and cooperativeness. Attempt to find a quick, mutually agreeable solution that partially satisfies both parties. The agreement reached does not usually maximize the satisfaction of the parties. Will often say “Let’s just split the difference.”

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Collaborating (Win-Win) Style

Collaborating (Win-Win) Style: Assertive and cooperative They seek to maximize the satisfaction of both parties and reach a truly win-win solution Collaborators have the motivation, skills, and determination to really dig into an issue or a problem and explore all possible solutions.

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Illustrative Story

Two brothers had an orange. Each of them wanted to have it. Ultimately they resolved the conflict through splitting the orange into two halves, one half for the each. Elder brother ate the pulp and threw the peeling. The younger brother who did not have an innate liking for the oranges and just wanted the peeling as a recipe ingredient, used the peeling and discarded the pulp.

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Your Comments…

What negotiation style(s) the two brothers adopted to resolve the conflict? Offer your comments over degree of usefulness of the style(s) used in this situation.

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Listening: a strong negotiation tool:

Listening: a strong negotiation tool!

Listen Quietly first, without interrupting

Pay close attention to what is said

Ask the other party to spell out carefully and clearly exactly what they mean

Request that ideas be repeated if there is any ambiguity or uncertainty.

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Negotiation Tips:1

Do not underestimate your power.

a. Most people tend to have more power than they think.

b. Your base of power rests on a foundation of more than just competition or financial matters.

c. Commitment, knowledge, risk taking, hard work, and negotiation skills are also real sources of power.

d. Making a systematic analysis of these sources, you can understand your strengths.

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Negotiation Tips:2

Most negotiation will require some concession making.

a. Don’t set your initial demand near your final objective.

b. There is sufficient evidence to conclude that it pays to start high.

c. Don’t be shy about asking for more. Many times your demands may be too modest, or too easy to achieve.

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Negotiation Tips:3

It is a mistake to assume you know what the other party wants.

a. It is far more prudent to assume you do not know, and then proceed to discover the realities of the situation by patient testing.

b. If you proceed to negotiate a deal on the basis of your own untested estimates, you are making a serious mistake.

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Negotiation Tips:4

Never give a concession without obtaining one in return

a.  Don’t give concessions away free or without serious discussion.

b. A concession granted too easily does not contribute to the other party’s satisfaction nearly as much as one that they struggle to obtain.

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Negotiation Tips:5

Never fear to negotiation, no matter how great the differences are

a. Fear can create enormous pressure on you and impact your negotiating success.

b. Remember, negotiation is not a contest.

c. Don’t shy away from negotiating just because you are afraid of making a mistake or doing poorly.

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Negotiation Tips:6

Our emotions get in the way of effective negotiations regularly.

a. Nothing kills creativity quicker than anger, pride, embarrassment, envy, greed, or other strong negative emotion.

b. Anger is often an expression of fear, or lack of confidence in our ability to get what we think we want. If we can improve our ability to manage our emotions and respond without getting defensive, we have gone a long way toward creative negotiation.

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A successful Negotiator

A successful Negotiator can

Build Rapport. Network effectively.

Work in a team. Build consensus .

Be persuasive .Deal with conflict.

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 Common mistakes to

be avoided

Inadequate Preparation 

Ignoring the give/get principle

Use of intimidating behavior

Impatience / Loss of temper.

Talking too much, listening too little, and remaining indifferent to body language

Arguing instead of influencing

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Culture and Negotiation

Culture is about those values, beliefs, self-justifying assumptions and ‘world views’ of members of the distinctive groups with whom we deal.

Culture encompasses their histories, received experiences, accounts of events, political perspectives, myths, folklore, collective memories, religious or mystical ideas, philosophical outlooks, rituals and social preferences.

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Hofstede’s Cultural difference using four

indices

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Any questions

Any questions ?

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References

Author stream : Negotiation Skills RTC: egypt4hrist

Author stream: Negotiation Skills : pravinasir

www.mindtools.com

www.managementstudyguide.comThe Negotiation Programme is written by Professor Gavin Kennedy BA MSc PhD FCInstM,

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