Negotiation

By ADIT PAREEK B.TECH(ECE) VII SEM ROLL NO: 08

Definition
Negotiation is a process of

communication in which the parties aim to "send a message" to the other side and influence each other.

Negotiation
something that we do all the time , not only for

business purposes. usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible. not always between only two people: it can involve several members from two parties.

Two relatively distinct types of negotiation

Distributive negotiations

Integrative negotiations

Distributive Negotiations
often referred to as 'The Fixed Pie'

usually involves people who have never had a

previous interactive relationship, nor are they likely to do so again in the near future. example: Purchasing products or services, like when we buy a car or a house Ours and their interests are usually self serving

Integrative Negotiation
The process generally involves some form or

combination of making value for value concessions, in conjunction with creative problem solving. Form a long term relationship to create mutual gain. often described as the win-win scenario

Three stages of negotiation

Initial Stages
Middle Stages Ending Stages

Initial stages
Plan thoroughly. Organize the issues. Focus on mutual principles and concerns. Be aware that the first offer is often above

expectations.
Focus on long- term goals and consequences.

Middle stages
Revise strategies.

Consider other options.

Increase power by getting the other side to

commit first. Add credibility by getting agreements in writing. To get through with dead ends, just set it aside momentarily. When asked for a concession, ask for a tradeoff.

Ending stages
Counter a persistent negotiator by withdrawing an

offer.
Do not expect in verbal promises. Congratulate the other side.

Obstacles to Negotiation
1.Die hard bargainers

2.Lack of trust
3.Informational vacuums and the negotiator's

dilemma. 4.Structural impediments. 5.Spoilers. 6.Cultural and gender differences. 7.Communication problems. 8.The power of dialogue.

How to Plan Your Negotiations More Effectively

the more time that is spent in planning and

preparing for the negotiation, the more beneficial will be the final outcome.

There are five key issues to consider when preparing for a negotiation:
Objectives

Information
Concessions Strategy Tasks

Objectives
you need to have a clear idea of your objectives

and those of the other side. Ask yourself the following questions: What is my best outcome? What other outcomes may be acceptable? Would is my worst acceptable outcome? What options or alternatives would be acceptable to me? What are the other sides objectives? What options or alternatives might be acceptable to them?

Information
It has often been said that information is power. In

any negotiation, there will be 5 types of information that will influence the final outcome. What information do I have that the other side has also? What information do I have that the other side does not have? What information do I need to find out before negotiating with the other side? What information does the other side need before it can negotiate with me? What information am I prepared to reveal to the

Concessions
When preparing for negotiations, ask yourself the

following questions: What concessions are available to me other than price? What is the cost of each possible concession? How much value does the other side place on each concession? What is non-negotiable in this negotiation? What is the limit of my authority?

Strategy
Strategy
Ask yourself the following questions: How am I going to achieve my objectives in

this negotiation? What is my plan of action? What is the strategy of the other side likely to be? How do I expect them to behave? What tactics should I use within the negotiation? What tactics are the other side likely to use?

Tasks
If you go into negotiation with a colleague or

colleagues, you need to decide during the preparation phase:

What role will each team member take in the

negotiation? How can we work together in the most effective way?

important tips to any negotiators are:

Try to be confident. Look and feel as confident

as possible. Remember, they have as much to gain as you from reaching agreement Take your time. Most salespeople negotiate too quickly and give concessions too easily. Slow down Calculate the cost of concessions. Dont agree a concession until you understand the cost of agreeing to it Adopt a low key approach. Try not to look too eager Keep things in perspective. Work hard at

Sources:

wikipedia.org Commskillsimprovement.com

THANK YOU!