Professional Documents
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Skills
What is Negotiation?
The act or process of dealing with others to reach an agreement.
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To reach an agreement. To pass by or over safely/successfully. To deal with desires & demands. To communicate. To act for oneself or for the others.
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Instances of Negotiation
Purchasing an object at a store Agreeing on work plans Discussing a raise with your boss Signing of new business contracts Agreeing on realistic project deadlines Managing a conflict (conflict resolution)
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communication
Negotiation
Persuasion
motivation
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Communication
Empathy Rapport Tact Sympathy Listening Questioning Body language
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To reach an agreement. To pass by or over safely/successfully. To deal with desires & demands. To communicate. To act for oneself or for the others.
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Definition
Negotiation takes place when two people (Or more), with differing views, come together to attempt to reach agreement on some issues. This may be a one-off event or part of an on-going relationship. It is a form of communication-persuasive communication; in a word, bargaining. Persuasive communication is about getting what you want, negotiation is about getting the best possible deal. This is getting what you want in the best possible way.
Negotiation Types
1.
Distributive:
Sometimes called Win/lose negotiation, distributive negotiation arises when the parties are in conflict and each sees the objective as beating the other. Tactics can thus be negative and confrontation is more likely, with a satisfactory conclusion more difficult to obtain than in mutually positive encounters.
Negotiation Types
2. Interactive:
Sometimes called Win/Win negotiation, integrative negotiation arises when the parties see the aim as being to gain agreement. Through collaboration an outcome that is acceptable to both parties.
Power TO Influence
What gives a negotiator power to influence events?:
Expert Power Personal Power Reward Power Coercive Power Legitimate Power
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Sources of Power
Title Power Reward Power Punish Power Reverent power Charismatic Power Expertise Power Situation Power Information Power
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Negotiating Characteristics
1. Two or more parties are involved. 2. Involved parties common interests.
have
party to modify its initial position. 5. Each party has some degree of Power over the other party. 6. Results are affected by personal attitudes.
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Uncertainty.
involve
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Negotiation Ingredients
Knowledge of Human Behavior. Self-Preparation. Own Assumptions. Anticipation of the assumption(s). Strategies & Tactics.
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other
partys
Strategies The Overall Approach Conducting Negotiations. Tactics Particular Actions Implement a Strategy. Used
for
to
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1. 2. 3.
A Successful Negotiator .
Has unlimited patience. Knows how to dissemble without being a liar. Inspires trust without trusting others.
4.
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A Successful Negotiator .
1. 2.
Modest, but Assertive. Charming others without succumbing to their charm. Has plenty of money, but remains indifferent to all temptations.
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3.
Attributes of a Credible Negotiator Confidence Preparedness & Organization Knowledgeableness Honesty Firmness
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1. Aggressive Goals
4. Self-Centered Goals
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1. Aggressive Goals
Seek to Damage an Opponent. Hurt the Competitor Causing someone else to lose the respect of others
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2. Competitive Goals
Gaining more than the other party. Paying the Lowest Price Getting a Better Public Image Receiving the Highest Price
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3. Cooperative Goals
Agreement Leads to Mutual Gain. A Joint Venture, Partnership Settlement for Mutual Gain Payment Plan for the Benefit of Both Payer & Payee.
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4. Self-Centered Goals
Seek a Particular Result Regardless of What the Other Party Receives. Obtaining a Particular Property Selling a Property Gaining the Others Respect
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5. Defensive Goals
Seek to Avoid a Particular Result. Avoiding Loss of Respect Preventing a Strike Avoiding Loss of a good Customer/Supplier Maintaining a Business/Personal Relationship
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Combination of Goals
Each Negotiation Has Multiple Goals.
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1. Preparation
2. Actual Negotiation
3. Monitoring
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Establish Objectives Negotiate Rehearse Options Determine Strategy Reconsider Needs Review Assumptions Rehearse Fact Define Issues Decide Positions
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II. Issues
Preparation Phase Checklist
I. FactFact-Finding
III. Arguments
IV. Agenda
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1. Fact-Finding
Financial Situation Internal Problems General Reputation Integrity & Credibility Who is the Decision-Maker
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2. Issues
Major Issues Minor Issues - Target - Initial Position - Walk-Away Point
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3. Arguments
Take Stock of all Arguments in Support of Each Position to Take. Anticipate other Partys CounterAgreements and be Prepared for it.
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4. Agenda
Decide on Proposed Agenda. Give attention Sequence. to
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Actual Negotiations
Orientation Phase Positioning & Arguing Exploring Possibilities Definition of Proposals Crisis Phase, and Settlement
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1. Orientation Phase
Information Exchange Introducing Teams Formal/Informal Ice-Breaking Agenda & Rules Discussion Determination of Authority Negotiators
of
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Explaining & Defending Initial Positions, Questions and Attack those of Opponents.
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3. Exploring Possibilities
Float New Ideas and See what Responses Occur.
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4. Definition of Proposals
Firm Propositions Begin to Emerge Parties Move Towards Consensus Contours of the Agreement Emerge
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5. Crisis Phase
Deadlines & Deadlocks Occur Can Mean End Negotiation of
6. Settlement
Proposals begin to emerge as a probable satisfactory outcome. Difficulty to Identify a Point of Safe Stop. Tried too soon, may cause Agreement Loss.
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6. Settlement (cont.)
Left too late, may Allow Opponents to Think of New Angles. It is Important to Conclude what the Agreement is All About, with very Clear & Unambiguous Understanding.
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Concessions
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Strategy 1: No Concessions
Used when:
1. 2. 3.
Balance of Power is in Your favor. You are in a disproportionately weak position. Another Party is Waiting in the Wings.
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Strategy 1: No Concessions
Used when (Cont.):
or the Time is Too Short. 5. The Same Terms Must be Available To Everyone. 6. Bids or Written Proposals are Sought.
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Trade Concession Reluctantly. The Number of Variables is Finite, you want to Share. You must be Perceived as being Driving A Hard Bargain The If. Then Approach.
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Strategy 4: HRESSC
The most Generally Useful Negotiation Strategy. Relies mainly on offering High Realistic Expectations with Small Systematic Concessions.
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Strategy 6: Problem-Solving Creating a Procedural Agreement to Solve a Common Problem that has been Identified.
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Strategy 7: Goals Other Than To Reach An Agreement Reaching Agreement is not necessarily the End Purpose of all Negotiating Goals & Strategies.
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