Mastering negotiations kills Kỹ năng đàm phán

On a more personal level negotiation takes place between spouse’s friends,... Distributive Negotiation  Parties compete over the distribution of a fixed sum of value.. Distributive Ver

Prepared By : Gihan Aboueleish

Presented By: TARINI- 41002 SACHIN- 41001

Negotiation Skills - Gihan Aboueleish 1

• Third party Negotiations

• How to achieve an Effective Negotiation

“Change the way you look at things, and the things you look at

You can’t sail anywhere until you learn which way the wind wants to blow

What Is Negotiation ?

• The word "negotiation" originated from the Latin expression,

"negotiatus", which means "to carry on business".

• The process of conferring to arrive at an agreement between

different parties, each with their own interests and preferences

• “A give-and-take decision-making

process involving interdependent parties with different preferences.” Neg

Defined :

 Negotiating is the process of communicating back and

forth, for the purpose of reaching a joint agreement about differing needs or ideas

 It is a collection of behaviours that involves

communication, sales, marketing, psychology, sociology, assertiveness and conflict resolution.

 A negotiator may be a buyer or seller, a customer or

supplier, a boss or employee, a business partner, a diplomat or a civil servant On a more personal level negotiation takes place between spouse’s friends,

Features Of Negotiation

• Minimum two parties

• Predetermined goals

• Expecting an outcome

• Resolution and Consensus

• Parties willing to modify their positions

• Parties should understand the purpose of

Distributive Negotiation

 Parties compete over the distribution of a fixed sum of

value The key question in a distributed negotiation is,

“Who will claim the most value?” A gain by one side is made at the expanse of other

 The Seller’s goal is to negotiate as high a price as possible;

the Buyer’s goal is to negotiate as low a price as possible

 Thus, the deal is confined: there are not much opportunities

Integrative Negotiation

 In Integrative Negotiation, parties cooperate to achieve maximize benefits by integrating

their interests into an agreement This is also known as a win-win negotiation

• The key questions is: “How can the resource best be utilized?”

 Integrative negotiations tend to occur in following situations:

• Structuring of complex long-term Strategic Relationships or other collaborations

• When the deal involves many financial and non-financial terms

 In an integrative negotiation,, there are many items and issues to be negotiated, and the

goal of each side is to “create” as much value as possible for itself and the other side

Distributive Versus Integrative Negotiations

Characteristic Distributive Integrative

Outcome Win-lose Win-win Motivation Individual gain Joint and individual gain Interests Opposed Different but not always Opposite Relationship Short-term Longer or Short-term

Issues involved Single Multiple

Why BATNAS Matter

• BATNAs tell you when to accept and when to reject an

Negotiation: A Counter-intuitive Process

 Title comes from remarks made by participants at some of

my negotiation workshops

“that’s the opposite of what I do”

“I know I should do that, but I find myself doing exactly the

opposite”

“Its counter-intuitive”

 What are people saying ?

• They recognize the prudence of a particular strategy

• But they find it difficult to implement it

• Their natural inclination is to do the opposite of what

they recognise is the prudent strategy

Intuitive – Counter-intuitive

Dive into the negotiation Defer the negotiation to a time of our own

choosing, gather information first

When our proposals are rejected,

justify and defend them Ask why our proposal doesn’t work, and gather information

When a proposal is made to us

that is unacceptable, rejection

Instead of rejecting, ask why their proposal

is important, and gather information

What are

 some of the intuitive things we do in a negotiation

 the counter-intuitive thing we might consider as an

alternative ?

17

Basic Principles Common To All Forms Of Negotiation

 There are minimum 2 parties involved in the negotiation process There exists some

common interest, either in the subject matter of the negotiation or in the

negotiating context, that puts or keeps the parties in contact

 Though the parties have the same degree

of interest, they initially start with different opinions and objectives which hinders the outcome in general

 In the beginning, parties consider that negotiation is a

better way of trying to solve their differences

 Each party is under an impression that there is a

possibility of persuading the other party to modify their original position, as initially parties feel that they shall maintain their opening position and persuade the other

 During the process, the ideal outcome proves unattainable but parties retain their hope of an acceptable final agreement.

 Each party has some influence or power – real or assumed – over the other’s ability to act

 The process of negotiation is that of interaction between people – usually this is direct and verbal

Characteristics Of An Effective Negotiator

 He should be a good learner and observer.

 Should know the body language of the

people at the negotiation process.

 Should be open and flexible and yet firm.

 Exercise great patience, coolness and

• Should control emotions and not

show his weaknesses.

• Should bargain from the position of strength.

• Should know and anticipate the pros and cons of

his each move and its repercussions.

• Should know how to create the momentum for the

negotiations and must know when to exit and where

to exit by closing the talks successfully.

• Should build trust and confidence.

• Should be confident and optimist.

• Should have clear cut goals and objectives.

• If necessary, he should provide a face saving

formula for his counter party.

• Should be able to grasp the situation from many

• Should not be a doubting Thomas.

• Should plan and prepare thoroughly with

relevant data and information to avoid blank mind in the process.

• Should radiate energy and enthusiasm

and must be in a position to empathize with his opponents.

• Should be a patient listener. egotia

How To Develop These Skills And Use Them Effectively ?

• what negotiation means and the various

forms it can take that negotiating, in the fullest sense, means forging long-term relationships the role that the individual personalities play in negotiating that you must take a variety of approaches to

negotiation, since no single set of principles will suffice in all circumstances

Negotiation Skills Style Test

Types Of Negotiation In Organizations

2 In between colleagues

3 Trade unions

4 Legal advisers

1 Negotiation for pay, terms and working

conditions

2 Description of the job and fixation of responsibility

purchased

3 Negotiations with financial institutions as regarding the

national government

How To Plan Your Negotiation Agenda

Preparing For A Successful Negotiation…

 Depending on a scale of disagreement, the

level of preparation might be appropriate for conducting the successful negotiation

 For a small disagreements, excessive

preparation could be counter-productive because it do takes time which is better focused in reaching the team goals

If the major disagreement needed to be resolved,

preparing thoroughly for that is required, and worthwhile

Think through following points before you could start

negotiating

• Goals:

What you want to get out from the negotiation?

What do you expect from the other person?

 What you and the other person have

which you can trade?

have so that the other wants it?

• Alternatives:

• If you do not reach the agreement with

him/her, what alternatives you have?

• Are these things good or bad alternatives?

• How much it matters if you do not reach the

• The relationship:

• What is a history of relationship?

• Can or should this history impact

negotiation?

• Will there be any of the hidden

issues that might influence negotiation?

• How you will handle these? egot

• Expected outcomes:

be expecting from the

negotiation?

past, and what precedents

• The Consequences:

• What are the consequences of winning

or losing this negotiation by you?

• What are the consequences of winning

or loosing by the other person?

• Power:

• Who has the power in the relationship?

• Who do controls the resources?

• Who stands to lose most if agreement is

not been reached?

• What power does other person have to

deliver which you do hope for?

Negotiating And Long-term Relationships

Good negotiators are the people who

understand

• how to build key relationships

• how to identify what people need

• how to give them what they need and

• how to get what they want in return, all

in a way that seems effortless. N

Negotiating And Individual Personalities

 Autocratic managers typically hold the view that they are going to get what they want when they interact with subordinates, because their inherent authority precludes the need to negotiate

 These managers do not realize that, in the process

of handing out orders, they are engaged in a kind

of one-sided negotiation that can antagonize others, with the result that the tasks they wish to see completed may be carried out improperly or not Neg

The Accommodating manager is more concerned with what others want than with their own needs

In order to avoid conflict, they do not negotiate

at all and often end up overriding their own interests

The Negotiation Process

BATNA

The B est A lternative T o a

N egotiated A greement; the

lowest acceptable value

(outcome) to an individual for a

Your “BATNA “ is the only standard which can protect you both from accepting terms that are too unfavourable and from rejecting terms it would be in your interest to accept.”

In the simplest terms, if the proposed agreement

is better than your “BATNA”, then you should accept it If the agreement is not better than your

“BATNA” , then you should reopen negotiations

Where Do Use This Skill?

• Everything is negotiated

• Family and personal

• “ Where should we go for dinner?”

• “ Can I borrow the car?”

Determining Your BATNA

BATNAs are not always readily apparent Fisher and Ury outline a simple process for determining your

BATNA:

• develop a list of actions you might conceivably

take if no agreement is reached;

• improve some of the more promising ideas and

convert them into practical options; and

• select, tentatively, the one option that seems

BA TN

A Ex am

ple

 A persons go for car purchase.

[To negotiate with showroom sales man

for lesser price]

 The car owner is not agreeing for the lesser price

 Than customer can ask for Radial

Case Study – Application 01

• Highly Brill Leisure Centre has hired you to

help them with their marketing decision making Perform a SWOT analysis on Highly Brill Leisure Centre, based upon the

CASE STUDY – Application 02

A community discovers that its water is being polluted by the discharges of a nearby factory

Community leaders first attempt to negotiate a clean-up plan with the company, but the

business refuses to voluntarily agree on a plan

of action that the community is satisfied with.

Issues In Negotiation

The Role of Mood & Personality Traits in Negotiation;

• Positive moods positively affect negotiations

• Traits do not appear to have a significantly direct

effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness)

Gender Differences In Negotiations;

• Women negotiate no differently from men,

although men apparently negotiate slightly better outcomes.

• Men and women with similar power bases use the same negotiating styles.

• Women’s attitudes toward negotiation and their

success as negotiators are less favorable than men’s.

The Importance of BATNAs

Once parties establish a BATNA, they

must then compare the costs and

benefits of the BATNA to all of the

settlement options on the table.

Ask, "What's it going to cost you if you

• Most of the negotiation literature focuses on two

strategies, although they call them by different names

• One strategy is interest-based(or integrative, or

cooperative) bargaining, while the other is positional (or distributive or competitive) bargaining.

Interest-based Bargaining /Win-win Bargaining

• Integrative bargaining in which parties collaborate to

find a “win-win" solution to their dispute

• This strategy focuses on developing mutually beneficial

agreements based on the interests of the disputants

• Interests include the needs, desires, concerns, and

fears important to each side

Positional Bargaining

Positional bargaining is one that involves holding on to a fixed idea, or position, of what you want and arguing for it and it alone, regardless of any underlying

Negotiation Skills Style Test

Exercise #1

Roles : Rita, a 15 year old girl The Observer

becomes Rita’s parent Others are Observers to

record use/abuse of “win/win” techniques.

Background: Rita is calling home from a payphone

on Hwy 401 to tell her parent she is hitch-hiking to

Hollywood to be a movie star She has no money,

is a little afraid, and secretly wants to go to drama

school The parent is worried about Rita being out

after curfew Parent picks up the ‘phone, and has 3

minutes to effect a “win-win” approach before the

payphone times out

Exercises #2

Background:

Suresh has a Programmer off sick, and wants to

negotiate two weeks of Kunal’s time to work on the Company’s most important project immediately, because Kunal is the best programmer, and knows the tasks

Delays may affect everyone’s bonus.

Kunal’s Manager is concerned the loss of Kunal will mean he will not be able to complete tasks on another project their department is committed to deliver (requiring one week of work in the next 3 weeks), because Suresh has a reputation of over-utilizing resources (and padding their schedule contingency) Other commitments will also need juggling.

Exercise #3

Background: Raima is not using the

car this weekend, but is concerned the good friend is a fast driver The friend is generous, and has done Raima several favors for Raima, including a recent birthday gift.

 On issues vital to the organization’s welfare.

 When you know you’re right.

 Against people who take advantage of noncompetitive behavior. N

Use … Collaboration

 To find an integrative solution when both sets of concerns are too important to be compromised.

 When your objective is to learn.

 To merge insights from people with different perspectives.

 To gain commitment by incorporating concerns into

 When an issue is trivial, or more important issues are pressing

 When you perceive no chance of satisfying your concerns

 When potential disruption outweighs the benefits of resolution

 To let people cool down and regain perspective

 When gathering information supersedes immediate decision

 When others can resolve the conflict effectively

 When issues seem tangential or symptomatic of other issues