Negotiation Gym: Exercise and Build Your Negotiation Muscles!
An ultimate view on all relative Aspects of Negotiation
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Transcript of An ultimate view on all relative Aspects of Negotiation
NEGOTIATION
Mukul Gupta(Faculty of Management)
Trainer PD & English Communication Skills(Khandewal College of Management Science & Technology)
concept
Negotiation starts with a discussion.
concept
A usual activity of ordinary life.
concept
Negotiation includes a combination of compromise, collaboration, and possibly some pressure on vital issues.
concept
Negotiation process is commonly used for resolving differences, allocating resources, and taking other decisions.
concept
The term negotiations and the term bargaining are generally used interchangeably, but has different meaning in business
terminology.
concept
Bargaining is: -
WIN LOSE
concept
Negotiation is:-
WINWIN
characteristics
Two or More Parties
characteristics
Conflicts between Needs and Desires
characteristics
Negotiation contributes in better results.
characteristics
Surplus Equalizing Process
characteristics
Parties seeks for an Agreement with Mutual Adjustment
NATURE
A Continuous Process
NATURE
A Persuasive Activity
NATURE
A Psychological Approach Oriented process
NATURE
Soft skill that a manger need
NATURE
Process that contributes in Economic Balance
TYPES OF NEGOTIATION
INTEGRATIVENEGOTIATION
DISTRIBUTIVENEGOTIATION
INTEGRATIVE NEGOTIATION
The Concept of Integrative negotiation is based on the concept of
SYNERGY.
INTEGRATIVE NEGOTIATION
Parties cooperate to achieve maximize benefits by integrating their
interests.
INTEGRATIVE NEGOTIATION
Both parties involved in negotiation process jointly look at the problem, try to search for alternatives and try
to evaluate them and reach a mutually acceptable decision or solution.
INTEGRATIVE NEGOTIATION
WINWIN
DISTRIBUTIVE NEGOTIATION
It may be called as Bargaining.
DISTRIBUTIVE NEGOTIATION
Based on the concept that the gain made by one person is loss incurred by the
other person.
DISTRIBUTIVE NEGOTIATION
WIN LOSE
Comparison
planning for negotiation
Planning in its simplest form is thinking in advance to respond to W factor accordingly…
planning for negotiation
Preparation
Relationship Building
Information Gathering
Prediction
Pre-Negotiation
planning for negotiation
Looking for the Possibility
Bidding
Closing the Deal
Negotiation
planning for negotiation
Implementing the Agreement
Follow-up
Post-Negotiation
STRATEGIES for negotiation
The overall plan to achieve one’s goals in Negotiation.
How is it differ from Tactics & Planning?
Approaches to Strategies
BilateralUnilateral
Strategic Modelof Negotiation
This model is known as “Dual Concern Model”
Strategic Modelof Negotiation
How much concern do I have in achieving my desired outcomes at stake in the negotiation?
Strategic Modelof Negotiation
How much concern do I have for the current and future quality of the relationship with the other party?
Strategic Modelof Negotiation
GAINR
ELAT
ION
Active-engagementStrategies
GAINR
ELAT
ION
Collaboration Accommodation
Competition
NON-engagementStrategies
GAINR
ELAT
ION
Avoidance
Strategies & Tacticsof Distributive Negotiation
Why understanding of distributive negotiation is important?
Multiple SituationCounter Moves
Skill level required
Strategies & Tacticsof Distributive Negotiation
Situations of Distributive Negotiations are-
Goals of one party are in fundamental & direct conflict to another party
Strategies & Tacticsof Distributive Negotiation
Situations of Distributive Negotiations are-
Resources are fixed and limited
Strategies & Tacticsof Distributive Negotiation
Situations of Distributive Negotiations are-
Maximizing one’s own share of resources is the goal for both the parties.
Strategies & Tacticsof Distributive Negotiation
Situations includes-
Starting Point (Initial Offer)Target Points
Resistance Points (Walkaway)Alternative Outcome
Strategies & Tacticsof Distributive Negotiation
Situations includes-
Starting Point (Initial Offer)Target Points
Resistance Points (Walkaway)Alternative Outcome
Strategies & Tacticsof Distributive Negotiation
Role of alternatives to a negotiated agreement-
Alternatives gives the negotiator power to walk away from the negotiation.
Strategies & Tacticsof Distributive Negotiation
Role of alternatives to a negotiated agreement-
Attractive Unattractive
Setting Higher Goals
Making fewer concession
Negotiators have much less bargaining power
Strategies & Tacticsof Distributive Negotiation
Fundamental Strategies-
Push for settlement near opponent’s resistance point
Strategies & Tacticsof Distributive Negotiation
Fundamental Strategies-
Get the other party changing their resistance point
Strategies & Tacticsof Distributive Negotiation
Fundamental Strategies-
Changing own resistance point
Strategies & Tacticsof Distributive Negotiation
Fundamental Strategies-
Convincing other party that the settlement is best possible.
Strategies & Tacticsof Distributive Negotiation
Keys to Fundamental Strategies-
Discovering the other party’s resistance point
Strategies & Tacticsof Distributive Negotiation
Keys to Fundamental Strategies-
Influencing the other party’s resistance point
Strategies & Tacticsof Distributive Negotiation
Tactics may be used in distributive bargaining:-
Tactics we use in distributive bargaining are called as Hard Ball Tactics.
Strategies & Tacticsof Distributive Negotiation
Tactics may be used in distributive bargaining:-
They are designed to pressure targeted parties to do things they would not other wise do.
They are tactics which work on poorly prepared negotiators
Strategies & Tacticsof Distributive Negotiation
Hard Ball Tactics of Distributive Bargaining –
Good Guy/Bad Guy Highball/Lowball Bogey Nibble Chicken Intimidation Snow Job
Strategies & Tacticsof Distributive Negotiation
Good Guy/Bad Guy
Named after police interrogation technique.
Negotiators using this tactic can become so involve with their game and act they fail to concentrate on obtaining their goals.
Strategies & Tacticsof Distributive Negotiation
Highball/Lowball
Starts with a ridiculously high opening offer that know they will never achieve.
The tactics goal is to have the other party reevaluate their opening offer and move closer to the resistance point.
The risk is the other party will think negotiating is a waste of time.
Strategies & Tacticsof Distributive Negotiation
Bogey
When a negotiator pretends an issue important and it is not.
It only works well IF they pick a issue that is important to the other side.
Strategies & Tacticsof Distributive Negotiation
Nibble
Is a tactic used to get small concession without negotiating.
The concession is too small to lose the deal over, but large enough to upset the other side.
Strategies & Tacticsof Distributive Negotiation
Chicken
Negotiators who use this tactic combine a large bluff and threaten actions.
Strategies & Tacticsof Distributive Negotiation
Intimidation
It is guilt, anger, legitimacy, fear, what ever gives you power over the other party.
Strategies & Tacticsof Distributive Negotiation
Snow Job
It is the overwhelming of information that you have trouble determining which facts are real or important.
Strategies & Tacticsof integrative Negotiation
What Integrative Bargaining includes?
Commit to the needs of all involved partiesExchange information & ideasInvent options for mutual gain
Strategies & Tacticsof Integrative Negotiation
Integrative negotiation aims at seeking mutually satisfying solutions with essence of free flow communication and mutual understanding.
Strategies & Tacticsof Integrative Negotiation
Integrative Negotiations have some key steps: -
Defining Problem Understanding
Generate alternative solutions Evaluation and Selection
Strategies & Tacticsof Integrative Negotiation
Claiming and Creating Value
Strategies & Tacticsof integrative Negotiation
Identify & Defining Problem
It should be mutually acceptable
It should be stated as goal with obstacle identification
Strategies & Tacticsof integrative Negotiation
Understanding
Concerns, needs, desires, or fears.
Process = path to settlementPrinciples: Doing what is fair, right, acceptable, and ethical
Strategies & Tacticsof integrative Negotiation
Generating Alternative Solution
Create options by redefining the problem set:
CompromiseLogroll – (Concession)Modify the pieFind a bridge solution
Strategies & Tacticsof integrative Negotiation
Generating Alternative Solution
Creating solutions via: -
Brainstorming Surveys
Strategies & Tacticsof integrative Negotiation
Evaluation & Selection
Evaluate by: Quality Objective standards Acceptability
Advance criteria agreement Justify personal preferences