Negotiation Lect 1

8/3/2019 Negotiation Lect 1

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Lecture 1Dr. Jyotinder Kaur Chaddah

16.8.2011



Business negotiation is the process by whichtypically two or more parties come togetherto try to create a mutually agreeablecontractual decision.

Each party will have competing interestsand, thus, negotiations can be quite intricate

and lengthy. Negotiations end when all parties have come

to a final decision and have agreed tocontractual guidelines.



Aside from the technical definition,negotiation is an intricate process that

entails more than just numbers, details and information collecting.

Skillful negotiation deals with every aspect of negotiation you can think of from running indepth cost analyses to learning how to dealwith a specific party at its level and itscomfort level.



Negotiation is the concerted effort that isplaced to give your company the cutting edge

it needs for business survival, growth andempowerment.

Negotiation will help your company make thebest financial and inter-company decisionspossible.



Negotiation is a dialogue between two or more people or parties,intended to reach an understanding, resolve point of difference, orgain advantage in outcome of dialogue, to produce an agreementupon courses of action, to bargain for individual or collectiveadvantage, to craft outcomes to satisfy various interests of twoperson/ parties involved in negotiation process.

Negotiation is a process where each party involved in negotiatingtries to gain an advantage for themselves by the end of theprocess. Negotiation is intended to aim at compromise.

Negotiation occurs in business, non-profit organizations,government branches, legal proceedings, among nations and inpersonal situations such as marriage, divorce, parenting, andeveryday life.

http://en.wikipedia.org/wiki/Collective_bargaining




http://en.wikipedia.org/wiki/Compromise







There has to be at least two or more partiesinvolved

There has to be common interest Define Goals and Objectives Allow adequate time for the process



Attitude

TimeIssues

Relationship



Type 1-Day toDay/ManagerialNegotiations

Parties involved:Different levels of Mgmt.

-In between colleagues-Trade unions-Legal advisers

Type 2: CommercialNegotiations

Parties Involved: Mgmt

-Suppliers-Government-Customers

-Trade unions-Legal advisors-Public



Type 3: Legal Negotiations: Government

Management Customers



R G Shell(2006) identified five styles tonegotiation.

Individuals can often have strong dispositionstowards numerous styles; the style usedduring a negotiation depends on the contextand the interests of the other party.

In addition, styles can change over time.



Accommodating: Individuals who enjoy solving theother party’s problems and preserving personalrelationships. Accommodators are sensitive to the

emotional states, body language, and verbal signalsof the other parties. They can, however, feel takenadvantage of in situations when the other party placeslittle emphasis on the relationship.

Avoiding: Individuals who do not like to negotiate anddon’t do it unless warranted. When negotiating,avoiders tend to defer and dodge theconfrontational aspects of negotiating; however,they may be perceived as tactful and diplomatic.



Collaborating: Individuals who enjoy negotiations thatinvolve solving tough problems in creative ways.Collaborators are good at using negotiations tounderstand the concerns and interests of the other

parties. They can, however, create problems bytransforming simple situations into more complex ones.

Competing: Individuals who enjoy negotiations becausethey present an opportunity to win something.Competitive negotiators have strong instincts for all

aspects of negotiating and are often strategic. Becausetheir style can dominate the bargaining process,competitive negotiators often neglect the importance of relationships.



Compromising: Individuals who are eagerto close the deal by doing what is fair and

equal for all parties involved in thenegotiation. Compromisers can be usefulwhen there is limited time to complete thedeal; however, compromisers oftenunnecessarily rush the negotiation processand make concessions too quickly.



Gett ing to YES was published by Roger Fisher

and William Ury as part of the Harvard

negotiation project. The book's approach isreferred to as Principled Negotiation. Principled Negotiation method consists of four

main steps: separating the people from theproblem, focus on interests, not positions,generating a variety of possibilities beforedeciding what to do and insisting that the resultbe based on some objective standard.

http://en.wikipedia.org/wiki/Getting_to_YES

http://en.wikipedia.org/w/index.php?title=William_Ury&action=edit&redlink=1


http://en.wikipedia.org/wiki/Harvard


http://en.wikipedia.org/wiki/Roger_Fisher_(academic)






http://en.wikipedia.org/wiki/Roger_Fisher_(academic)

http://en.wikipedia.org/wiki/Getting_to_YES



If multiple issues are discussed, differences inthe parties' preferences make win-win

negotiation possible. For example, in a labornegotiation, the union might prefer jobsecurity over wage gains.

If the employers have opposite preferences,a trade is possible that is beneficial to bothparties.



An alternative to a simple yes or no when a difference of

view occurs, is to skip negotiation and proceedimmediately to some form of third – party intervention.

On the most formal basis, this might imply a decision totake a dispute to court : informally, two managers whoquickly realize that they cannot reach agreement about aworking problem may jointly agree to stop wasting time inargument and refer the matter to a senior manager for

resolution. Do not negotiate unless you have to – or unless you canobtain some direct or indirect advantage by doing so.



RELATE: To build a relationship EXPLORE: Interests of both sides

PROPOSE :One concrete proposal with fulfilland satisfy all underlying interests.AGREE: creative alternatives

Negotiation Lect 1

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