Negotiation (managerial communication)

7/28/2019 Negotiation (managerial communication)

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Negotiation is the process of

bargaining, where two parties, each

of whom has something that the

other wants, is trying to reach an

agreement, on mutually acceptedterms.


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According to Bill Scott, A negotiation is a formof meeting between two parties: our party and

the other party .

According to J.A. Wall, negotiation is a process

in which two or more parties exchange goods orservices and attempt to agree on the exchange

rate for them


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1. It requires two parties2. The objective is to reach an agreement

3. It is a continuous process

4. Requires flexibility

5. A process not an event

6.Needs effective communication


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PlaceThe place of meeting for the negotiationinfluences the level of confidence. Choosinga place , like ones own office , has many

advantages.TimeTime available with both the parties for taking a

decision and the importance of the deal to

both the parties has to be taken intoaccount. The choice of time for holdingdiscussions should be fixed according tomutual convenience.


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Attitude

The attitude of the parties towards each other andtowards the deal influences the decision. The

flexibility, confidence, power of convincing and thelevel of persuasion of the parties matters a greatdeal in the negotiation process.

Subjective Factors

1. Personal relationship between the two partiesinvolved.

2. Status difference.

3. Work pressures.

4. Reputation of the other person.

5. Information and expertise.

6. Mutual obligations.


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PurposeEach negotiation has a specific purpose.

Without an aim, negotiations will lead to

wastage of resource in terms ofmanpower, money and time.

Plan

A plan of action is to be chalked outbefore going in for actual negotiations.The plan will discuss the agenda onwhich the negotiation takes place.


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Pace

It should be kept in mind that peoples

concentration drops rapidly after abouttwenty minutes. The negotiator shouldtry to achieve agreements on points ofnegotiation before their concentration

reduces. Personalities

negotiation process involves personalities.Two interest groups sit together to arriveat an agreement . Their personnelcharacteristics like convincing power ,communication skills.


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Offer:It is the first proposal or in other words an

offer or proposal made by one party toanother.

Counter offer:

This is the offer made by the second party,countering the offer made by the first party.

Concession:

Increase or decrease made in the offer, or thechange in the idea.


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Compromise:

It is the extent of sacrifice made out of thegiven offer, by both or any one of theparties.

Agreement:

Where both parties have reached acommon decision, which is beneficialto both . This is the culmination point inthe process of negotiation.


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o Planning

The preparation for a negotiation meetingneeds discipline. It needs time and theregular use of an approach

o Briefing

The negotiation team needs to be briefed onthe strategy, in case of a group negotiation.It should also be told about the roles andtasks, which the negotiators have a lookinto, during the course of negotiation


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o Bidding

A bid may be defined as an offer madeby one party to the other. Bidding onsubstantive issues in negotiations is likebidding in the game of poker. We bid

on the exposed cards (information)and based on our assessment of theother party and anticipating a positiveoutcome, we may bid high or low


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o Bargaining

Convincing power of a person can determine the

outcome of the bargaining to a large extent. whenthe negotiator has assessed the bargainingpower, he must go back reconsider his originalobjectives.

o Setting

Solutions can only be found when both parties areprepared to do business. This means that bothparties are able and willing to move forward.Sometimes the negotiators may find that the other

party is unable and unwilling to move or respond.


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o Ratifying

When the negotiators have reached an agreement

on the outcome (assuming they have), theagreement should be written down and signedby both parties. it is important that they agreejointly on how misunderstanding ormisinterpretation later. It is important that they

agree jointly on how an agreement should beentered into.

o Reviewing

After the negotiation is over , it is easy to walk away,

forgot all about it and move on till the text the nextnegotiation takes place.


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Patience Clarity Self-confidence Mental alertness Strong competitive streak and Mastery over details.


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THANK YOU

Negotiation (managerial communication)

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