NEGOTIATION

Types of Negotiations

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OBJECTIVES

- Identify different negotiation styles and to choose the best fitted

to a given specific situation.

- Detect negotiation practices and strategies so they can put into

practice them.

- Facing a negotiation process presenting proposals in an efficient

way and being able to close a negotiation successfully and
exposing correctly the agreements reached.

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 NEGOTIATION
“Negotiation and discussion are the greatest weapons we have for promoting peace and development,”
said Nelson Mandela.
Mahatma Gandhi and Mandela are regarded as two of history’s greatest negotiators.
They applied their intelligence and displayed their fortitude as they negotiated the futures of their respective
nations.
Negotiation comes in handy to achieve individual as well as collective goals. Without team members having
good negotiation skills, no business is successful.
Every professional should acquaint themselves with the proper negotiation process. Negotiation skills can be
developed with proper insights, mentoring, and training.

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 NEGOTIATION
Types Of Negotiation

Negotiation is an important skill for the modern professional. Sometimes, negotiation also involves meeting
 
each other halfway as a compromise when both sides are on opposite sides of the spectrum.
 
There are various types of negotiation

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 NEGOTIATION
1. Distributive Negotiation
Distributive negotiation is when two parties bargain over a single product or issue, such as price.
  For example, negotiating with a dealer over the price of a second-hand vehicle or bargaining with a street
  vendor. Here, one party wins and the other has to take a step back and suffers a loss. Your success eventually
depends on your distributive negotiation skills. WIN-LOSS

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 NEGOTIATION
1. Distributive Negotiation
Sometimes called zero-sum negotiation or win-lose negotiation, is a bargaining approach in which one person
  succeeds only if another person loses. A distributive negotiation usually involves discussion of a single issue.
  For example, a sales business wants to enter a contract with a vendor for IT services. The business wants the
most IT services for the lowest price possible, while the IT vendor wants to provide the lowest number of
resources for the highest price. Each party's desire to get a better deal represents a distributive negotiation
approach.
Below is a list of tips for success in a distributive negotiation:

Be persistent. When you're taking a distributive approach to a negotiation, persistence and polite assertiveness
can help you fulfill your interests.

Make the first offer. In a distributive negotiation, you can make the first offer to begin the bargaining in your
favor.

Don't communicate your minimum favorable outcome. It's important to aim high in distributive negotiations to
ensure successful bargaining. You can withhold any information on the minimum you're willing to accept from
bargaining for the best results.

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 NEGOTIATION
2. Integrative Negotiation
Do you know what happens when representatives of an employees’ union meet the management with their
  demands? They discuss, argue, present, oppose, convince, and so on. Then, they strike a deal on salaries and
  other benefits. This is called integrative negotiation. It is one of the types of negotiation where there is more than
one issue that has to be put through the negotiation process. Both parties gain something from the negotiation. An
integrative negotiation process ensures a win-win situation.

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 NEGOTIATION
2. Integrative Negotiation

  Integrative negotiation, sometimes called win-win negotiation or collaborative negotiation, is a bargaining
  approach where negotiating parties attempt to reach a mutually beneficial solution.
Unlike distributive negotiations, integrative negotiations can involve multiple issues.
For example, an established fashion company and a cosmetics startup company agree to collaborate on a
product geared toward their shared target market. They negotiate a contract that allows the cosmetics startup
to gain greater exposure and the fashion company to reach its financial and marketing goals.
Here are a few tips you can use in an integrative negotiation:

Take a principled approach. You can discuss your principles during an integrative negotiation to build trust with
the other party.

Discuss your needs and interests openly. Communicating about your goals in an integrative negotiation can
promote transparency and enable a positive relationship.

Use bargaining to solve problems. In an integrative negotiation, both parties can use negotiations as an
opportunity for collaborative problem-solving.

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3. Multiparty Negotiation
The multiparty negotiation process involves three or more parties undertaking various negotiation strategies to
drive
home their points. When six friends are deciding the venue of the party and discussing its pros and cons, the
 
type of negotiation can be said to be multiparty.
 

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 NEGOTIATION

3. Multiparty Negotiation A multiparty negotiation is a type of bargaining where more than two parties
negotiate toward an agreement. An example of a multiparty negotiation is bargaining between multiple
department leaders in a large company.
  Here are a few of the challenges of multiparty negotiations:
 
Fluctuating BATNAs: BATNA stands for best alternative to a negotiated agreement. With multiple parties in a
negotiation, each party's BATNA is more likely to change, which can make it harder for parties to agree.
Each party can evaluate their BATNA at each stage in negotiations to understand the results of a proposed
agreement.

Coalition formation: Another challenge of multiparty negotiations is the possibility for different parties to form
coalitions, or alliances. These alliances can add to the complexity of bargaining.
Coalitions can agree to a specific set of terms to help all parties reach an agreement.

Process-management issues: Managing the negotiation process between multiple parties can lead to a lack of
governance and miscommunications. People in multiparty negotiations can avoid these issues by choosing a
leader who's willing to collaborate with others toward an agreement.

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 NEGOTIATION
4. Team Negotiation
This type of negotiation process takes place between the two teams. For example, negotiation strategies between
the teams of two companies that are looking to merge are called team negotiations.
  While putting together a negotiation team, a company looks for members with excellent negotiation skills and
  highly-developed strategic thinking capacities.

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 NEGOTIATION
4. Team Negotiation
In a team negotiation, multiple people bargain toward an agreement on each side of the negotiation.
Team negotiations are common with large business deals. There are several personality roles on a negotiation
  team. In some cases, one person may perform more than one role.
  Here are some common roles on negotiation teams:

Leader: Members of each team in a negotiation usually appoint a leader to make the final decisions during
negotiations.

Observer: The observer pays attention to the other party's team during a negotiation, discussing their
observations with the leader.

Relater: A relater on a negotiation team works on building relationships with members of the other team during
bargaining.

Recorder: A recorder on a negotiating team can take notes on the discussions of a negotiation meeting.

Critic: While this may sound like a negative role, having a critic on the team during negotiations can help you
ensure you understand the concessions and other negative results of an agreement.

Builder: A builder on a negotiation team creates the deal or package for a bargaining team.
They can perform financial functions during negotiations, calculating the cost of an agreement.

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 NEGOTIATION
5. Positional Negotiation
Positional negotiation is when you spell out the position you are in, at the outset.
Then, you defend that position against the attack. Important among the types of negotiation, positional
 negotiation sees both parties having fixed stances and sticking to them obstinately. They may not consider the
 
other party’s interest or see where they are coming from. Positional negotiation is not considered very
productive.
Being a master negotiator is not rocket science. Neither is it an overnight miracle.
It is an stage framework that can be learned, practiced, and applied

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 NEGOTIATION
Adversarial negotiation
An adversarial negotiation is a distributive approach in which the most aggressive party in a negotiation

achieves an agreement that serves their interests. Here are a few examples of adversarial negotiation tactics:
 
Hard bargaining: Hard bargaining is a strategy in which one party refuses to compromise in an agreement.
 
Future promise: A person using this tactic can promise the other party a future benefit in exchange for current
concessions. You can counteract this tactic by asking for the future promise in writing.

Loss of interest: Another adversarial negotiation tactic is loss of interest, in which one party pretends they've lost
their interest in pursuing an agreement.

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 NEGOTIATION
Five Stages Of The Negotiation Process

1. Prepare
 
Research is a building block of the negotiation process. While preparing, you must weigh both sides, identify the
 
strengths and weaknesses of both sides, and then determine your negotiation strategies. Define the kind of interaction
you want to have and the bond you intend to form with the other party.
2. Information Exchange
The information exchange involves discovering and creating value for the negotiation process. It also helps in building
rapport.
Both parties should explain their interests and exchange their viewpoints to achieve the desired results. Unless there is a
transparent exchange of information, even sophisticated negotiation strategies won’t work.

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Five Stages Of The Negotiation Process
NEGOTIATION
3. Bargain

In all  types of negotiation, a bargain is of utmost importance. It is the beginning of give-and-take deals. Each party
proposes
  its demands and seeks to secure benefits. During the bargaining process, it is imperative to keep yourself in
check. Don’t lose your cool or become emotional during negotiations. To achieve your desired outcomes, train
yourself to be composed and diplomatic.
4. Conclude
Once a solution that is acceptable to both has been reached, both parties should thank each other. They should
confirm that interests have been secured and the outcome has been successful. A good summing-up and amicable
closing always lead to rewarding long-term relationships.
5. Execute    
All types of negotiation lead to effective implementation. The steps to implement the negotiated result should be
categorically chalked out. Often, in the corporate context, a written contract is entered into to confirm the intent to
execute.

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 NEGOTIATION
Barriers To Good Negotiation

Ego is considered the biggest obstacle to good negotiation. Knowing the other side is important before you put
your cards on the table. That’s the reason why big corporations send a multi-functional team for an important
negotiation.

Other barriers that may hamper a negotiation are:

Taking Negotiations As Personal Battles And Focussing Too Much On Winning

Maintaining A Know-It-All Attitude And Failing To Ask Genuine Questions

Being Hostile And Thinking Negatively During The Negotiation Process

Inability To Grasp The Problems And Positions Of The Other Party In The Negotiation Process

Entering A Negotiation Unprepared And Uninformed F And Having No Credible Answers For The Questions Asked

Being Short-Tempered, Sarcastic, Lacking Listening Skills, And Criticizing Too Much

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 NEGOTIATION
Good Negotiation

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 NEGOTIATION
How To Develop Good Negotiation Skills

Look At Negotiation As A Puzzle To Be Solved Rather Than A Battle To Be Won

Listen With Attention And Be Empathetic

Ensure That The Negotiation Is A Win-Win Situation Or It Creates Frustration

Instead Of Focussing On Compromising, Gear Your Efforts To Achieve Your Interest

Work On Your People Skills And Communication Skills

Practice Your Negotiation Skills And Strategies With Friends And Family

Learn To Accept Mistakes And Improve On Them

Know Your Genuine Value And Learn To Say No Whenever Required

Treat Negotiation As A Presentation. Improve Your Body Language So That It Will Give You A Winning Edge

Be Smart And Strategic. It Is Said That Let Them Win The First Negotiation, And They Will Usually Be Happy Enough To Let You Win Two To Three
More

Define Your Personal Strengths And Use Them Positively To Impress And Convince

Being a champion of persuasion is an art. It requires smooth handling of conflicts and reaching agreements that are acceptable to both sides

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 NEGOTIATION

 
 

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EXERCISES






DESCRIBES THE TYPES OF NEGOTIATION AND BATNA.


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https://www.youtube.com/watch?v=B733dsrwm20

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