NEGOTIATION

Grp IV ( U113171-180)
Negotiation : Definition
Negotiation is a dialogue between two or more
people or parties, intended to reach an
understanding, resolve point of difference, or gain
advantage in outcome of dialogue, to produce an
agreement upon courses of action, to bargain for
individual or collective advantage, to craft
outcomes to satisfy various interests of two
people/parties involved in negotiation process.
Negotiation is a process where each party
involved in negotiating tries to gain an advantage
for themselves by the end of the process.
Negotiation : Types : 2
Distributive negotiation ( hard-bargaining,
each party at the extreme like a vegetable
vendor and a buyer)
Assertiveness reqd.
One party wins and the other loses
Characteristics to keep in mind :
Bargaining power, the perception of both the
parties w.r.t each other,alternatives (BATNA),
backup point, zone of possible agreement.

BATNA ( Best Alternative to a Negotiated
Agreement) : The alternative that one would
take in case of not reaching an agreement.
BATNA to be determined before negotiation
starts.
Backup point The min or max value that u r
willing to accept.

Integrative
Integrative negotiation ( principled or
interest-based)
Aim : To improve the quality and likelihood of the
negotiated agreement by following a set of
techniques. Win-win situation for both the
parties
Focus on trust and relationship, interests and
values.


4 stages of negotiation

Strategy
Process
Tools
Tactics
Strategy : The relationship and the final
outcome
Process and Tools : Steps that will be followed
and the roles taken in both preparing for and
negotiating i,e the parties, the context, how
negotiation is to be done
Tactics : Detailed statements and actions and
responses to others' statements and action.
Persuasion and influence.
NEGOTIATION STRATEGIES
Accommodating Type
Negotiators will want to arrive at a resolution
quickly and without conflict or the threat of a
severed relationship.
Sensitive to the emotional states, body
language, and verbal signals of the other
parties.
May not get what they wanted.


Avoiding Type
Dont like to negotiate and do so under
compulsion
Tend to defer and dodge the confrontational
aspects of negotiating.
May be perceived as tactful and diplomatic
Collaborating Type
Win-win situation
Enjoy and are good at negotiations. Help in
solving complex issues.
Understand the concerns and interests of the
other parties
Competing Type
Negotiating to win
Strategy oriented
Not concerned about the other party

Compromising Type
Both parties lose and gain
Essential to ensure that your goals are met
and is not an entirely a loss.
This practice followed when time is limited to
close a deal.
Types of Negotiator
3 types : Hard, Soft, Principled
Hard bargainers:
Main aim is to win
Use contentious strategies to influence, are
distrustful of others, use pressure to negotiate.
See others are adversaries


Soft bargainers:
Gentle style of bargaining, offer might not be in
their best interest.
Avoid confrontation, maintain good relations .
Believe in agreement.
Principled bargainers :
Focus on the problem rather than the intentions
and motives of the other party.
Follow an objective approach for negotiation (
like moral standards and fairness, professional
standards )rather than power, presssure, or
any arbitrary procedure.