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Gihanaboueleish: Presented By: Tarini-41002 Sachin - 41001
Gihanaboueleish: Presented By: Tarini-41002 Sachin - 41001
TARINI- 41002
SACHIN- 41001
Prepared By : GihanAboueleish
Contents
• What is Negotiation?
• Features of Negotiation
• Why Negotiate ?
• Types of Negotiation
change ”
You can’t sail anywhere until you learn which way the wind wants to blow
• “A give-and-take decision-making
process involving interdependent parties
with different preferences.”
Defined :
Negotiating is the process of communicating back
and forth, for the purpose of reaching a joint
agreement about differing needs or ideas.
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communication, sales, marketing, psychology, sociology,
assertiveness and conflict resolution.
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• Expecting an outcome
• Resolution and Consensus
• Parties willing to modify their positions
• Parties should understand the purpose of
negotiation
Why Do We Negotiate?
• To reach an agreement
• To beat the opposition
• To compromise
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Distributive Negotiation
Parties compete over the distribution of a fixed sum of
value. The key question in a distributed negotiation is,
“Who will claim the most value?” A gain by one side is
made at the expanse of other.
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The Seller’s goal is to negotiate as high a price as possible;
the Buyer’s goal is to negotiate as low a price as possible.
• The key questions is: “How can the resource best be utilized?”
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Integrative negotiations tend to occur in following situations:
•Structuring of complex long-term Strategic Relationships or other collaborations.
•When the deal involves many financial and non-financial terms.
In an integrative negotiation,, there are many items and issues to be negotiated, and the
goal of each side is to “create” as much value as possible for itself and the other side.
Distributive Versus IntegrativeNegotiations
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Motivation Individual
gain Different
gain but not always
Interests Opposed
Opposite
Relationshi Short-term Longer or
p Issues Single Short-term
involved Multiple
Not
Ability to Flexible
make trade- Flexible
offs Solution Creative
Not
creative
Negotiation Process
PREPARATION
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INFORMATION SHARING
BARGAINING
Best
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Alternative
To
Negotiated
Agreement
Why BATNASMatter
• BATNAs tell you when to accept and when to reject an
agreement
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• When a proposal is better than your BATNA:
ACCEPT IT
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What are people saying ?
• They recognize the prudence of a particular strategy
• But they find it difficult to implement it
• Their natural inclination is to do the opposite of what
they recognise is the prudent strategy
Intuitive – Counter-intuitive
What are
some of the intuitive things we do in a negotiation
the counter-intuitive thing we might consider as an
alternative ?
Automatic gear Shift into manual
Focus on Positions Focus on interests
Dive into the negotiation Defer the negotiation to a time of our own
choosing, gather information first
When our proposals are rejected, Ask why our proposal doesn’t work, and
justify and defend them gather information
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Each party is under an impression that there is a
possibility of persuading the other party to modify their
original position, as initially parties feel that they shall
maintain their opening position and persuade the other
to change.
During the process, the ideal outcome proves
unattainable but parties retain their hope of an
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acceptable final agreement.
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Should know the body language of the
people at the negotiation process.
Should be open and flexible and yet firm.
Exercise great patience, coolness and
maturity.
Should possess leadership qualities.
• Should control emotions and not show his
weaknesses.
• Should bargain from the position of strength.
• Should know and anticipate the pros and cons of
his each move and its repercussions.
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formula for his counter party.
• Should be able to grasp the situation from many
dimensions.
• Should know human psychology and face reading
• Should not be a doubting Thomas.
• Should plan and prepare thoroughly
with relevant data and information to
avoid
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blank mind in the process.
• Should radiate energy and enthusiasm
and must be in a position to empathize
with his opponents.
• Should be a patient listener.
How To Develop These Skills And Use
Them Effectively ?
• what negotiation means and the various
forms it can take that negotiating, in the
fullest sense, means forging long-term
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Managerial terms and
Negotiations 2. In between
colleagues working
conditions.
3. Trade unions
2.Descriptio
4. Legal advisers n of the job
and fixation
of
responsibilit
y.
3.Increasing
productivity.
Commercial Negotiations
Types Parties Involved Examples
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Commercial 1. Management 1. Striking a contract with
Negotiations 2. Suppliers the customer.
3. Government 2. Negotiations for the
4. Customers price and quality of
5. Trade unions goods to be
6. Legal advisors purchased.
7. Public 3. Negotiations with
financial institutions as
regarding the
availability of capital
Legal Negotiations
Types Parties Involved Examples
1.Government 1. Adhering to
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For a small disagreements, excessive
preparation could be counter-productive
because it do takes time which is better
focused in reaching the team goals.
If the major disagreement needed to be resolved,
preparing thoroughly for that is required, and worthwhile.
Think through following points before you could start
negotiating.
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•Goals:
What you want to get out from the negotiation?
What do you expect from the other person?
What you and the other person have
which you can trade?
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• What do you and the other
person have so that the other wants
it?
• What might you both be
prepared to give away?
• Alternatives:
• If you do not reach the agreement with
him/her, what alternatives you have?
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• How much it matters if you do not reach the
agreement?
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the
negotiation?
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or loosing by the other person?
• Power:
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not been reached?
• What power does other person have to
deliver which you do hope for?
• Possible Solutions:
•
Based on all considerations, what
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possible compromises might be there?
Negotiating And Long-termRelationships
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•how to build key relationships
•how to identify what people need
•how to give them what they need and
•how to get what they want in return, all
in a way that seems effortless.
Negotiating And IndividualPersonalities
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authority precludes the need to negotiate.
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In order to avoid conflict, they do not negotiate
at all and often end up overriding their own
interests.
B.A.T.N.A
BATNA
The Best Alternative To a
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Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual for a
negotiated agreement.
Your “BATNA “ is the only standard which can
protect you both from accepting terms that are
too unfavourable and from rejecting terms it
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would be in your interest to accept.”
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• Academic research
• “ Fund my project.”
• “ Publish my paper.”
• Business ventures
• “ I want a raise.”
• “ Invest in my company.”
• “ Pay me a license fee or I’ll sue you.”
Determining YourBATNA
BATNAs are not always readily apparent. Fisher and
Ury outline a simple process for determining your
BATNA:
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The car owner is not
agreeing for the lesser
price.
Than customer can
ask for Radial
tires[best alternative]
with any increase in
price further.
CASE STUDY
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Brill Leisure Centre, based upon the
following issues:
CASE STUDY – Application 02
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Community leaders first attempt to negotiate a
clean-up plan with the company, but the
business refuses to voluntarily agree on a plan
of action that the community is satisfied with.
Issues In Negotiation
The Role of Mood & Personality Traits in Negotiation;
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• Men and women with similar power bases use
the same negotiating styles.
• Women’s attitudes toward negotiation and their
success as negotiators are less favorable than
men’s.
The Importance of BATNAs
Once parties establish a BATNA, they
must then compare the costs and
benefits of the BATNA to all of the
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settlement options on the table.
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• One strategy is interest-based(or integrative, or
cooperative) bargaining, while the other is
positional (or distributive or competitive)
bargaining.
Interest-based Bargaining /Win-win Bargaining
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agreements based on the interests of the disputants.
• Interests include the needs, desires, concerns, and
fears important to each side.
Positional Bargaining
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what you want and arguing for it and it
alone, regardless of any underlying
interests.
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Negotiation Skills Style Test
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Background: Rita is calling home from a payphone
on Hwy 401 to tell her parent she is hitch-hiking to
Hollywood to be a movie star. She has no money,
is a little afraid, and secretly wants to go to drama
school. The parent is worried about Rita being out
after curfew. Parent picks up the ‘phone, and has 3
minutes to effect a “win-win” approach before the
payphone times out.
Exercises #2
Background:
Suresh has a Programmer off sick, and wants to negotiate
two weeks of Kunal’s time to work on the Company’s most
important project immediately, because Kunal is the best
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programmer, and knows the tasks.
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Gihan Aboueleish
cost cutting, enforcing unpopular rules,
discipline).
On issues vital to the organization’s welfare.
When you know you’re right.
Against people who take advantage of
noncompetitive behavior.
Use …..Collaboration
To find an integrative solution when both sets of
concerns are too important to be compromised.
When your objective is to learn.
To merge insights from people with different
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When issues seem tangential or symptomatic of other issues.
Use….Accommodation ;
When you find you’re wrong and to allow a better position to be
heard.
To learn, and to show your reasonableness.
When issues are more important to others than to yourself and
to satisfy others and maintain cooperation.
To build social credits for later issues.
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To minimize loss when outmatched and losing.
When harmony and stability are especially important.
To allow employees to develop by learning from mistakes.
Use…compromise;
When goals are important but not worth the effort of potential
disruption of more assertive approaches.
When opponents with equal power are committed to mutually
exclusive goals.
To achieve temporary settlements to complex issues.
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To arrive at expedient solutions under time pressure.
As a backup when collaboration or competition is
unsuccessful.
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Understanding Your Style
Of Negotiation
• Behaviour
• Motivation:
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• Assertive-directing, Altruistic-
nurturing, Flexible-cohering
• Personal strengths
• Personal weaknesses
Techniques for Better Negotiation
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4) Ramp up your listening skills.
5) If you don't ask, you don't get
6. Anticipate compromise
7. Offer and expect commitment
8. Don't absorb their problems
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9. Stick to your principles
10. Close with confirmation.
01- Prepare, Prepare, Prepare
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what to ask for. But be sensitive to when
you ask for it. There are times to press
ahead, and times to wait. When you are
looking your best is the time to press for
what you want.
But beware of pushing too hard and
poisoning any long-term relationship.
02- Pay AttentionTo Timing
• Pay attention to timing. Timing is important in
any negotiation. Sure, you must know what
to ask for. But be sensitive to when you ask
for it. There are times to press ahead, and
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times to wait. When you are looking your
best is the time to press for what you want.
But beware of pushing too hard and
poisoning any long-term relationship.
3. Leave Behind Your Ego.
• Leave behind your ego. The best
negotiators either don't care or don't
show they care about who gets credit
for a successful deal. Their talent is in
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making the other side feel like the final
agreement was all their idea.
04 - Ramp Up Your Listening Skills.
Ramp up your listening skills. The best negotiators are
often quiet listeners who patiently let others have the
floor while they make their case. They never interrupt.
Encourage the other side to talk first. That helps set up
one of negotiation's oldest maxims: Whoever mentions
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convincingly, don't be afraid to aim high. But
no ultimatums, please. Take-it-or-leave-it
offers are usually out of place.
06- Anticipate Compromise.
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unravelling is an unshakable
commitment to deliver. You should
offer this comfort level to others.
Likewise, avoid deals where the
other side does not demonstrate
commitment.
Don't Absorb Their Problems.
• Don't absorb their problems. In most
negotiations, you will hear all of the other side's
problems and reasons they can't give you what
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you want. They want their problems to become
yours, but don't let them. Instead, deal with each
as they come up and try to solve them. If their
"budget" is too low, for example, maybe there
are other places that money could come from.
Stick To Your Principles.
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likely have a set of guiding principles
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• Do not rise to a bait if they attack or blame you.
• Ignore all threats.
Handling Emotions
Emotional Challenges Recommended Response
Anger/exasperation Allow venting. Probe for why
Insulted What wouldn’t be insulting?
Focus on issues Re-focus
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Guilt
False flattery
Tips:
•Don’t lose your cool .
• Try to defuse with acknowledgement, empathy, patience,
impartiality.
• Consider dealing with less emotional issues first
• Know your own “Hot Buttons”
• Practice
Know Your HotButtons
Exercise: List the last 3 times you felt someone pressed
your “Hot Button”.
Subject Who pushed Why did you feel Next time I
2. collaborative
5. accommodating
Key steps
• In writing
• Speed
Confidence
Flexible Close deal
Control
Strategy
• Build expectations
Who with Which style?
Homework
Preparation Easy first
Objectives Manage agend a
91Benefits to both Negotiation Skills - Gihan
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Negotiation Strategy
High
BARGAININ
EMOTION
G
[Ability to modify others]
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INTITUTION
COMPROMI
LOGICALLY
SE
Low
Low High
INFLUENC
E
Bargaining Zone Model OfNegotiation
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Area of
potential
agreement
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RED BLUE PURPLE
RED Behaviour
Manipulation Aggressive Intimidation
Exploitation
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Always seeking the best for you
No concern for person you are negotiating with
Taking
BLUE Behaviour
• Win win approach
• Cooperation
• Trusting
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• Pacifying
• Relational
• Giving
PURPLE Behaviour
• Give me some of what I want (red)
• Deal with people as they are not how you think they are
• Good intentions
• Open
1. Investigation
2. Mediation
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• Negotiation is one way of creating trust – or deciding
whether trust is justified.
• Example: “The Negotiator’s Dilemma” a classic risk
strategy game
The Negotiator’s Dilemma
B Cooperates B Competes
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3) It is a mistake to assume you know what the
other party wants.
4) Never accept the 1st offer.
5) Don’t fear to negotiate.
Skills For EffectiveNegotiation
•Preparation and planning skill
•Knowledge of the subject
•Ability to think clearly and rapidly under
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discussion and why
4. Opponents attitude and commitment
5. Motivational factors (“I want this price because…”)
6. Stakeholders and importantly decision makers
7. Problems, issues or risk
8. An order/structure for proceedings
BARGAINING
Bargaining has two basic parts
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Debating
Proposing
DEBATING
• To be successful in negotiation you must build relationships and trust
• You need to avoid the following-
• Point scoring – “Your company is always late with deliveries so I’m not paying that!”
• Insults – “If you insist on that price you must be stupid”
• Provocation – “Keep talking like that and see where it gets you!”
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• Threats – “You just wait until your other customers hear about this”
• Instead try-
• Building a relationship – It will make your negotiation much easier
• Sticking to an agreed agenda – This will help avoid destructive discussions.
• Share information and ask questions – What do you want – what do they want
• Try and be positive and listen – What do they want and why – look for areas of
win/win or easy compromise.
PROPOSING
• When proposing your offer consider
• Consider both your entry and exit – This could include all or
some of your wants, and your opponents entry and exit points
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• Consider how you will phrase your proposal
• Consider what will motivate your opponent into making the
deal
• Consider the likely response – Think about the “if I do that then
they will do that”
• Are there alternative proposals? – Once an initial response has
been made are you happy or do you need to offer up something
new.
• Remember the key thing is to propose – don’t argue and try
and remain realistic, and invite a response from your opponent.
Finalizing The Deal
• So when closing the deal consider
• Do you have what you want?
• Do they have what they want?
Global marketplace
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Long-lasting business relationships
Trust and integrity
Conflicts with short-term needs
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Shared values
Steady dialogue
Creative solutions
Your Negotiating in Dubai
experiences?
Developers
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Contractors
Sub-contractors
Consultants
Suppliers
Local government
Summary
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M o r e Trust = More Wins
N e v e r compromise on integrity
Success is measure over time…
People always give the
most consideration, the
best deals, to those
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people they like and
TRUST
Thank you