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Negotiation Skills

By: Kunal Samani President-Business Development Rolex Lanolin Products Ltd

Why Negotiation?
• Negotiation is needed to resolve intra-person or inter-person conflicts / disagreements / clash of interests. • Negotiation is something that we do all the time and is not only used for business purposes. The aim of negotiation is to explore the situation, and to find asolution that is acceptable to both the sides. • Only man negotiates; animals do not; when faced with larger predator, they do not ask for negotiation or justice rather just run away. • Negotiation is one of the most difficult jobs a person can do. It requires not only good business judgment but also a keen understanding of human nature

Negotiation Interperson Negotiatio n Unplanned Negotiatio nIntegrative Negotiatio n Hard Negotiatio n Soft Negotiatio n Planned Negotiatio n Distributiv e Negotiatio n Principled Negotiatio n

Intra-person Negotiation

Hard Negotiation
• Hard negotiation involves the negotiation of positions, rather than interests. • It is highly competitive, seeing victory as the number one goal. • Hard bargainers, see the participants as adversaries. They distrust theother side and play sneaky games to try to gain the negotiating advantage. • Hard bargainers refuse to make concessions and demand onesided gains as the price of an agreement. • When confronted with a softer opponent, hard bargainers almost always will win. When confronted with another hard bargainer, however, it can result in no agreement, both losing.

Soft Negotiation
• Soft negotiationalso involves the negotiation of positions, rather than interests. However, it treats the participants as friends, seeking agreement at almost any cost, and offering concessions easily in the interests of preserving (or creating) a good relationship with the other side. • Soft bargainers trust the other side, and are open and honest about their bottom line. • This leaves them vulnerable to hardbargainers who act competitively–offering few, if any concessions.

Principled Negotiation
• • 1. 2. 3. Principled negotiation is the interest-based approach to negotiation. Fundamental principles of principled negotiation are: it separates the people from the problem; focuses on interests, not positions; insists on objective criteria of the solution.

Negotiation Styles
Assertive
Win / LoseWin / Win (Collaborating)

Compromise

Unasserti ve

Avoidance Uncooperative

Accommodati ng Cooperative

Win – Lose Style
• The win-lose is the most common style of distributive negotiation wherein a person pursues his or her own wishes at the expense of other party. • Under this style negotiation is viewed as a game to be won. Losing may be taken as failure, weakness, and a loss ofstatus. • When engaged in this style, the parties may use different tactics to win like: persuasion, argument, power, or even threat.

Usefulness
• A forceful position during negotiation may be appropriate when the stakes are high and costs of indecision and compromise are non-affordable. • It is useful when issues of legality and ethics are at hand. • Where you do not expect to deal withpeople ever again, and you do not need their goodwill. • When there is only one prize. • At management level, this style is helping when unpopular but necessary decisions must be made. • Win-lose is also a style to use when the other party has a tendency to take advantage of you.

Avoiding Style
• Avoiding the conflict in certain situations – need of no negotiation at all – is also a negotiation. •People may physically withdraw by simply leaving the scene of conflict or they can refuse to get involved by using silence, or changing the topic of conversation. • Psychologically, avoiders can also deny the existence of conflict. • During formal negotiation, avoiding style is exercised by paying deaf ear and / or blind eye to the conflicting stimulus.

Usefulness
• • • • • • Useful when:...