SBN Handout-1

Dr. Himanshu Rai

IIM Lucknow, India
What is Negotiation
Negotiation is a process of communication
whereby two or more parties come
together to attempt to reach agreement on
one or more issues

Dr. Himanshu Rai, IIM Lucknow, India

Negotiating Ability

Artfulness
Diplomacy
Detachedness
Fairmindedness
Sagacity

Dr. Himanshu Rai, IIM Lucknow, India

Stages in Negotiation
Preparation: gathering relevant information, deciding
the issues of interest to both the parties, setting
priorities, developing supportive arguments
Opening session: establishing ground rules,
determining a framework for action, exchanging
initial proposals
Bargaining: engaging in give and take, discussion of
issues and exchange of counterproposals
Settlement: Reaching a final agreement or closing
the deal

Dr. Himanshu Rai, IIM Lucknow, India

Key Steps in Preparation

GOALS STRATEGY PLANNING

Dr. Himanshu Rai, IIM Lucknow, India

Goals

Substantive Goals
Money, specific outcome
Intangible Goals
Winning, settlement at any cost
Procedural Goals
Shaping the agenda, voice

Dr. Himanshu Rai, IIM Lucknow, India

Strategy
The overall plan to achieve ones goals
Strategy versus Tactics
Differ in scale, perspective and immediacy
Tactics are short term, adaptive moves to enact or
pursue broad strategies
Subordinate to strategy
Structured, directed and driven by strategic
considerations
E.g., Strategy: Integrative; Associated tactics: describing
your interests, using open ended questions, active
listening to understand the others interests, inventing
options for mutual gain
Dr. Himanshu Rai, IIM Lucknow, India
Strategy: Dual Concerns Model
Substantive Outcome Important
YES NO

Relational
Collaboration Accommodation
Outcome YES
Important

Competition Avoidance
NO

Dr. Himanshu Rai, IIM Lucknow, India

Planning: Implementing the Strategy
Defining the Issues
Assembling the issues and defining the bargaining mix
Defining interests
Defining limits and alternatives
Defining ones own objectives (targets) and opening bids
(where to start)
Assessing constituents and the social contexts in which
negotiation will occur
Analyzing the other party
Planning the issue presentation and defense
Defining protocol-where and when the negotiation will
occur, who will be there, what the agenda will be etc.

Dr. Himanshu Rai, IIM Lucknow, India

Communication: Roots

Communicare: To share; to make common

Communication: Process of transmitting
information from one person to another
(Weick and Browning, 1986)
Effective Communication: Information is
received as accurately in terms of content
and meaning as intended by the sender

Dr. Himanshu Rai, IIM Lucknow, India

Process of Communication
Encoding and decoding

Sender Receiver
Encodes Decodes

Dr. Himanshu Rai, IIM Lucknow, India

Information and Data

Data: Raw figures and facts defined within

a narrow context
Information: Data in meaningful form

Dr. Himanshu Rai, IIM Lucknow, India

Information

Usefulness is a factor of
Accuracy
Timeliness
Completeness
Relevance

Dr. Himanshu Rai, IIM Lucknow, India

Objectives of Communication
Informing
Convincing
Persuading

Dr. Himanshu Rai, IIM Lucknow, India

Persuasive communication
Aristotles Rhetoric
Ethos
Pathos
Logos

Dr. Himanshu Rai, IIM Lucknow, India

Power List
BATNA
Competition
Legitimacy
Risk Taking
Commitment
Expertise
Knowledge of needs
Investment
Reward/Punishment
Identification
Morality
Precedent
Persistence
Persuasive capacity
Attitude
Symbols