Negotiation Skills

What is Negotiation
Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument. Negotiating is the process of communicating back and forth, for the purpose of reaching a joint agreement about differing needs or ideas. Negotiation is finding a way for all parties to gain something they value from the resolution of a position of conflict. It is a collection of behaviours that involves communication, sales, marketing, psychology, sociology, assertiveness and conflict resolution.

What is Negotiation
A negotiator may be a buyer or seller, a customer or supplier, a boss or employee, a business partner, a diplomat or a civil servant. On a more personal level negotiation takes place between spouse, parents or children. You negotiate when you want to resolve something and both parties have something to gain from the interaction and exchange.

Negotiations Mixer
TASK: In your teams of 3 (or 4), negotiate with your partners to decide how you would divide this Rs. 100 among you. Once you have agreement, all 3 of you stand up. Anyone not happy with the division of money? You have 60 seconds to negotiate. Are you ready to begin? Go! Who reached a win-win agreement in 45 seconds? What made this a difficult task?

What is Influencing
Where one party power over another party A child can influence his / her parents to buy an ice cream but has little power to negotiate. When child uses emotions it is negotiating with his / her parents using emotions. If one party loses and the other party gains it is not negotiating that is practiced but it is Influencing.

What is Bargaining
Where there is give and take from both sides. It is a form of Barter and normally done on specifics like price. It is a sub set of Negotiation

Characteristics of Negotiation Situation

There are two or more parties: That means there are two or more individuals or groups or organizations who are negotiating within themselves. There is conflict of interest between two or more parties: Parties involved in the negotiation process have their individual interest and they are negotiating to resolve the conflict which is arising from their individual interests.

Characteristics of Negotiation Situation

The parties negotiate because they think that by influencing the other party they will get better deal than by simply voluntarily accepting the deal offered by the other party. When we negotiate, we expect give and take: Both the parties involved in negotiation will modify their earlier offerings and demands and will reach to some conclusion acceptable to both the parties at the end of the negotiation.

What makes a Good Negotiator

Behavioural Criteria: a) High observation skills: Able to listen, observe and record activities of others, also should pick up the non verbal clues given through body language. b) Planning and organising: Must be able to decide in advance what they expect from the negotiations and also know their own limits.

What makes a Good Negotiator

Behavioural Criteria: c) Able to move blockages: Must identify barriers and work systematically through the barriers that are encountered during the negotiations. d) Develop rapport: Must quickly establish and maintain the rapport by appreciating others point of view while emphasizing on our own view.

What makes a Good Negotiator

Behavioural Criteria: e) Flexible attitude: Able to accept others view points and arguments. f) Creativity: Must think creatively and helping to solve the issue.

Access your current skill as a Negotiator

Rank yourself from 1 poor to 5 highly skilled in terms of your negotiating ability.

Different Phases of Negotiation

Pre-negotiation: Before any negotiation takes place, a decision needs to be taken as to when and where a meeting will take place to discuss the problem and who will attend. This stage involves ensuring all the related facts of the situation are known in order to clarify your own position.

 During Pre-negotiation stage Negotiators should know: 1) Rules or Policies of their organization 2) Deciding who will negotiate 3) What exactly is your own position? 4) What is the other person likely to want? 5) What, as close as you can get, is the other persons position? 6) When to refuse or accept an offer Undertaking Pre-negotiation or preparation before discussing the disagreement will help to avoid further conflict and unnecessary wasting time during the meeting.

 Opening: Each party should start by clearly and assertively stating how they currently see things. There should be no judgment and no personal attacks. Each party should listen carefully to the other without interruptions. Your (Opening) initial position should be reasonable and not too extreme.

 Information sharing: During this stage, individuals or members of each side put forward the case as they see it, that is their understanding of the situation. Key skills during this stage are Questioning, Listening and Clarifying

 Problem solving: As the discussion proceeds, each party may wish to suggest changes to the initial positions, either to their own initial position or to the initial position of the other party. The discussion continues in this way, with the parties trying to maintain an element of flexibility until they can solve the problem and reach an agreement that is acceptable to both.

 Agreement: When agreement has been reached it is most helpful to make a written record of it, including how the implementation of the agreement will be monitored. Both parties should agree the content of the written record and sign it.

 Breakdown in negotiation: Sometimes negotiations break down and the parties concerned are unable to reach an agreement. This may be for a variety of reasons, but in any event some further strategy then needs to be introduced because the conflict cannot be allowed to continue unresolved. Often this is a time at which to introduce a third party mediator. It may also be possible to ask a more senior manager to make a decision binding on both parties (arbitration) although the two parties in the dispute then have no control over the outcome.

Barriers that create impasse/deadlock during Negotiation

Failure to communicate Gaps in Information Insufficient focus upon underlying interests Inability to align other parties interests Poor Negotiating Skills

Overcoming Barriers
Negotiate for a WIN-WIN Outcome: WIN-WIN outcome could be achieved where both sides feel they have gained something positive through the process of negotiation and both sides feel their point of view has been taken into consideration. A WIN-WIN outcome is usually the best outcome, however it may not always be possible but through negotiation it should be the ultimate goal. Suggestions of alternative strategies and compromises need to be considered at this point. Compromises are often positive alternatives which can often achieve greater benefit for all concerned rather than holding to the original positions.