THE ART OF NEGOTIATION

A DIALOGUE BETN TWO OR MORE PARTIES WITH THE INTENT OF

COMING TO A MUTUALLY AGREEABLE SOLN, BECAUSE EACH PARTY HAS SOMETHING THE OTHER WANTS.

A COMN PROCESS BETN TWO OR MORE PEOPLE IN WHICH THEY

CONSIDER ALT TO ARR AT MUTUALLY AGREEABLE SOLN OR MUTUALLY

SATISFACTORY OBJS.

NEGOTIATION IS…….

SOME OTHER THOUGHTS !!!

NEGOTIATION OCCURS IN BUSINESS, NON-PROFIT ORGANIZATIONS, GOVERNMENT BRANCHES, LEGAL PROCEEDINGS, AMONG NATIONS AND IN PERSONAL

SITUATIONS SUCH AS MARRIAGE, DIVORCE, PARENTING, AND EVERYDAY LIFE.

PROFESSIONAL NEGOTIATORS ARE OFTEN SPECIALIZED, SUCH AS UNION NEGOTIATORS, LEVERAGE BUYOUT

NEGOTIATORS, PEACE NEGOTIATORS, HOSTAGE NEGOTIATORS, OR MAY WORK UNDER OTHER TITLES,

SUCH AS DIPLOMATS, LEGISLATORS OR BROKERS

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BEST ALTERNATIVE

TO ANEGOTIATEDAGREEMENT

(BATNA)

RESISTANCE PT

ZONE OF

POSSIBLE AGREEMENT

(ZOPA)

SOME TERMINOLOGIES

EXAMPLE

• ‘A’ wants to sell his 3 yr old car. Min price expected by him is Rs 1.7 lac

• ‘B’ has already sold his old car and has Rs 1.8 lac as floating capital to buy another sec hand car.

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BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT (FISHER AND URY,1991)

BATNA IS WHAT YOU WALK AWAY TO IF YOU CHOOSE NOT TO NEGOTIATE

HOW DO THE PROPOSALS MATCH YOUR REALISTIC ALTERNATIVES IF YOU CANNOT COME TO A DEAL.

YOUR ALTERNATIVE TO NEGOTIATIONS

KNOWING AND APPRECIATING YOUR “BATNA” ALSO HELPS TO DEVELOP YOUR STRATEGY

THE MORE ATTRACTIVE YOUR BATNA IS COMPARED WITH THE PROPOSALS YOU RECEIVE, THE MORE POWER YOU HAVE AND VICE VERSA.

NORMALLY, A STRONG ALTERNATIVE TO NEGOTIATION MEANS A STRONG NEGOTIATING POSITION.

WHAT IS BATNA???

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LIST WHAT YOU WOULD DO IF YOU FAIL TO REACH AN AGREEMENT.

CONVERT THE MOST PROMISING OPTIONS INTO PRAC CHOICES.

SELECT THE SINGLE BEST OPTION – THAT IS YOUR BATNA.

COMPARE YOUR BATNA TO OTHER PROPOSALS.

IF AN OFFER IS BETTER THAN YOUR BATNA – CONSIDER IMPROVING OR ACCEPTING IT.

IF AN OFFER IS WORSE THAN YOUR BATNA, CONSIDER REJECTING IT.

DEVELOPING BATNA

SO WHAT’S YOUR BATNA???

• ANY ONE OF THE FWG:-– CAR POOL.– CAB.– BUS.– LOOK FOR ANOTHER DEALER(You might end up

getting a higher price tag for the same vintage and condition of veh)

• All these alternatives depict a weak BATNA – i.e. your urgency and compulsion to buy a sec hand car earliest.

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THE POINT (VALUE) AT WHICH THE PERSON WOULD NOT GO BEYOND AND WOULD RATHER BREAK OFF NEGOTIATIONS (LEWICKI, 2004)

THE LEAST THE SELLER WOULD ACCEPT OR THE MOST A BUYER WOULD PAY

CAN BE INFLUENCED

NOT YOUR BATNA

RESISTANCE PT(RP) OR “BOTTOM LINE”

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ZONE OF POTENTIAL AGREEMENT (LEWICKI, 2004)

AKA: BARGAINING RG OR SETTLEMENT RG

THE SPREAD BETWEEN THE RESISTANCE PTS

MUST EXIST TO NEGOTIATE (BUYER’S RP MUST BE GREATER THAN THE SELLER’S RP)

ZOPA!!!

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Seller’s

Buyer’s

1.5 Lac 2.0 Lac1.7 Lac 1.8 Lac

Resistance point

Resistance point

ZOPA

EXAMPLE – CAR SALE

NEGOTIATION STRATEGIES

(Lewicki, et al, 2004) 15

RELATIONSHIP

OUTCOME

COMPETE

AVOID

COLLABORATE

YIELD

NEGOTIATION STRATEGIES (INTERDEPENDENCE)

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• Distributive—competitive, win-lose

• Integrative—collaborative, win-win

TYPES OF NEGOTIATIONS

COMPETE

AVOID

COLLABORATE

YIELD

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ONE SIDE WINS AND ONE SIDE LOSES.

FIXED RESOURCES DIVIDED SO THAT THE MORE ONE SIDE RECEIVES, THE LESS THE OTHER DOES.

ONE PERSON’S INTERESTS OPPOSE THE OTHERS.

DOMINANT CONCERN IS USUALLY MAXIMIZING ONE’S OWN INTERESTS.DOMINANT STRATEGIES INCLUDE MANIPULATION, FORCING, AND WITHHOLDING INFO.

FACE-TO-FACE ARGUING OVER POSITION.

DISTRIBUTIVE NEGOTIATION

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VARIABLE AMOUNT OF RESOURCES TO BE DIVIDED AND BOTH SIDES CAN WIN.

DOMINANT CONCERN IS TO MAXIMIZE JOINT OUTCOMES.

DOMINANT STRATEGIES INCLUDE COOPERATION, SHARING INFO, AND MUTUAL PROBLEM SOLVING.

SIDE-BY-SIDE PROBLEM SOLVING WITH A FOCUS TOWARD MUTUAL INTERESTS.

INTEGRATIVE NEGOTIATION

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GOOD LEARNER, OBSERVER AND LISTENER.

ANALYSE BODY LANGUAGE.

BE OPEN AND FLEXIBLE AND YET FIRM.

EX GREAT PATIENCE, COOLNESS AND MATURITY.

CONT YOUR EMOTIONS AND DO NOT EXPOSE WEAKNESSES.

CHARACTERISTICS OF A GOOD NEGOTIATOR

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BARGAIN FROM POSN OF STR.

ANTICIPATE PROS AND CONS OF EACH MOV.

BUILD TRUST AND CONFIDENCE.

PLAN AND PREP THOROUGHLY - HAVE CLEAR CUT OBJS AND GOALS.

HUMAN PSY AND FACE READING.

CHARACTERISTICS OF A GOOD NEGOTIATOR

COMPETITION

COLLABORATION

AVOIDANCEACCOMODATION

COMPROMISE

TIPS FOR LEADERS AND LEADERS TO BE

WHEN QUICK , DECISIVE ACTION IS VITAL(IN

EMERGENCY) ON IMP ISSUES.

WHERE UNPOPULAR

ACTIONS NEED

IMPLENTATION E.G DISCP ISSUES ETC.

ISSUES VITAL TO

ORG INTEREST.

WHEN CONVINCE

D THAT YOU ARE

RIGHT.

AGAINST PEOPLE WHO

TAKE ADVANTAGE

OF UNCOMPETITI

VE BEHAVIOUR.

USE………..COMPETITION

TO FIND AN INTEGRATIVE SOLN WHEN

BOTH CONCERNS ARE

TOO IMPORTANT TO

BE COMPROMISED.

WHEN YOUR OBJ

IS TO LEARN.

TO MERGE INSIGHTS

FROM PEOPLE WITH

DIFFERENT PERSPECTIVE

S.

TO GAIN COMMITMEN

T BY INCORPORATING CONCERNS

INTO A CONSENSUS.

TO WK THROUGH FEELINGS

THAT HAVE INTERFERED

WITH A RELATIONSHIP

.

USE………..COLLABORATION

ON TRIVIAL ISSUES WHEN

ANALYSED AGAINST IMP

PRESSING ISSUES.

WHEN POTENTIAL

DISRUPTION OUTWEIGHS BENEFITS OF RESOLUTION.

LET PEOPLE CALM DOWN AND REGAIN PERSPECTIVE.

WHEN OTHERS CAN RESOLVE CONFLICT EFF.

USE………..AVOIDANCE

WHEN YOU ARE WRONG AND TO

ALLOW A BETTER

POSN TO BE

HEARD.

TO LEARN AND

DEMO REASONABLENESS.

TO SATISFY OTHERS

AND MAINT

COOPERATION.

BUILD SOCIAL

CREDITS FOR

POSTERITY.

TO MINIMISE

LOSS WHEN

OUTMATCHED AND LOOSING.

TO ALLOW

SUBORDINATES TO DEVP BY

LEARNING FROM

MISTAKES.

USE………..ACCOMODATION

WHEN OPPONENTS WITH EQUAL POWERS ARE

COMMITTED TO MUTUALLY EXCL

GOALS.

TO ACHIEVE TEMP SETLLEMENT TO

COMPLEX ISSUES.

TO ARR AT EXPEDIENT SOLNS

UNDER TIME PRESSURE.

AS A BACK UP WHEN

COLLABORATION OR COMPETITION IS UNSUCCESSFUL.

USE………..COMPROMISE

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