effective negotiation skills students

8/3/2019 Effective Negotiation Skills STUDENTS

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What is Negotiation?The act or process of

dealing with others toreach an agreement.


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What is Negotiation all About? To reach an agreement.

To pass by or over safely/successfully. To deal with desires & demands. To communicate. To act for oneself or for the others.


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Instances of NegotiationPurchasing an object at a storeAgreeing on work plans

Discussing a raise with your bossSigning of new business contracts

Agreeing on realistic project deadlinesManaging a conflict (conflict resolution)


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communication

motivationPersuasion

Negotiation


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Communication

EmpathyRapport

TactSympathyListening

QuestioningBody language

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MotivationMaslows Hierarchy of Needs

167


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What is Negotiation all About? To reach an agreement.

To pass by or over safely/successfully. To deal with desires & demands. To communicate. To act for oneself or for the others.

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DefinitionNegotiation takes place when two people (Or more), with

differing views, come together to attempt to reachagreement on some issues. This may be a one-off eventor part of an on-going relationship.

It is a form of communication-persuasive communication;in a word, bargaining.

Persuasive communication is about getting what you want,negotiation is about getting the best possible deal. This is

getting what you want in the best possible way.


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Negotiation Types

1. Distributive:Sometimes called Win/lose negotiation,

distributive negotiation arises when theparties are in conflict and each sees theobjective as beating the other. Tactics can thus be negative and confrontation is

more likely, with a satisfactory conclusionmore difficult to obtain than in mutuallypositive encounters.


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Negotiation Types

2. Interactive:Sometimes called Win/Win negotiation,

integrative negotiation arises when theparties see the aim as being to gainagreement. Through collaboration anoutcome that is acceptable to both parties.


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Power TO Influence

What gives a negotiator power to influence events?:

Promise of reward

Threat of Punishment

Legitimacy

Bogeys

Never underestimate or overestimate either your power or theirs.


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Five Kinds of Power

1. Expert Power

2. Personal Power

3. Reward Power

4. Coercive Power

5. Legitimate Power


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Sources of Power

Title Power

Reward Power

Punish Power

Reverent power

Charismatic Power

Expertise Power

Situation Power

Information Power


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NegotiatingC

haracteristics1. Two or more parties are

involved.

2. Involved parties havecommon interests.

3. Involved parties consider

negotiations satisfactoryto settle differences.


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NegotiatingC

haracteristics (cont.)4.Each party hopes to persuade the other

party to modify its initial position.5. Each party has some degree of Powerover the other party.

6. Results are affected by personalattitudes.


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Negotiating Characteristics (cont.)

7. Negotiations have differentqualities, depending on

individuals.8. Negotiations conduct

depends on Negotiators.

9. Negotiations involveUncertainty.


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Negotiation IngredientsKnowledge of Human Behavior.

Self-Preparation.Own Assumptions. Anticipation of the other partys

assumption(s).Strategies & Tactics.


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StrategiesThe Overall Approach forConducting Negotiations.

TacticsParticular Actions Used to

Implement a Strategy.


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A Successful Negotiator .

1. Has a quick Mind.2. Has unlimited patience.

3. Knows how to dissemble without beinga liar.

4. Inspires trust without trusting others.


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A Successful Negotiator .

1. Modest, but Assertive.

2. C

harming others withoutsuccumbing to their charm.

3. Has plenty of money, but remains

indifferent to all temptations.


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Attributes of aC

redible NegotiatorConfidence

Preparedness &OrganizationKnowledgeableness

HonestyFirmness


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4. Self-CenteredGoals

1. AggressiveGoals


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1. Aggressive GoalsSeek to Damage an

Opponent. Hurt the CompetitorCausing someone else to

lose the respect ofothers


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2.C

ompetitive GoalsGaining more than the other

party. Paying the Lowest Price Getting a Better Public

Image Receiving the Highest Price


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3.C

ooperative GoalsAgreement Leads to Mutual Gain. A Joint Venture, Partnership Settlement for Mutual Gain Payment Plan for the

Benefit of BothPayer & Payee.


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4. Self-Centered GoalsSeek a Particular Result Regardless of

What the Other Party Receives. Obtaining a Particular Property Selling a Property Gaining the Others Respect


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5. Defensive GoalsSeek to Avoid a Particular Result.

Avoiding Loss of Respect Preventing a Strike Avoiding Loss of a goodC

ustomer/Supplier Maintaining a Business/PersonalRelationship


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C

ombination of GoalsEach Negotiation

Has Multiple Goals.


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1.Preparation 2.

ActualNegotiation

3.Monitoring


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A Simplified Preparation Diagram

Define Issues

Reconsider Needs

Rehearse Options

Negotiate

Determine Strategy

Decide Positions

Rehearse Fact

Review Assumptions

Negotiation Subject

Establish Objectives


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Preparation

Phase

Checklist

I.I.

FactFact--FindingFinding

II. Issues

IV. AgendaIV. Agenda

III.III.

ArgumentsArguments


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1. Fact-Finding

Financial Situation

Internal Problems

General Reputation

Integrity & Credibility

Who is the Decision-Maker


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2. IssuesMajor IssuesMinor Issues

- Target- Initial Position

- Walk-Away Point


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3. Arguments

Take Stock of all Arguments inSupport of Each Position to Take.

Anticipate other Partys Counter-Agreements and be Prepared for it.


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4. Agenda

Decide on ProposedAgenda.

Give attention to

Sequence.


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Actual Negotiations Orientation Phase

Positioning & Arguing Exploring Possibilities Definition of Proposals Crisis Phase, and Settlement


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1. Orientation PhaseInformation Exchange

Introducing TeamsFormal/Informal Ice-BreakingAgenda & Rules Discussion

Determination of Authority ofNegotiators


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2. Positioning & Arguing

Reviewing Issues inDetails.

Explaining & DefendingInitial Positions,

Questions and Attackthose of Opponents.


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2. Positioning & Arguing (cont.)

Probing for Soft Spots.

Trying to get Ideasabout the OpponentsIntentions, Expectations& Objectives.


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3. Exploring PossibilitiesFloat New Ideas and

See what ResponsesOccur.


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4. Definition of ProposalsFirm Propositions Begin

to EmergeParties Move TowardsConsensus

Contours of theAgreement Emerge


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5.C

risis PhaseDeadlines & DeadlocksOccur

Can Mean End ofNegotiation

Can Lead to the NextPhase


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6. SettlementProposals begin to emerge as a

probable satisfactory outcome.Difficulty to Identify a Point of SafeStop.

Tried too soon, may cause AgreementLoss.


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6. Settlement (cont.)Left too late, may Allow Opponents toThink ofNew Angles.

It is Important to Conclude what the Agreement is All About, with very

Clear & Unambiguous Understanding.


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Successful Negotiation Strategies1. No Concessions

2. No further Concessions3. Making Only Deadlock-Breaking4. High Realistic Expectations With

Small Systematic Concessions(HRESSC)


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Successful Negotiation Strategies (cont.)

5. Concede First6. Problem-Solving7. Goals other than To Reach an

Agreement

8. Moving for Closure9. Combining Strategies


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Strategy 1: NoC

oncessionsUsed when:

1. Balance of Power is in Your favor.2. You are in a disproportionately weak

position.3. Another Party is Waiting in the Wings.


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Strategy 1: NoC

oncessionsUsed when (Cont.):

4. The Amount of Money is Too Lowor the Time is Too Short.5. The Same Terms Must be Available

To Everyone.6. Bids or Written Proposals are Sought.


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Trading Concessions ABCs

A. Never Give a ConcessionB. Optimize your ConcessionC. Minimize Their Concession


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A. Never Give a Concession

Trade Concession Reluctantly.

The Number of Variables is Finite, youwant to Share.

You must be Perceived as being Driving

A Hard Bargain The If. Then Approach.


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B. Optimize Your Concession

Stressing the Cost to you.

Referring to Major Problem you,making a concession, will solve.

Implying that it is an Exceptional,Beyond the Call of Duty Concession.


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C

. Minimize TheirC

oncessionDo Not Over Thank.

Depreciate & Belittle theValue of the OtherPersons Concession.


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C. Minimize Their Concession

Amortize the Concession Where

Appropriate.Treat Concession as Given, But Dontput a Value on it, Brief

Acknowledgment.


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Strategy 2: No Further ConcessionsUsed when:

1. The Other Party Can be Forced toMake the Final Concession.

2.The Situation hasC

hanged.


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Strategy 3:

Making Only Deadlock-Breaking Concessions

Used Only when theRisk of No-

Agreement is

Acceptable.


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Strategy 4: HRESSC

The most Generally Useful

Negotiation Strategy. Reliesmainly on offering HighRealistic Expectations with

Small Systematic Concessions.


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Strategy 5:C

oncede FirstViable When:

You do not Concede Too Much.When this Concession will later allowyou to Demand a ReciprocalConcession Without Appearing Weak.


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Strategy 6: Problem-Solving

Creating a Procedural

Agreement to Solve aCommon Problem that

has been Identified.


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Strategy 7: Goals Other Than

To Reach An Agreement

Reaching Agreement is

not necessarily the EndPurpose of allNegotiating Goals &Strategies.


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Strategy 8:

Moving For ClosureActing to Close the Deal by Creating a

Firm Agreement.


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Strategy 9:Combining Strategies

Using Different Strategiesat Different Stages of theNegotiation and for

Different Issues.


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Negotiation Range = X XI

Probable Settlement Range = Z - ZIYour WAP -------------

Your Target ----------

Your Initial Position-----

$ 20,000

$ 19,500

$ 19,000

$ 18,000

$ 17,500

$ 17,000

---------------------------- X

--Opponents initial Position Y

Opponents Target -----------Z

-------------------------------- ZI

--------------------------------- YI

Opponents WAP ---------------- XI

effective negotiation skills students

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