Negotiation Skills

Simply put, “the process of getting what you want

from another person.”

What is “Negotiating is the art of reaching an agreement by

resolving differences through creativity.”
Negotiation? -Stephen Kozhicki

“A process whereby two parties, with differing

views initially, attempt to reach by an agreement on
a common objective by the selective use of
different methods of persuasion.”
-Stephen Robbins
 Distributive
Negotiation
Approaches
to
Negotiation
Integrative
Negotiation
 • The most distributive feature is that it operates
under a zero sum game.
• The gain made by one person is loss incurred by
another person.
Distributive • Each person involved in the negotiation defines
ultimate point where the settlement will be
Negotiation made.
• The seller’s goal is to negotiate as high as a
price possible, the buyers intention is to
negotiate a price as low as possible.
• Win-Lose situation.
 • Negotiation that seeks one or more settlement.
• Parties cooperate to achieve maximize benefits
by integrating their interests.
Integrative • Both parties involved in a negotiation process
Negotiation jointly look at the problem, try to search for
alternatives and try to evaluate them and reach a
mutually acceptable decision or solution.
• Win-Win situation.
 Purpose

Plan
P’s OF
NEGOTIATION Pace

Personalities.
Negotiation
Process
 Before the start of negations, one must
be aware of the conflict, the history leading
to the negotiation, the people involved and
their perception of the conflict expectations
from the negotiations etc.
Preparation
and Planning

Determine your and the other

side’s best alternative to
a negotiated agreement, BATNA
 Who will do the negotiating?

Definition of Where will it take place?

Ground Rules
What time constraints, if any, will apply?

To what issues will negotiation be limited?

 Opportunity for educating and informing
each other on the issues , why they are
Clarification important and how each arrived at their
initial demands.
and
Justification
Provide the other party with any
documentation that helps support your
position.
 Both parties will undoubtedly
Bargaining need to make concessions.
and Problem
Solving
Give-and-take in effort trying to
hash out an agreement
 Formalize the agreement you have worked
out and develop any procedures necessary
Closure and for implementing and monitoring it.
Implementation
For most cases, however, closure of the
negotiation process is nothing more formal
than a handshake.
 A. PERSONALITY TRAITS
• Negotiators who are agreeable or extraverted are
not very successful in distributive bargaining.
Factors • The best distributive bargainer appears to be a
disagreeable introvert—someone more interested
Influencing in his or her own outcomes than in pleasing the
other party and having a pleasant social exchange.
Negotiation • People who are highly interested in having
positive relationships with other people, and who
are not very concerned about their own outcomes,
are especially poor negotiators.
 B. MOODS / EMOTIONS
• In distributive negotiations, negotiators in a
position of equal status who show anger
negotiate better outcomes.
Factors • Angry negotiators feel more focused and
Influencing assertive in striking a bargain.

Negotiation • Being angry has a spillover effect : perceived

as “tough”
• Anxious negotiators expect lower outcomes,
respond to offers more quickly, which leads
them to obtain worse outcomes.
 C. CULTURE
• People generally negotiate more effectively
within cultures than between them.
Factors • Indians have less trust in their negotiation
counterparts than U.S. negotiators.
Influencing • Lower levels of trust are associated with lower
Negotiation discovery of common interests between parties,
which occurs because Indian negotiators have
less willing to disclose and solicit information.
 D. GENDER DIFFERENCES
• Men have been found to negotiate better
Factors outcomes than women, although the difference
is relatively small.
Influencing • Women emphasize on forming and maintaining
Negotiation an interpersonal relationship.
• Women are expected to be “nice” and men
“tough”
 •Strategy: The overall plan to achieve one’s goals
in a negotiation.

•Tactics: Short-term, adaptive moves designed to

Negotiation enact or pursue broad strategies.
Strategy
•Planning: The “action” component of the strategy
process; i.e. how will I implement the strategy?
 Choice of strategy is reflected in the
answers to two questions:

–How much concern do I have in

achieving my desired outcomes at stake
Dual Concerns in the negotiation?
Model
–How much concern do I have for the
current and future quality of the
relationship with the other party?
 • Avoidance: Don’t negotiate

• Competition: I gain, ignore

relationship

•Collaboration: I gain, you

gain, enhance relationship

•Accommodation: I let you

win, enhance relationship

The Dual Concerns Model

Effective Negotiation Skills

1. Analyze and cultivate your BATNA.

2. Preparation
3. Active Listening
4. Ask good questions.
5. Be aware of the anchoring bias.
6. Present multiple equivalent offers simultaneously (MEOS)
7. Try a contingent contract.
 • Communication skills are crucial.
• Good communication is the cornerstone of any
Communication productive negotiation.
Skills • Particularly important are :
 Oral communication
 Non-verbal communication
 • It not only refers to speaking but includes the
ability to listen as well.
• Specific examples of oral communication
include:
Oral Face to face communication in conversation,
Communication direct or telephone conversation, meetings,
interviews, speeches, presentations, discussions
etc.
• Oral communication is significant in building
rapport and trust with customers.
 When communicating with your prospects and
customers:
Slow down your speech and pronounce your
words clearly and correctly.
Organize your thoughts and ideas before
Oral speaking (e.g. write notes on what you want to
say)
Communication Respond non-verbally to show understanding
and interest when communicating.
Be specific when asking questions and giving
answers.
Phrase your words properly; it makes a
difference.
Salary Negotiation

• Salary negotiation is a process where

one party (usually the employee)
negotiates the amount of their pay,
income, salary, wages, annual
review, or salary raise with another
party (usually a representative of the
employer, such as their manager).
Rules for Salary
Negotiation

• Don't underestimate the importance

of likability.
• Get it straight.
• Understand the person across the
table.
• Understand their constraints.
• Don't negotiate just to negotiate.
• Stay at the table.
 • Inadequate preparation
Common • Use of intimidating behavior
mistakes to be • Impatience
• Loss of temper
avoided in • Talking too much, listening too little, and
Negotiation remaining indifferent to body language.
• Arguing instead of influencing.
"Success is going from failure to failure, without loss of ENTHUSIASM."

-Winston Churchill