Scribd
Upload
6 views

Negotiation -Stages and Strategies

Negotiation is a strategic discussion aimed at reaching an acceptable agreement between parties, involving stages such as preparation, exchanging information, bargaining, and closing the deal. Effective negotiation strategies include justifying positions, considering the other side's needs, managing emotions, and knowing when to walk away. Key concepts include the Zone of Possible Agreement (ZOPA) and Best Alternative to a Negotiated Agreement (BATNA), which help negotiators understand potential compromises and alternatives if negotiations fail.

Uploaded by

varalakshmillm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
6 views

Negotiation -Stages and Strategies

Negotiation is a strategic discussion aimed at reaching an acceptable agreement between parties, involving stages such as preparation, exchanging information, bargaining, and closing the deal. Effective negotiation strategies include justifying positions, considering the other side's needs, managing emotions, and knowing when to walk away. Key concepts include the Zone of Possible Agreement (ZOPA) and Best Alternative to a Negotiated Agreement (BATNA), which help negotiators understand potential compromises and alternatives if negotiations fail.

Uploaded by

varalakshmillm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 17

NEGOTIATION: STAGES AND STRATEGIES

Negotiation is a strategic discussion between two or more


parties who try to reach an acceptable agreement for all
involved.
WHAT IS NEGOTIATION?
Negotiation is a strategic discussion intended to resolve an
issue that both parties find acceptable. Negotiations involve
give and take, where one or both parties will usually need to
make some concessions. Negotiation occurs between buyers
and sellers, employers and prospective employees, two or
more governments, and other parties.
STAGES OF NEGOTIATION
• Preparation: Before negotiations begin, individuals should know
what they hope to gain, what concessions they will make, and the
desired goal. Preparation can include researching the other party to
determine their point of view. When negotiating the price of a new
car, buyers often come prepared with pricing data or competing
deals. Job seekers bring information to support their
accomplishments when negotiating a salary for a new position.
• Exchanging Information: Both sides present their
initial positions of what they want and are
willing to give in return. Individuals should
clearly articulate their wishes and listen to the
other side to find a middle ground or points that
are negotiable.
• Bargaining: After both sides have been detailed,
this is when individuals will bargain. An
important key to this step is to hear the other
party out and refrain from being dismissive or
argumentative. Successful negotiations require
give and take on both sides, and an adversarial
relationship is likely less effective than a
collegial one.
• Closing the Deal: Once both parties are satisfied,
negotiations will end. The next step may be a
verbal agreement or a written contract that
clearly outlines each party's position and can be
enforced if one party doesn't hold up their end of
the bargain.
NEGOTIATION PROCESS
The negotiation process continues until both parties agree
to a resolution or negotiations break off without one.
Experienced negotiators will often try to learn as much as
possible about the other party's position before a
negotiation begins, including the strengths and
weaknesses of that position, how to prepare to defend
their positions, and any counter-arguments the other
party will likely make.
The time it takes for negotiations to conclude depends on
the circumstances. Negotiation can take as little as a few
minutes when bargaining the price of an item at a garage
sale, or much longer, like in company mergers and
acquisitions. Some negotiations require a skilled
negotiator such as a professional advocate, real estate
agent, or attorney.
NEGOTIATION STRATEGIES
• Justify the Position. Individuals should come to negotiations ready
to back up their position, including research and a commitment to
reaching a deal.
• Consider the Other Side. Remember that the other side has things it
wants out of the deal, too. Individuals should determine what they
can offer to help them reach their goals without giving away more
than they want to or can afford.
• Keep Emotions in Check. It's easy to get caught up in the moment
and be swayed by personal feelings, especially anger and
frustration. However, emotions cause negotiators to lose sight of
the goal.
• Know When to Walk Away. Know what to accept as a minimum and
when to walk away. If both sides are hopelessly dug in, pausing
negotiations gives everyone involved a chance to regroup and
possibly return to the table with a fresh perspective.
EXAMPLES OF NEGOTIATION
A car buyer may be interested in a new SUV but doesn't want to pay
the full manufacturer's suggested retail price (MSRP). They may offer
what they consider a fair price. The dealer can accept the offer or
counter with another price. A good negotiator may be able to reduce
the cost and the dealer may still earn a profit.
EXAMPLES OF NEGOTIATION
An individual's new job offer may come with a low salary. An
employer's first compensation offer is often not its best possible offer,
so it may have some room to negotiate. Even if a higher salary isn't
feasible, the employer may be willing to offer something additional,
such as more vacation time or better benefits. This is where the
individual may succeed with good negotiation skills.
WHAT MAKES A GOOD NEGOTIATOR?
Some of the key skills of a good negotiator are the ability to listen, to
think under pressure, articulate their point of view, and compromise,
within reason.
WHAT IS THE ZONE OF POSSIBLE
AGREEMENT (ZOPA)?
ZOPA stands for the zone of possible agreement.
ZOPA is a way of visualizing where the parties'
positions in a negotiation overlap. It is within that
zone that compromises can be reached.
WHAT IS BATNA?
BATNA means the
best alternative to a negotiated agreement. It
refers to the next course of action a negotiator
may take if a negotiation fails to arrive at a
satisfactory conclusion. Veteran negotiators often
go into a negotiation knowing what their BATNA
is.
WHAT IS BATNA?
BATNA means the
best alternative to a negotiated agreement. It
refers to the next course of action a negotiator
may take if a negotiation fails to arrive at a
satisfactory conclusion. Veteran negotiators often
go into a negotiation knowing what their BATNA
is.

You might also like