Negotiation skills What is negotiation Negotiation is a

Negotiation skills

What is negotiation? Negotiation is a process of two or more parties working together to arrive at mutually acceptable resolution of one or more issues It deals with the conflicting situation of two or more conflicting parties to settle down the issue Negotiation refers to a process of seeking to influence others It is a ‘give-and-take’ bargaining process Negotiation occurs everyday.

Types of negotiation 3 Broadly people use two approaches in negotiation; Confrontational: those using confrontational approach see the process as a zero-sum game in which a limited number of bargaining chips are to be won (they want to be the winners) Cooperative (interest-based negotiation): An approach to negotiation where the parties focus on their individual interests and the interests of the other parties to find a common ground for building a mutually acceptable agreement. 2022 -01 -31

4 What type of negotiator you are! Adopted form: Tracy Lee Parker 2022 -01 -31

5 Circle a number between 1 -very poor descriptions of you to 5 very good description of you. 2022 -01 -31

6 S. N. STATEMENTS 1 2 1 I fight hard for what I want 2 I like to find shared needs and make them focus of negotiations 3 I like to avoid lengthy negotiations by splitting the difference 4 I prefer a friendly encounter to an unpleasant conflict 5 If I can stay out of a negotiation, I do 6 When I have the power, I use it to insure that my needs are met first 7 I like to turn a conflict into a cooperative 2022 -01 -31 effort of problem-solving 3 4 5

S. N. STATEMENTS 8 I often propose a middle ground that is obviously fair to both sides 9 My priority is to maintain a good long-term relationship I don't like to confront others with my complaints and concerns I don't mind a good argument if it may get me what I want 10 11 12 I prefer to put my cards on the table to encourage the other party to share their information too 13 I am happy to go half way as long as the other party does too 1 2 3 4 5

S. N. STATEMENTS 15 I do not feel confident that I can get what I want by negotiating 16 I try not to let the other party know too much about my needs and position 17 I try to find new ways to see the problem in order to find better solutions 18 I do not like to waste time playing games that a simple compromise is possible 19 I may not stick up for myself as much as I should 20 When I think someone has an issue with me I try to stay out of their way 1 2 3 4 5

S. N. STATEMENTS 21 I find a good bluff or threat can work wonders in negotiations. 22 I expect honesty & trust from others in negotiation and they find me very trustworthy 23 The fairest thing in my view is to split the difference in a reasonable way 24 Some people might say I give easy 25 In many cases there is little to be gained by negotiating, so you might as well try to avoid it 1 2 3 4 5

Scoring 10 Add each column and get a total score 1 _____ 2_____ 3_____ 4_____ 5_____ 6_____ 7_____ 8_____ 9_____ 10_____ 11____ 12____ 13_____ 14_____ 15_____ 16____ 17____ 18_____ 19_____ 20_____ 21____ 22____ 23_____ 24____ 25________ ______TOTAL Compete Collaborate or Defeat or Cooperate ____ Compromise ______ Accommodate Avoid or Withdraw The column with the highest total represents your preferred negotiation style; the one with the smallest is your least preferred 2022 -01 -31 style.

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Principles of negotiation 12 Focus on interests not positions It may produce unwise agreements, it is inefficient, endangers ongoing relationship Two approaches (attitudes): � I’m good, you’re good � My way or the highway (not good) Create options for mutual gain Separate people from problem Be firm using objective criteria 2022 -01 -31

13 Good outcome in negotiation process depends on many variables and negotiation skills 2022 -01 -31

Framework negotiation skills 14 Communication Enabling value Relationship Interests Creating value Options If “No” Alternatives Legitimacy If “Yes” Commitment 2022 -01 -31 Claiming value

Cont… 15 Communication and relationship Skills: Communication: Two main kinds of verbal communication. 1. Advocacy or making statements. When we advocate, we give information such as facts, our opinions, conclusions, etc. 2. Inquiry or asking questions. When we inquire, we seek information for the purpose of learning. 2022 -01 -31

Cont… 16 Relationship: The overall pattern of interaction among the other parties within and outside the negotiation. It is very important in negotiation and interactions should improve, not damage the our relationships Do not threaten relation at the cost of short term gain. It may yield poorer results over the long-term. Try to deal separately with the relationship between the parties and the substance issues Rather reacting to positions, probe for their underlying needs 2022 -01 -31

Circle of Value 17 Interests: Interests are the problems hopes, fears, aspirations, concerns, goals, etc. of each party. Positional negotiations limit optimal solutions because parties rarely explore a broad range of potential solutions, or options. Options: The possible solutions which may satisfy the interests of both the parties are called options. Legitimacy: Using objective standards, evidence-based arguments, precedents, law, or principles is a means both to persuade the other side that an agreement 2022 -01 -31 is fair and to

BATNA and Commitment 18 BATNA refers to one's best alternative to a negotiated agreement. It is different from the options. It means that both the parties think what they can get if they do not come to agreement, commitment or negotiation to pursue their interests. Commitment refers to the agreement which both the parties agrees up on and respect it. Make it clear 2022 -01 -31

19 Case Study

Preparation Identifying parties Use of circle of value � Identify interests (short-term, mid-term, longterm), key issues of ‘ours’ ‘theirs’ and ‘others’. � Develop options (ours, theirs and others). Brainstorming q Legitimacy

Be careful on… Emotions Getting people to the table Polarization Finding commonality and common values (winwin) Face saving Legitimacy and approval of negotiation Time and situation

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