21 Century HR

Consultants
st

A workshop on

Negotiation
Skills

21 Century HR
Consultants
st

Dr. Farooq-e-Azam Cheema

MSc in Human Resource Management and Development,
University of Manchester, UK.
PhD in Public Administration, University of Karachi.
drcheema99@hotmail.com

I. Why
Negotiation?
Negotiation
is needed to resolve intra-person

or inter-person conflicts / disagreements /

clash of interests.
Negotiation is something that we do all the
time and is not only used for business
purposes. The aim of negotiation is to explore
the situation, and to find a solution that is
acceptable to both the sides.
Only man negotiates; animals do not; when
faced with larger predator, they do not ask for
negotiation or justice rather just run away.

Negotiation is one of the most difficult

jobs a person can do. It requires not only
good business judgment but also a keen
understanding of human nature.

Negotiation
Interperson
Negotiati
on

Intra-person
Negotiation
Unplanne
d
Negotiati
on

Hard
Negotiati
on

Planned
Negotiati
on

Integrati
ve
Negotiati
on

Distributi
ve
Negotiati
on

Soft
Negotiati
on

Principle
d
Negotiati
on

Hard Negotiation

Hard negotiation involves the negotiation of

positions, rather than interests.
It is highly competitive, seeing victory as the number
one goal.
Hard bargainers, see the participants as adversaries.
They distrust the other side and play sneaky games to
try to gain the negotiating advantage.
Hard bargainers refuse to make concessions and
demand one-sided gains as the price of an
agreement.
When confronted with a softer opponent, hard
bargainers almost always will win. When confronted
with another hard bargainer, however, it can result in
no agreement, both losing.

Soft Negotiation

Soft negotiation also involves the negotiation of

positions, rather than interests. However, it
treats the participants as friends, seeking
agreement at almost any cost, and offering
concessions easily in the interests of preserving
(or creating) a good relationship with the other
side.
Soft bargainers trust the other side, and are
open and honest about their bottom line.
This leaves them vulnerable to hard bargainers
who act competitivelyoffering few, if any
concessions.

Principled Negotiation

1.

2.
3.

Principled negotiation is the interestbased approach to negotiation.

Fundamental principles of principled
negotiation are:
it separates the people from the
problem;
focuses on interests, not positions;
insists on objective criteria of the
solution.

Assertiv
e

II. Negotiation Styles

Win / Lose

Win / Win
(Collaboratin
g)

Unassert
ive

Compromis
e

Avoidance
Uncooperative

Accommoda
ting
Cooperative

Win Lose Style

The win-lose is the most common style of

distributive negotiation wherein a person
pursues his or her own wishes at the
expense of other party.
Under this style negotiation is viewed as a
game to be won. Losing may be taken as
failure, weakness, and a loss of status.
When engaged in this style, the parties
may use different tactics to win like:
persuasion, argument, power, or even
threat.

Usefulness

A forceful position during negotiation may be

appropriate when the stakes are high and costs
of indecision and compromise are non-affordable.
It is useful when issues of legality and ethics are
at hand.
Where you do not expect to deal with people ever
again, and you do not need their goodwill.
When there is only one prize.
At management level, this style is helping when
unpopular but necessary decisions must be
made.
Win-lose is also a style to use when the other
party has a tendency to take advantage of you.

Avoiding Style

Avoiding the conflict in certain situations need

of no negotiation at all is also a negotiation.
People may physically withdraw by simply
leaving the scene of conflict or they can refuse
to get involved by using silence, or changing the
topic of conversation.
Psychologically, avoiders can also deny the
existence of conflict.
During formal negotiation, avoiding style is
exercised by paying deaf ear and / or blind eye
to the conflicting stimulus.

Usefulness

Useful when:
your involvement will only result in negative
outcomes for you;
issue is insignificant;
cost of challenge / cost is quite high;
there is little chance of success;
relationships are more important to be
maintained;
to buy time and / or get other party cool down.

Accommodating Style

Accommodating style of negotiation entails

giving in to the wishes of the opponent party.
Like avoidance, accommodating the other
party almost in one-sided way, is also a
negotiation.
Unlike avoiders, the accommodators enter
into negotiation and give in a way that
strengthens the relationships.
During negotiation, giving in totally / partially
may be part of strategic maneuvering.

Usefulness

When other issues are more important that need

satisfying others and maintaining cooperation.
When social credit is to be built for some latter
issue.
To minimize loss when one is already losing.
When relationships are more important than the
interests.
Though frequent yielding is not a virtue, a
yielding to a fellow in ire, a balanced yielding
among spouses, or even the frequent yielding
obedience of a child to a parent or teacher is a
healthy move.

Compromising Style

Compromising, the most common style of

conflict resolution, entails splitting the
differences and reaching an acceptable middle
ground solution through give-and-take whereby
each party should gain something and may have
to lose something.
Parties under this style of negotiation, generally
use techniques like trading, bargaining,
smoothing over differences, and voting etc.
Most of the negotiations though start with losewin style, do end up at the compromising style.

Usefulness

It is useful:
when two parties have relatively equal
power and have mutually exclusive goals;
when time is not available to solve
problems that are complex and require a
great deal of effort to sort out all the
issues;
to allow for a temporary solution until
more time could be devoted to unravel and
analyze the complexities; and
when competition or collaboration fails to
lead to a solution.

Collaborating (Win-Win)
Style

Collaborating is based on a willingness to

accept other partys needs while
asserting your own needs as well.
It assumes that there is some reasonable
chance that a solution can be found to
satisfy both parties in conflict without
losing much.
Such solution, most of the time, is not
possible but a collaborator believes that
it is worth trying to find that.

Illustrative Story

Two brothers had an orange. Each of them

wanted to have it.
Ultimately they resolved the conflict through
splitting the orange into two halves, one half
for the each.
Elder brother ate the pulp and threw the
peeling.
The younger brother who did not have an
innate liking for the oranges and just wanted
the peeling as a recipe ingredient, used the
peeling and discarded the pulp.

Your Comments
What negotiation style(s) the two
brothers adopted to resolve the
conflict? Offer your comments over
degree of usefulness of the style(s)
used in this situation.

Case Study 1

III.
Preparing for
Negotiation
1. Set your negotiation goals

Take care, your negotiation goals should be

insightfully prepared. If there is no harbour
to seek, every wind is the right wind.
Further realize that the more realistic and
reasonable are your goals, the more likely
you will reach them.
When setting the goals, do not forget one of
the most fundamental point in negotiation
Leave Yourself Room To Negotiate.

Set alternative
goals
2.

Always keep in mind some alternative goals

to your main goals. Your alternative goals
constitute a fallback position--the deal you
are willing to settle for if your original
suggestion s turned down.
The beauty of preparing alternative goals in
advance is that by arming yourself with
alternatives, you can hear the word no
without losing face.

3.BATNA

(Best Alternative to Negoti

Agreement)

Before you negotiate, you should also

consider the options you have if you
cannot reach an agreement. These
options make up your BATNA- your best
alternative to a negotiated agreement.
Developing a BATNA in advance of the
negotiation will keep you from
accepting poor terms-- or turning down
terms that you ought to accept.

4. Getting on to Secondary Bases

Once youve determined what you want,
what youre willing to settle for, and what
you can afford to lose, you have to consider
any and all forces that will work in your
favor. Any factors that bolster your primary
base are called your secondary bases.
You should keep these forces in mind as
you negotiate--they will boost your
confidence and prevent you from setting
for an unsatisfactory deal.

5. Doing Your Homework

The more hard facts, statistics, and
documentation you have, the more difficult
it will be for anyone to turn you down. More
complex negotiations will require more
elaborate files and documentation.
You dont want to rely on memory alone
during the heat of the discussion, when you
may be under a lot of pressure. Having all
the information you need on paper will also
free up your attention to focus on what the
other person or people are saying---which is
where your concentration should be.

6. Get Organized
All the files in the world wont help you if
theyre spilling out of your briefcase onto
the floor. You cannot afford to break a deep
discussion while you fumble for a document
or search for an important piece of
information.
If you arent organized, you will appear less
effective and less competent and you could
lose your negotiating momentum.
All documents relating to each major subject
under negotiation should be separated into
individual folders and each folder with a
large, boldly written title thats easy to read.

7. Who

Else Is on Your Side?

In most of the everyday negotiations,

you can successfully and confidently
represent yourself. But certain
negotiations that carry important
financial or legal ramifications (such as
buying or selling a home or negotiating
a labor issued) require professional
help.

8. Psyche Yourself Up For Negotiation

Before you can be successful in any
negotiation, you must believe that you
can be successful. Once youve settled
your position, review the issue from all
angles until youre fully convinced of
the merits of your case. Your conviction
and enthusiasm will be obvious when
you negotiate.

Case Study 2

IV.
At the
Table

Negotiation Strategies

Communication Skills

Negotiation Strategies

Ahmad and Hassan decided to purchase

an office for their newly started business
three months ago. Their first choice was
an office located in a new development,
and priced Rs. 500, 000 (about Rs.
25,000 above their limit). Ahmad thought
they could get the price down through
negotiation with the salesman Mr. Sheikh
around their limit while Hassan was less
optimistic in that regard.

Ahmad conducted some research on the

development and learned that several of the
offices including the one they liked had been on
the market almost a year. Though the house
they liked was their first choice, other offices
were also quality offices and could be accepted
as a second choice. Ahmad met the other
salesman, Mr. Agha and learned that the prices
of those offices were also within their limit.
With this homework done, he made an
appointment with Mr. Sheikh and decided to
meet him alone.

Approach
Ahmad informed the
salesman he really
liked the office and
might be sincerely
interested at a lower
price such as Rs.
450,000.

Strateg
y
LOWBALL
VINEGARHONEY

He was going for

the lowest possible
price.

Approach

The salesperson
sounded shocked
and said, That is
impossible, we
would not even
consider it. Ahmad
anticipated that
response, and asked,
If you would not

Strategy
PINPOINT THE
NEED

It had been
established that the
seller would take
less than the asking
price but not Rs.
450,000. The task
then was to pinpoint
how much less than

Approach
The salesperson did
some figuring before
he said Rs.
490,000. Ahmad
was prepared for
this response who
tried another
strategy saying, Mr.
Agha has recently
sold two office of
similar stature for
Rs. 470,000, and
several others are

Strategy
CHALLENGE

A strategy designed
to put the other
party on the
defensive in an
effort to win some
concessions. Added
to the Pinpoint, the
Need strategy
assists in
determining what

Approach
The salesperson
said, That house
went cheaper,
anyway perhaps I
could trim the price
to Rs. 485,000 but
you will have to pay
20% cash down and
the rest within one
week. Ahmad
guessed the
salesman has a room

Strategy

Approach
Down payment is
not the problem but
I cannot pay the rest
before three weeks.
It is impossible,
said the salesman,
our company rules
do not permit it.
Ahmad replied, But
I cannot pay at least
this much within this
period of time.

Strategy
FEINTING
This strategy gives
the impression one
thing is desired
whereas primary
objective is really
something else.

Approach

Strategy
Politicians use a
variation of this
strategy to test
receptivity by the
public
to
something
This planned
they plan to do.
action is leaked
by a reliable
resource to test
acceptability
before final action

Approach

Strategy

I do not think I
could make further
concession, said the
salesman. Ok! Let
me consult my
business partner
since final decision
will only be after our
mutual consensus,
said Ahmad and left

LIMITED
AUTHORITY
Limited authority is an
attempt to postpone
the decision on a
pretext to get approval
from a competent
authority. Whereas the
real aim is to gain time
for reconsideration,
and / or keeping the
opponent under
pressure for a possible

Approach
Next day, Ahmad
appeared in the
salesmans office
again along with
Hassan, his business
partner and
reiterated his
yesterdays position
that they could not
pay Rs. 485,000 at
least within one
week. It seems

Strategy

Approach

I told you not to

approach this agency,
you could never
conclude any deal with
them, growled Hassan
out of
the
and
You stepped
are spoiling
almost
aoffice.

concluded deal. I offer

Rs.
475,000 though I am
not sure
my partner will agree
to it. A slight budge

Strategy

Approach
By the time you
bring your partner
back, I call to the
builder for his
opinion. I think it is
possible to reach a
deal, said the
salesman while
dialing a telephone
number when
Ahmad walked out of
his office to trace his
estranged

Strategy
GOOD GUY / BAD
GUY

The good guy /

bad guy is an
internationally
used strategy. One
member of a team
takes a hard line
approach while
other member is
friendly and easy

Approach

Strategy
When bad guy steps
out for a few
minutes, the good
guy offers the deal
that under the
circumstances
seems too good to
refuse. Bad guys
usually comprise
spouses, lawyers etc.

Approach

Strategy

After few minutes Ahmad

entered the salesmans
office along with Hassan.
The builder has not been around,
but I have availed my own limit
and reduced the price to Rs.
482,000 provided you could give
us your offer in writing today with
the 20% deposit.

Approach
Ahmad sensing they
were close to their
goal replied, We
really do like this
office, but it is still
more than we want
to pay. Please excuse
us while we discuss
ways in which we
might increase our
offer. Would you
please reevaluate

Strategy
DEFER
Deferring
strategy allows
the negotiators
time to
reevaluate their
positions.
Deferring a
decision to make

Approach
Ahmad and Hassan
returned in an hour
and offered Rs.
478,000.
The salesperson told them,
I called the builder while
you were away. He gave a
little, but Rs. 478,000 just
wont do.

Strategy

Approach

Strategy

However, if you
SPLIT THE DIFFERENCE
would be willing to
split the differences,
and make it Rs.
480,000, we can
make a deal,
providing you sign
the
paper
and
put looked
Ahmad
and
Hassan
down
your
20%
cash
towards each other and
today.
accepted with pleasure.

Case Study 3

Communication Skills

Oral Communication
Non-verbal Communication

Oral Communication

Phrase the words properly; it delivers.

Two priests were so addicted to smoking that they

desperately needed to puff on cigarettes even when

Both decided to ask their superior for permission

The first asked if it was okay to smoke while prayin

Permission was denied. The second priest asked if

allowed to pray while he was smoking. His superior

dedication admirable and immediately granted his

Use simple language instead of complex

terminology. However use frequent
jargons when negotiating with your
professional counterpart.
Be as descriptive as possible. Avoid
generalities.

Listening: a strong
negotiation tool!

Perhaps the best strategy to adopt while the

other side lets off steam is to listen quietly
without responding to their attacks.
You often get more through listening by finding
out what the other person wants than you do by
clever arguments supporting what you need.
Standard techniques of good listening are to
pay close attention to what is said, to ask the
other party to spell out carefully and clearly
exactly what they mean, and to request that
ideas be repeated if there is any ambiguity or
uncertainty.

Non-verbal
Communicati
on

Feelings and
emotions
received from
others through
their body
actions

Symbolic

Paralanguag
e
How something is
said instead of
what is said i.e.
volume, rate and

Vibes

Kinesics
Facial
expressions,
body gestures,

Body Language

What it could
mean

Avoiding eye contact

Lack of confidence in
bargaining position

Making excessive eye

contact
Fiddling with objects
such as hair, pencils, or
papers
Crossing and uncrossing
the legs

Trying to bully or
intimidate
Lack of confidence in
bargaining position

Keeping legs and arms

crossed

Impatient wants to cut

a deal quickly
Not receptive to your
bargaining position

Be careful, actions speak louder than the w

When we do not know others, there body
language remains the first source of
building image about them.
What people say may be reinforced or
contradicted by the non-verbal cues.
When there is no congruence between the
verbal and non-verbal communication,
reliance is placed on the non-verbal aspect
that creates a credibility gap on part of the
speaker labeled as the non-verbal liar.

Negotiation Tips
1.

Do not underestimate your power. Most

people tend to have more power than
they think. Your base of power rests on
a foundation of more than just
competition or financial matters.
Commitment, knowledge, risk taking,
hard work, and negotiation skills are
also real sources of power. Making a
systematic analysis of these sources,
you can understand your strengths.

2.

Do not assume that the other party

knows your weaknesses. Rather
assume that they do not. You may
be better off than you think.

3. Dont

be intimidated by status. We are

so
accustomed to showing deference to
titles and
positions that we carry our attitudes
to the
that
some people with PhDs quit learning
negotiating
years
ago; table. It is well to
remember
some are incompetent;
some
peoplethat
in authority
experts
aremay
superficial;
a
specialist
be excellent in their field
but without skill in other areas;
learned people, despite high positions of
power, sometimes lack the courage to
pursue their convictions or have none.

4.

Dont be intimidated by statistics,

precedents, principles, or
regulations. Its 2007, some
decisions are made on the basis of
premises and principles long dead
or irrelevant. Be skeptical.
Challenge them.

5.

Most negotiation will require some

concession making. Dont set your
initial demand near your final
objective. There is sufficient
evidence to conclude that it pays to
start high. Dont be shy about
asking for more. Many times your
demands may be too modest, or too
easy to achieve.

6.

It is a mistake to assume you know

what the other party wants. It is far
more prudent to assume you do not
know, and then proceed to discover the
realities of the situation by patient
testing. If you proceed to negotiate a
deal on the basis of your own untested
estimates, you are making a serious
mistake.

7.Never accept the first offer

many people do. There are two
good reasons
to: probably is willing to
First,
the othernot
party

make some additional concessions.

Second, if you do accept the first offer,
there is a chance the other party will have
the feeling that their offer was foolish.
They may find ways to spoil the agreement
later.
In either case, the negotiator who takes
the first offer too fast makes a mistake.

8.

Never give a concession without

obtaining one in return. Dont give
concessions away free or without
serious discussion. A concession
granted too easily does not contribute
to the other partys satisfaction nearly
as much as one that they struggle to
obtain.

9.

Never fear to negotiation, no

matter how great the differences
are. Fear can create enormous
pressure on you and impact your
negotiating success. Remember,
negotiation is not a contest. Dont
shy away from negotiating just
because you are afraid of making a
mistake or doing poorly.

10.

Never trust your assumptions. They are

likely to be as wrong as right. They are
neither right nor wrong until proven so.
However, they can defeat you before
you even start negotiating through
lowering your expectations.

11.

How much you are prepared, something

unforeseen always seems to come up in
most negotiations. When it doesa timeout is called for. It might just be a caucus
with yourself (i.e. Please excuse me I
need to use the restroom), or a meeting
among your own people to discuss the
new issue. Diplomatic negotiations are
usually 10 percent conference and 90
percent time-out whereas most business
deals reverse this time relationship.

12. The case for high demands but slow and

given concessions is a strong one.
It helps reduce the other persons
aspiration level;
It gives you a chance to test the
strength of the other person and their
willingness to stand firm;
It also helps you gather valuable
information about the other persons
position and feelings.

13.

Our emotions get in the way of effective

negotiations regularly. Nothing kills
creativity quicker than anger, pride,
embarrassment, envy, greed, or other
strong negative emotion. Anger is often an
expression of fear, or lack of confidence in
our ability to get what we think we want.
If we can improve our ability to manage
our emotions and respond without getting
defensive, we have gone a long way toward
creative negotiation.

1.
2.
3.
4.
5.
6.
7.
8.

Common mistakes to be
avoided
Inadequate Preparation
Ignoring the give/get principle
Use of intimidating behavior.
Impatience.
Loss of temper.
Talking too much, listening too little, and
remaining indifferent to body language.
Arguing instead of influencing.
Ignoring conflict.