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Developing and Practicing Negotiation Skill S

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DEVELOPING AND

PRACTICING NEGOTIATION
SKILL
S
Consider this situation:

You are a leader of team tasked to develop a travel application for a


client. In your evaluation, the travel app that your team has created is
perfect and will certainly gain the client’s approval. However, the client
tells you that he does not like the app at all and wants you to create
a new one. You don’t agree with your client. There’s no need to create
another app because the current one can be improved, you say to
yourself. How will you resolve the conflict of opinion? How will you
negotiate and convince your client to take your advice?
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“It is important to know
Know what type of what kindof conflict you
conflict you are because
are the different kinds
in
involve in require different types of
strategies and tactics.”
(Deutsch,1999).

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What is
Conflict?

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Conflict is the process that begins when
one party perceives that another party
has negatively affected, or is about to
negatively affect, something that the first
party cares about.

Conflict is the self-interested struggle


that arises when the goal-directed
Conflict behavior of one person or group
blocks the goal-directed behavior of
another person or group.

Interpersonal conflict is a process


that occurs when one person, group,
or organizational subunit frustrates
the goal attainment of another.

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Transitions in Conflict Thoughts

In Traditional View - It was used synonymously with


violence, destruction, irrationality- Harmful and has to
be avoided.

Human Relation View – Conflict is natural and


inevitable outcome in any group. It cannot be
eliminated, there are times where conflict may benefit a
groups performance.

Interactionist View - Conflict is absolutely necessary for


group to perform effectively. Functional conflict support
the goal of the group and improve its performance
the zero-sum conflict
(a pure win-lose
conflict)

Three Major The pure cooperative


( both can win and
Types of Conflict both can lose)

the mixed-motive
(both can win, both
can lose, one can win
and the other can
lose)
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Negotiation facilitates agreement
when some of your interests
are shared and some are opposed .

Definition Negotiation is the process of evolving


communication to get from opposition
and to consensus, manage conflict and
Guidelines reach agreement.

Negotiation principles apply as much


to your internal team as they do to an
outside party.

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“in good deal making, 90% of the
real negotiation happens before
you sit down to negotiate’”

“effective negotiation is 90%


attitude and 10% technique”

The Art of
Effective Know yourself

Negotiation
Know your own organization

Know the opposite party

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Basic Negotiation Concepts

Positions – are “what” the negotiators say they


want. They are really solutions that have been
proposed by the negotiators. Positions are based upon
the interests of the parties; interests are usually not
disclosed, at least not in competitive negotiations. In
most negotiations people take and then give up a series
of positions. Behind every position lie many interests.

Interests –are “why” the negotiators take the


positions they do. Interests lie behind the positions of
the negotiators. Interests represent the basic needs
to be met. Money and price are not interesting in
themselves. Money represents purchasing power, the
ability to acquire other needs, status, or power itself.
Understanding interests is the key to understanding
“win-win” negotiating.

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Best Alternative to a
Bottom Line – The bottom
Negotiated Agreement
line or reservation price is the
(BATNA) – position at which the
represents the best result that
BATNA negotiator will walk away from
a negotiator can get the negotiation. Relative to a
somewhere else if an purchaser, it is the highest
agreement cannot be price a purchaser is willing
reached with the to pay for goods or services.
party.
other In other words, a Relative to a seller, it is the
BATNA is the alternative that lowest price at which a seller
the party will select if they is willing to sell the goods or
must walk away from the services. The bottom line is
negotiation. If the negotiation
involves finalizing a deal, the also known as
BATNA is to walk away to “reservation price.” If
the
another party who can offer negotiator cannot get at least
the
you a better deal. If, however, their bottom line in the
the negotiation involves a negotiation, they will vote with
lawsuit, the BATNA is to go to their feet and walk away from
court. the deal.

Basic Negotiation Concepts


Basic Negotiation Concepts

Zone of Agreement – The zone of


agreement represents the difference
between the bottom lines of the
parties. If there is no overlap in the
bottom lines of the parties, no
agreement is possible.

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Negotiation Style
Style is a consistent pattern of behaviors emanating from
an individual and recognized by others

The role of style in negotiation enables us to understand


and manage :
Ourselves
Our internal team
The opposite party
Negotiation Style
Negotiation Style
Competitive personalities are results driven. They are focused and
assertive in their communication and often aggressive. Competitive
negotiators are strategic thinkers therefore have very little time for
pleasantries

Collaborative negotiators are open and honest and understand the


concerns and interests of the other party. They like to find creative
solutions to make sure both parties are satisfied.

A compromising negotiator’s main concern is doing what is fair


for both parties and finding middle ground. They would rather
compromise on your own outcome to satisfy the other party.

Avoiding personalities really dislike negotiations! They may try to


avoid situations that may result in conflict as they find them
intimidating and stressful by staying behind the scenes of a
negotiation.

Accommodating negotiators spend a great deal of time building


and maintaining relationships with the other party. They are highly
sensitive to the emotions, relationships and body language within the
negotiation situation.
Preparing to Negotiate
 The things to be prepared for Negotiation:

1. Information on what is being negotiated. For example, if the parties are

negotiating for a price of a project, then the negotiators should know the price

of materials, labor, etc. This pieces of information must be checked with

accuracy, and if possible, backed with documents to prove them.

2.Time and place of negotiation. This must be agreed upon by both parties, in

which both will be comfortable and prepared. It does not have to be a neutral

venue – rather, an agreed place and time.

* The information that will be gathered must be documented and brought in the

negotiation meeting. A well-prepared report is ready and could easily be accessed

and understood by negotiators.


Communication Skills during Negotiation

Build Rapport - This pertains to getting in touch with the other party. It may be
helpful if both sides are aware and want to get best out of discussion.

Active Listening – The skis means paying attention to the listener and capturing important
details in the process. Missing out on vital information may have an impact in the outcome of
the negotiation.

Positive Scripting – Participants in negotiation must always try to maintain


positivity . Your choice of language must always be appropriate .

Questioning Techniques – In order to classify issues, participants need to ask right questions.
Remember to employ different question such as open0ended questions (to expand the
discussion further) or close-ended (to clarify details.)

Speak Up – Both parties must identify what factors they wanted to


considered in the negotiation.

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Closing the Negotiation

Once the meeting is done, ensure that both sides are


clear with the outcome. Using the minutes or the
documentation, recap what transpired and better get a
clear “Yes” from the other party, not just a nod. Finally,
discuss when a follow-up-meeting may transpire in
order to check the progress of the plans. Or deliver
the outcome of the negotiations.

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