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Part 1 Negotiation Skills

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NEGOTIATION SKILL

PART ONE
Learning Objectives
What will you learn?
To develop your skills as a negotiator
Learn negotiation techniques and - select and apply tactics to
make you a strong negotiator.
In what situations do you negotiate? Who do you
negotiate with?
Why Should Negotiation Be a
Core Management Competency?

• Dynamic nature of business


• Interdependence
• Economic Forces
• Information Technology
• Globalization
What is Negotiation

• Negotiation is an interpersonal decision-making process


necessary whenever we cannot achieve our objectives
single-handedly.
• Negotiations include not only one-on-one business
meetings but also multiparty, multicompany, and
multinational relationships
What is Negotiation?

• Backand forth communication designed to reach


agreement…
• …while leaving the other side intact and positive.
• Easier to negotiate when the two sides have some
shared interests.
3. What makes a good negotiator?
Two Approach of Negotiation
• Distributive bargaining
• Refer to competitive negotiating, hard
bargaining, and haggling, based on the belief
that the only way one party in a situation can be
happy is at the expense of another
• Interest-Based Bargaining
• an approach to negotiation that lets, you be
hard on the problem but soft on the other party.
Types of Negotiation

Soft:
• Participants are friends.
• The goal is agreement.

Hard:
• Participants are adversaries.
• The goal is victory
Hard Approach For Negotiations

When thinking about negotiating:

most people picture the hard approach

They view negotiation as a battle of wills


Hard Approach For Negotiations

Some common
characteristics of a hard
negotiation approach are: 
Hard Approach For Negotiations
Hard Approach For Negotiations
Soft Approach For Negotiations

Focuses on preserving
the relationship ahead of
results.
Soft Approach For Negotiations
Soft Approach For Negotiations
Pairing Negotiation Styles

• What can happen when hard and soft


negotiation styles are paired in different ways?
Hard vs Hard Negotiation
Hard vs Hard Negotiation
Hard vs Hard Negotiation
Hard vs Soft Negotiations

• The hard approach will almost always win.


Hard vs Soft Negotiations
Soft vs Soft Negotiations
What Every Negotiator Wants

• Every negotiator has certain desires: respect, the chance to save face, and
the opportunity to be heard
• If negotiation feel disrespected, ignored, or mistreated, that make little
economic sense.
• The ultimatum game also illustrates this point
Principled Negotiations

Principled negotiations follow these four guidelines:

Separate people from the problem


Focus on interests versus position
Invent options for mutual gain
Insist on objective criteria
 

In the book, ’Getting to Yes’, published in 1981,


Harvard Professor Roger Fischer and Dr. William Ury
Principled Negotiation
Separate people from the problem
Principled Negotiation
Focus on interests versus position
Principled Negotiation
Invent options for mutual gain
Principled Negotiation
Insist on objective criteria
Principled Negotiating
Principled negotiation uses an integrative
approach to finding a mutually shared outcome.

• Negotiating on merits or principles or interest based negotiation


• Develop multiple options to choose from
• Avoid premature judgment
• Avoid searching for the single answer
• Avoid assuming the pie is fixed
• Avoid thinking that “solving their problem IS their problem”.

From Fisher and Ury: Getting to Yes, 1981


Fairness Concept
Interest-Based Negotiation

an approach to negotiation that


lets, you be hard on the
problem but soft on the other
party.
“Interest-Based” Negotiation
 “ Win-win” approach-make the pie bigger
 Different people value the same thing differently
 Multiple interests and trade-offs
 Recognize interdependence
 Value the relationship more than the outcome of
the negotiation
Interest-Based Negotiation

• Will make you fight hard what you really care about, yet allowed you to be
generous, flexible, and trustworthy
• It also valuable because it helps you wisely bridge seemingly unbridgeable
gaps and discover hidden opportunities.
• Focus on Interest, not position
A Principled Negotiation

A principled negotiation
might go something like
this:
A Principled Negotiation
A Principled Negotiation
How can you use interest-based bargaining more effectively and confidently :

• Thinking carefully about your interests and those of the other negotiator and
try to identify some creative options that might satisfy both.
• Do some research to deepen your understanding of the interests and options.
• Start the talks by taking time to build trust and rapport and set a positive
tone. Note that you have real hope that you are both happy with. Foster hope
and collaboration
• Ask question and listen, the more you listen the more you will find good
solution
• Share some information about your own interest, but not reveal everything
• Invite conversation about creative options
Practicing Empathy

Implication of research on the ultimatum game : awareness of the other


party’s humanness and his or her intangible needs may be the most important
factor in a negotiation.
Empathizing means seeing deeply from the other person’s perspective.
Fairness Concept

Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,


The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall
The Art of Skilled Listening

Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,


The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall
The Value of Listening

• Five reason of skilled listening :


• It is one of the best way to learn person’s interest and find creative solution
• One of the most universal interests people have is the desire to be heard
• Listening builds trust
• Listening helps you cope the face of a tough negotiation
• Help you successfullt win the other’s attention and consideration, even if you feel
powerless
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall
Passive, Dumb, and Active Listening

• Passive Listening, nod your head and assume that you understand the
speaker - but you don’t
• Dumb Listening, try to listen without mentally thinking too much or
talking too much and mentally researching your reply while the other
person is talking
• Active Listening, repeat the gist if you dont understand, to help clarify
Other Listening Tools
• Emphatic Listening or mirroring, occasionally reflect
back the feelings you sense the other person is
expressing
• Use minimal prompts such as “uh-huh,” “go on,”
“hmm,” and so on.
• SOLER: Squarely face the other person, open your
posture, lean toward the other person, make eye
contact, and relax.
• Interrupt less and ask more questions than mediocre
negotiators do
• Studies show that the more salespeople talk, the less they tend
to close sales, and the more salespeople let the customer talk,
the more sales they win. For several decades, one of the most
widely respected sales methodologies has been one developed
by Neil Rackham, a social scientist. Rackham calls his approach
“SPIN selling.”
The Important of Research

1. Research gives you perspective; what is fair, favorable, tolerable or out of


question
2. Research is the best protection againts being mistretaed / misled by
another negotiator
3. Research help listen better to clue the counterpart is not saying and listen
effectively
Creative Negotiation

• Prenegotiation preparation task:


1. Think about your interests and the other negotiation’s interest
2. Do some factual and financial research
3. Brainstorm creative options
Demonstrating Respect

• Slow down. Dont get impression that you should launch right into the task
as early as possible. Take time to get acquainted before turn to the task.
• Valuable tool is small talk
• Spend time on personal matters
• Try to be constructive, positive toone, greet the other and try to signal early
CHAPTER 1

The Traps of Negotiation

• Leaving money on the table (“lose-lose” negotiation)


• Settling for too little (the “winner’s curse”)
• Walking away from the table
• Settling for terms worse than your alternative (the
“agreement bias”)
CHAPTER 1

Why are People Ineffective Negotiators?

• Egocentrism
• Confirmation Bias
• Satisficing
• Self-Reinforcing Incompetence
TWO DOLLAR GAMES

Game yang akan kita mainkan adalah game populer di Amerika yang bernama Two Dollar Game. Ini adalah
permainan yang dirancang khusus untuk berlatih Negosiasi dan Manajemen Konflik. Permainannya sangat
sederhana.
Mahasiswa harus berpasangan dengan wakil kelompok lain dalam melakukan negosiasi. Pasangan akan
diberikan waktu 4 menit per game. 2 menit terakhir kita akan membahas hasil yang menarik dan bertanya
kepada siswa apakah mereka mencoba pendekatan yang berbeda pada percobaan kedua. Semua instruksi
rahasia akan mencakup: Cobalah untuk mendapatkan sebanyak Rp 2.000,- sebanyak yang Anda bisa. Tawar-
menawar seefektif mungkin dan buat cerita apa pun yang Anda inginkan.
Parable of Orange

• Anda membutuhkan Jeruk untuk sebuah keperluan, ketika mengunjungi


toko buah hanya tersisa satu jeruk dan anda ingin mengambilnya, namun
diwaktu yang bersamaan ada pelanggan lain yang juga menginginkan
jeruk tersebut, anda mencoba bernegoasiasi dengan pelanggan lain
tersebut untuk memenangkan jeruk.

• KELP 9 dan 10

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