Negotiation skills

Negotiation Skills
Jitin Kollamkudy
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Negotiation
– Dialogue between two or more people or parties,
intended to reach an understanding, resolve point of
difference, or collective advantage, to craft outcomes
to satisfy various interests of two people/parties
involved in negotiation process.
– Intended to aim at compromise.
– Occurs in business, non-profit organizations,
government branches, legal proceedings, among
nations and in personal situations
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Negotiation Strategies
 Negotiation can take a wide variety of forms, from a trained
negotiator or position in a formal setting, to an informal
negotiation between friends.
 Negotiation can be contrasted with mediation.
 It also be compared with arbitration, which resembles a
legal proceeding.
 In arbitration, both sides make an argument as to the
merits of their case and the arbitrator decides the
outcome.
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Types of Negotiation
Distributive Negotiation
Integrative Negotiation
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Distributive Negotiation
In a distributive negotiation, each side often
adopts an extreme position, knowing that it will
not be accepted, and then employs a
combination of guile.
 Distributive bargainers conceive of negotiation as
a process of distributing a fixed amount of value.
 It is also known as
Positional or Hard bargaining negotiation.
Distribution of a “fixed pie.”
 win-lose
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Integrative Negotiation
 Integrative negotiation is also sometimes called
interest-based or principled negotiation.
 It is a set of techniques that attempts to improve the
quality and likelihood of negotiated agreement by
providing an alternative to traditional distributive
negotiation techniques.
 It can also involve creative problem-solving that
aims to achieve mutual gains.
 It is also sometimes called win-win negotiation
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Negotiation Tactics
 Negotiation involves three basic elements: process,
behavior and substance.
 Another view of negotiation comprises four elements:
strategy, process, tools, and tactics.
 Strategy comprises the top level goals - typically
including relationship and the final outcome.
 Processes and tools include the steps that will be
followed.
 Tactics include more detailed statements and actions
and responses to others' statements and actions.
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Integral to modern day negotiation success
persuasion
 influence
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An Idle Negotiator
 A skilled negotiator must serve as an advocate for
one party to the negotiation.
 Should attempt to obtain most favorable outcomes
possible.
 Minimum outcome to the other party.
 Should not drive the other party to permanently
break off negotiation.
 Attain Best Alternative To a Negotiated Agreement
(BATNA)
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Being considerate and understanding.
Make the other party willing to adjust their
demand accordingly.
Get concessions and agreement from other
party.
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Negotiation styles
R.G. Shell identified five styles/responses to
negotiation. Individuals can often have strong
dispositions towards numerous styles.
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1. Accommodating
Individuals who enjoy solving the other party’s
problems and preserving personal relationships.
Accommodators are sensitive to the emotional
states, body language, and verbal signals of the
other parties. They can, however, feel taken
advantage of in situations when the other party
places little emphasis on the relationship
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2. Avoiding
Individuals who do not like to negotiate and don’t
do it unless warranted. When negotiating, avoiders
tend to defer and dodge the confrontational
aspects of negotiating; however, they may be
perceived as tactful and diplomatic.
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3. Collaborating
Individuals who enjoy negotiations that
involve solving tough problems in creative
ways. Collaborators are good at using
negotiations to understand the concerns and
interests of the other parties. They can,
however, create problems by transforming
simple situations into more complex ones
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4. Competing
Individuals who enjoy negotiations because
they present an opportunity to win
something. Competitive negotiators have
strong instincts for all aspects of negotiating
and are often strategic. Because their style can
dominate the bargaining process, competitive
negotiators often neglect the importance of
relationships.
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5. Compromising
Individuals who are eager to close the deal by
doing what is fair and equal for all parties
involved in the negotiation. Compromisers can
be useful when there is limited time to
complete the deal; however, compromisers
often unnecessarily rush the negotiation
process and make concessions too quickly.
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Emotion in negotiation
 Emotions play an important part in the negotiation
process,
 Emotions have the potential to play either a positive
or negative role in negotiation. During negotiations,
the decision as to whether or not to settle, rests in
part on emotional factors.
 Positive and negative discrete emotions can be
strategically displayed to influence task and relational
outcomes
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Positive affect in negotiation
People in a positive mood have more confidence,
and higher tendencies to plan to use a
cooperative strategy.
Negotiators who are in a positive mood tend to
enjoy the interaction more, show less
contentious behavior, use less aggressive tactics
and more cooperative strategies.
It increases satisfaction with achieved outcome
and influences one's desire for future
interactions
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Negative affect in negotiation
 Although various negative emotions affect
negotiation outcomes, by far the most researched is
anger.
 Angry negotiators plan to use more competitive
strategies and to cooperate less, even before the
negotiation starts.
 During negotiations, anger disrupts the process by
reducing the level of trust
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 Angry negotiators pay less attention to opponent’s
interests and are less accurate in judging their
interests, thus achieve lower joint gains.
 Anger does not help in achieving negotiation goals, it
reduces joint gains.
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The effect of the partner’s emotions
Partner’s emotions can have two
basic effects on negotiator’s
emotions and behavior: reciprocal
or complementary.
For example, disappointment or
sadness might lead to compassion
and more cooperation.
Most people reacted to the
partner’s emotions in reciprocal,
rather than complementary,
manner.
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Team negotiations
 Due to globalization and growing business trends,
negotiation in the form of teams is becoming widely
adopted. Teams can effectively collaborate to break
down a complex negotiation. There is more
knowledge and wisdom dispersed in a team than in a
single mind. Writing, listening, and talking, are
specific roles team members must satisfy. The
capacity base of a team reduces the amount of
blunder, and increases familiarity in a negotiation.
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Barriers to negotiations
 Die hard bargainers.
 Lack of trust.
 Structural impediments.
 Spoilers.
 Cultural and gender differences.
 Communication problems.
 The power of dialogue.
 Informational vacuums and negotiator's dilemma.
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Negotiation skills

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