Mastering negotiations kills Kỹ năng đàm phán

Presented By:
TARINI- 41002
SACHIN- 41001

Prepared By :

Gihan Aboueleish


Contents
• What is Negotiation?
• Features of Negotiation
• Why Negotiate ?
• Distributive Vs Integrative Negotiation
• Negotiation Process
• BATNA
• Bargaining Zone Model of Negotiation
• Negotiating Behavior
• Issues in Negotiation
• Third party Negotiations
• How to achieve an Effective Negotiation
• Negotiation Tips

Negotiation Skills - Gihan

• Types of Negotiation


change

”

Negotiation Skills - Gihan

“Change the way
you look at things,
and the things you
look at


Negotiation Skills - Gihan
Aboueleish

You can’t sail anywhere until you learn which way the wind wants to blow


What Is Negotiation ?

• The process of conferring to arrive at an agreement between
different parties, each with their own interests and preferences.

• “A give-and-take decision-making
process involving interdependent parties
with different preferences.”

Negotiation Skills - Gihan
Aboueleish

• The word "negotiation" originated from the Latin expression,
"negotiatus", which means "to carry on business".

Defined :

 It is a collection of behaviours that involves
communication, sales, marketing, psychology, sociology,
assertiveness and conflict resolution.
 A negotiator may be a buyer or seller, a customer or
supplier, a boss or employee, a business partner, a
diplomat or a civil servant. On a more personal level
negotiation takes place between spouse’s friends,
parents or children.

Negotiation Skills - Gihan
Aboueleish

 Negotiating is the process of communicating back and
forth, for the purpose of reaching a joint agreement
about differing needs or ideas.


Features Of Negotiation

• Predetermined goals
• Expecting an outcome
• Resolution and Consensus
• Parties willing to modify their positions
• Parties should understand the purpose of
negotiation

Negotiation Skills - Gihan

Aboueleish

• Minimum two parties


Why Do We Negotiate ?
• To reach an agreement
• To compromise
• To settle an argument
• To make a point

Negotiation Skills - Gihan
Aboueleish

• To beat the opposition


Types Of Negotiation
 Distributive Negotiation

Negotiation Skills - Gihan
Aboueleish

 Integrative Negotiation


Distributive Negotiation

 The Seller’s goal is to negotiate as high a price as possible;
the Buyer’s goal is to negotiate as low a price as possible.

 Thus, the deal is confined: there are not much opportunities
for creativity or for enlarging the scope of the negotiation.

Negotiation Skills - Gihan
Aboueleish

 Parties compete over the distribution of a fixed sum of
value. The key question in a distributed negotiation is,
“Who will claim the most value?” A gain by one side is
made at the expanse of other.


Integrative Negotiation
 In Integrative Negotiation, parties cooperate to achieve maximize benefits by integrating
their interests into an agreement. This is also known as a win-win negotiation.
The key questions is: “How can the resource best be utilized?”

 Integrative negotiations tend to occur in following situations:
• Structuring of complex long-term Strategic Relationships or other collaborations.
• When the deal involves many financial and non-financial terms.
 In an integrative negotiation,, there are many items and issues to be negotiated, and the
goal of each side is to “create” as much value as possible for itself and the other side.

Negotiation Skills - Gihan
Aboueleish

•


Characteristic

Distributive

Integrative

Outcome

Win-lose

Motivation

Individual gain

Interests

Opposed

Relationship
Issues involved
Ability to make
trade-offs
Solution

Short-term
Single

Win-win
Joint and individual
gain
Different but not

always Opposite
Longer or Short-term
Multiple

Not Flexible

Flexible

Not creative

Creative

Negotiation Skills - Gihan
Aboueleish

Distributive Versus Integrative Negotiations


Negotiation Process
INFORMATION SHARING

BARGAINING

FINALIZING THE DEAL

Negotiation Skills - Gihan
Aboueleish

PREPARATION

BATNA
BATNA is ;

Alternative
To
Negotiated
Agreement

Negotiation Skills - Gihan
Aboueleish

Best


Why BATNAS Matter

• When a proposal is better than your BATNA:
ACCEPT IT
• When a proposal is worse than your BATNA:
REJECT IT

Negotiation Skills - Gihan
Aboueleish

• BATNAs tell you when to accept and when to reject an
agreement


 Title comes from remarks made by participants at some of

my negotiation workshops
“that’s the opposite of what I do”
“I know I should do that, but I find myself doing exactly the
opposite”
“Its counter-intuitive”
 What are people saying ?
• They recognize the prudence of a particular strategy
• But they find it difficult to implement it
• Their natural inclination is to do the opposite of what
they recognise is the prudent strategy

Negotiation Skills - Gihan
Aboueleish

Negotiation: A Counter-intuitive Process


Intuitive – Counter-intuitive
What are
 some of the intuitive things we do in a negotiation
 the counter-intuitive thing we might consider as an
alternative ?

Automatic gear

Shift into manual

Focus on Positions

Focus on interests

Dive into the negotiation

Defer the negotiation to a time of our own
choosing, gather information first

When our proposals are rejected,
justify and defend them

Ask why our proposal doesn’t work, and
gather information

When a proposal is made to us
that is unacceptable, rejection

Instead of rejecting, ask why their proposal
is important, and gather information
17


 There are minimum 2 parties involved in the
negotiation process. There exists some
common interest, either in the subject
matter of the negotiation or in the
negotiating context, that puts or keeps the
parties in contact.
 Though the parties have the same degree
of interest, they initially start with different
opinions and objectives which hinders the
outcome in general.

Negotiation Skills - Gihan
Aboueleish

Basic Principles Common To All Forms Of
Negotiation


 Each party is under an impression that there is a
possibility of persuading the other party to modify their
original position, as initially parties feel that they shall
maintain their opening position and persuade the other
to change.

Negotiation Skills - Gihan
Aboueleish

 In the beginning, parties consider that negotiation is a
better way of trying to solve their differences.


 Each party has some influence or power – real or
assumed – over the other’s ability to act.
 The process of negotiation is that of interaction
between people – usually this is direct and verbal
interchange.

Negotiation Skills - Gihan
Aboueleish

 During the process, the ideal outcome proves
unattainable but parties retain their hope of an
acceptable final agreement.


Characteristics Of An Effective Negotiator

 Should know the body language of the
people at the negotiation process.
 Should be open and flexible and yet firm.
 Exercise great patience, coolness and
maturity.
 Should possess leadership qualities.

Negotiation Skills - Gihan
Aboueleish

 He should be a good learner and observer.


• Should control emotions and not
show his weaknesses.
• Should know and anticipate the pros and cons of
his each move and its repercussions.
• Should know how to create the momentum for the
negotiations and must know when to exit and where
to exit by closing the talks successfully.

Negotiation Skills - Gihan
Aboueleish

• Should bargain from the position of strength.


• Should build trust and confidence.
• Should be confident and optimist.
• If necessary, he should provide a face saving
formula for his counter party.
• Should be able to grasp the situation from many
dimensions.
• Should know human psychology and face reading

Negotiation Skills - Gihan
Aboueleish

• Should have clear cut goals and objectives.


• Should not be a doubting Thomas.

blank mind in the process.
• Should radiate energy and enthusiasm
and must be in a position to empathize
with his opponents.
• Should be a patient listener.

Negotiation Skills - Gihan
Aboueleish

• Should plan and prepare thoroughly with

relevant data and information to avoid


• what negotiation means and the various
forms it can take that negotiating, in the
fullest sense, means forging long-term
relationships the role that the individual
personalities play in negotiating that you
must take a variety of approaches to
negotiation, since no single set of
principles will suffice in all circumstances

Negotiation Skills - Gihan
Aboueleish

How To Develop These Skills And Use Them
Effectively ?