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Negotiation


Objective
















Explain What is Negotiation
Explain the Basic Principles of
Negotiation
Describe the Benefits of Negotiation
Explain the Types of Negotiation
Strategies
Explain
the Stages of the Negotiation
Process the Concepts of a Win-Win
Describe
Negotiation


Explain
the Various Styles of
Negotiation
Explain
What is BATNA
Describe Strategies for Developing
Negotiation
Skills of Third Party
Explain the Types
Explain the PROBE Technique for
Negotiating
Describe the Negotiations in
Organizations
List
the Issues in Negotiation
List the Characteristics of a Good
Negotiator
List the Tips for Effective Negotiation


Introduction

Globus Inc. is a leading
IT giant. Peter Looney
is a Project Manager in
Globus Inc. He is
responsible for
meeting the clients for
every new software
development project

that comes to Globus.


Introduction

Maxwell
Telecommunications, a
leading Telecom
Service company
recently came to
Globus to have new
SAP based database
software to be
developed for them.


Introduction

Peter carefully
reviewed and analyzed
Maxwell’s
requirements and
came up with a Project
Plan.


Introduction

Now, the only thing
that Peter needed to

go ahead with starting
the project and
develop the software
was the client’s
approval of the Project
Plan.


Introduction

Peter held a meeting
with the clients to
discuss the Project
Plan and gain overall
approval for the terms
and conditions of the
Project.


Introduction

The client was in a
hurry to get the
software. Peter tried to
negotiate upon
broader deadlines but
due to client’s
pressure, he ultimately
agreed to finish the
project as per their

requested deadlines.


Introduction

When the project was
under progress, Peter
and his team realized
that the deadlines that
he had agreed upon
are nearly impossible
to meet.


Introduction

Peter and his team
were not able to
complete the project
as was promised to the
client due to which
Globus had to pay
some penalty for late
delivery.


Introduction

Also, the client added
new requirements that

had to be incorporated
in the software.
However, Peter had
not negotiated about
the terms with the
client for any further
enhancements or
features being added
to the software.


Introduction

Hence, Globus had to
incur a loss in the
project because the
scope of work had
increased but the
terms of the project
had not been
negotiated well.


Introduction

Also, Peter’s team was
forced to work 7-days,
even from home to try
to complete the
project.



Introduction

Why do you think
Peter’s team had to
suffer? Why did Globus
have to incur a loss in
this Project?


Introduction

Yes, all this happened
because Peter had not
initially negotiated
well with the client
about the deadlines
and the scope of work.


Introduction

If Peter had clearly
negotiated the terms
of the project with the
client and negotiated
realistic deadlines,
Globus would not have
needed to pay any

penalty.


Introduction

Also, if Peter had
negotiated the scope
of work in detail with
the client, then Globus
would not have to
incur any loss in this
project.


Introduction

Thus, you can see that
‘negotiation skills’ are
a must for anyone to
succeed when dealing
with people.

LLeett uuss le
leaarrnn aabboouutt
‘N
‘Neeggootitiaatitioon Sk
n Skilillsls’’ in
in
ddeettaaiil.l.



Objective
















Explain What is Negotiation
Explain the Basic Principles of
Negotiation
Describe the Benefits of Negotiation
Explain the Types of Negotiation
Strategies
Explain
the Stages of the Negotiation
Process the Concepts of a Win-Win
Describe
Negotiation
Explain

the Various Styles of
Negotiation
Explain
What is BATNA
Describe Strategies for Developing
Negotiation
Skills of Third Party
Explain the Types
Explain the PROBE Technique for
Negotiating
Describe the Negotiations in
Organizations
List
the Issues in Negotiation
List the Characteristics of a Good
Negotiator
List the Tips for Effective Negotiation


What is Negotiation?



Negotiation is a discussion between two
parties to find out the solution and for
the purpose of reaching a joint
agreement about differing needs or
opinions.




It involves using the art of ‘persuasion’
to get others to understand and agree
with your viewpoint. It works best when
an individual has a win-win attitude.


What is Negotiation?


The key skills that are involved in a
successful negotiation are that of good
communication skills, sales and
marketing skills, good psychological
analytical skills, sociology skills,
assertiveness and conflict resolution
skills.



Therefore, negotiations may take place
between various kinds of different
people such as between a customer and
seller, a boss and employee, two
business partners, a diplomat or a civil
servant and a foreign diplomat, between
spouses, between friends and between
parents and children.



Need for Negotiation
e.
m
a
s
y
ual
ac t l
d
x
i
e
v
i
e
d
r
nt
n
a
i
e
r
e
y
l
e
r
p
ff

e
i
o
pe
in d
d ev
o
n
y
l
a
w
t
t s,
t
n
h
n
c
e
a
r
a
No
w
e
e
,
ore, haves diff nt needs
f

e
r
e
nce
e
e
e
r
Th
r
b
e
e
ff
diff
an d
c di
i
s
s
s
a
k
a
h
n
i
b
th
his

an d
t
s
e.
s
to
i
n
m
o
t
e
I
s
ti
ti
.
i
a
r
s
situ
e-to
aim
ves
i
m
g
d
ti

t
n
a
a
m
s
th
belief n people conflict fro
ee
ach
e
betw ement and
h
t
i
re
ist w ell as
x
e
o
disag
ally c ional as w se
u
t
u
m
o
t
the
fess

,
t
r
o
a
r
e
h
v
p
t
,
o
More t personal important ould be
a
h
is
other s level, it eements s
es
agr
n
i
s
i
s
d
u
b
d
t s an

c
i
fl
n
co
e d.
v
l
o
s
re


Need for Negotiation

to
d
a
e
ult
l
s
y
e
a
r
y
m
ma
c ts

i
h
fl
c
i
n
h
o
c
w
ling
e
e
t
s
e
n
f
u
e
a
s
ntm
rtie
be c
e
a
s
s
i

p
e
s
r
i
d
Th
an d
olve
v
t
n
n
i
e
e
argum or all of th
to
d
e
e
v
l
n
in o
invo
e
n
.
y

o
pp
er y
v
e
s
nt
unha
p
e
l
e
m
h
e
e
r
et
on
g
e
ti
a
m
a
f
ti
o
o
al s

ego
und
d
n
o
,
n
r
e
a
g
c
nts
e
Hen common
m
e
gre
a
seek n the disa ectives.
bj
ee
betw dividual o
in
their


Objective

















Explain What is Negotiation
Explain the Basic Principles of
Negotiation
Describe the Benefits of Negotiation
Explain the Types of Negotiation
Strategies
Explain
the Stages of the Negotiation
Process the Concepts of a Win-Win
Describe
Negotiation
Explain
the Various Styles of
Negotiation
Explain
What is BATNA

Describe Strategies for Developing
Negotiation
Skills of Third Party
Explain the Types
Explain the PROBE Technique for
Negotiating
Describe the Negotiations in
Organizations
List
the Issues in Negotiation
List the Characteristics of a Good
Negotiator
List the Tips for Effective Negotiation


Basic Principles of Negotiation
There are a few common basic principles that apply to all types of negotiations
and in all situations. Some of the basic principles of negotiation are as follows:

TThheerree aare a
re allw
waayyss aatt
lleeaasstt ‘‘ttw
woo ppaarrtitieess’’
iinnvvoollvveedd an
anyy
nneeggootitiaation
tion pprroocceesss.
s.


tthhee
,
n
o
,
ti
n
a
o
ti
ti
o
g a
IInn aannyy nneegotiharee aatt
rrtitieess sshar
a
p
o
a
p
ttw
o
w
oonn
m
m
m
o
c
m

e
o
c
m
e
o
lleeaasstt ssom er inn tthhee
ith er i
iinntteerreesstt,, eeith r orr iinn
maatteer o
ssuubbjjeecctt m
aatitinngg
ti
o
g
ti
e
o
n
g
e
e
tthhe n
rriinnggss
b
t
a
b
h
t

t
a
t
h
x
ccoonntteext t
aarrtitieess
p
e
h
p
t
e
h
h
t
t
o
bboth
in a
ttooggeetthheerr in a
n.
nneeggootitiaatitioon.

TThhee iinniti
itiaatitioonn ooff aany
ny
nneeggootitiaation
tion aallw
rreessuultltss due waayyss

due ttoo ddiiffffeeren
ooppin
iniioonnss aanndd obje rentt
ooff tthhee ttwo p objecctitivveess
wo paarrtitieess whic
whichh
hhiinnddeerrss the
the oouuttccoom
mee iinn
ggeenneerraall.
.


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