NEGOTIATION PROCESS

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NEGOTIATION PROCESS
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What is negotiation?

• Characterized by two or more interdependent
  parties who have a conflict of interest,and who
  choose to adress that conflict by striving to
  reach an agreement through a process of mutual
  adjustment of each partys demand and concessions

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Behavioral definition of negotiation

• The process by which we search for the terms to
  what we want from somebody who wants something
  from us

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NEW NEGOTIATING EDGE(NEGOTIATION STYLES)

• Red Style
• Blue Style
• Purple Style

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RED STYLE

• They believe manipulation is normal and
• they behave as they believe
• Main attitudes
• Aggressive
• Intimidatory
• Manipulatory

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BLUE STYLE

• Looking for both winning of two sides
• Main attitudes
• Cooperative
• Trusting
• Conciliatory

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PURPLE STYLE

• Win-Win Approach
• Give me some of what (red style),I will give you
  what you want (blue style)
• Taking while giving
• It is a two way exchange

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Negotiation as an Alternative

• Persuasion
• We deserve a break
• Giving in
• OK,you deserve a break
• Instruction
• Give me a break
• Coercion
• Give me a break-or else!

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Negotiation as an Alternative

• Litigation
• Ill sue to get a break
• Problem solving
• How can we both get a break?
• Chance
• Heads I get a break?
• Arbitration
• Which of us deserves a break?

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When should you negotiate?

• The most important motivation for
• negotiating is the necessity of securing
• the consent of those who have what
• you want.
• Withholding consent is a key feature of decision
  making.

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Negotiation as a universal process

• While every negotiation is unique,every
  negotiation is also the same

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KEY ELEMENTS O F NEGOTIATION

• Interdependence
• Mutual dependence implies limits to how much one
  party can do alone, or what cost, or how
  desirably.
• The more diversified products and market, the
  more interdependence we face

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SOME PERCIEVED CONFLICT

• Increase interdependence of diverse people
  virtually guarantess the potential for conflict
• Real conflicts will some times be diagnosed as
  failures to communicate or personality
  problems

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OPPORTUNISTIC INTERACTION

• Guarding some information, moving to stake out
  favorable position, seeking to mold perceptions
  and aspirations.

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THE POSSIBILITY OF AGREEMENT

• People can negotiate to arrive at a joint
  decision that is better than their unilateral
  alternatives

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BARGAINING

• In its purest form,it is mind against mind.
• (John Illich,1980)
• It is better to give away the wool than the
  sheep
• (Italian proverb)

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TO AVOID UNWISE CONCESSIONS

• Where to stop
• Provide a rationale
• Repeat aloud the offer
• Use hypotetical questions
• Make conditional offers
• Use packages
• Value in other partys terms
• Think long-term consequences
• Firm on interest,flexible on positions

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BREAKING DEADLOCKS

• Why deadlocks arise?
• -Both parties have widely divergent objectives
• -One party mistakes firmness for rigidity and
  will not make concessions even to keep the
  negotiation alive
• -As a deliberate tactic during a negotiation to
  force the other party reconsider its position and
  make concessions

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CLOSING

• Nothing is settled until it is settled right
• Louis D.Brandeis

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BASIC PRINCIPLES

• If you are going to play the game properly youd
  better know the rules
• Barbara Jordan
• US Congress(1975)

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WHAT ARE THESE RULES AND PRINCIPLES?

• Negotiating is a voluntary activity,
• A negotiation usually starts,
• Entering negotiation requires acceptance by both
  parties that aggrement between them is required,
• Timing is a critical factor,
• Successful outcome is getting what both sides
  want,
• Negotiation is influenced by the personal
• values,skills,perception,attitudes and
  emotions

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• What are the implications of
• these principles for an actual
• negotiation?

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MOVING TOWARDS AGREEMENTS

• Advice and suggestions
• Promises
• Threats
• Explanations
• Praise
• Criticism
• Leading questions
• Apologies
• Reflecting
• Adjournments
• Humour
• Joint agreed summaries
• Proposals

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COMMON NEGOTIATING MISTAKES

• Entering negotiation with a preset mental
  mindset,
• Not knowing who has final negotiating authority,
• Not knowing precisely what power they possess,
• Entering negotiation with only a general goal,
• Failing to advance positions and arguments of
  substance,

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• Losing control over factors such as timing and
  the ordering of issues,
• Failing to let the other side make the first
  offer,
• Ignoring time and location as a negotiating
  weapon,
• Giving up when negotiation seems to have reached
  a deadlock,
• Not knowing the right time to close

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Negotiation often fail for predictable reasons

• The most common include
• The One-Track Syndrome
• The Win-Lose Syndrome
• The Random Walk Syndrome
• The Conflict Avoidance Syndrome
• The Time Capsule Syndrome

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• INTERESTS
  
• The Measure Of Negotiation

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• Intrinsic and Instrumental Interests
• Process Interests
• Relationship Interests
• Interests In Principles

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Assessing Interests

• Assessing Which Interests Are At Stake
• Assessing The Interests Of Others
• Assessing The Trade-offs
• When To Focus On Interests and When On Issues

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• NEGOTIATION IS CENTRAL TO
• THE MANAGERS JOB...

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• Dealing Outside The Chain Of Command
• (Indirect Management)
• Dealing With Subordinates
• Commands
• Management Systems
• The Cooperative Approach
• Dealing With Superiors

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• RESISTANCE TO THE ROLE OF NEGOTIATION

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BARGAININGNEGOTIATION??

• Negotiation is a process by which we attempt to
  persuade people to give us something we want in
  exchange for something else.It includes the
  attempts to identify and assess the
  perspectives,strategies,needs,expectations of the
  participants and the discussions the parties hold
  with one another.
• Bargaining on the other hand,is much more
  narrower than negotiation.It refers only to
  discussions that take place,the purpose of which
  is to persuade the other party to accept your
  terms.

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BARGAININGNEGOTIATION??

• The danger in using the two terms as synonoms
  is that it encourages us to view negotiation as
  an event rather than a process.We may thus
  neglect vital elements of that process.

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BARGAINING

• In its purest form,it is mind against mind.
• (John Illich,1980)
• It is better to give away the wool than the
  sheep
• (Italian proverb)

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Getting and making concessions

• A concession is a revision of a previous
  position you have held and justified publicly.

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TO AVOID UNWISE CONCESSIONS

• Know where to stop
• Provide a rationale
• Repeat aloud the other partys offer
• Use hypotetical questions
• Make conditional offers
• Use packages
• Value your concession in other partys terms
• Think long-term consequences
• Be firm on interest,flexible on positions

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BREAKING DEADLOCKS

• Why do deadlocks arise?
• -Both parties have widely divergent objectives
• -One party mistakes firmness for rigidity and
  will not make concessions even to keep the
  negotiation alive
• -As a deliberate tactic during a negotiation to
  force the other party reconsider its position and
  make concessions

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Calling an outside party

• CONCILIATION A conciliator works with the two
  parties to help them reach agreement.
• MEDIATION is a more direct form.Here,both
  parties agree to consider a solution suggested by
  the outsider.
• ARBITRATIONis the most powerful and risky
  form.Both parties bind themselves in advance to
  accept the third partys solution.

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MOVING TOWARDS AGREEMENTS

• Advice and suggestions
• Promises
• Threats
• Explanations
• Praise
• Criticism
• Leading questions
• Apologies
• Reflecting
• Adjournments
• Humour
• Joint agreed summaries
• Proposals

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CLOSING

• Nothing is settled until it is settled right
• Louis D.Brandeis

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GAMES NEGOTIATORS PLAY

• Expertise The purpose of this game is to give
  the impression ones homework has been done by
  establishing at the beginning of the negotiation
  that one has a knowledge of facts.
• Snow job ikna etme sanati This game is similar
  to expertise in that facts and figures are used
  to overwhelm the other.
• So what? Regardless of the importance,you say
  that the item was really not important in the
  first place.
• Wheat and chaff This is played by putting not
  really priority items(chaff) in order to obtain
  priority items (wheat)

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GAMES NEGOTIATORS PLAY

• Wooden leg The argument here is that one is
  suffering from a limitation that makes further
  movement impossible.
• Sandbagger which is a term in golf,means
  reflecting yourself weak in order to win
• Boredom In this game,body language is used to
  nitfy the other party that their points fail to
  impress.
• Yes..but.. Every time a solution is
  suggested,the other party derides it with a
  Yes...but...

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