2Contents for Discussion Meaning, and Framework for NegotiationElements Involved in Improving Negotiating AbilitiesTips for Improving Negotiation Skill
3Negotiation“Give me some of what I want, and I will give you some of what you want.”
4NegotiationNegotiation is an interactive communication process that may take place whenever we want something from someone else or another person wants something from us.Negotiation occurs when conflict exists and both parties are prepared to seek a resolution through discussion and bargaining.
5Framework for Negotiation CommunicationRelationshipInterestsOptionsLegitimacyAgreementBATANA
61. CommunicationAdvocacy or making statements. When we advocate, we give information such as facts, our opinions, conclusions, etc.Inquiry or asking questions. When we inquire, we seek information for the purpose of learning.
7Exercise: A – B Sell. (Instructions to B) Count the Number of Statements and the Number of Questions that ‘A’ makes
8Purpose of Advocacy and Inquiry ConvincePersuadeProve a pointArgueSellWinLearnGain new informationConfirmUnderstand or clarify
92. RelationshipDevelop the overall pattern of interaction among other parties. Interaction should improve relationships that we need: hard on the problem and soft on the people.Be friendly on relationshipDon’t try to threaten the relationship
10Interests Options Legitimacy Circle of ValueIt is made up of three core elements:InterestsOptionsLegitimacy
113. InterestsInterests are the core needs, desires, hopes, fears, aspirations, concerns, goals, motives, etc. of each party that underlie and motivate our positions, demands and contentions. Identify and prioritise ours; estimate and test theirs and others; identify common, differing and conflicting interests. Consider asking: Why? What else? In what priority?
12Strategic Inquiry Guidelines Inquiry into INTERESTSWhat are you trying to accomplish in these negotiations?What are your key motivations in these negotiations?What are you concerned about?If we walked away from this deal, where would you/we go?Do you feel we "must" do a deal here?I would prefer to work something out jointly. Would you?What interests would you be better met if you don't agree?
134. OptionsSomething that one can choose to do in preference to one or more alternatives- choice, preference. Possible outcomes of the negotiation. All possibilities on which we might reach agreement; Identify and consider many possible options for each issue or interest (identify, build and invent many possible "joint gain" options that could satisfy each side's interests / needs. Look for high gain / low cow cost trades); search for joint gains and possible trades. Creative thinking expands the range of possible options and promotes better solutions. Inquiry and sharing of information are key tools.
14Strategic Inquiry Guidelines Inquiry into OPTIONSWhat would be wrong with….?What other ideas might we brainstorm on this problem?If we work together, how might we make this better for both of us?Do you have the authority to make a decision on this?Do others need to be here to get this done?What would be your reaction to a possible offer like…?If I were able to offer you "X", could you say "yes" today?
155. LegitimacyCorrectness according to the facts of a situation, the logic of an argument, or the opinions of most people. The fairness of an agreement as measured by criteria, benchmarks, principles, laws, regulations, standards, practices. Objective criteria, benchmarks, market data, principles, laws, regulations, standards, practices, traditions, researched evidence, etc. convey a sense of fairness. Each party can have separate sources of legitimacy.
16Strategic Inquiry Guidelines Inquiry into LEGITIMACYWhy do you think we ought to do that?What benchmarks do you see in our field of work that make this appropriate?If you were I, how would you justify that to others?
176. AgreementAgreement is what we and / or the other party will or will not do. Sound agreements are well planned and crafted to be practical, durable, easily understood and verifiable. If yes (Agreement), clarify Commitments: test who, what, when and how; sequence statements about what we will and won’t do.
187. BATANA: Best Alternative to a Negotiated Agreement If No, Consider/Understand each party’s Walk-away Alternatives: Alternatives are unilateral actions or decisions that either party can take without agreement from the other party. Sometimes there are many alternatives, sometimes just a few. Consider walk-away available possibilities in case we don’t reach an agreement. Do not agree to a deal that is worse than its BATNA.
19Elements Involved in Improving Negotiating Abilities Knowledge:of negotiating principlesof the environment of the particular negotiationof the detailed subject matter involved
20Elements Involved in Improving Negotiating Abilities (contd.) 2. Skill:in analyzing the issues (analytical)in personal interactions (interactive)in communicating (communicative)
21Elements Involved in Improving Negotiating Abilities (contd.) 3. Attitude:towards the negotiating processtowards the specifics of each negotiationtowards one's own role
22Tips to Improve Negotiating Skills The negotiator must be in SHAPESincere / SensitiveHonest / HumorousAttentive / ArticulateProficientEnthusiastic / Emphatic
23Tips to Improve Negotiating Skills Besides,Know thyselfGet as much objective data as possible before you start (Do homework)Establish precise goals at the outset of the negotiation.Practice double and triple think
24ConclusionNegotiations are everyday phenomenon and common in life, be it organization or personal matters. In fact we live in an age of negotiation. We should be working for achieving ‘win – win’ outcome from the negotiation. We have to be sure that it is done in the best way possible to achieve maximum benefit.