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11/7/2011 1

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NEGJTIATIJN
ALL OF US IN COMMERCIAL ORGANISATIONS BY
AND LARGE ARE ENGAGED IN DAY TO DAY
NEGOTIATIONS.
EVEN OUR DAILY HAPPENINGS DEMAND BEST
NEGOTISATING SKILLS.
THE MOST COMMON EXAMPLE OF NEGOTIATION IS
BUYING AND SELLING.
IN BUYING AND SELLING THE POWER LIES WITH
THE BUYER : THEREFORE WE GENERALLY
CONCENTRATE ON SELLING SKILLS THAN ON
BUYING.
CONSULTATION NEEDS TO BE DISTINGUISHED FROM
NEGOTIATIONS.
WE DO NOT NEGOTIATE UNLESS IT IS EITHER NECESSARY OR
SOME ADVANTAGE IS OBTAINED BY IT .
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NEGOTATON N OUR WORKNG LFE
ALLOTNG WORK TO OUR JUNORS
MEETNG EXTRA DEMANDS OF OUR STAFF,
ASSGNNG DFFCULT / CUMBERSOME
WORK.
DFFERNG VEWS ON PRORTSATON OF
WORK.
ON SELECTON OF A PARTCULAR
CUSTOMER / BORROWER.
MPOSNG DSCPLNE N OUR OFFCE.
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WHY TODAY WE TALK ABOUT WHY TODAY WE TALK ABOUT
NEGOTIATION NEGOTIATION
ORGANISATION'S MAIN ASSETS ARE STAFF.
ONLY PEOPLE NOT MACHINES OR
PROCEDURES CAN ACHIEVE EXCELLENCE.
PEOPLE WILL HAVE TO FILL THE GAPS IN
EXCELLENCE AND THEIR OWN STRONGLY
HELD VALUES AND BELIEFS.
EXCELLENCE IS NOT ONLY REQUIRES
KNOWLEDGE BUT ALSO PERSONAL
QUALITIES.
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WHY?.
WHENEVER THERE ARE PEOPLE THERE
WLL BE CONFLCTNG DEAS, VALUES,
BELEFS, STYLES AND STANDARDS.
HANDLNG THEM S AN MPORTANT SKLL N
ALL WALKS OF LFE.
T S VTAL N A BUSNESS WHCH S BASED
ON PEOPLE RATHER THAN THNGS.
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lT lS A PROCESS Ol BUlLDlNG ON COMMON
lNTERESTS AND REDUClNG DlllERENCES WlTH A
PURPOSE TO ARRlVE AT AN AGREEMENT WHlCH
lS MlNlMALLY ACCEPTABLE TO THE CONCERNED
PARTlES.
lT lS A MEANS Ol GETTlNG WHAT YOU WANT
lROM OTHERS .
lT lS A PROCESS Ol lNTERACTlON BETWEEN TWO
OR MORE PARTlES lN ORDER TO ACHlEVE A
MUTUALLY ACCEPTABLE SOLUTlON. MUTUALLY ACCEPTABLE SOLUTlON.
SKlLLED NEGOTlATlORS ATTEMT TO lOCUS
EARLY ATTENTlON ON COMMON GROUND lSSUES,
THEREBY SETTlNG STAGE lOR TACKLlNG lSSUES
Ol DlllERENCE.
WHAT IS NEGOTIATION?
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NEGOTATON SMPLY MEANS.
GOING ABOUT YOUR WORK AND
PURSUING YOUR INTERESTS IN A WAY
WHICH INTERACTS WITH THE WORK
AND INTEREST OF OTHERS.
THESE ARE NOT METHODS OF WINNING
ARGUMENTS BUT ARE DESIGNS FOR
THE PURSUIT OF MUTUAL GAIN AND
GOOD WORKING CONDITIONS.
GOING ABOUT YOUR WORK AND
PURSUING YOUR INTERESTS IN A WAY
WHICH INTERACTS WITH THE WORK
AND INTEREST OF OTHERS.
THESE ARE NOT METHODS OF WINNING
ARGUMENTS BUT ARE DESIGNS FOR
THE PURSUIT OF MUTUAL GAIN AND
GOOD WORKING CONDITIONS.
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NEGOTIATION SKILLS ARE USED IN VARIOUS
AREAS LIKE CREDIT DELIVERY, NPA RECOVERY,
GETTING A GOOD BORROWER / DEPOSITOR ETC.
IT REQUIRES A SPECIAL SKILL AND WELL
DRILLED PRACTICE.
IT IS HEAVILY DEPENDENT ON VERBAL
COMMUNICATION AND ETHICS.
HERE WE SHALL DISCUSS THE BEHAVIOURAL
ASPECT OF NEGOTIATION.
NEGJTIATIJN ;BACKGRJUND
WE ARE CONCERNED ABOUT HIGH LEVEL OF NPA ON ONE HAND
AND INCREASING ACCOUNTABILITY ON THE OTHER,
MOREOVER
RECOVERY METHODS ADOPTED SO FAR ARE TIME CONSUMING.
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NECOT!AT!ON !NvOLvES.
TWO OR MORE PARTIES,
SHARING A HIGH DEGREE OF INTERESTS.
PERSUADING OTHER PARTY TO MODIFY ITS
ORIGINAL POSITION.
ARRIVING AT AN ACCEPTABLE FINAL
AGREEMENT.
DIRECT INTERACTION BETWEEN PARTIES
INFLUENCED BY EMOTIONS,FEELINGS AND
ATTITUDES
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TYPCAL COMMENTS WE MAKE.
DON'T HAVE TME TO DSCUSS T
TOO LONG.
A CAN NOT KEEP PATENCE,
AM NOT SURE MY BOSS WLL BACK
ME UP.
MY JOB S NOT TO GVE MUCH TO
THEM.
WLL HAVE TO GVE UP N THE END.
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ELEMENTS OF NEGOTIATION ELEMENTS OF NEGOTIATION
CJ-JPERATIJN
CJNFLICT
GIVING
TAKING
SJME INDIVIDUALS ARE MJRE READILY
CJ-JPERATIVE THAN JTHERS.
SJME ENJJY CJNFLICTS.
SJME ARE EXTREMELY GENERJUS.
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ELENENTS OF NECOT!AT!ON
GIVERS" ARE DISTINCT MINORITY;
THEY ARE IDEALISTIC PEOPLE WHO ARE RELIGIOUS
AND SOCIAL WELFARE MINDED.
MOST BUSINESS PEOPLE ARE WILLING TO GIVE
AS WELL AS TO TAKE.
THEY ARE READY TO COOPERATE WITH OTHERS
WHEN THEY CAN
THAY ARE PREPARED TO ENTER INTO CONFLICT WHEN
THE SITUATION DEMANDS.
THOSE WHO BELIEVE IN SHORT TERM RATHER THAN
LONG TERM RELATIONSHIPS- ENJOY CONFLICT.
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OBJECTVES OF NEGOTATON..
TO REACH A SATSFACTORY
OUTCOME PREFERABLY
WTHOUT UNPLEASANTNESS.
THE AGREEMENT SHOULD
ACCRUE SOME BENEFT TO
BOTH PARTES.
REMEMBER THAT NEGOTIATION IS A COMPROMISE PROCESS
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SKLLS REQURED.
NTERACTVE SKLLS
COMMUNCATNG SKLL
ANALYTCAL SKLL
ALL THESE SKILLS CAN BE LEARNT,INTERNALISED
AND TRANSLATED INTO ACTION AS AND WHEN
AN OPPORTUNITY ARISES.
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IN IN
NEGOTIATION NEGOTIATION
COMMUNI
CATE
WELL
CONTROL
EMOTIONS
UNDERSTAND
PEOPLE
SEE VALUES AND
PERCEPTIONS OF
OTHERS
SKLL OF
NEGOTATON
SKLL OF
NEGOTATON
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THE UNNEGOTABLE..
WITH RULES AND REGULATIONS. WITH RULES AND REGULATIONS.
PERSONAL PREFERENCES WHICH PERSONAL PREFERENCES WHICH
MAY BE DISCRIMINATORY. MAY BE DISCRIMINATORY.
MANAGEMENT DECISIONS THAT MANAGEMENT DECISIONS THAT
ARE TO BE IMPLEMENTED. ARE TO BE IMPLEMENTED.
AGREEMENTS ALREADY ARRIVED AGREEMENTS ALREADY ARRIVED
BY YOUR MANAGERIAL BY YOUR MANAGERIAL
COLLEAGUES. COLLEAGUES.
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STAGES lN NEGOTlATlON
PREPARATION AND PLANNING
DEFINING GROUND RULES.
CLARIFICATIONS & JUSTIFICATIONS,
BARGAINING & PROBLEM SOLVING
CLOSURE & IMPLEMENTATION.
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KEY AREAS OF NEGOTIATION KEY AREAS OF NEGOTIATION
DEFINING A RANGE OF OBJECTIVES
AND BECOME FLEXIBLE ABOUT SOME
OF THEM.
EXPLORING WIDE RANGE OF
OPTIONS.
INTERACTING COMPETENTLY
(LISTENING AND QUESTIONING)
PRIORITISATION
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CLEARNG COMMUNCATONS LNES
I ASSUME GOOD FAITH,I NEITHER
QUESTION YOUR SINCERITY NOR YOUR
SANITY."
I CARE ABOUT OUR RELATIONSHIP AND
WANT TO RESOLVE DIFFERENCES."
I AM OPEN AND PREPARED TO CHANGE"
LISTEN TO UNDERSTAND. LISTEN TO UNDERSTAND.
SPEAK TO BE UNDERSTOOD SPEAK TO BE UNDERSTOOD
START WITH COMMON POINTS AND START WITH COMMON POINTS AND
MOVE SLOWLY INTO AREAS OF DISAGREEMENT MOVE SLOWLY INTO AREAS OF DISAGREEMENT
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BE ASSERTVE .
MAKE SURE THAT THE OTHER PARTY
UNDERSTANDS WHAT YOU CONSIDER
IMPORTANT AND HOW MUCH VALUE
YOU ATTACH TO IT.
STATE CLEARLY AND FIRMLY WHAT
YOU WANT TO ACHIEVE.
DO NOT START WITH WORDS LIKE:--
I'M SORRY ABOUT THIS BUT...
A'M IN A DIFFICULT POSITION...
I WANT TO AGREE TO THAT BUT....
YOU KNOW I REALLY WON'T LIKE TO DO....
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NEGOTATNG NEGOTATNG
STYLE STYLE
COLLABORATON
ACCOMODATION ACCOMODATION
-
'
OMPETING
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NEGOTATNG STYLES
TO
INTEGRATE
DIFFERENT
POINTS OF
VIEW.
RELATION-
-SHIP TO BE
MAINTAINED
ISSUE
IS IMPORTANT
TIME
PRESSURE
NO OTHER
SOLUTION
YOU ARE
WRONG
TO MNMSE
THE LOSS
SSUES ARE
MORE MPORTANT
TO OTHER PARTY
UNMPORTANT
SSUES
NO CHANCE
OF SUCCEESS
TME NEEDE D
FOR NFORMATON
COLLECTON.
OTHERS CAN
RESOLVE BETTER.
!%
COLLABORATION
COMPROMISE
ACCOMMODATON
'
WIN-
LOSE.
**
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The BARGANNG ZONE
Settlement
range
A`s target
B`s target
B`s
Resistance point
A`s
Resistance point
A`s aspiration B`s aspiration
THE LOWEST ACCEPTABLE VALUE TO AN INDIVUIDUAL
FOR A NEGOTIATED AGREEMENT
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T MAY NOT ALWAYS BE POSSBLE, BUT T
SHOULD BE THE OBJECTVE.
EXAMNE CAREFULLY THE POSSBLTY OF
CREATNG A WN-WN STUATON.
NEVER CREATE A LOSE-LOSE STUATON
AVOD WN-LOSE WHEVER YOU CAN
LET BOTH SDES WN
THESE ARE OPPORTUNITIES TO
PROGRESS RATHER THAN JUST RETURNING TO STATUS QUO
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TESTING SITUATIONS IN
NEGOTIATIONS.
THE LESS TIME YOU HAVE FOR FACE TO
FACE CONTACT MORE DIFFICULT IT
WILL BE TO IMPRESS OR INFLUENCE
OTHER.
WHEN PARTIES HAVE CONFLICTING
OBJECTIVES,IT BECOMES DIFFICULT TO
REACH AN AGREEMENT.
WHEN FELINGS ARE RUNNING HIGH IT
BECOMES DIFFICULT TO RESOLVE .
THE BEST WAY IS TO BALANCE ALL THREE.
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TO TAKE PSYCHOLOGICAL ADVANTAGE. TO TAKE PSYCHOLOGICAL ADVANTAGE.
THE NEGOTATON SHOULD BE DONE AT YOUR OWN
OFFCE
THE ORDER N WHCH TOPCS ARE DSCUSSED
SHOULD BE CONTROLLED.
LOWER THE PARTY'S EXPECTATON BEFORE YOU
BEGN.
LET HM DO MOST OF THE TALKNG.
HAVE ALL FACTS & FGURES READY
MAKE THE NEW OPTON LESS ATTRACTVE THAN
PREVOUS ONE.
CONSDER THE PSYCHOLOGCAL NEEDS OF OTHER
SDE.
QUCK DEALS ARE GENERALLY POOR DEALS.
DEADLNES ARE CRUCAL AREA OF CONCESSONS.
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NEGOTIATION--SOME DON'TS
DON'T APPEAR SHORT TEMPERED AND
FRUSTRATED WHILE NEGOTIATING.
DON'T IGNORE OTHER PERSON'S TONE OF
VOICE AND WORDS.
DON'T MAKE TOO MANY CONCESSIONS AT
AN EARLY STAGE.
DON'T ENTER NEGOTIATION WITH A
PRESET MIND.
DON'T GIVE UP WHEN THINGS SEEM TO BE
DEADLOCKED.
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SUCCESSFUL NEGOTATON
BE PREPARED lOR COMPROMlSE.
BE lLEXlBLE--lT lS A SlGN Ol STRENGTH.
lT DEPENDS ON lDENTllYlNG WANTS AND
lOCUSSlNG ATTENTlON TOWARDS BENEllTS
/ REWARDS /PUNlSHMENTS.
lT DEPENDS ON lNlORMATlON ABOUT
OTHER PARTY,COMMON lNTEREST Ol BOTH
PARTlES.
lT GlVES GOOD RESULTS WHEN BOTH
PARTlES ARE HURT ENOUGH AND WANT A
WAY OUT.
POSlTlVE VOCABULARY lS LlKELY TO GlVE
RESULTS.
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NEGOTIATION
W DO MAKE CONDITIONAL OFFERS,SUCH AS
IF YOU DO THIS WE WILL DO THAT.
W INDICATE THAT EVERY CONCESSION YOU
ARE MAKING IS A MAJOR LOSS TO YOU.
W EXPLAIN TO THE OTHER PARTY THE
BENEFITS OF THE PROPOSED DEAL TO HIM.
W THINK TWICE BEFORE USING A MEDIATOR.
W CONSIDER THE IMPACT OF PRESENT
NEGOTIATION ON FUTURE ONES.
W AIM FOR A COLLABORATIVE STYLE BUT BE
PREPARED FOR CONFRONTATION.
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NLCOTIATION...
A TEAM JF TWJ-THREE CAN
NEGJTIATE MJRE EFFECTIVELY.
PREDICT THE ARGUMENTS AND
FACTS THE JTHER PARTY CAN USE
DURING NEGJTIATIJN.
CJNSIDER THE PJSSIBILITY JF
EXISTENCE JF HIDDEN AGENDA JF
THE PARTY.
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IMPLEMENTATING THE AGREEMENT IMPLEMENTATING THE AGREEMENT
NEGOTIATION IS NOT COMPLETE NEGOTIATION IS NOT COMPLETE
UNTIL IT IS EFFECTIVELY UNTIL IT IS EFFECTIVELY
IMPLEMENTED. IMPLEMENTED.
THE IMPLEMENTATION PROGRAM THE IMPLEMENTATION PROGRAM
SHOULD DEFINE WHAT HAS TO BE SHOULD DEFINE WHAT HAS TO BE
DONE BY WHOM AND WHEN. DONE BY WHOM AND WHEN.
THIS CAN BE IN WRITING WITH THIS CAN BE IN WRITING WITH
ADEQUATE INFORMATION AND ADEQUATE INFORMATION AND
EXPLANATIONS. EXPLANATIONS.
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WISH YOU SUCCESS IN EVERY FIELD