5/2/2012 1

FOR IMPROVING
NEGOTIATION SKILLS
5/2/2012 2
NEGOTIATION
+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 .
5/2/2012 3
NEGOTIATION IN OUR WORKING LIFE
×ALLOTING WORK TO OUR JUNIORS
×MEETING EXTRA DEMANDS OF OUR STAFF,
×ASSIGINING DIFFICULT / CUMBERSOME
WORK.
×DIFFERING VIEWS ON PRIORITISATION OF
WORK.
×ON SELECTION OF A PARTICULAR
CUSTOMER / BORROWER.
×IMPOSING DISCIPLINE IN OUR OFFICE.
5/2/2012 4
WHY TODAY WE TALK ABOUT
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.
5/2/2012 5
WHY?…
+WHENEVER THERE ARE PEOPLE THERE
WILL BE CONFLICTING IDEAS, VALUES,
BELIEFS, STYLES AND STANDARDS.
+HANDLING THEM IS AN IMPORTANT SKILL IN
ALL WALKS OF LIFE.
+IT IS VITAL IN A BUSINESS WHICH IS BASED
ON PEOPLE RATHER THAN THINGS.
5/2/2012 6
• IT IS A PROCESS OF BUILDING ON COMMON
INTERESTS AND REDUCING DIFFERENCES WITH A
PURPOSE TO ARRIVE AT AN AGREEMENT WHICH
IS MINIMALLY ACCEPTABLE TO THE CONCERNED
PARTIES.
• IT IS A MEANS OF GETTING WHAT YOU WANT
FROM OTHERS .
• IT IS A PROCESS OF INTERACTION BETWEEN TWO
OR MORE PARTIES IN ORDER TO ACHIEVE A
MUTUALLY ACCEPTABLE SOLUTION.
• SKILLED NEGOTIATIORS ATTEMT TO FOCUS
EARLY ATTENTION ON COMMON GROUND ISSUES,
THEREBY SETTING STAGE FOR TACKLING ISSUES
OF DIFFERENCE.

WHAT IS NEGOTIATION?
5/2/2012 7
NEGOTIATION SIMPLY 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.
5/2/2012 8
+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.
NEGOTIATION ;BACKGROUND
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.

5/2/2012 9
NEGOTIATION INVOLVES…
+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.

5/2/2012 10
TYPICAL COMMENTS WE MAKE…
• I DON’T HAVE TIME TO DISCUSS IT
TOO LONG.
• A CAN NOT KEEP PATIENCE,
• I AM NOT SURE MY BOSS WILL BACK
ME UP.
• MY JOB IS NOT TO GIVE MUCH TO
THEM.
• I WILL HAVE TO GIVE UP IN THE END.

5/2/2012 11
ELEMENTS OF NEGOTIATION
©CO-OPERATION
®CONFLICT
©GIVING
©TAKING
©SOME INDIVIDUALS ARE MORE READILY
CO-OPERATIVE THAN OTHERS.
©SOME ENJOY CONFLICTS.
©SOME ARE EXTREMELY GENEROUS.
5/2/2012 12
ELEMENTS OF NEGOTIATION



•“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.




5/2/2012 13
OBJECTIVES OF NEGOTIATION….
+TO REACH A SATISFACTORY
OUTCOME PREFERABLY
WITHOUT UNPLEASANTNESS.
+THE AGREEMENT SHOULD
ACCRUE SOME BENEFIT TO
BOTH PARTIES.
REMEMBER THAT NEGOTIATION IS A COMPROMISE PROCESS
5/2/2012 14
SKILLS REQUIRED…
• INTERACTIVE SKILLS
• COMMUNICATING SKILL
• ANALYTICAL SKILL
ALL THESE SKILLS CAN BE LEARNT,INTERNALISED
AND TRANSLATED INTO ACTION AS AND WHEN
AN OPPORTUNITY ARISES.
5/2/2012 15
IN
NEGOTIATION
COMMUNI
CATE
WELL
CONTROL
EMOTIONS
UNDERSTAND
PEOPLE
SEE VALUES AND
PERCEPTIONS OF
OTHERS
SKILL OF
NEGOTIATION
5/2/2012 16
THE UNNEGOTIABLE..
+WITH RULES AND REGULATIONS.
+PERSONAL PREFERENCES WHICH
MAY BE DISCRIMINATORY.
+MANAGEMENT DECISIONS THAT
ARE TO BE IMPLEMENTED.
+AGREEMENTS ALREADY ARRIVED
BY YOUR MANAGERIAL
COLLEAGUES.
5/2/2012 17

STAGES IN NEGOTIATION
×PREPARATION AND PLANNING
×DEFINING GROUND RULES.
×CLARIFICATIONS & JUSTIFICATIONS,
×BARGAINING & PROBLEM SOLVING
×CLOSURE & IMPLEMENTATION.
5/2/2012 18
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
5/2/2012 19
CLEARING COMMUNICATIONS LINES
C“I ASSUME GOOD FAITH,I NEITHER
QUESTION YOUR SINCERITY NOR YOUR
SANITY.”
C“I CARE ABOUT OUR RELATIONSHIP AND
WANT TO RESOLVE DIFFERENCES.”
C“I AM OPEN AND PREPARED TO CHANGE”

©LISTEN TO UNDERSTAND.
©SPEAK TO BE UNDERSTOOD
©START WITH COMMON POINTS AND
©MOVE SLOWLY INTO AREAS OF DISAGREEMENT

5/2/2012 20
BE ASSERTIVE …
• 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……..
5/2/2012 21
NEGOTIATING
STYLE
COLLABORATION
ACCOMODATION
COMPROMISE
AVOIDANCE
COMPETING
5/2/2012 22
NEGOTIATING STYLES
•TO
INTEGRATE
DIFFERENT
POINTS OF
VIEW.
•RELATION-
-SHIP TO BE
MAINTAINED
•ISSUE
IS IMPORTANT

•TIME
PRESSURE

•NO OTHER
SOLUTION
•YOU ARE
WRONG
•TO MINIMISE
THE LOSS
•ISSUES ARE
MORE IMPORTANT
TO OTHER PARTY

•UNIMPORTANT
ISSUES
•NO CHANCE
OF SUCCEESS
•TIME NEEDE D
FOR INFORMATION
COLLECTION.
•OTHERS CAN
RESOLVE BETTER.
COMPETE
COLLABORATION
COMPROMISE
ACCOMMODATION
AVOIDANCE

WIN-
LOSE.

*
5/2/2012 23
The BARGAINING 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
5/2/2012 24
×IT MAY NOT ALWAYS BE POSSIBLE, BUT IT
SHOULD BE THE OBJECTIVE.
×EXAMINE CAREFULLY THE POSSIBILITY OF
CREATING A WIN-WIN SITUATION.
×NEVER CREATE A LOSE-LOSE SITUATION
×AVOID WIN-LOSE WHEVER YOU CAN

LET BOTH SIDES WIN
THESE ARE OPPORTUNITIES TO
PROGRESS RATHER THAN JUST RETURNING TO STATUS QUO
5/2/2012 25
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.
5/2/2012 26
TO TAKE PSYCHOLOGICAL ADVANTAGE…
• THE NEGOTIATION SHOULD BE DONE AT YOUR OWN
OFFICE
• THE ORDER IN WHICH TOPICS ARE DISCUSSED
SHOULD BE CONTROLLED.
• LOWER THE PARTY’S EXPECTATION BEFORE YOU
BEGIN.
• LET HIM DO MOST OF THE TALKING.
• HAVE ALL FACTS & FIGURES READY
• MAKE THE NEW OPTION LESS ATTRACTIVE THAN
PREVIOUS ONE.
• CONSIDER THE PSYCHOLOGICAL NEEDS OF OTHER
SIDE.
• QUICK DEALS ARE GENERALLY POOR DEALS.
• DEADLINES ARE CRUCIAL AREA OF CONCESSIONS.

5/2/2012 27
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.
5/2/2012 28
SUCCESSFUL NEGOTIATION
• BE PREPARED FOR COMPROMISE.
• BE FLEXIBLE--IT IS A SIGN OF STRENGTH.
• IT DEPENDS ON IDENTIFYING WANTS AND
FOCUSSING ATTENTION TOWARDS BENEFITS
/ REWARDS /PUNISHMENTS.
• IT DEPENDS ON INFORMATION ABOUT
OTHER PARTY,COMMON INTEREST OF BOTH
PARTIES.
• IT GIVES GOOD RESULTS WHEN BOTH
PARTIES ARE HURT ENOUGH AND WANT A
WAY OUT.
• POSITIVE VOCABULARY IS LIKELY TO GIVE
RESULTS.
5/2/2012 29

• DO MAKE CONDITIONAL OFFERS,SUCH AS
“IF YOU DO THIS WE WILL DO THAT”.
• INDICATE THAT EVERY CONCESSION YOU
ARE MAKING IS A MAJOR LOSS TO YOU.
• EXPLAIN TO THE OTHER PARTY THE
BENEFITS OF THE PROPOSED DEAL TO HIM.
• THINK TWICE BEFORE USING A MEDIATOR.
• CONSIDER THE IMPACT OF PRESENT
NEGOTIATION ON FUTURE ONES.
• AIM FOR A COLLABORATIVE STYLE BUT BE
PREPARED FOR CONFRONTATION.


5/2/2012 30
NEGOTIATION...
+A TEAM OF TWO-THREE CAN
NEGOTIATE MORE EFFECTIVELY.
+PREDICT THE ARGUMENTS AND
FACTS THE OTHER PARTY CAN USE
DURING NEGOTIATION.
+CONSIDER THE POSSIBILITY OF
EXISTENCE OF HIDDEN AGENDA OF
THE PARTY.
5/2/2012 31
IMPLEMENTATING THE AGREEMENT
CNEGOTIATION IS NOT COMPLETE
UNTIL IT IS EFFECTIVELY
IMPLEMENTED.
CTHE IMPLEMENTATION PROGRAM
SHOULD DEFINE WHAT HAS TO BE
DONE BY WHOM AND WHEN.
CTHIS CAN BE IN WRITING WITH
ADEQUATE INFORMATION AND
EXPLANATIONS.
5/2/2012 32
WISH YOU SUCCESS IN EVERY FIELD

NEGOTIATION
 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 5/2/2012 2 SOME ADVANTAGE IS OBTAINED BY IT .

NEGOTIATION IN OUR WORKING LIFE
 ALLOTING WORK TO OUR JUNIORS  MEETING EXTRA DEMANDS OF OUR STAFF,  ASSIGINING DIFFICULT / CUMBERSOME WORK.  DIFFERING VIEWS ON PRIORITISATION OF WORK.  ON SELECTION OF A PARTICULAR CUSTOMER / BORROWER.  IMPOSING DISCIPLINE IN OUR OFFICE.
5/2/2012 3

ONLY PEOPLE NOT MACHINES OR PROCEDURES CAN ACHIEVE EXCELLENCE. 5/2/2012 4 . EXCELLENCE IS NOT ONLY REQUIRES KNOWLEDGE BUT ALSO PERSONAL QUALITIES. PEOPLE WILL HAVE TO FILL THE GAPS IN EXCELLENCE AND THEIR OWN STRONGLY HELD VALUES AND BELIEFS.WHY TODAY WE TALK ABOUT NEGOTIATION ORGANISATION’S MAIN ASSETS ARE STAFF.

HANDLING THEM IS AN IMPORTANT SKILL IN ALL WALKS OF LIFE. BELIEFS.WHY?… WHENEVER THERE ARE PEOPLE THERE WILL BE CONFLICTING IDEAS. IT IS VITAL IN A BUSINESS WHICH IS BASED ON PEOPLE RATHER THAN THINGS. 5/2/2012 5 . VALUES. STYLES AND STANDARDS.

5/2/2012 6 .WHAT IS NEGOTIATION? • IT IS A PROCESS OF BUILDING ON COMMON INTERESTS AND REDUCING DIFFERENCES WITH A PURPOSE TO ARRIVE AT AN AGREEMENT WHICH IS MINIMALLY ACCEPTABLE TO THE CONCERNED PARTIES. • IT IS A MEANS OF GETTING WHAT YOU WANT FROM OTHERS . • SKILLED NEGOTIATIORS ATTEMT TO FOCUS EARLY ATTENTION ON COMMON GROUND ISSUES. THEREBY SETTING STAGE FOR TACKLING ISSUES OF DIFFERENCE. • IT IS A PROCESS OF INTERACTION BETWEEN TWO OR MORE PARTIES IN ORDER TO ACHIEVE A MUTUALLY ACCEPTABLE SOLUTION.

5/2/2012 7 . • THESE ARE NOT METHODS OF WINNING ARGUMENTS BUT ARE DESIGNS FOR THE PURSUIT OF MUTUAL GAIN AND GOOD WORKING CONDITIONS.NEGOTIATION SIMPLY MEANS… • GOING ABOUT YOUR WORK AND PURSUING YOUR INTERESTS IN A WAY WHICH INTERACTS WITH THE WORK AND INTEREST OF OTHERS.

NPA RECOVERY.BACKGROUND  NEGOTIATION SKILLS ARE USED IN VARIOUS AREAS LIKE CREDIT DELIVERY. GETTING A GOOD BORROWER / DEPOSITOR ETC.  IT IS HEAVILY DEPENDENT ON VERBAL COMMUNICATION AND ETHICS. 5/2/2012 8 . WE ARE CONCERNED ABOUT HIGH LEVEL OF NPA ON ONE HAND AND INCREASING ACCOUNTABILITY ON THE OTHER.  HERE WE SHALL DISCUSS THE BEHAVIOURAL ASPECT OF NEGOTIATION. MOREOVER RECOVERY METHODS ADOPTED SO FAR ARE TIME CONSUMING.NEGOTIATION .  IT REQUIRES A SPECIAL SKILL AND WELL DRILLED PRACTICE.

NEGOTIATION INVOLVES… TWO OR MORE PARTIES. ARRIVING AT AN ACCEPTABLE FINAL AGREEMENT.FEELINGS AND ATTITUDES. DIRECT INTERACTION BETWEEN PARTIES INFLUENCED BY EMOTIONS. PERSUADING OTHER PARTY TO MODIFY ITS ORIGINAL POSITION. SHARING A HIGH DEGREE OF INTERESTS. 5/2/2012 9 .

TYPICAL COMMENTS WE MAKE… • I DON’T HAVE TIME TO DISCUSS IT TOO LONG. 5/2/2012 10 . • MY JOB IS NOT TO GIVE MUCH TO THEM. • I WILL HAVE TO GIVE UP IN THE END. • I AM NOT SURE MY BOSS WILL BACK ME UP. • A CAN NOT KEEP PATIENCE.

5/2/2012 11 . SOME ENJOY CONFLICTS.ELEMENTS OF NEGOTIATION CO-OPERATION CONFLICT GIVING TAKING SOME INDIVIDUALS ARE MORE READILY CO-OPERATIVE THAN OTHERS. SOME ARE EXTREMELY GENEROUS.

ELEMENTS OF NEGOTIATION •“GIVERS” ARE DISTINCT MINORITY. •THEY ARE IDEALISTIC PEOPLE WHO ARE RELIGIOUS AND SOCIAL WELFARE MINDED. •THEY ARE READY TO COOPERATE WITH OTHERS WHEN THEY CAN •THAY ARE PREPARED TO ENTER INTO CONFLICT WHEN THE SITUATION DEMANDS.ENJOY CONFLICT. •MOST BUSINESS PEOPLE ARE WILLING TO GIVE AS WELL AS TO TAKE. •THOSE WHO BELIEVE IN SHORT TERM RATHER THAN LONG TERM RELATIONSHIPS. 5/2/2012 12 .

OBJECTIVES OF NEGOTIATION…. REMEMBER THAT NEGOTIATION IS A COMPROMISE PROCESS 5/2/2012 13 . TO REACH A SATISFACTORY OUTCOME PREFERABLY WITHOUT UNPLEASANTNESS. THE AGREEMENT SHOULD ACCRUE SOME BENEFIT TO BOTH PARTIES.

INTERNALISED AND TRANSLATED INTO ACTION AS AND WHEN AN OPPORTUNITY ARISES.SKILLS REQUIRED… • INTERACTIVE SKILLS • COMMUNICATING SKILL • ANALYTICAL SKILL ALL THESE SKILLS CAN BE LEARNT. 5/2/2012 14 .

SKILL OF NEGOTIATION SEE VALUES AND PERCEPTIONS OF OTHERS UNDERSTAND PEOPLE IN NEGOTIATION COMMUNI CATE WELL CONTROL EMOTIONS 5/2/2012 15 .

. PERSONAL PREFERENCES WHICH MAY BE DISCRIMINATORY.THE UNNEGOTIABLE. AGREEMENTS ALREADY ARRIVED BY YOUR MANAGERIAL COLLEAGUES. WITH RULES AND REGULATIONS. 5/2/2012 16 . MANAGEMENT DECISIONS THAT ARE TO BE IMPLEMENTED.

BARGAINING & PROBLEM SOLVING CLOSURE & IMPLEMENTATION.STAGES IN NEGOTIATION PREPARATION AND PLANNING DEFINING GROUND RULES. 5/2/2012 17 . CLARIFICATIONS & JUSTIFICATIONS.

INTERACTING COMPETENTLY (LISTENING AND QUESTIONING) PRIORITISATION 5/2/2012 18 . EXPLORING WIDE RANGE OF OPTIONS.KEY AREAS OF NEGOTIATION  DEFINING A RANGE OF OBJECTIVES AND BECOME FLEXIBLE ABOUT SOME OF THEM.

” “I CARE ABOUT OUR RELATIONSHIP AND WANT TO RESOLVE DIFFERENCES. SPEAK TO BE UNDERSTOOD START WITH COMMON POINTS AND MOVE SLOWLY INTO AREAS OF DISAGREEMENT 5/2/2012 19 .I NEITHER QUESTION YOUR SINCERITY NOR YOUR SANITY.” “I AM OPEN AND PREPARED TO CHANGE” LISTEN TO UNDERSTAND.CLEARING COMMUNICATIONS LINES “I ASSUME GOOD FAITH.

. 5/2/2012 20 . I WANT TO AGREE TO THAT BUT……. • DO NOT START WITH WORDS LIKE:-» » » » I’M SORRY ABOUT THIS BUT……. • STATE CLEARLY AND FIRMLY WHAT YOU WANT TO ACHIEVE.BE ASSERTIVE … • MAKE SURE THAT THE OTHER PARTY UNDERSTANDS WHAT YOU CONSIDER IMPORTANT AND HOW MUCH VALUE YOU ATTACH TO IT. YOU KNOW I REALLY WON’T LIKE TO DO……... A’M IN A DIFFICULT POSITION….

COLLABORATION COMPROMISE NEGOTIATING STYLE COMPETING ACCOMODATION AVOIDANCE 21 5/2/2012 .

NEGOTIATING STYLES •UNIMPORTANT ISSUES •NO CHANCE OF SUCCEESS •TIME NEEDE D FOR INFORMATION COLLECTION. •RELATION-SHIP TO BE MAINTAINED •NO OTHER SOLUTION •YOU ARE WRONG •TO MINIMISE THE LOSS •ISSUES ARE MORE IMPORTANT TO OTHER PARTY COMPETE AVOIDANCE COMPROMISE 5/2/2012 * ACCOMMODATION 22 COLLABORATION . •ISSUE IS IMPORTANT •TIME PRESSURE •TO INTEGRATE DIFFERENT POINTS OF VIEW. •OTHERS CAN RESOLVE BETTER. WINLOSE.

The BARGAINING ZONE A’s Resistance point A’s aspiration Settlement B’s aspiration range B’s target A’s target B’s Resistance point THE LOWEST ACCEPTABLE VALUE TO AN INDIVUIDUAL FOR A NEGOTIATED AGREEMENT 5/2/2012 23 .

BUT IT SHOULD BE THE OBJECTIVE.LET BOTH SIDES WIN  IT MAY NOT ALWAYS BE POSSIBLE.  EXAMINE CAREFULLY THE POSSIBILITY OF CREATING A WIN-WIN SITUATION.  NEVER CREATE A LOSE-LOSE SITUATION  AVOID WIN-LOSE WHEVER YOU CAN THESE ARE OPPORTUNITIES TO PROGRESS RATHER THAN JUST RETURNING TO STATUS QUO 5/2/2012 24 .

THE BEST WAY IS TO BALANCE ALL THREE. WHEN FELINGS ARE RUNNING HIGH IT BECOMES DIFFICULT TO RESOLVE .IT BECOMES DIFFICULT TO REACH AN AGREEMENT.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. 5/2/2012 25 .

5/2/2012 26 • DEADLINES ARE CRUCIAL AREA OF CONCESSIONS. • CONSIDER THE PSYCHOLOGICAL NEEDS OF OTHER SIDE. . • QUICK DEALS ARE GENERALLY POOR DEALS. • HAVE ALL FACTS & FIGURES READY • MAKE THE NEW OPTION LESS ATTRACTIVE THAN PREVIOUS ONE. • LET HIM DO MOST OF THE TALKING. • LOWER THE PARTY’S EXPECTATION BEFORE YOU BEGIN.TO TAKE PSYCHOLOGICAL ADVANTAGE… • THE NEGOTIATION SHOULD BE DONE AT YOUR OWN OFFICE • THE ORDER IN WHICH TOPICS ARE DISCUSSED SHOULD BE CONTROLLED.

DON’T GIVE UP WHEN THINGS SEEM TO BE DEADLOCKED. DON’T MAKE TOO MANY CONCESSIONS AT AN EARLY STAGE. 5/2/2012 27 . DON’T ENTER NEGOTIATION WITH A PRESET MIND.NEGOTIATION--SOME DON’TS DON’T APPEAR SHORT TEMPERED AND FRUSTRATED WHILE NEGOTIATING. DON’T IGNORE OTHER PERSON’S TONE OF VOICE AND WORDS.

SUCCESSFUL NEGOTIATION • BE PREPARED FOR COMPROMISE. • POSITIVE VOCABULARY IS LIKELY TO GIVE RESULTS. • IT DEPENDS ON IDENTIFYING WANTS AND FOCUSSING ATTENTION TOWARDS BENEFITS / REWARDS /PUNISHMENTS. • BE FLEXIBLE--IT IS A SIGN OF STRENGTH.COMMON INTEREST OF BOTH PARTIES. • IT GIVES GOOD RESULTS WHEN BOTH PARTIES ARE HURT ENOUGH AND WANT A WAY OUT. 5/2/2012 28 . • IT DEPENDS ON INFORMATION ABOUT OTHER PARTY.

• INDICATE THAT EVERY CONCESSION YOU ARE MAKING IS A MAJOR LOSS TO YOU. • THINK TWICE BEFORE USING A MEDIATOR. • EXPLAIN TO THE OTHER PARTY THE BENEFITS OF THE PROPOSED DEAL TO HIM. 5/2/2012 29 . • AIM FOR A COLLABORATIVE STYLE BUT BE PREPARED FOR CONFRONTATION.NEGOTIATION • DO MAKE CONDITIONAL OFFERS. • CONSIDER THE IMPACT OF PRESENT NEGOTIATION ON FUTURE ONES.SUCH AS “IF YOU DO THIS WE WILL DO THAT”.

A TEAM OF TWO-THREE CAN NEGOTIATE MORE EFFECTIVELY..NEGOTIATION. PREDICT THE ARGUMENTS AND FACTS THE OTHER PARTY CAN USE DURING NEGOTIATION. CONSIDER THE POSSIBILITY OF EXISTENCE OF HIDDEN AGENDA OF THE PARTY.. 5/2/2012 30 .

IMPLEMENTATING THE AGREEMENT NEGOTIATION IS NOT COMPLETE UNTIL IT IS EFFECTIVELY IMPLEMENTED. THE IMPLEMENTATION PROGRAM SHOULD DEFINE WHAT HAS TO BE DONE BY WHOM AND WHEN. 5/2/2012 31 . THIS CAN BE IN WRITING WITH ADEQUATE INFORMATION AND EXPLANATIONS.

WISH YOU SUCCESS IN EVERY FIELD 5/2/2012 32 .

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