Negotiation and its

Strategies
 Dictionary meaning

 Negotiation (n): formal discussion between people who are trying to reach an
agreement.
• They begin another round of negotiations today.
• The rent is a matter for negotiation between the landlord and the tenant.
 Negotiate (v): to try to reach an agreement by formal discussion.
• The government will not negotiate with terrorists.
• We have been negotiating for more pay.
Meaning
Negotiation is a method by which people settle differences. It is
a process by which compromise or agreement is reached while
avoiding argument and dispute.
Negotiation Skills
1. Problem Analysis to Identify Interests and Goals
2. Preparation Before a Meeting
3. Active Listening Skills
4. Keep Emotions in Check
5. Clear and Effective Communication
6. Collaboration and Teamwork
7. Problem Solving Skills
8. Decision Making Ability
9. Maintaining Good Relationships
10.Ethics and Reliability
Negotiation Process
1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action
Strategies of Negotiation
1. Win-Win
2. Win-Lose
3. Compromise
4. Lose-Lose
Win-Win Strategy
Win-win outcomes occur when each side of a dispute feels they have
won. Since both sides benefit from such a scenario, any resolutions to
the conflict are likely to be accepted voluntarily.
Win-Lose Strategy
This term refers to a distributive negotiation whereby one party's gain

is another party's loss. Both parties are competing to get the most

value from the negotiation.

Compromise
Compromise is a basic negotiation process in which both parties give
up something that they want in order to get something else they want
more. Compromises usually occur in win-lose situation.
For example, Joy and Antony want to buy a house that is on the
market for Rs.200,000. However, they do not want to pay that much,
so they make an offer of Rs.160,000. Bob, the seller, does not want to
go that low, but does want to sell the house soon, so he offers to sell
for Rs.180,000. Joy and Antony accept the deal and the house is sold.
In this case, Joy and Antony paid Rs.20,000 more than they wanted to
and Bob sold for Rs.20,000 less, but the house was exchanged, which
was the main goal of both parties.
Lose-Lose Strategy
This approach brings together the individuals or groups in a conflict
together and asks each side to give up a part of what it desires to
create a common ground that both sides can tolerate. In essence, both
sides give up something lose. The object is to find some expedient,
mutually acceptable solution that partially satisfies both parties. This
approach falls on a middle ground between competition and
accommodation.
“Effective Negotiation is 90% Attitude and 10%
Technique”