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NEGOTIATION

A process in which two or more parties exchange goods or

services and attempt agree on the exchange rate for them.


1. Distributive Bargaining :- Negotiation that seeks to

divide up a fixed amount of resources.( A win- loose situation)

2. Integrative Bargaining:- Negotiation that seeks one or more settlements that can create a win-win situation.

Distributive versus Integrative Bargaining


Bargaining Character
1.Available Resource

Distributive Character
Fixed amount of Resource to be divided

Integrative Character
Variable amount of resources to be divided

2.Primary Motivation 3. Primary Interest

I win, you loss Oppose to each other

I win you live Convergent or congruent with each other

4. Focus of Relationship

Short term

Long term

NEGOTIATION PROCESS
Preparation and Planning Definition of Ground Rules Clarification and Justification Bargaining and Problem Solving

Closure and Implementation

1. Preparation and Planning: What is the nature of the Conflict.


What is the history leading up to the Negotiation. Who is involved and what are there Perceptions of

Conflict.

2. Definition of Ground Rules:- To what issues will negotiation be limited ? Will there be a specific procedure to follow if an impasse is reached ? During the phase, the parties will also exchange their initial proposals or demands. 3. Clarification and Justification:- when initial positions have been exchanged, both you and other party will explain, amplify, clarify, bolster, and justify organizational demands.

4. Bargaining and Problem Solving:- The essence of the negotiation process is the actual give and take in trying to hash-out an

agreement. 5. Closure and Implementation:- The final step in the negotiation process is for malizing the agreement that has been worked out and developing any procedures .

BATNA
The Best Alternative To a Negotiated

Agreement :- Your BATNA determine the lowest value accepted to you for negotiated agreement . Conversely you should expect success in your negotiation effort unless you are able to make the other party an offer, they will find more attractive than their BATNA.

ISSUES IN NEGOTIATION
1. The role of personality traits in negotiation

Risk taker :- More aggressive bargainers Research :- Personality traits dont have significant direct efforts. Therefore issues and situational factors are important rather than personal factors.

2. Gender differences in negotiation :Research dont support it.

3. Cultural differences :Americans: Persuade by relying on facts and appealing to logic : Small concessions reciprocate to opponent concessions to establish a relationship. Treated deadlines as very important. Arabs Persuade by appealing to emotion. Russians: Persuade by arguments based on ideals and they make only few concessions

4. Third party negotiation :- when direct negotiation is not possible

Mediator :- In neutral third party who facilitated solution by using reasoning persuasion and suggestion for alternatives. This is done when direct negotiation has reached stalemate. Arbitrator :- Who has authority to dictate an agreement Conciliator :- Who provides an informal communication link between the negotiator and the opponent. Consultant :- Skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.