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NEGOTIATION SKILLS

NEGOTIATION
How would you define

negotiation?
What are the alternatives to

negotiation as a technique?

NEGOTIATION
Negotiation is a process which

takes place when two or more


interdependent parties who
have different needs and goals,
work together to find a mutually
acceptable & beneficial
outcome.
This often involves both parties
making concessions.
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ALTERNATIVES
PERSUASION ( convincing the other party )
GIVING IN
COERCION ( threatening )
PROBLEM SOLVING
INSTRUCTION (employer/employee

relationship )
ARBITRATION ( seeking fairest 3rd party ruling )
NOTE: Negotiation is the art of persuasion
and thus, it is a skill to learn & enhance.
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NEGOTIATION
A
successful negotiator needs
SKILLS
to be.

professional
confident, relaxed, at ease
open, honest, sincere & credible
respectful of other peoples values
show empathy and understanding
committed to a WIN:WIN result
continually enhancing their skills
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Lets watch this:


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THE 4 PHASES OF NEGOTIATION


PROCESS

STAGE 1 : PREPARATION
You are clear about your objectives and

what you are trying to achieve:

You have worked out your tactics and how

best to put your case.

You have gathered background

information

http://www.ehow.com/video_4774342_negot

ating-skills_.html
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STAGE 2 : EXCHANGING
INFORMATION
This is the single most important

stage of negotiation. Both parties will


be trying to find out and understand
the others position and requirements.

STAGE 3 :

As soon as a number or term is


BARGAINING

mentioned by one party, you have


begun to move out of information
exchange and into bargaining....

Exchange of terms

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BARGAINING cont
Reject
constructively:

Do not cause offence. Im afraid we cant

possibly agree to a reduction in the service


charge, but there might be room for
manoeuvre on the wording of clause16.
Retain a constructive atmosphere.
Be firm on broad issues:
be flexible on specifics.

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STAGE 4 : CLOSING AND


COMMITMENT
Your judgement :
Is this best and final offer?
If yes:
List the agreement in detail
List the points of explanation,

clarification and interpretation


Record agreed summary with all at the
table
Re-start negotiations if any dispute
over agreement

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Basic Approaches
4 different approaches to negotiation:
Distributive Negotiation or Win-Lose

Approach
Lose-Lose Approach
Compromise Approach
Integrative Negotiation or Win-Win
Approach

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EFFECTIVE COMMUNICATION
SKILLS WHEN NEGOTIATING

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Making a
deal at the
best price is
good
business
practice
Required
Skills

EFFECTIVE COMMUNICATION SKILLS


WHEN
NEGOTIATING
PREPARATION
Know your product and the value it will

bring to a business so you can convey


your message without hesitation.
If you are buying a product, research and
prepare questions to determine the
validity of any claims and draw out flaws

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EFFECTIVE COMMUNICATION
TONE
OF WHEN
VOICE NEGOTIATING
SKILLS
Pause before making decisions or

making points, emphasizing the


importance of what you are saying.

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EFFECTIVE COMMUNICATION
SKILLS WHEN NEGOTIATING
BODY LANGUAGE
Reading body language will enable you to

interpret the buyer.


Be conscious of your facial expressions and
body positioning to contribute to more
favorable negotiations.
Crossed arms or legs, when standing, for
example, indicate a closed stance.

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EFFECTIVE COMMUNICATION
SKILLS WHEN NEGOTIATING
ATTITUDE
Be authoritative in your approach and

ensure that you maintain composure when


questioned.

If you sound uncertain, a buyer will not

trust your product and may not buy it or


expect a reduction.

It comes to a deadlock if you cannot reach

any agreement.

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FINAL WORDS
Be unconditionally constructive.
Approach a negotiation with thisI

accept you as an equal negotiating


partner; I respect your right to
differ; I will be receptive.

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NEGOTIATION SKILLS
http://www.5min.com/Video/powerfulnego
tiation20g-techniques-155908736
http://www.5min.com/Video/PracticingNegotiation-Skills-155908735
http://www.5min.com/Video/FinishingNegotiations-on-a-High-Note-155908734
http://www.ebsglobal.net/programmes/ne
gotiation-quiz
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TUTORIAL TASK
TUTORIAL TASK 3
(1) What is listening and hearing? Discuss
(2) When and why do you negotiate?
(3) Create and role-play a negotiation in
PAIRS.

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Further reference
http://www.slideshare.net/ImtheKiller/negoti

ating-skills

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Negotiation in Action
http://www.youtube.com/watch?

v=CbKg1W3rtWc&feature=related
http://www.youtube.com/watch?v=sioM-

tLEksc

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