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Negotiation Skills Basics
Negotiation Skills Basics
Objective
• Explain What is Negotiation
• Explain the Basic Principles of
• Negotiation
Describe the Benefits of Negotiation
• Explain the Types of Negotiation
• Strategies
Explain the Stages of the Negotiation
• Process the Concepts of a Win-Win
Describe
• Negotiation
Explain the Various Styles of
• Negotiation
Explain What is BATNA
• Describe Strategies for Developing
• Negotiation Skills of Third Party
Explain the Types
• Explain the PROBE Technique for
• Negotiating
Describe the Negotiations in
• Organizations
List the Issues in Negotiation
• List the Characteristics of a Good
• Negotiator
List the Tips for Effective Negotiation
Introduction
Maxwell
Telecommunications, a
leading Telecom
Service company
recently came to
Globus to have new
SAP based database
software to be
developed for them.
Introduction
Peter carefully
reviewed and analyzed
Maxwell’s
requirements and
came up with a Project
Plan.
Introduction
LLeett uuss le
leaarrnn aabboouutt
‘N
‘Neeggootitiaatitioon Sk
n Skilillsls’’ iinn
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Objective
• Explain What is Negotiation
• Explain the Basic Principles of
• Negotiation
Describe the Benefits of Negotiation
• Explain the Types of Negotiation
• Strategies
Explain the Stages of the Negotiation
• Process the Concepts of a Win-Win
Describe
• Negotiation
Explain the Various Styles of
• Negotiation
Explain What is BATNA
• Describe Strategies for Developing
• Negotiation Skills of Third Party
Explain the Types
• Explain the PROBE Technique for
• Negotiating
Describe the Negotiations in
• Organizations
List the Issues in Negotiation
• List the Characteristics of a Good
• Negotiator
List the Tips for Effective Negotiation
What is Negotiation?
r e fo re,
. The
s am e nd
a c t ly n k s a
a r e ex t hi n s a nd
p e o ple iv i d u al s it u atio s. It
t w o y i nd re n t a i m
No d e ver in d iffe e fs an d
a n
each s different , wants, b
l y e l i
p le t hat
av e ed s e e n peo fr om
beh t n e e t w ic t
d iff e ren
e r e n ce b and confl
has a s ic diff e m e nt
b re
is this se to disag
ri ac h
gives -time. i t h e
time-
to o -e x ist w ell as
u t u ally c ional as w se
r, to m o fess t the
o v e , p r t h a
More t personal important ould be
a is h
other s level, it eements s
u s in es d i sagr
b d
n fl ic t s an
co
s o l v ed.
re
Need for Negotiation
g u m ent
a d to ar or
m a y le o n e
fli c ts u l t i n
s e co n a y r e s a p p y.
e cau ic hm g un h
is b w h e li n
This n t m ent a rti e s fe to
r e s e ed p lv ed
and e in v olv o n e invo
th ery
all of h e lp s e v
e m e nt
o tia tion o f a gre so m eet
, ne g r o un d n da l
n c e n g t s a
He c o m mo e e m en
a g r
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ee bj
betw dividual o
in
their
Objective
• Explain What is Negotiation
• Explain the Basic Principles of
• Negotiation
Describe the Benefits of Negotiation
• Explain the Types of Negotiation
• Strategies
Explain the Stages of the Negotiation
• Process the Concepts of a Win-Win
Describe
• Negotiation
Explain the Various Styles of
• Negotiation
Explain What is BATNA
• Describe Strategies for Developing
• Negotiation Skills of Third Party
Explain the Types
• Explain the PROBE Technique for
• Negotiating
Describe the Negotiations in
• Organizations
List the Issues in Negotiation
• List the Characteristics of a Good
• Negotiator
List the Tips for Effective Negotiation
Basic Principles of Negotiation
There are a few common basic principles that apply to all types of negotiations
and in all situations. Some of the basic principles of negotiation are as follows:
e
Distributiv
n
Negotiatio
Integrati
ve
Negotia
tion
i lls t hat
u c i al sk or:
s t c r tiat
t h e mo a t n ego
n g are e a gre
i
llow to becom e
e fo
Th l p y ou f e x ibl
e d
can h open an ical
e th
• B ways be e thize
A l m p a l s k i lls
•
l w ays e od socia
• A velop go ntuitions
e i
• D llow your
o
• F assertive
e
• B
Distributive vs. Integrative Negotiation
The given table shows the comparison between Distributive Negotiation and
Integrative Negotiation.
Distributive Negotiation Integrative Negotiation
It involves discussion of only one issue at a It involves discussion of several issues at a
time. time.
Involved parties have a ‘Win-Lose’ attitude Involved parties have a ‘Win-Win’ attitude
towards reaching the negotiation outcome. towards reaching the negotiation outcome.
Each party wants to use the negotiation to Each party wants to use the negotiation to
maximize its own share of ‘fixed pie’. ‘expand its own share of the pie’ by creating
and claiming value.
It is an approach usually used in one-time It is an approach usually used in a continuing
relationship between two people. relationship between two people.
The involved parties keep their respective The involved parties share their respective
interests hidden. interests with the other party.
Each party expresses a strong position for Each party expresses and try to come up with
each issue. as many options as possible per issue to
maximize mutual gains.
Distributive vs. Integrative Negotiation
The given table shows the comparison between Distributive Negotiation and
Integrative Negotiation.
Distributive Negotiation Integrative Negotiation
The involved parties keep information hidden. The involved parties share information with
each other and try to get to the root cause of
the ‘why’ of the existence of the issue.
The involved parties are adversaries. The involved parties are joint problem-
solvers.
The aim of such negotiation is ‘winning’. The aim of such negotiation is ‘making a wise
decision’.
The main focus of involved parties is on their The main focus of involved parties is on their
‘stance or position’. ‘goals and objectives’.
The involved parties use pressure to get what The involved parties do not use pressure but
they want. strive to get what they want through
principles.
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Objective
• Explain What is Negotiation
• Explain the Basic Principles of
• Negotiation
Describe the Benefits of Negotiation
• Explain the Types of Negotiation
• Strategies
Explain the Stages of the Negotiation
• Process the Concepts of a Win-Win
Describe
• Negotiation
Explain the Various Styles of
• Negotiation
Explain What is BATNA
• Describe Strategies for Developing
• Negotiation Skills of Third Party
Explain the Types
• Explain the PROBE Technique for
• Negotiating
Describe the Negotiations in
• Organizations
List the Issues in Negotiation
• List the Characteristics of a Good
• Negotiator
List the Tips for Effective Negotiation
Stages of the Negotiation Process
The following are the stages of any negotiation process:
Meeting:
Inquiry:
Bargaining:
Closure:
Acceptance:
Stage 4:
Closure
Stage 4:
Closure
Stage 4:
Closure
Stage 3:
Bargaining
Stage 2:
Inquiry
During the inquiry stage, Peter should
exchange information with the client and
Stage 1: discuss their concerns, scope of work,
Meeting deadlines, future enhancements etc.
Real Life Example
Stage 2: Inquiry
Stage 5:
Acceptance
Stage 4:
Closure
Stage 3:
Bargaining
Stage 4:
Closure
Stage 3:
Bargaining
Stage 2:
Inquiry
At this stage, Peter should now agree to
terms that are completely acceptable and
Stage 1: offer options and tradeoffs for things that
Meeting are unacceptable as is stated by the client.
Real Life Example
Stage 3: Bargaining
Stage 5:
Acceptance
Stage 4:
Closure
Stage 3:
Bargaining
Stage 4:
Closure
Stage 3:
Bargaining
Bargaining
Stage 2:
Inquiry
At this stage, it is important that both the
client and Peter restate their positions and
Stage 1: confirm their tradeoffs they are willing to
Meeting negotiate.
Real Life Example
Stage 4: Closure
Stage 5:
Acceptance
Stage 4:
Closure
Stage 3:
Bargaining
Bargaining
So, agreement sh
ould be achieved
deadlines, curren on the agreed
Stage 2: t scope, terms re
enhancements e garding future
Inquiry tc. It should be a
the partieAt this
s th greethat
stage, it is important d upoboth
n bythe
both
at th e discussed and a
terms wouclient
ld nowand Peter restate their grepositions
ed upon and
be drafted into a
Stage 1: contract bconfirm
etween th their tradeoffs theylegare
al anwilling
d bindtoing
Meeting e two parties.
negotiate.
Real Life Example
Stage 5: Acceptance
Stage 5:
Acceptance
Stage 4:
Closure
Stage 3:
Bargaining
Stage 2:
Inquiry At this final stage of the negotiation
process, Peter should make sure that both
the parties agree to signoff the deal and
Stage 1:
reach an agreement on the terms of the
Meeting
Project.
Negotiation Outcomes
The given image shows the various options of possible outcomes with respect to
the parties involved in a negotiation.
YOU
WIN LOSE
WIN
I Lose,
LOSE
We Both
You Win Lose
Objective
• Explain What is Negotiation
• Explain the Basic Principles of
• Negotiation
Describe the Benefits of Negotiation
• Explain the Types of Negotiation
• Strategies
Explain the Stages of the Negotiation
• Process the Concepts of a Win-Win
Describe
• Negotiation
Explain the Various Styles of
• Negotiation
Explain What is BATNA
• Describe Strategies for Developing
• Negotiation Skills of Third Party
Explain the Types
• Explain the PROBE Technique for
• Negotiating
Describe the Negotiations in
• Organizations
List the Issues in Negotiation
• List the Characteristics of a Good
• Negotiator
List the Tips for Effective Negotiation
Critical Concepts of Win-Win Negotiation
The following are the five most critical concepts that you should keep in
mind for a win-win negotiation:
Pause for
reflection
Agree on
factual Clarify your
information objectives in
the beginning
Pause for
Reflection
Pause for Refection
Pause for
reflection Clarify your objectives in the
beginning
Pause for
Agree on factual information reflection
Pause for
reflection
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