INTRODUCTION TO

NEGOTIATION “Negotiation is a
discussion among the
individuals to reach an

One should be crisp and

alternative to satisfy all”.
precise in his/her speech.

“Discussion” here means

Haphazard thoughts and simply the exchange of
abstract ideas only lead one’s ideas, thoughts
to confusions. and opinions with each
other and not arguing.

One needs to have

One should very sensibly
excellent communication
convert his/her thoughts
skills and impressive
into a speech by
personality for a healthy
carefully selecting
and an effective
relevant words.
negotiation.
NATURE AND NEED FOR
NEGOTIATION
What are the factors or what are the
elements should exist in the
negotiation, and what are the factors will
fulfill the negotiation process is called as
nature and need for negotiation.
There are two or more parties- that is,
two or more individuals, groups, or
organizations. Although people can
"negotiate' with themselves - as when
someone debates whether to spend the
afternoon studying, playing tennis, or
going to the football game - we will
discuss negotiation as an interpersonal or
inter-group process
NATURE AND NEED FOR
NEGOTIATION
Conflict- Choice of interest between two or more parties that is, what one wants is not
necessarily what the other one wants and the parties must, therefore, search for a way to
resolve the conflict.

Choice- The parties negotiate because they think they can use some form of influence to
get a better deal that way than by simply taking what the other side will voluntarily give
them or let them have. Negotiation is largely a voluntary process. It is a strategy pursued
by choice; seldom are we required to negotiate.
 FACTORS AFFECTING
NEGOTIATION
 Authority: Both the parties should have the power or authority
to conclude the deal.
 Credibility: It comes from person’s knowledge, expertise ,
track record & relationships. Trust & mutual confidence
are very important.
 Information: Negotiation often proceeds on the basis of facts,
past data, future trends & outlook, empirical data &
calculations.
 Time: Time frame within which the negotiation should be
completed.
 FACTORS AFFECTING
NEGOTIATION

Emotional control: Human beings are not just Communication skills: Negotiation is an intense
rational, they are also emotional. Good negotiators process involving exchange of message. The
are aware of the play of emotions and are negotiator needs to state, articulate, explain, appeal,
responsive to them. even silent depending upon the situation.
 STAGES OF
NEGOTIATION
• the early stage where you share information with others and learn
more about them and what they want.
• Exploration may also be a relatively unstructured affair where
the two parties get to know one another and discover that each
EXPLORE has
something that the other wants.

• When the parties have enough information, then the

negotiation starts with someone offering an exchange.
• The essence of a bid is that it is an offer that may be accepted,
rejected or trigger a counter-offer. If the initial bid is accepted then
BIDDING the deal is swiftly concluded. Otherwise there may be significant
bargaining activity.
 STAGES OF
NEGOTIATION
• The heart of many negotiations is in bargaining, the adjustment of
what is being traded until both parties are satisfied with the
arrangement.
• An important part of bargaining is trading, where parties
BARGAIN say 'If you give me that, then I will give you
effectively
this.

• When the deal is broadly agreed, it is formalized in a way

that makes it difficult for either party to back out or change
their commitment.
• The first step of settling is to agree what you have agreed. It is
SETTLE surprising how often people do not agree on this as they reflect on
the detail, and returning to bargaining may be necessary
 ROLL OF PERSONALITY IN
NEGOTATION
A charming personality is the key to an effective negotiation.

During negotiations an individual must try to be himself. One should not fake
things or pretend to be good.

Sincerity is one of the most important personality traits required in negotiation.

One has to be sincere for an effective negotiation. Don’t take things casually. Go
well prepared for your negotiation.
Our dressing plays an important role in enhancing our personality. A shabbily
dressed person will find it very difficult to convince the other person.

Be Patient. It has been observed that impatient individuals are poor negotiators.
 ROLL OF PERSONALITY IN
NEGOTATION
 Be professional in your approach. Once your deal is closed, do
sign a contract in presence of both the parties.
 Enhance your listening skills for a better negotiation. Listen to
the other party as well.
 Be a little tactful and diplomatic. Being diplomatic does not
mean being clever.
 WHAT IS NEGOTIATION
STRATEGY?
 A pre-determined approach or prepared plan of action to
achieve a specific goal or objective to potentially find and
make an agreement or contract in a negotiation with
another party or parties.
FIVE SUCCESSFUL NEGOTIATION
STRATEGIES
The negotiating process
is continual, not an Think positive. Prepare.
individual event.

Think about the best & Be articulate & build Be articulate & build
worst outcome. value. value.
 NEGOTIATION STRATEGY: SEVEN COMMON
PITFALLS TO AVOID
 Poor Planning
 Thinking the Pie is Fixed
 Failing to Pay Attention to Your Opponent
 Assuming That Cross-Cultural Negotiations are Just Like
"Local" Negotiations
 Paying Too Much Attention to Anchors
 Caving in Too Quickly
 Don't Gloat
THANK YOU
 N VIA IN FO RMATI ON
NEGOTIAT IO
TE CHN OL OG Y
• There is a hundred of evidence on how information technology affects social
behavior, Information Technology, "I.T.“ refers to anything related to computing
technology, such as networking, hardware, software, the Internet, or the people
that work with these technologies.
• Since we live in the "information age," information technology has become a
part of our everyday lives.
• how e-mail, as a particularly important type of information technology, affects
negotiation behavior, or how powerful the internet can be when used as a public
sounding board
• How "I.T.“ affects negotiation behavior, what is the strategies to help Negotiators
expand & divide the pie effectively.
Objectives

• Know what is Negotiation & the impact of IT on

Negotiation
• Study a model of social interaction
• Understand the effects of IT on Social Behavior
• Examine tactics to enhance technology mediated
negotiations

“Let us never negotiate out of fear. But let us never fear to negotiate”
John Fitzgerald Kennedy quotes American 35th US President (1961-63)
PLACE-TIME MODEL OF SOCIAL INTERACTIONS
(1/2)
• The Place-Time model describes four sub-models of interactions:-
Same Time & Same Place │Same Time & Different Place │Different Time & Same Place │Different Time & Different Place

• As might be suspected Negotiation behavior unfolds differently in each sub-models

• One consideration is the richness or the potential information carrying of the communications

Extremely Rich Extremely

Lean

Telephone zero Rich

Single Text
Face
Face to

& Zero
Lean
Video Editing

V.mail
Email
No
Conference Negotiation Shift Work
 PLACE-TIME MODEL OF SOCIAL
INTERACTIONS (2/)
Extremely Rich
Same Time Same Place
Face To Face
Communications , Clear
Preference, Crucial in the
initiation of relationships
Leads to more
trusting
Ideal for complex negotiations
Reach more integrative Win-
Win outcomes and more
Balanced distribution of surplus
Smooth negotiations
Easier & more lioknely to occur
The same wavelength
Same Time Different Place
Not physically in the same
place
Via Telephone( Lack facial
Cues) , Videoconference (Lack
real time social cues)
Challenges are loss of informal
communications lost, Lost
opportunity , separation of
feedback & negotiation
timing
Extremely Lean
Different Time Same Place Different Time Different Place
Negotiators interact Asynchronously in different
Asynchronously but have Places as the telephone
access to some physical become an important for
document or space Working out deals, the internet
Is rapidly becoming the
Example :- Medium of choice for many
Single test editing “technobargainers “
Shift Work The four key biases that affect
The ability of people to
Negotiate via e-mail:-
Temporal synchrony Bias
Burned Bridge Bias
Squeaky wheel Bias
Sinister Attribution Bias
 IT AND ITS EFFECTS ON SOCIAL
BEHAVIOR
• In addition to affecting negotiated outcomes IT has an extremely powerful effect on social
behavior in general
• Negotiators must understand how their own behavior is affected by technology in face-to-face
negotiations:-
Trust People who negotiate online trust each other less even before beginning the negotiation
Weak get strong effect People do not contribute to conversation equally
Social Networks Who Communicate with whom via technology, the natural of social networks
that shape negotiation behavior changes dramatically when IT enters the picture as a form of
communication

Risk Taking according to the framing effect people are risk-averse for gains and risk seeking for
losses
Rapport and social Norms building trust and rapport is critical for negotiation success, when
technological change creates new social situations, traditional, expectations and norms lose
their power, People invent new ways of behaving.

19
STRATEGIES FOR ENHANCING TECHNOLOGY –
MEDIATED NEGOTIATIONS
• Often negotiators do not have the luxury of face to face meetings for the duration of their
negotiations, What strategies can be employed to enhance successful pie-expansion and
pie-slicing?

Tactics:-
Initial Face to face experience The effectiveness of virtual and face to face teams was
compared as they worked on a brainstorming exercise and a negotiation exercise. Oftentimes
people develop rapport on the basis of a short face to face meeting which can reduce
uncertainty and build trust

One-day Videoconference/Teleconference If face to face meeting is out of the question an

alternative may be to get everyone online so that at least people can attach a name to a face.
It may be more feasible than face to face meeting.
 CONCLUSION

• Use the place-time model of social interaction to examine how the medium of communication
affects negotiation
• e.Negotiation is not a replacement of the traditional Negotiation
• We can get the optimum benefits from applying the e.Negotiation with the formal
subjects, on the other hand the traditional Negotiation is more reliable with the informal
subjects
• Start with the e.Negotiation may lead to traditional Negotiation and vise versa
• Next step is a ready made programs to simulate any cases with many solutions to be
apply, Artificial Negotiation Intelligent (ANI).