BUSINESS

NEGOTIATION
MEANING OF NEGOTIATION

• According to Professor J.L. Graham,

“Negotiation is a face-to-face decision-making
process between parties concerning a specific
product.”
 NATURE OF NEGOTIATION
• IT REQUIRES TWO PARTIES :- It requires the parties to work together to
achieve their Goals.

• THE OBJECTIVE IS TO REACH AN AGREEMENT :- They may not reach

an agreement but all efforts need to be made an agreement.

• IT IS A CONTINUOUS PROCESS :- Negotiation constantly occurs b/w

employers and employees wages n other, b/w amoung deparments
over resources.
• NO WINNER/NO LOSER :- Negotiation need not have a winner and a loser. There are
oppurtunities to be creative in communication to bring both parties together towards a win-win
outcome with mutual interest of both parties.

• REQUIRES FLEXIBILITY :- The parties toa negotiation need to be flexible.

• A PROCESS NOT AN EVENT :- It is a process involving briefing and discussion, and

understanding each other etc.., where the objective is to reach an agreement over issues.

• NEEDS EFFECTIVE COMMUNICATION :- Six C’s for its effectiveness are completeness,
consciousness, courtesy, correctness, consideration and compact .
 P’S OF NEGOTIATION
• PURPOSE :- Each negotiation has a specific purpose. Without aim, negotiation
will lead to wastage of resources.

• PLAN :- Each step of negotiation is planned.

• PACE :- The negotiator should try to achieve agreements on points of the

negotiations before their concenteration reduces.
PROCESS OF BUSINESS NEGOTIATION

TASK RELATED
EXCHANGE OF
INFORMATION

PERSUATION
SOCIALISING
AND
RELATIONSHIP
BUILDING
CONCESSION
AND
ARGEEMENT
1). SOCIALISING AND RELATIONSHIP BUILDING :-
The first stage in business negotiation involves activities aimed at socislising and relationship
building. These activities take place outside of the negotiation proper but are very important.
Information useful at the time of negotiation proper may be obtained through socializing.

2). TASK RELATED EXCHANGE OF INFORMATION :-

In this stage the parties state their expectations and their positions concerning the negotiation.
3). PERSUATION :-
During this stage of the negotiation process each negotiating party attempts to persuade the other
party to modify their position so as to be close to its own.

4). CONCESSION AND AGREEMENT :-

This is the bargsining stage. In a competitive bargaining strategy, each side tries to extract the best
possible deals. Under the cooperative strategy, on the other hand, the focus is on arriving at a
mutually beneficial outcome.
THANKYOU
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