chap 3 integrative negotiation
TRANSCRIPT
NEGOTIATIONUNIT - I
DR. ANSHITA TYAGI
Negotiation:
“We do not get what we want in this life, we get what we negotiate”
----- Garg Karras
Meaning
A negotiation takes place every time when two or more people are communicating and at least one has a goal in his mind. We constantly negotiate consciously or unconsciously. It may be
crying of a child for mother’s milk, The prayer of a devotee
Cont………. Argument of two friends for share in an
apple, The very teaching of a professor in the
class, A business agreement or a contract, A political treaty, etc.; We negotiate to resolve conflict and
solve problem in our favor. Negotiation is a process of adjusting both
parties views of their ideal outcomes to an attainable outcome.
Reasons for Negotiations:
To agree on how to share or divide a limited resource, such as land, or property, or time
To create something new that neither party could do on his or her own or
To resolve a problem or dispute between the parties.
Characteristics of negotiation: There are two or more parties. There is a conflict of interest between
two or more parties The parties negotiate because they
think they can use some form of influence to get a better deal
Negotiate is largely a voluntary process
Cont……
When we negotiate, we expect give and take
Successful negotiation involves the management of intangibles.
Process of Negotiation:
Agenda setting Building confidence and comfort Utilizing your interest map Bargaining Building Long term commitment Objective Criteria ZOPA (Zone of Possible Agreement)
Cont………
Expectations and Concessions Compromise/ Collaborate Follow-up
Objectives of Negotiation: Prolonging an existing arrangement. Putting an end to violent conflict. Demanding for change on one’s own
favor, at the expense of the other. Setting new relationships among the
parties. Some of the Effects not concerning
agreements like propaganda, intelligence or dissuading the opponent.
Important Rules of conduct in Negotiation: There should be opportunity on both the
sides. Needs of all parties have to be satisfied. Be ready to compromise. Good Manners. Relaxed (Be cool). Stick to your core needs. Know what you have and promote it.
Cont……..
Don’t rush to agree(Moving Away). Control your reactions. Relaxed but very watchful and alert. Be self confident. Phrase questions for “yes” answers. Don’t over do self criticism. Be yourself
Cont…….
Be positive. Try to take charge. Clarify each point of agreement. Except positive reactions. Agree to the next steps. Keep small negotiating teams.
Strategy And Tactics of Integrative Negotiation
DR. ANSHITA TYAGI
Getting to YesThe Seven Elements of Negotiation
INTERESTS What do people really want?
OPTIONS What are possible agreements or bits of an agreement?
ALTERNATIVES What will I do if we do not agree?
LEGITIMACY What criteria will I use to persuade each of us that we are not being ripped off?
The Seven Elements of Negotiation (cont’d)
COMMUNICATION Am I ready to listen and talk effectively?
RELATIONSHIP Am I ready to deal with the relationship?
COMMITMENT What commitments should I seek or make?
PROCESSES THAT DISTINGUISH INTEGRATIVE
FROM DISTRIBUTIVE NEGOTIATION INTEGRATIVE DISTRIBUTIVE
Flow of information Free & open flow; share information openly
Conceal information, or use it selectively or strategically
Understanding the other
Attempt to understand what the other side really wants & needs
Make no effort to understand, or use the information to gain strategic advantage
Attention to commonalities and differences
Emphasize common goals, objectives, interests
Emphasize differences in goals, objectives, interests
Focus on solutions Search for solutions that meet the needs of both (all) sides
Search for solutions that meet own needs or block other from meeting their needs
What Makes IntegrativeNegotiation Different?
Focus on commonalties rather than differences
Address needs and interests, not positions
Commit to meeting the needs of all involved parties
Exchange information and ideas Invent options for mutual gain Use objective criteria to set standards
Overview of the Integrative Negotiation Process
Create a free flow of information Attempt to understand the other
negotiator’s real needs and objectives Emphasize the commonalties between
the parties and minimize the differences Search for solutions that meet the goals
and objectives of both sides
Key Steps in the Integrative Negotiation Process
Identify and define the problem Understand the problem fully
identify interests and needs on both sides Generate alternative solutions Evaluate and select among alternatives
Identify and Define the Problem
Define the problem in a way that is mutually acceptable to both sides
State the problem with an eye toward practicality and comprehensiveness
State the problem as a goal and identify the obstacles in attaining this goal
Separate the problem definition from the search for solutions
Strategy of Integrative Negotiation: Build Trust and Share Information. Ask Diagnostic Questions. Provide Information. Unbundled the issues. Make Package deals, not Single-issue
offers. Make Multiple offers Simultaneously.
Tactics of Integrative Negotiation: Forbearance. Trial Balloon. Alternative Positions. Acceptance Time. Brainstorming. Salami. Bracketing.
Factors That Facilitate Successful Integrative Negotiation
Some common objective or goal Faith in one’s own problem-solving ability A belief in the validity of one’s own
position and the other’s perspective The motivation and commitment to work
together
Factors That Facilitate Successful Integrative Negotiation
Trust Clear and accurate communication An understanding of the dynamics of
integrative negotiation
THE PRAM MODEL
Planning. Relationships. Agreements. Maintenance.
Strategy and Tactics of Distributive Bargaining
Dr Anshita Tyagi
Distributive Bargaining ( Win Loss Negotiation) In this type of negotiation one party’s
gain is another party’s loss. It occurs when a fixed amount of resources are to be divided in situations where there is no understanding between the negotiating parties on the major issues.
Strategies used in Distributive Bargaining: I want it all. Time wrap. Good cop, bad cop. Ultimatum.
Strategies for Distributive Bargaining: Preparation. Opening Offers. Exchanging information and
arguments. Concessions and Decisions.
Tactics of Distributive Bargaining: Good Guy/ Bad Guy. High Ball/ Low Ball Tactic. Bogey Tactic. Nibble Tactic. Chicken Tactic. Intimidation/ Aggressive Behavior Tactic. Snow Job Tactic.
STRATEGY AND PLANNING FOR NEGOTIATIONS:
Goal Strategy Planning
GOAL:
The first step in developing a negotiation strategy is to determine one’s goals.
Negotiators should have the ability to anticipate the goals of negotiations and the ways and methods by which they can be achieved. A preparation which is effective would include a thorough, thoughtful and meaningful approach to the goals.
STRATEGY:
A strategy is a blueprint, layout, design, or idea used to accomplish a specific goal.
PLANNING FOR NEGOTIATION: At the first stage the parties should aim at
understanding the nature and characteristics of the conflict.
The next step would be to identify the issues which can be negotiated.
After identification of the issues one should prioritize the issues and they should be solved depending on the urgency of the matters.
Cont….
After prioritizing the issues the next step is to develop a possible alternatives package through which the issues can be resolved.
Understanding the other party is also important. All the information should be gathered regarding the party’s goals and their priority lists.
Importance of Planning:
Preparation and Planning are the two important pillars of negotiation, without these negotiation can not be done in a proper manner.
If negotiators skip planning then they experience the following drawbacks:
Cont….
Failure to determine goals and objectives
Inability to formulate clear and convincing arguments.
Failure to consider other party’s needs and negotiating history.
Inability to defend positions during negotiations.
Planning for Negotiation:
Objectives Information Concessions Strategy And Finally-Tasks
Different Types of Planning: Strategic Tactical Administration