ec nego skills4
TRANSCRIPT
-
8/10/2019 Ec Nego Skills4
1/43
NEGOTIATION SKILLS
EFFECTIVE COMMUNICATION UWB 10202
-
8/10/2019 Ec Nego Skills4
2/43
INTRODUCTION
a method by which people settle differences. a process by which compromise or agreement is
reached while avoiding argument.
the principles of fairness, seeking mutual benefitand maintaining a relationship
-
8/10/2019 Ec Nego Skills4
3/43
-
8/10/2019 Ec Nego Skills4
4/43
WHY NEGOTIATE?
conflict and disagreement will arise as thediffering needs, wants, aims and beliefs of peopleare brought together.
conflicts may lead to argument and resentmentresulting in feeling dissatisfied.
to reach agreements without causing futurebarriers to communications.
-
8/10/2019 Ec Nego Skills4
5/43
-
8/10/2019 Ec Nego Skills4
6/43
CHARACTERISTICS OF NEGOTIATION
(i) There are a minimum of two parties present inany negotiation.
(ii) Both the parties have pre-determined goalswhich they wish to achieve.
(iii) There is a clash of pre-determined goals, thatis, some of the pre-determined goals are notshared by both the parties.
-
8/10/2019 Ec Nego Skills4
7/43
(iv) There is an expectation of outcome by both
the parties in any negotiation.
(v) Both the parties believe the outcome of the
negotiation to be satisfactory.
-
8/10/2019 Ec Nego Skills4
8/43
(vi) Both parties are willing to compromise, that is,modify their position.
(vii) The incompatibility of goals may make themodification of positions difficult.
(viii) The parties understand the purpose ofnegotiation
http://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.htmlhttp://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.htmlhttp://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.htmlhttp://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.html -
8/10/2019 Ec Nego Skills4
9/43
2.1 The Process of Negotiation
Structured approach to negotiation1. Preparation
2. Discussion
3. Clarification of goals4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action
-
8/10/2019 Ec Nego Skills4
10/43
1. Preparation
a decision needs to be taken as to:
- when and where a meeting will take place todiscuss the problem
- and who will attend.- Set limited time scale to prevent the
disagreement continuing.
Ensure all the pertinent facts of the situation areknown to clarify your position.
-
8/10/2019 Ec Nego Skills4
11/43
2. Discussion
members of each side put forward the case as theysee it, i.e. their understanding of the situation.
Key skills during this stage arequestioning,listeningandclarifying.
It is extremely important to listen, as when disagreement takes place it is easy to
make the mistake - saying too much and listeningtoo little.
http://www.skillsyouneed.com/ips/questioning.htmlhttp://www.skillsyouneed.com/ips/questioning.htmlhttp://www.skillsyouneed.com/ips/listening-skills.htmlhttp://www.skillsyouneed.com/ips/listening-skills.htmlhttp://www.skillsyouneed.com/ips/clarification.htmlhttp://www.skillsyouneed.com/ips/clarification.htmlhttp://www.skillsyouneed.com/ips/clarification.htmlhttp://www.skillsyouneed.com/ips/clarification.htmlhttp://www.skillsyouneed.com/ips/listening-skills.htmlhttp://www.skillsyouneed.com/ips/listening-skills.htmlhttp://www.skillsyouneed.com/ips/questioning.htmlhttp://www.skillsyouneed.com/ips/questioning.html -
8/10/2019 Ec Nego Skills4
12/43
-
8/10/2019 Ec Nego Skills4
13/43
4. Negotiate Towards a Win-Win
Outcome
both sides feel they have gained somethingpositive
both sides feel their point of view has been takeninto consideration.
-
8/10/2019 Ec Nego Skills4
14/43
5. Agreement
Agreement can be achieved once understandingof both sides viewpoints and interests have beenconsidered.
Any agreement needs to be made perfectly clearso that both sides know what has been decided.
-
8/10/2019 Ec Nego Skills4
15/43
6. Implementing a Course of Action
In any negotiation, the following three elementsare important and likely to affect the ultimateoutcome of the negotiation:
1. Attitudes : towards the issues.
2. Knowledge : the more knowledge, the greateryour participation.
3. Interpersonal Skills : e.g- effective verbal comm,listening skills, building rapport, problem solving,etc.
-
8/10/2019 Ec Nego Skills4
16/43
-
8/10/2019 Ec Nego Skills4
17/43
2.2 Basic Approaches
1. Distributive Negotiation or Win-Lose
Approach2. 2. Lose-Lose Approach
3. 3. Compromise Approach
4. 4. Integrative Negotiation or Win-WinApproach
-
8/10/2019 Ec Nego Skills4
18/43
1. Win-Lose Approach
competitive, zero sum, or claiming value approach
one person can win only at the expense of the
other. seeks to gain advantage through
- concealing information,
- misleading or- using manipulative actions.
-
8/10/2019 Ec Nego Skills4
19/43
-
8/10/2019 Ec Nego Skills4
20/43
(iv) The dominant concern in this type ofbargaining is usually to maximize ones own
interests.
(v) The dominant strategies in this mode includemanipulation, forcing and withholding
information.
-
8/10/2019 Ec Nego Skills4
21/43
-
8/10/2019 Ec Nego Skills4
22/43
-
8/10/2019 Ec Nego Skills4
23/43
-
8/10/2019 Ec Nego Skills4
24/43
3. Compromise Approach
To avoid a lose-lose situation
both parties give up a part of what they had
originally sought.
A compromise is the best way out when it is
impossible for both parties to convince each otheror when the disputed resources are limited.
-
8/10/2019 Ec Nego Skills4
25/43
-
8/10/2019 Ec Nego Skills4
26/43
4. Win-Win Approach
called as collaborative or creating value approach.
results in both the parties feeling that they are
achieving what they wanted.
-
8/10/2019 Ec Nego Skills4
27/43
Characteristics:
(i) There are a sufficient amount of resources to bedivided and both sides can win
(ii) The dominant concern here is to maximize jointoutcomes.
(iii) The dominant strategies include cooperation,sharing information, and mutual problem-solving.
-
8/10/2019 Ec Nego Skills4
28/43
-
8/10/2019 Ec Nego Skills4
29/43
2.2.1 Four Negotiation Strategies
1. Yielding
2. Compromising
3. Competing
4. Problem solving
-
8/10/2019 Ec Nego Skills4
30/43
1. Yielding
to not negotiate. accepts the first offer or assumes the price is
fixed.
to avoid inner discomfort from thoughts of takingadvantage of someone else .
fear of some form of conflict or other
unpleasantness. assume other people are more important and
powerful than them
-
8/10/2019 Ec Nego Skills4
31/43
2. Compromising
seeks some fair balance where both partiesappear to get an equitable deal.
this approach is to 'split the difference.
see others as worthy and equal to them, and
hence seek fair play.
see themselves as equal to others rather than
inferior.
-
8/10/2019 Ec Nego Skills4
32/43
3. Competing
aggressive approach.
their goal is to get as much as possible at
whatever cost to the other party.
often assume they are superior or feel inferior but
need to appear superior.
-
8/10/2019 Ec Nego Skills4
33/43
4. Problem-solving
closer to Compromising approach. Does not see the other person as competitor or
threat,
but rather as a person who has legitimate wantsand needs,
more to work together on an equitable andreasonable solution.
seek to understand the other person's situation,explain their own, and then creatively seek asolution where both can get what they need.
-
8/10/2019 Ec Nego Skills4
34/43
2.3 Phases of Negotiation
1. preparation,
2. opening,
3. bargaining
4. closure.
-
8/10/2019 Ec Nego Skills4
35/43
Stage 1: Preparation
(i) Gathering Information- what info is neededfrom the other side.
(ii) Leverage Evaluation evaluate the otherpartys leverage.
(iii) Understand the people involved- with whomyou are dealing with.
-
8/10/2019 Ec Nego Skills4
36/43
(iv) Rapport- determine how cooperative theopponent is.
(v) Know your objectives- what your priorities are.
(vi) Type of negotiation- highly competitive/cooperative? By face to face/ fax/ throughmediator?
(vii)Plan- decide the approach and plan accordingly.
-
8/10/2019 Ec Nego Skills4
37/43
-
8/10/2019 Ec Nego Skills4
38/43
Stage 2: Opening Phase
Here the two sides come face to face.
Each party tries to make an impression on the
other side and influence their thinking at the firstopportunity.
It involves both negotiating parties presentingtheir case to each other.
-
8/10/2019 Ec Nego Skills4
39/43
Stage 3: Bargaining Phase
involves coming closer to the objective youintended to achieve.
the basic strategy is to convince the other side ofthe appropriateness of your demands .
then persuading the other party to concede tothose demands.
-
8/10/2019 Ec Nego Skills4
40/43
l h
-
8/10/2019 Ec Nego Skills4
41/43
Stage 4: Closure Phase represents the opportunity to capitalize on all of
the work done in the earlier phases.
involves the sealing of the agreement in which
both parties formalize the agreement in a writtencontract .
to review each element and find out what wentwell and what needs to be improved
-
8/10/2019 Ec Nego Skills4
42/43
-
8/10/2019 Ec Nego Skills4
43/43