Negotiation Skills

Prepared by:Amresh Kr.PandeyBiblab Mukherjee

KarthikRajkumarMoorthy

Vijaya surya

Negotiation – Definition:

‘The process by which we search for the terms to obtain what we want from somebody who wants something from us’

Gavin Kennedy

Confer with others to reach a compromise or agreement.

Concise Oxford Dictionary

To negotiate is to trade something we have for something we want.

Anon

‘Negotiation is an explicit voluntary traded exchange between people who want something from each other’

Gavin Kennedy

Some decision making tools for negotiation:

Persuasion: Usually the first method we choose when we want something. When opinions and interests are same we can use this method.

Giving in: This is not the best way , and sometimes we have to drop the idea if the cost (in any terms) is too high.

Coercion: Talking forcefully can lead right up to threats, which in turn can erupt in full blown battles.

Problem Solving: This can be used when both parties trust each other

and share the problem.

Negotiating Behaviour

There are three types of behaviour that we can display or encounter during a negotiation:-

RED BLUE PURPLE

RED Behaviour

• Manipulation

• Aggressive

• Intimidation

• Exploitation

• Always seeking the best for you

• No concern for person you are negotiating with

• Taking

People behave in this manner when they fear that they are being exploited by the other party.

BLUE Behaviour

• Win win approach• Cooperation• Trusting• Pacifying• Relational• Giving

Kennedy talks of a ‘behavioural dilemma’, do you cooperate (blue) or defect (red)?Trusting too much can be risky and on the other hand not trusting at all can be seen as deceitful behaviour.

The answer is to merge blue and red behaviour into purple.

PURPLE Behaviour

• Give me some of what I want (red)• I’ll give you some of what you want (blue)• Deal with people as they are not how you think they

are• Good intentions• Two way exchange• Tit for tat strategies• Open• People know where they stand• Determination to solve problems by both sets of

criteria of the merits of the case and/or the terms of a negotiated exchange

The Four Phases of Negotiation

PLAN

DEBATE

PROPOSE

BARGAIN

• My needs?

• Their needs?

• What will I trade for?

• What are the available options of the trade?

• What will be the implications of each option?

• Set objectives in terms of acceptable limits.

• Visualise possible gains, not losses.

• Be aware of the other party’s hidden agenda.

PLAN

DEBATE

• Positive Powerful opening – confident body language, tone and words.

• Break the ice and discuss neutral topics .

• Cover: Why we are here, what we are going to do, how long it will take.

• Listen to what the other party say and how they say it.

• Observe non-verbal signals.

• Sit at a place from where you can see everyone.

•Summarize their views too, to demonstrate you have understood.

PROPOSE

• Decide whether you will speak your proposal first or respond to the proposal from the other party.

• Leave room for manoeuvre in your proposal.

•If you don’t agree, avoid ‘amateur dramatics’, slamming the table, storming out etc. This is typical RED behavior.

•PURPLE behavior, means responding positively. Welcome the fact a proposal has been made, you don’t have to agree with the content.

•If agreement is hard to find keep looking for a solution until one is found .

•You then have to either agree to disagree and call a halt to negotiations.

• Be prepared to make concessions, offer the smallest concessions first – you may not need to go any further.

• Compromise without losing face. If you have had to backtrack on a point you had as your final position you could say ‘Since you have changed your position on… I may be able to change mine on…’

• Make eye contact to emphasise that each concession is a serious loss for you.

• Do not ignore issues in order to speed up negotiations.

• Record fully all agreements finalised at the negotiations close.

BARGAIN

References

• The New Negotiating Edge. The Behavioural Approach for Results and Relationships by Gavin Kennedy.

• Essential Managers Negotiating Skills by Tim Hindle.