Negotiation Skills

NEGOTIATION SKILLSBY: ANTHONY AJAYIDATE: FRIDAY 6TH JANUARY,2017

Outline• Introduction• Explain What is Negotiation• The Need for Negotiation• Explain the Basic Principles of Negotiation• The Art of Negotiation • Describe the Benefits of Negotiation• Types of Negotiation Strategies• Conclusion

Globus Inc. is a

leading IT giant. Peter Looney is a Project Manager in Globus Inc. He is responsible for meeting the clients for every new software development project that comes to Globus.

INTRODUCTION

Introduction contd Maxwell

Telecommunication a leading Telecom Service company recently came to Globus to have new SAP based database software to be developed for them.

Introduction contd

Peter carefully reviewed and analyzed Maxwell’s requirements and came up with a Project Plan.

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Now, the only thing that Peter needed to go ahead with starting the project and develop the software was the client’s approval of the Project Plan.

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Peter held a meeting with the clients to discuss the Project Plan and gain overall approval for the terms and conditions of the Project.

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The client was in a hurry to get the software. Peter tried to negotiate upon broader deadlines but due to client’s pressure, he ultimately agreed to finish the project as per their requested deadlines.

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When the project was under progress, Peter and his team realized that the deadlines that he had agreed upon are nearly impossible to meet.

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Peter and his team were not able to complete the project as was promised to the client due to which Globus had to pay some penalty for late delivery.

Introduction contdAlso, the client added new requirements that had to be incorporated in the software. However, Peter had not negotiated about the terms with the client for any further enhancements or features being added to the software.

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Hence, Globus had to incur a loss in the project because the scope of work had increased but the terms of the project had not been well negotiated.

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Also, Peter’s team was forced to work 7-days, even from home to try to complete the project.

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Let us learn about ‘Negotiation Skills’ in detail.

Thus, you can see that ‘negotiation skills’ are a must for anyone to succeed when dealing with people.

What is negotiation?

• Negotiation is a discussion between two parties to find out the solution and for the purpose of reaching a joint agreement about differing needs or opinions.

• It involves using the art of ‘persuasion’ to get others to understand and agree with your viewpoint. It works best when an individual has a win-win attitude.

What is Negotiation?

• The key skills that are involved in a successful negotiation are that of good communication skills, sales and marketing skills, good psychological analytical skills, sociology skills, assertiveness and conflict resolution skills.

• Therefore, negotiations may take place between various kinds of different people such as between a customer and seller, a boss and employee, two business partners, a diplomat or a civil servant and a foreign diplomat, between spouses, between friends and between parents and children.

Need for NegotiationNo two people are exactly same. Therefore, each and every individual thinks and behaves differently in different situations and has different needs, wants, beliefs and aims. It is this basic difference between people that gives rise to disagreement and conflict from time-to-time.

Moreover, to mutually co-exist with each other at personal, professional as well as business level, it is important that these conflicts and disagreements should be resolved.

Need for Negotiation

This is because conflicts may lead to argument and resentment which may result in one or all of the involved parties feeling unhappy.

Hence, negotiation helps everyone involved to seek a common ground of agreement between the disagreements and also meet their individual objectives.

Basic Principles of Negotiation There are a few common basic principles that apply to all types of negotiations and in all situations. Some of the basic principles of negotiation are as follows:

There are always at least ‘two parties’ involved any negotiation process.

In any negotiation, the

two parties

share at least

some common

interest, either

in the subject

matter or in the

negotiating

context that

brings both the

parties together

in a negotiation.

The initiation of any negotiation always results due to different opinions and objectives of the two parties which hinders the outcome in general.

Basic Principles of Negotiation There are a few common basic principles that apply to all types of negotiations and in all situations. Some of the basic principles of negotiation are as follows:

It is a general belief, that parties do consider negotiation as a better way of trying to solve their differences.

Each and every

party enters

into a negotiation with

a firm belief that

they do have a

chance of persuading the

other party to

modify their

original stance.

Each and every party enters into a negotiation with a firm belief that they shall maintain their initial stance and persuade the other party to change.

Basic Principles of Negotiation

Every negotiation process involves compromise or change of opinion of one or both parties in order to reach an acceptable final agreement.

It is important

that in every

negotiation,

adequate time is

at hand in order

to debate the

various viewpoints of

both the parties

and reach an

agreement.

The negotiation process is always a process of direct and verbal interchange which involves interaction between parties.

Each party has some influence or power, whether it may be real or assumed, over the other’s ability to act and think.

The Art of Negotiation

Negotiation is an art; you can get better and better with it.If you feel that you don’t have an innate talent for negotiations, don’t be disappointed because these skills can be honed and developed with the proper training and practice. People who always speak good things may feel that they are good negotiators, but that is not always the case. Negotiation is all about understanding what you want and what the other person wants, and then coming up with a win-win scenario.

The Art of Negotiation

Negotiation happens everywhere – it’s omnipresent. You may have to negotiate over anything – right from the deadlines of a project to which person will do what chores at home. In the real world, it is sometimes difficult to ascertain whether your negotiation is good or bad. You may think that you are a good negotiator, but in reality, it may be just the opposite. Even before you negotiate, you will have to know what can be negotiated and what cannot be negotiated.

BENEFIT OF NEGOTIATION

Good negotiations

help you to gain better control in business as well

as personal situations.

They help you to identify and

understand you’re as well as the other

parties’ interests and also understand the differences between

both.

It helps to reach a‘Win Win’

Solution,which is mutually beneficial

to all the parties involved in a negotiation.

Good negotiations also help to

improve interpersonal relationships.

The following are some of the benefits of negotiations

They help to develop and maintain an

overall harmonious and

thriving interpersonal environment.

It is one of the easiest

and quickest ways to solve conflicts and disagreement

s.

Negotiations help to reduces stress and frustration

among two conflicting individuals.

Negotiations help to reach an agreement in

cases where a dead-end may be reached if a

consensus is not established between two differing needs, wants or

opinions.

Types of Negotiation Strategies

Let’s look at each in detail

There are two main types of negotiation strategies which are as follows:

• ‘Distributive Negotiation’ is also known as ‘Positional’ or ‘Competitive’ or ‘Fixed Pie’ or ‘Win-Lose’ Negotiation. It is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value.

• The involved parties in a ‘distributive negotiation’ have a ‘win-lose’ attitude towards reaching the goal and is based on an attempt to divide up a fixed pie or amount of resources for oneself.

• ‘Distributive Negotiation’ involves holding on to a fixed idea, or position, of what you want and arguing for it and it alone, regardless of any underlying interests.

Distributive Negotiation

Distributive Negotiation

The main focus in such a type of negotiation strategy is on achieving immediate goals, with little or no regard for building future relationships. Generally, no new creative solution is reached in such negotiations as the parties spend least possible time and energy in resolving the conflict. The outcome of the negotiation is reached by presentation of fixed solutions and a decision or choice is made quickly.

Integrative Negotiation• ‘Integrative Negotiation’ is also known as

‘Interest-based’ or ‘Cooperative’ or ‘Win-Win’ or ‘Non-zero Sum’ Negotiation. It is a type or style of negotiation in which the parties cooperate to achieve a satisfactory result for both. The involved parties in an ‘integrative negotiation’ have a ‘win-win’ attitude towards reaching the goal and attempt to strive not just for their own outcomes, but for favorable outcomes for both sides.

• ‘Integrative Negotiation’ involves reaching an agreement keeping into consideration both the parties’ interests which includes the needs, desires, concerns, and fears important to each side.

Integrative Negotiation

The main focus in such a type of negotiation strategy is on developing mutually beneficial agreements based on the interests of the disputants.

Generally, new creative solutions are reached in such negotiations as the parties spend maximum possible time and energy in resolving the conflict. The outcome of the negotiation is reached by collaboration between the parties to find a “win-win" solution to their dispute.

CONCLUSION

The following are the most crucial skills that

can help you to become a great negotiator:

• Be open and flexible

• Always be ethical

• Always empathize

• Develop good social skills

• Follow your intuitions

• Be assertive

RECOMMENDED TEXTRecommended Texts You Can Negotiate Anything By Herb CohenThe Negotiator By Fredrick Forsyth

Recommended Movie The Negotiator Starring Samuel L. Jackson (1998)

Acknowledgement LinkIn Learning

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