The document discusses negotiation skills and provides information on: 1) The definition and origins of the word "negotiation" from Latin meanings related to business. 2) Negotiation involves communication between interdependent parties to reach agreements on differing needs or ideas. 3) Negotiation is used in many contexts from family, personal, academic, and business situations.

1. Negotiation Skill

2. The word "negotiation" originated from the
Latin expression, "negotiatus", which
means "to carry on business".
“A give-and-take decision-making
process involving interdependent
parties with different preferences.”

3. Negotiating is the process of communicating back and forth,
for the purpose of reaching a joint agreement about differing
needs or ideas.
It is a collection of behaviours that involves communication,
sales, marketing, psychology, sociology, assertiveness and
conflict resolution.
A negotiator may be a buyer or seller, a customer or supplier,
a boss or employee, a business partner, a diplomat or a civil
servant. On a more personal level negotiation takes place
between spouse’s friends, parents or children.
Defined :

4. Where Do We Use This Skill?
Family and
personal
“Where should we
go for dinner?”
“Can I borrow the
car?”
Academic research
“Fund my project.”
“Publish my paper.”
Business ventures
“I want a raise.”
“Invest in my company.”
“Pay me a license fee or
I’ll sue you.”
Everything is negotiated

5. Features Of Negotiation
• Minimum two parties
• Predetermined goals
• Expecting an outcome
• Resolution and Consensus
• Parties willing to modify their positions
• Parties should understand the purpose of negotiation

6. Types Of Negotiation In Organizations
Managerial Negotiations
Day-to-day:
1. Different levels of Management
2. In between colleagues
3. Trade unions
4. Legal advisers
Examples:
1. Negotiation for pay, terms and working conditions.
2. Description of the job and fixation of responsibility.
3. Increasing productivity

7. Types Of Negotiation In Organizations
Commercial Negotiations
1. Management
2. Suppliers
3. Government
4. Customers
5. Trade unions
6. Legal advisors
7. Public
Examples:
1. Striking a contract with the customer.
2. Negotiations for the price and quality of goods to be purchased.
3. Negotiations with financial institutions as regarding the availability
of capital

8. Types Of Negotiation In Organizations
Legal Negotiations
1.Government
2.Management
3.Customers
Examples:
1. Adhering to the laws of the local and national government.

9. Prepare
Negotiate
Close
Perform
&
Evaluate
Negotiation
Process

10. Preliminary Question:
1. Should I negotiate?
2. Is this a position-based or interest-
based negotiation?
3. Am I trying to resolve a dispute or
make a deal?
4. How should I analyze a negotiation?
5. Is this a cross-cultural negotiation?
6. How should I handle ethical issues?
7. Should I use an agent to negotiate
for me?

11. 1. Should I Negotiate? Prepare
• Ashan Mudir buying a big screen TV
• Lost of research on different models and
dealer's costs.
• Visited several dealers
• Combines price of TV with installation, satellite
dish, etc.
• Obtained price concession by mentioning
competitor's offer.
• Saved $120. A successful negotiation?

12. 1. Should I Negotiate? Prepare
In making a decision about whether to
negotiate, consider your feelings about
negotiation as well as the potential risks and
rewards.

13. If you don't know where you
are going, you may end up
somewhere else.

14. 2. Position or Interest Prepare
Interest-based Bargaining / Win-win Bargaining
Integrative bargaining in which parties collaborate to find a
“win-win" solution to their dispute.
This strategy focuses on developing mutually beneficial
agreements based on the interests of the disputants.
Interests include the needs, desires, concerns, and fears
important to each side.

15. 2. Position or Interest Prepare
Interest based Bargaining
Positional bargaining is one that 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.

16. 2. Position or Interest Prepare
Position based Interest based
Distributive Integrative
Competitive Cooperative
Win / Lose Win / Win
Zero Sum Non-Zero Sum
Adversarial Problem Solving
Position based Interest based
Calming Value Creating Value

17. 3. Dispute Resolution or Deal Prepare

18. 3. Dispute Resolution or Deal Prepare
4:00 am: Students began forming a line
(freezing weather) to purchase basketball tickets.
7:00 am: Other students formed a second line
nearby and demanded that students in the first
line move to the back of their line.
What processes could be used to resolve this
dispute?

19. 3. Dispute Resolution or Deal Prepare
4:00 am: Students began forming a line (freezing weather) to purchase
basketball tickets.
7:00 am: Other students formed a second line nearby and demanded that
students in the first line move to the back of their line.
What processes could be used to resolve this dispute?
Power Litigation Arbitration Mediation Negotiation Avoidance
6 Types of Dispute Resolution

20. 3. Dispute Resolution or Deal Prepare
Resolving Dispute options:
Power Use power to force the other side to do what we want.
Rights Let a third party (a judge or arbitrator) decide who is right.
Avoidance Withdraw from the dispute and let the other party have
what they want.
Interest Try to negotiate an agreement based on our need..

21. 4. Analyzing Negotiation Prepare

22. 4. Analyzing Negotiation Prepare
Key Questions

23. 4. Analyzing Negotiation Prepare
Risk of Stretch Goal

24. 4. Analyzing Negotiation Prepare
Possible Answer

25. Best
Alternative
To
Negotiated
Agreement
BATNA

26. Why BATNA Matter
BATNAs tell you when to accept and when to reject an agreement.
When a proposal is better than your BATNA: ACCEPT IT
When a proposal is worse than your BATNA: REJECT IT
Your “BATNA “ is the only standard which can protect you both from
accepting terms that are too unfavourable and from rejecting terms it
would be in your interest to accept.” In the simplest terms, if the
proposed agreement is better than your “BATNA”, then you should
accept it. If the agreement is not better than your “BATNA” , then you
should reopen negotiations.

27. Determining Your BATNA
BATNAs are not always readily apparent. Fisher and Ury outline a
simple process for determining your BATNA:
• develop a list of actions you might conceivably take if no
agreement is reached;
• improve some of the more promising ideas and convert them
into practical options; and
• select, tentatively, the one option that seems best.

28. 4. Analyzing Negotiation Prepare

29. 4. Analyzing Negotiation Prepare
Other Perspective

30. 4. Analyzing Negotiation Prepare
ZOPA (Zone of Potential Agreement)

31. Case: Dispute Resolution

32. Using Decision Tree Analysis

33. 5. Cross-Cultural Negotiation Prepare
Analyze Your Interest Analyze Other Side's Interests
Every Culture
Negotiating
Style
Values and
Beliefs
Other Side's
Interest
Your
Interests

34. 5. Cross-Cultural Negotiation Prepare
Culture can influence negotiation.
But: Many variations with in a culture.
Therefore: be sensitive to culture
but don't stereotype

35. 6. Handling Ethical Issues Prepare
Legal Ethical

36. 6. Handling Ethical Issues Prepare
Legal
Fraud
False Representation of material fact
Fiduciary Duty
High duty of trust and loyalty
Unconscionability
Violates principles of good conscience

37. 6. Handling Ethical Issues Prepare
Ethical
Organizational Standards
Mentor
Someone you admire
Personal Standards
Gut Test
Newspaper Test
Family Test
Golden Rule

38. 6. Handling Ethical Issues Prepare
Mentor

39. 6. Handling Ethical Issues Prepare
Gut Test

40. 6. Handling Ethical Issues Prepare
Family & Newspaper

41. 6. Handling Ethical Issues Prepare
Except Economical Rational,
Why would you reject the part of split?

42. Accommodating Collaborating
DominatingAvoiding
Compromising
Negotiating Style

43. 7. Should I use Agents Prepare
• Is the agent a better negotiator?
• Does the agent have more experience in negotiating the
issues.?
• Does the negotiation involve a technical matter that
requires the expertise of an agent?
• How much time do I have to invest in a negotiation?
• What is my relationship with other side?

44. Issues In Negotiation
The Role of Mood & Personality Traits in Negotiation;
Positive moods positively affect negotiations
Traits do not appear to have a significantly direct effect
on the outcomes of either bargaining or negotiating
processes (except extraversion, which is bad for
negotiation effectiveness)

45. Gender Differences In
Negotiations;
Women negotiate no differently from men, although
men apparently negotiate slightly better outcomes.
Men and women with similar power bases use the
same negotiating styles.
Women’s attitudes toward negotiation and their
success as negotiators are less favorable than men’s.

46. Thank You
Negotiation means getting the best of your opponent. ~ Marvin Gaye