1. NEGOTIATION SKILLS
Presented by
Vidya Nair
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2. CONTENTS
 What is Negotiation?
 Features of Negotiation
 Why Negotiate ?
 Types of Negotiation
 Distributive Vs Integrative Negotiation
 Negotiation Process
 BATNA
 Bargaining Zone Model of Negotiation
 Negotiating Behavior
 Issues in Negotiation
 Third party Negotiations
 How to achieve an Effective Negotiation
 Negotiation Tips
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3. Where do use this skill?
 Everything is negotiated.
 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.”
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4. WHAT IS NEGOTIATION ?
 The word "negotiation" originated from the Latin
expression, "negotiatus", which means "to carry
on business".
 The process of conferring to arrive at an
agreement between different parties, each with
their own interests and preferences.
 “A give-and-take decision-making process
involving interdependent parties with different
preferences.”
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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
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6. Why do we NEGOTIATE ?
 To reach an agreement
 To beat the opposition
 To compromise
 To settle an argument
 To make a point
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7. TYPES OF NEGOTIATION
 Distributive Negotiation
 Integrative Negotiation
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8. 1st Type: Distributive
Negotiation
 Parties compete over the distribution of a fixed sum of
value. The key question in a distributed negotiation is,
“Who will claim the most value?” A gain by one side
is made at the expanse of other.
 The Seller‟s goal is to negotiate as high a price as
possible; the Buyer‟s goal is to negotiate as low a price
as possible.
 Thus, the deal is confined: there are not much
opportunities for creativity or for enlarging the scope of
the negotiation. [is it required?]
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9. 2nd Type: Integrative
Negotiation
 In Integrative Negotiation, parties cooperate to achieve
maximize benefits by integrating their interests into an
agreement. This is also known as a win-win negotiation.
 The key questions is: “How can the resource best be
utilized?”
 Integrative negotiations tend to occur in following
situations:
 – Structuring of complex long-term Strategic
Relationships or other collaborations.
 – When the deal involves many financial and non-
financial terms.
 In an integrative negotiation,, there are many items and
issues to be negotiated, and the goal of each side is to
“create” as much value as possible for itself and the
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10. DISTRIBUTIVE VERSUS
INTEGRATIVE NEGOTIATIONS
Characteristic Distributive Integrative
Outcome Win-lose Win-win
Motivation Individual gain
Joint and individual
gain
Interests Opposed
Different but not
always Opposite
Relationship Short-term Longer or Short-term
Issues involved Single Multiple
Ability to make
trade-offs
Not Flexible Flexible
Solution Not creative Creative
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11. BATNA
BATNA is an acronym for:
Best
Alternative
To
a
Negotiated
Agreement
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12. Why BATNAs 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
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13. BATNA
 “Best Alternative to a Negotiated Agreement”
 Develop “your” BATNA
 - List your alternatives
 - Evaluate your alternatives
 - Establish your best as your BATNA
 Consider “their” BATNA
 Have a Reservation Point – the least you will accept
 List their alternatives – their BATNA
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14. BATNA Example
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Example:
[Showroomsalesman
V/scustomers]  A persons go for car purchase.
[To negotiate with showroom sales man for lesser price]
 The car owner( showroom ) is not
agreeing for the lesser price.
 Than customer can ask for Radial
tires[best alternative] with any
increase in price further.

15. The Negotiation Process – Dos and
Don'ts
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 Avoid Interrupting
 Do not attack or blame
 Being too clever
 Avoid talking too much
 Avoid sarcasm and threats
 Shouting your opponent down
 Avoid circular arguments
 Not listening for signals
 Making unconditional proposals
 Behaving inconsistently
 Taking an opponents proposal to be non negotiable
 Not addressing inhibitions
 Not valuing other party‟s terms

16. Do „s in Negotiation Process
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 Listen carefully
 Seek Clarification
 Summarize issues neutrally
 Respond and reciprocate
 Be firm and generalities and flexible on specifics
 Use strong firm language
 Open realistically
 Invite a response
 Decide clearly what you want

17. NEGOTIATING BEHAVIOUR
Gavin Kennedy describes 3 types of
behaviour that we can display and encounter
when in a negotiating situation.
RED BLUE PURPLE
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18. RED Behaviour
 Manipulation
 Aggressive
 Intimidation
 Exploitation
 Always seeking the best for you
 No concern for person you are negotiating with
 Taking
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19. BLUE Behaviour
 Win win approach
 Cooperation
 Trusting
 Pacifying
 Relational
 Giving
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20. 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
 Purple behaviour incites purple behaviour
 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
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21. EFFECTIVE NEGOTIATION
 Successful relationships are built on
communication and trust.
 Lack of trust leads to “win-lose” or “lose-lose”
result.
 Negotiation is one way of creating trust – or
deciding whether trust is justified.
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22. The Negotiator‟s Dilemma
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B Cooperates B Competes
A Cooperates Both cooperates
Both have a good
outcome
A Cooperates
B Competes
A has terrible
outcome,
B has great outcome
A Competes A Competes
B Cooperates
A has great outcome,
B has terrible outcome
Both competes
Both have mediocre
outcome

23. NEGOTIATION TIPS
1) Do not underestimate your power.
2) Do not assume that other party knows
your weaknesses.
3) It is a mistake to assume you know
what the other party wants.
4) Never accept the 1st offer.
5) Don’t fear to negotiate.
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24. SKILLS FOR EFFECTIVE
NEGOTIATION
Preparation and planning skill
Knowledge of the subject
Ability to think clearly and rapidly
under pressure and uncertainty
Ability to express thoughts verbally
Listening skill
Patience
General problem-solving and
analytical skills
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25. THANK
YOU
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