NEGOTIATION INTRODUCTION TO NEGOTIATION NATURE AND NEED FOR NEGOTIATION FACTORS AFFECTING NEGOTIATION STAGES OF NEGOTIATION ROLL OF PERSONALITY IN NEGOTATION WHAT IS NEGOTIATION STRATEGY? FIVE SUCCESSFUL NEGOTIATION STRATEGIES NEGOTIATION STRATEGY: SEVEN COMMON PITFALLS TO AVOID

2. INTRODUCTION TO NEGOTIATION
 “Negotiation is a discussion among the individuals to reach an
alternative to satisfy all”.
 “Discussion” here means simply the exchange of one’s ideas,
thoughts and opinions with each other and not arguing.
 One needs to have excellent communication skills and
impressive personality for a healthy and an effective
negotiation.
 One should very sensibly convert his/her thoughts into a
speech by carefully selecting relevant words.
 Haphazard thoughts and abstract ideas only lead to confusions.
 One should be crisp and precise in his/her speech.

3. NATURE AND NEED FOR NEGOTIATION
 What are the factors or what are the elements should exist in
the negotiation, and what are the factors will fulfill the
negotiation process is called as nature and need for
negotiation.
 There are two or more parties- that is, two or more
individuals, groups, or organizations. Although people can
"negotiate' with themselves - as when someone debates
whether to spend the afternoon studying, playing tennis, or
going to the football game - we will discuss negotiation as an
interpersonal or inter-group process

4. NATURE AND NEED FOR NEGOTIATION
 Conflict- Choice of interest between two or more parties that
is, what one wants is not necessarily what the other one wants
and the parties must, therefore, search for a way to resolve the
conflict.
 Choice- The parties negotiate because they think they can use
some form of influence to get a better deal that way than by
simply taking what the other side will voluntarily give them or
let them have. Negotiation is largely a voluntary process. It is a
strategy pursued by choice; seldom are we required to
negotiate.

5. FACTORS AFFECTING NEGOTIATION
 Authority: Both the parties should have the power or authority
to conclude the deal.
 Credibility: It comes from person’s knowledge, expertise ,
track record & relationships. Trust & mutual confidence are
very important.
 Information: Negotiation often proceeds on the basis of facts,
past data, future trends & outlook, empirical data &
calculations.
 Time: Time frame within which the negotiation should be
completed.

6. FACTORS AFFECTING NEGOTIATION
 Emotional control: Human beings are not just rational, they
are also emotional. Good negotiators are aware of the play of
emotions and are responsive to them.
 Communication skills: Negotiation is an intense process
involving exchange of message. The negotiator needs to state,
articulate, explain, appeal, even silent depending upon the
situation.

7. STAGES OF NEGOTIATION
EXPLORE
• the early stage where you share information with others and learn
more about them and what they want.
• Exploration may also be a relatively unstructured affair where the
two parties get to know one another and discover that each has
something that the other wants.
BIDDING
• When the parties have enough information, then the negotiation
starts with someone offering an exchange.
• The essence of a bid is that it is an offer that may be accepted,
rejected or trigger a counter-offer. If the initial bid is accepted then
the deal is swiftly concluded. Otherwise there may be significant
bargaining activity.

8. STAGES OF NEGOTIATION
BARGAIN
• The heart of many negotiations is in bargaining, the adjustment of
what is being traded until both parties are satisfied with the
arrangement.
• An important part of bargaining is trading, where parties effectively
say 'If you give me that, then I will give you this.
SETTLE
• When the deal is broadly agreed, it is formalized in a way that
makes it difficult for either party to back out or change their
commitment.
• The first step of settling is to agree what you have agreed. It is
surprising how often people do not agree on this as they reflect on
the detail, and returning to bargaining may be necessary

9. ROLL OF PERSONALITY IN NEGOTATION
 A charming personality is the key to an effective negotiation.
 During negotiations an individual must try to be himself. One
should not fake things or pretend to be good.
 Sincerity is one of the most important personality traits
required in negotiation. One has to be sincere for an effective
negotiation. Don’t take things casually. Go well prepared for
your negotiation.
 Our dressing plays an important role in enhancing our
personality. A shabbily dressed person will find it very difficult
to convince the other person.
 Be Patient. It has been observed that impatient individuals are
poor negotiators.

10. ROLL OF PERSONALITY IN NEGOTATION
 Be professional in your approach. Once your deal is closed, do
sign a contract in presence of both the parties.
 Enhance your listening skills for a better negotiation. Listen to
the other party as well.
 Be a little tactful and diplomatic. Being diplomatic does not
mean being clever.

11. WHAT IS NEGOTIATION STRATEGY?
 A pre-determined approach or prepared plan of action to
achieve a specific goal or objective to potentially find and
make an agreement or contract in a negotiation with another
party or parties.

12. FIVE SUCCESSFUL NEGOTIATION STRATEGIES
1) The negotiating process is continual, not an individual event.
2) Think positive.
3) Prepare.
4) Think about the best & worst outcome.
5) Be articulate & build value.
6) Be articulate & build value.

13. NEGOTIATION STRATEGY: SEVEN COMMON
PITFALLS TO AVOID
 Poor Planning
 Thinking the Pie is Fixed
 Failing to Pay Attention to Your Opponent
 Assuming That Cross-Cultural Negotiations are Just Like
"Local" Negotiations
 Paying Too Much Attention to Anchors
 Caving in Too Quickly
 Don't Gloat

14. THANK YOU