NEGOTIATION PROCESS

NEGOTIATION

Negotiation is a discussion between people, with the goal of reaching an agreement on issues, and separating the parties when neither party has the power to get its way.

Everyday we come face to face with situations that test our ability to negotiate. Though you might not give it much thought, a lot of negotiation happens with people we meet and choices we make. Negotiation is a skill we use frequently in our daily life. It is usually used as a compromise to settle an argument or issues to benefit ourselves as much as possible.

STYLES OF NEGOTIATION

I.     Distributive negotiation:

1      When two parties are not compromising

2      Need for persuasive tactics

3      May not achieve maximum benefit.

II.Integrative negotiation:

●     Two parties who are agreeable

●     Can achieve maximum benefit

The Basic Components

1. Preparation

2. Objectivity

3. Strategy

4. Technique

1. Preparation:

Prepare for negotiation if you want to succeed.

2. Objectivity:

Assess your strengths, weaknesses, and goals. Successful negotiators make a point to "accentuate the positive."

3. Strategy:

Plan a realistic course of action based on sound preparation and objective appraisal of resources.

4. Technique:

Combine a wide range of skills; draw on experience and self-discipline.

Distinct Forces of Negotiation

●     Time – The person that has the most time wins. You are not pressured into making decisions.

●     Information – The more knowledgeable your are, the better a deal you will get.

●     Options - Always keep your options open. Have a fallback position. At the same time, don't give the other side too many options. It helps to negotiate one issue at a time. Approach - "People like to help nice people. They like to hurt jerks." So be nice! Be friendly!

●     Prepare, prepare, prepare!

●     Never let your ego negotiate.

●     Always let the other person save face. Establish direct contact

NEGOTIATING

●     Be fairly open with your intentions

●     Have confidence and power

●     Keep in control

●     Aim high

●     Remain flexible

Coming to an agreement

●     Put the final agreement in writing

●     Do not discuss the term of the agreement before it is formally signed

Summary

●     Have confidence

●     Keep in control

●     Aim high; but don’t underestimate the opposition

●     Be persuasive; offer incentives

●     Don’t agree unhappily; it happens as an effect of poor preparation.

ESSENTIALS OF NEGOTIATION

The Essentials of Negotiation

1. What's your goal?

Be sure you understand this well enough to get your reasons and explanations across the other person you're dealing with. Have concrete and specific items at hand. If you ought to use estimates, be sure they are as close to the exact thing. Be careful not to overestimate or under-estimate.

Always Remember, the goal of negotiation skill training is to come out with a deal that benefits both parties accordingly.

2. What's the other's goal?

Keep your senses open to the other person. Listen attentively. The root of compromising is to know the other side of the coin well enough to make changes and retain the good ideas.

Make certain that you are not biased in your decisions. Remember, the person across the table just might make sense too.

3. Respect "give and take".

One of the essentials of negotiation involves understanding the process of giving in and holding back. You can't win it all. You can only hope that the best outcome will result from the compromise that both parties make.

4. Be creative.

Negotiation skill training is an art to be enjoyed. When you come from opposite ends of the deal, come to a point where you can make your ideas meet and jive. Don't be afraid to explore other options.