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NEGOTIATION PROCESS

NEGOTIATION PROCESS. What is negotiation?. Characterized by two or more interdependent parties who have a conflict of interest,and who choose to adress that conflict by striving to reach an agreement through a process of mutual adjustment of each party’s demand and concessions.

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NEGOTIATION PROCESS

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  1. NEGOTIATION PROCESS

  2. What is negotiation? Characterized by two or more interdependent parties who have a conflict of interest,and who choose to adress that conflict by striving to reach an agreement through a process of mutual adjustment of each party’s demand and concessions

  3. Behavioral definition of negotiation The process by which we search for the terms to what we want from somebody who wants something from us

  4. NEW NEGOTIATING EDGE(NEGOTIATION STYLES) Red Style Blue Style Purple Style

  5. RED STYLE They believe manipulation is normal and they behave as they believe Main attitudes: Aggressive Intimidatory Manipulatory

  6. BLUE STYLE Looking for both winning of two sides Main attitudes: Cooperative Trusting Conciliatory

  7. PURPLE STYLE Win-Win Approach “Give me some of what (red style),I will give you what you want (blue style)” “Taking while giving” “It is a two way exchange”

  8. Negotiation as an Alternative Persuasion “We deserve a break” Giving in “OK,you deserve a break” Instruction “Give me a break” Coercion “Give me a break-or else!”

  9. Negotiation as an Alternative Litigation “I’ll sue to get a break” Problem solving “How can we both get a break?” Chance “Heads I get a break?” Arbitration “Which of us deserves a break?”

  10. When should you negotiate? The most important motivation for negotiating is the necessity of securing the consent of those who have what you want. Withholding consent is a key feature of decision making.

  11. Negotiation as a universal process “While every negotiation is unique,every negotiation is also the same”

  12. KEY ELEMENTS O F NEGOTIATION Interdependence Mutual dependence implies limits to how much one party can do alone, or what cost, or how desirably. The more diversified products and market, the more interdependence we face

  13. SOME PERCIEVED CONFLICT Increase interdependence of diverse people virtually guarantess the potential for conflict Real conflicts will some times be diagnosed as ‘failures to communicate’ or ‘personality problems’

  14. OPPORTUNISTIC INTERACTION Guarding some information, moving to stake out favorable position, seeking to mold perceptions and aspirations.

  15. THE POSSIBILITY OF AGREEMENT People can negotiate to arrive at a joint decision that is better than their unilateral alternatives

  16. BARGAINING “In its purest form,it is mind against mind.” (John Illich,1980) “It is better to give away the wool than the sheep” (Italian proverb)

  17. TO AVOID UNWISE CONCESSIONS: Where to stop Provide a rationale Repeat aloud the offer Use hypotetical questions Make conditional offers Use packages Value in other party’s terms Think long-term consequences Firm on interest,flexible on positions

  18. BREAKING DEADLOCKS Why deadlocks arise? -Both parties have widely divergent objectives -One party mistakes firmness for rigidity and will not make concessions even to keep the negotiation “alive” -As a deliberate tactic during a negotiation to force the other party reconsider its position and make concessions

  19. CLOSING “Nothing is settled until it is settled right” Louis D.Brandeis

  20. BASIC PRINCIPLES “If you are going to play the game properly you’d better know the rules” Barbara Jordan US Congress(1975)

  21. WHAT ARE THESE RULES AND PRINCIPLES? Negotiating is a voluntary activity, A negotiation usually starts, Entering negotiation requires acceptance by both parties that aggrement between them is required, Timing is a critical factor, Successful outcome is getting what both sides want, Negotiation is influenced by the personal values,skills,perception,attitudes and emotions

  22. What are the implications of these principles for an actual negotiation?

  23. MOVING TOWARDS AGREEMENTS Advice and suggestions Promises Threats Explanations Praise Criticism Leading questions Apologies Reflecting Adjournments Humour Joint agreed summaries Proposals

  24. COMMON NEGOTIATING MISTAKES Entering negotiation with a preset mental mindset, Not knowing who has final negotiating authority, Not knowing precisely what power they possess, Entering negotiation with only a general goal, Failing to advance positions and arguments of substance,

  25. Losing control over factors such as timing and the ordering of issues, Failing to let the other side make the first offer, Ignoring time and location as a negotiating weapon, Giving up when negotiation seems to have reached a deadlock, Not knowing the right time to close

  26. Negotiation often fail for predictable reasons The most common include: The “One-Track” Syndrome The “Win-Lose” Syndrome The “Random Walk” Syndrome The “Conflict Avoidance” Syndrome The “Time Capsule” Syndrome

  27. INTERESTS: The Measure Of Negotiation

  28. Intrinsic and Instrumental Interests Process Interests “Relationship” Interests Interests In Principles

  29. Assessing Interests Assessing Which Interests Are At Stake Assessing The Interests Of Others Assessing The Trade-offs When To Focus On Interests and When On Issues

  30. NEGOTIATION IS CENTRAL TO THE MANAGER’S JOB...

  31. Dealing Outside The Chain Of Command: (Indirect Management) Dealing With Subordinates Commands Management Systems The Cooperative Approach Dealing With Superiors

  32. RESISTANCE TO THE ROLE OF NEGOTIATION

  33. BARGAINING=NEGOTIATION?? Negotiation is a process by which we attempt to persuade people to give us something we want in exchange for something else.It includes the attempts to identify and assess the perspectives,strategies,needs,expectations of the participants and the discussions the parties hold with one another. Bargaining on the other hand,is much more narrower than negotiation.It refers only to discussions that take place,the purpose of which is to persuade the other party to accept your terms.

  34. BARGAINING=NEGOTIATION?? The danger in using the two terms as synonoms is that it encourages us to view negotiation as an event rather than a process.We may thus neglect vital elements of that process.

  35. BARGAINING “In its purest form,it is mind against mind.” (John Illich,1980) “It is better to give away the wool than the sheep” (Italian proverb)

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