GROUP NO: 13
Shahzaib M13-448
Daniyal M13-423
Mujahid M13-400
Ammar M13-441
Asad ullah M13-421

NEGOTIATION

WHAT IS NEGOTIATION??
 Benefits of negotiation

AIMS OF THIS PRESENTATION:
 Common stages in the process of negotiation.
 Different types of negotiation.
 Outline key points for successful negotiation.
 Difference between interests and positions.
 Why effective communication is essential to negotiation.

Why Negotiate?
 From time-to-time, conflict will arise.
 If not solved will give birth to different problems
 To negotiate is to burry these conflicts

Objectives:
These fall into three categories:-
 MUSTS
 INTENDS
 DESIRES

PRINCIPLED NEGOTIATION REQUIREMENTS
First of all there are four conditions which are essential if a principled
negotiation is to have a successful outcome.
 Mutual trust.
 A positive relationship.
 Shared interests (goals or objectives).
 Satisfactory zone of possible agreement.
 A negotiator must also have a Best Alternative to a Negotiated Agreement
(BATNA).

Aspects in negotiation:
Depending on the scale of the disagreement, some preparation may be appropriate for
conducting a successful negotiation.
 Goals:
 Trades:
 Alternatives:
 Relationships:
 Expected outcomes:
 The consequences:
 Power:
 Possible solutions:

Stages of Negotiation:-
The process of negotiation includes the following stages:---
1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiation towards a WIN-WIN situation
5. Agreement
6. Implementation of a course of action

Preparation
Before any negotiation takes place, a decision needs to be taken as to
when and where a meeting will take place. Preparation is essential. The
degree of success is directly related to the quality of the preparation.

Clarifying Goals
From the discussion, the goals, interests and viewpoints of both sides of the
disagreement need to be clarified Through this clarification it is often
possible to identify or establish common ground.

Exchanging Views and Persuasion:-
Key skills during this stage are
 Questioning
 Listening
 Clarifying
Sometimes it is helpful to take notes
during the discussion stage to record all points
put forward in case there is need for further
clarification.

Getting Movement:-
The process of converting a willingness to an agreement is negotiation. It
requires the use of communication skills and sometimes specific tactics
such as:
 Tiring the other side out
 Adjourning - if there is disagreement on your side or if you are fatigued
 Breakdown in negotiations - you’ll probably lose.

SEPARATE THE PEOPLE FROM THE PROBLEM
Attack the opposing Position instead of attacking the opposing
Person, especially if the attack is demeaning. It will unfailingly
have negative outcomes in both decision making and bargaining.
Some of the ways Fisher and Urey suggest are:
 Relationships
 Perceptions
 Emotion
 Communication

Relationships:-
Bargaining, may involve strong comments about the
substantive issues.
A good relationship can be a vaccine against
communication blockages. (But the relationship needs to be built early in the
game, just as a vaccine works best before exposure to the disease.)

Perceptions
In the heat of battle, it is easy to view the opponent as a personal
enemy, as opposed to someone who is just doing a job.
The primary goal of principled negotiation is to achieve rational
outcomes in the best interest of both parties. However, sometimes this
just doesn't work, and positional bargaining is the only option.

Communication.
The essence of communication is the transmission of meaning. The
mandate is for active listening, getting the other person to talk more- and
thus reveal more. Listening with interest to what the other negotiator has
to say pays dividends, you are getting valuable information about his/her
position and intentions, without giving away your own.

Negotiate for a WIN-WIN Outcome
This stage focuses on what is termed a WIN-WIN outcome
where both sides feel they have gained something positive
through the process of negotiation and both sides feel their
point of view has been taken into consideration.

Agreement
Agreement can be achieved once understanding of both sides’
viewpoints and interests have been considered. It is essential to
keep an open mind in order to achieve a solution.

Implementing a Course of Action
From the agreement, a course of action has to be implemented, to carry
through the decision.

Fail to Agree:
If the process of negotiation breaks down and agreement cannot
be reached, then re-scheduling a further meeting is called for.

CONTROLING emotions during a negotiation:-
Lot of factors influence the
process of negotiation, our
emotions being one of the
major factors. Our mood
decides a lot many things.

If one is in a happy mood, everything
 seems perfect and good to him
 trust each other better
 participate in discussions
 do not unnecessarily find faults
 benefit him as well as the other party
 One looks his best when he smiles
Anger is one of the most negative emotions acting
as a hurdle to an effective negotiation
 A person loses control on his mind
 Anger only leads to conflicts
 will this anger benefit you?

One should be calm and composed
 comfortable with the second party
 don’t take rash decisions
 take your time to convince the other party
 do not drag the conversation too long
Don’t stress yourself at the time of negotiation
 Taking stress does not help
 No one will kill you, if you fail
 tend to lose your confidence

Avoid being OVER clever
 Don’t try to fool the other person
 Be honest in your dealings
 They are well prepared just like you
Being positive always helps
 negativity trigger conflicts
 it simply adds on to one’s
tensions
 nullifies the effect of negotiation

TABLE MANNERS
 Good manners is a main component that makes you firm in negotiations
 Abusive behavior and backfires should be avoided
 The point is that it takes two to play
 It takes a great deal of patience, maturity and experience

NECESSARY CONTENTS:
Two elements should always be taken into account:
 Interpersonal Skills
 Knowledge
Interpersonal Skills
• Communication
• Listening
• Reflecting, Clarifying and Summarizing
• Problem Solving
• Decision Making
• Assertiveness
• Stress Management
• Dealing with Aggression

Knowledge

Types of negotiation:
Two approaches align with the two main types of
negotiation:
•Distributive
•Integrative
DISTRIBUTIVE:-
single, fixed issue to be negotiated,
greatest concern is getting the best possible
value.
future relationships are not a priority

INTEGRATIVE:-
 Both sides cooperate to achieve the greatest benefit
 Your goal is to create as many options
 And then you need to claim the best value for yourself

SUCCESSFUL NEGOTIATION:-
Key points when aiming for a WIN-WIN outcome
include:
 Focus on maintaining the relationship
 Focus on interests not positions.
 Generate a variety of options that offer gains to
both parties before deciding what to do.
 Aim for the result to be based on an objective
standard

Focus on Maintaining the Relationship:-
 means not allowing the disagreement
 not blaming the others for the problem
 aiming to confront the problem not the people
 separate the people from the problem

Focus on Interests not Positions
Consider what are their needs, desires and fears?
These might not always be obvious from what they say
Focusing on interests is helpful because:
 It takes into account individual needs, wants, worries and emotions.
 There are often a number of ways of satisfying interests, whereas positions tend to focus on only
one solution.
 While positions are often opposed, individuals may still have common interests on which they
can build.

Generate a Variety of Options that Offer Gains to Both Sides
before Making Decisions:-
 It is worthwhile considering a number of options that could provide a resolution
 then to work together to decide which is most suitable for both sides
 Techniques such as brainstorming could be used

Aim for the Result to be based on an Objective Standard:-
It is inevitable that some differences will remain.
It is important that such a basis for deciding is:
• Acceptable to both parties.
• Independent to both parties.
• Can be seen to be fair.
If no resolution can be reached, it may be possible to find some other, independent
party whom both sides will trust to make a fair decision.

Avoiding Misunderstanding:-
Misunderstanding is a common cause of negotiations breaking down. Because of
differences of viewpoint, background, and cultures, it is possible not to ‘hear’ what
others intend to say. Because misunderstandings can easily occur, it is important to:
• Clarify individual goals.
• State the issues clearly.
• Consider all viewpoints.
• Clarifying meaning.

FINALLY
Negotiation is a process by which people resolve disagreements.
Structured negotiation follows a number of stages from preparation
through to implementation. If possible, a WIN-WIN approach is more
desirable than a bargaining (WIN-LOSE) approach. This involves seeking
resolutions that allow both sides to gain, while at the same time maintaining
good working relationships with the other parties involved.