EFFECTIVE COMMUNICATION UWB 10202

NEGOTIATION SKILLS

INTRODUCTION
a method by which people settle differences.

a process by which compromise or agreement is

reached while avoiding argument.
the principles of fairness, seeking mutual benefit
and maintaining a relationship

WHY NEGOTIATE?
conflict and disagreement will arise as the

differing needs, wants, aims and beliefs of people

are brought together.
conflicts may lead to argument and resentment
resulting in feeling dissatisfied.
to reach agreements without causing future
barriers to communications.

CHARACTERISTICS OF NEGOTIATION
(i) There are a minimum of two parties present in

any negotiation.
(ii) Both the parties have pre-determined goals
which they wish to achieve.
(iii) There is a clash of pre-determined goals, that
is, some of the pre-determined goals are not

shared by both the parties.

 (iv) There is an expectation of outcome by both

the parties in any negotiation.

(v) Both the parties believe the outcome of the

negotiation to be satisfactory.

 (vi) Both parties are willing to compromise, that is,

modify their position.
(vii) The incompatibility of goals may make the

modification of positions difficult.

(viii) The parties understand the purpose of

negotiation

2.1

The Process of Negotiation

Structured approach to negotiation

1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action

1. Preparation
a decision needs to be taken as to:

- when and where a meeting will take place to

discuss the problem
- and who will attend.
- Set limited time scale to prevent the

disagreement continuing.
Ensure all the pertinent facts of the situation are

known to clarify your position.

2. Discussion
members of each side put forward the case as they

see it, i.e. their understanding of the situation.

Key skills during this stage are questioning,

listening and clarifying.

It is extremely important to listen,
as when disagreement takes place it is easy to

make the mistake - saying too much and listening

too little.

3. 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.

4. Negotiate Towards a Win-Win

Outcome
both sides feel they have gained something

positive
both sides feel their point of view has been taken

into consideration.

5. Agreement
Agreement can be achieved once understanding

of both sides viewpoints and interests have been

considered.
Any agreement needs to be made perfectly clear

so that both sides know what has been decided.

6. Implementing a Course of Action

In any negotiation, the following three elements

are important and likely to affect the ultimate

outcome of the negotiation:
1. Attitudes : towards the issues.
2. Knowledge : the more knowledge, the greater

your participation.
3. Interpersonal Skills : e.g- effective verbal comm,
listening skills, building rapport, problem solving,
etc.

2.2

Basic Approaches

1. Distributive Negotiation or Win-Lose

Approach
2. 2. Lose-Lose Approach
3. 3. Compromise Approach
4. 4. Integrative Negotiation or Win-Win
Approach

1. Win-Lose Approach
competitive, zero sum, or claiming value approach
one person can win only at the expense of the

other.
seeks to gain advantage through
concealing information,
misleading or
using manipulative actions.

 Characteristics:
(i) One side wins and one side loses.

(ii) There are fixed resources to be divided so that

the more one gets, the less the other gets.
(iii) One persons interests oppose the others.

(iv) The dominant concern in this type of

bargaining is usually to maximize ones own
interests.
(v) The dominant strategies in this mode include
manipulation, forcing and withholding
information.

2. Lose-Lose Approach
when one negotiating partner feels that his own

interests are threatened

he does all he can to ensure that the outcome of
the negotiation is not suitable to the interests of
the other party as well.
arises when the negotiating partners ignore one

anothers needs .
This is the most undesirable type of outcome.

3. Compromise Approach
To avoid a lose-lose situation
both parties give up a part of what they had

originally sought.
A compromise is the best way out when it is

impossible for both parties to convince each other

or when the disputed resources are limited.

4. Win-Win Approach
called as collaborative or creating value approach.
results in both the parties feeling that they are

achieving what they wanted.

Characteristics:
(i) There are a sufficient amount of resources to be

divided and both sides can win

(ii) The dominant concern here is to maximize joint
outcomes.
(iii) The dominant strategies include cooperation,
sharing information, and mutual problem-solving.

2.2.1 Four Negotiation Strategies

1. Yielding
2. Compromising

3. Competing
4. Problem solving

1. Yielding
to not negotiate.

accepts the first offer or assumes the price is

fixed.
to avoid inner discomfort from thoughts of taking
advantage of someone else .
fear of some form of conflict or other

unpleasantness.
assume other people are more important and
powerful than them

2. Compromising
seeks some fair balance where both parties

appear to get an equitable deal.

this approach is to 'split the difference.
see others as worthy and equal to them, and

hence seek fair play.

see themselves as equal to others rather than
inferior.

3. Competing
aggressive approach.
their goal is to get as much as possible at

whatever cost to the other party.

often assume they are superior or feel inferior but

need to appear superior.

4. Problem-solving
closer to Compromising approach.

Does not see the other person as competitor or

threat,
but rather as a person who has legitimate wants
and needs,
more to work together on an equitable and

reasonable solution.
seek to understand the other person's situation,
explain their own, and then creatively seek a
solution where both can get what they need.

2.3 Phases of Negotiation

1. preparation,
2. opening,

3. bargaining
4. closure.

Stage 1: Preparation
(i) Gathering Information- what info is needed

from the other side.

(ii) Leverage Evaluation evaluate the other
partys leverage.
(iii) Understand the people involved- with whom

you are dealing with.

(iv) Rapport- determine how cooperative the

opponent is.
(v) Know your objectives- what your priorities are.

(vi) Type of negotiation- highly competitive/

cooperative? By face to face/ fax/ through

mediator?
(vii) Plan- decide the approach and plan accordingly.

Stage 2: Opening Phase

Here the two sides come face to face.
Each party tries to make an impression on the

other side and influence their thinking at the first

opportunity.
It involves both negotiating parties presenting
their case to each other.

Stage 3: Bargaining Phase

involves coming closer to the objective you

intended to achieve.
the basic strategy is to convince the other side of
the appropriateness of your demands .
then persuading the other party to concede to

those demands.

Stage 4: Closure Phase

represents the opportunity to capitalize on all of

the work done in the earlier phases.

involves the sealing of the agreement in which

both parties formalize the agreement in a written

contract .
to review each element and find out what went
well and what needs to be improved