Quiz

1. What are the personality dimensions relate to emotional intelligence, such as personal
sensitivity, cultural difference and social norms effect in negotiation?

Answer : Personal traits in Emotional Intelligence play a vital role in negotiation. It is

defined in details below-
1. Personal Sensitivity: People who possess slight sensitivity in them are likely to fail in
successfully negotiating with others. They lack proper assesment of communication. This
results in aggressive and biased decisions, which do not cope up with negotiation. They
stay more careful about their feelings rather than using the brain. Even, they can be easily
manipulated by the other party.

2. Cultural Difference: It is essential to know the culture of other party to negotiate

effectively. Religious beliefs, values, morals affect deeply in a conversation. They might
create misunderstandings by hurting their intution. To initiate mutually benefitting terms,
we need to understand and give value to cultural differences while negotiating. Or else, it
might create conflict between both parties.

3. Social Norms: Social norms refer to ethical and moral values one holds. These values
form while being in a society. Different rules, regulations and beliefs are set in every
society. For effective negotiation, we should show respect regarding these factors. If not,
it would be hard to solve future conflicts.
2. Negotiation is always focus on win-win strategy, wither both parties concern their
benefits, Based on win-win strategy briefly explain five (5) negotiations rules as a smart
negotiator.
Answer : People talk a lot about win-win deals, but the truth is that negotiations often get
competitive and people act in ways that make it difficult to come an agreement. In addition,
the sad truth is that sometimes negotiating means compromising, and if you're dealing with
people for whom any compromise is a "loss", a win-win deal is impossible.
There are five negotiations rules as a smart negotiator :

1. Separate the people from the problem : In a traditional bargaining situation, the
interaction proceeds based on positions and counter-positions. The discussion can easily
turn adversarial as the customer raises objections about price or other difficult issues. It is
as if the parties are sitting on opposite sides of the table, conducting a tug-of-war to
achieve a "win for our side." With a principled negotiation approach, on the other hand,
the salesperson focuses on the problem and how to solve it.

2. Identify the interests behind the people : people tend to take a firm position and stick
to that position. The focus is on "what I want," and each side is intent on justifying their
respective positions. In a principled negotiation process, the focus is on the interests
behind the position-the range of issues that are at stake in the negotiation. Paying
attention to interests helps uncover the "why" behind a position. While a position tends to
be inflexible and fixed, interests open up different perspectives and opportunities to offer
options. If a customer takes the position "I must get the lowest price," interests may
include "my boss will want me to show that I got the lowest price," or "my company
needs me to help maintain our cash liquidity."

3. Invent options on mutual gains : The path to a win-win agreement lies in creating a
bigger pie-exploring ways to expand the available options. Knowing the customer's
interests will help achieve this objective. For example, suppose the offer on the table is a
bundled solution at a certain price. The customer, however, has an interest in keeping
costs low because of a company-imposed budget limitation. If interests are openly
explored, the salesperson has an opportunity to help solve the problem. Offer always
flexible or leasing by the people.

4. Introduce independent standards : Independent standards are another way to align with
the customer's interests. They represent objective criteria that can be used as a measuring
stick for choosing among alternatives and defining some limits. Examples of independent
standards might include accepted market value, industry performance benchmarks, other
 research, or credible third-party references. If the salesperson and the customer can agree
on such standards, they provide a way to evaluate a proposal from a position of common
ground.

5. Know your “ BATNA ”:  A “ BATNA ” isn't a buffalo-like creature from the planet
Tattooine. It stands for "Best Alternative To a Negotiated Agreement." In traditional
bargaining, negotiation can reach an impasse when either side becomes inflexibly
committed to a particular outcome; for example, when the salesperson cannot accept a
price below a certain amount, and the customer is determined not to pay above a certain
price. It is very important in situations like this that a salesperson has a BATNA. Before
engaging in a negotiation, salespeople should clarify their overall interests with respect to
the account as a whole.