The Relation called Negotiation!

Negotiating with you today:

Shiva Kakkar
Parag Dhiman
Lakshmi Ninan
Vignesh.R
Vishesh Gupta
Gaurav Gupta
• Negotiation is a LOVE (Kiss!) and HATE
(Bang!) relationship.
• The ‘LOVE’ is needed for reaching the deal
and the ‘BANG’, for reinforcing and
justifying your demands.

• And if you still don’t believe me, see this……

• 1. Preparation and Planning:
• It’s nothing but the homework you do.
• Getting hold of the psyche of the other party
is the main objective.
• BATNA – The Warm, Fuzzy Insurance Policy!
• It’s not just an alternative, it’s a Vantage
Point.
• Don’t forget, BATNA thrills, but kills too!
• 2. Setting the Game Plan:
• Talk only to the boss.
• Time is your tool.
• “Nothing gives one person so much advantage

over another as to remain calm and unruffled

under all circumstances.” – Thomas Jefferson
• 3. Clarify, Amplify, Justify:
• But don’t be confrontational. Remember Thomas
Jefferson.
• Keep your spirits high, but your tone low.
• Try to convince, rather than argument.
• 4. With Due Deliberation:
• Bargaining and problem solving need
thoughtfulness.
• Learn the wisdom of concessions and compromise,
it’s better to bend a little than break the deal.
• Do not forget your ground rules.
• 5. Closing the deal:
• The deal can be brought into force with a
written agreement.
• Often, a warm handshake between the
figureheads is enough.
CHARACTERISTICS:
• Win - lose approach.
• Orientated towards time
management and business.
• DECISIONS made QUICKLY,
based on FACTS.
• Practical and take charge.

WHAT THEY WANT?

• Wants to win, even if it means
that someone has to lose.
• Dominates and threatens people.
• Determined not to lose.
COMMON EXPRESSIONS :

 "This isn't a religion, it's a business."

 "The bottom line.”
 "How will this effect our claim and the results?”

WAYS OF DEALING :

 Don't waste time with small talk.

 Don't overload with information.
 Be genuine and don't be overly enthusiastic.
 Use "Tit for Tat" approach.
 Be prepared for fast decisions based on the facts.
CHARACTERISTICS :
 Want to influence.
 Are personable and enthusiastic in orientation.
 Like informality, warmth, friendless, openness.
 Short attention-span, not organized.
 DECISIONS made QUICKLY, based on
EMOTIONS.

WHAT THEY WANT?

 Wants to get excited about the issues.
 Loses perspective, ignores others.
 Less sensitive to what is happening around them.
COMMON EXPRESIONS :
 "This is great news."
 "Fantastic!
 "We can really do things with this.“

WAYS OF DEALING :

 Get them excited with an enthusiastic picture of the benefits to them.

 Talk about their hobbies and interests outside of the work environment.
 Tell stories.
 Personalize the process.
 Expect fast decisions based on emotions and level of excitement about the
issue or project.
CHARACTERISTICS:

 Want to reach peace and agreement.

 Avoid conflict.
 Do not like change, pressure or feeling forced into
decisions.
 Do not like to force opinions on others.
 Need time to think matters through, long attention
span.
 DECISIONS made SLOWLY based on
EMOTIONS.

WHAT THEY WANT ?

 Wants everyone to be happy.
 Develops relationships.
 Accepts losses and gives in too easily.
COMMON EXPRESSIONS :

• "We have to think about the impact on the people."

• "I don't want to offend or upset people."
• "What about loyalty?

WAYS OF DEALING :

• Go slowly, develop trust.

• Show that you really care about them and the "fairness" of the process.
• Be careful not to offend.
• Don't use high pressure tactics.
• Expect slow decisions based on working things through and comfort level
with you.
CHARACTERISTICS :

 Executive approach, wants to bring about

order.
 Orientated towards facts.
 Curious, soaks up information, fascinated
by analysis, very precise.
 DECISIONS made SLOWLY based on
FACTS.

WHAT THEY WANT ?

 Wants all the facts to make a decision.
 Rigid organization and detached from
other aspects of the process.
 Wants to win but based on principles and
facts.
COMMON EXPRESSIONS :

 "I need all the information you can get."

 "I need to think about this.“
 "I don't want to jump into this, let's prepare an in-depth report.“

WAYS OF DEALING :

 Be accurate.
 Give information and go into as much detail as you can.
 Build rapport by talking about their interests.
 Expect slow decisions based on accumulating and analyzing of all data.
 ‘Emotional’ Attyachar!
Positive affect in negotiation:
• People in a positive mood have more confidence.
• Higher tendencies to plan to use a cooperative strategy.
• Use less aggressive tactics.

Negative affect in negotiation :

• Anger is the primary emotion.
• Angry negotiators plan to use competitive strategies .
• Cooperate less.
• Anger disrupts the process by reducing the level of trust.
• Pay less attention to opponent’s interests .
• Achieve lower joint gains.
• Every person usually has all types of personality
style, but one style in dominance.

“One tool is not enough to deal with all

devices”
Similarly, One personality is not enough to deal
with all situation.

So, in order to become “jack of all trades”

One should learn from a chameleon who
changes its color according to the situation.
 Domen and women
negotiate differently?
Does gender affect
negotiation
outcomes?
 Competitive
 Hierarchical
 Winning
 Rational
 Unemotional
 Consistent
 Distributive bargaining
 Co-operative
 Equalitarian
 Intuitive
 Empathetic
 Concern for others
 Integrative bargaining
 Popular stereotype that women are more co-
operative and pleasant than men in
negotiations
 Studies shows men negotiate better
outcomes than women ; although difference
is relatively small.
 Postulated that this difference is due to men
and women placing divergent values on
outcomes.
 Women give more importance in maintaining
interpersonal relationships.
 Women experience lower degree of power in
most large organizations.
 Women are penalized when they initiate
negotiations.
 Women act ‘nice’ and men act ‘tough’-
general stereotype reinforcing the gender
differences.
 “Women are damned if they do , damned if
they don’t”.

 Negotiate tough and they are penalized for

violating the gender stereotype.

 Negotiatenice and it only reinforces the

stereotype(and is often taken advantage of)
 In addition to other party’s attitudes and
behaviors , evidence shows that women’s
own attitudes and behaviors hurt them in
negotiations.
 May demonstrate low confidence levels
during negotiations and feels less satisfied
after negotiations.
 This suggests that women unduly penalize
themselves by failing to engage in
negotiations even when it is in their best
interests.
 MALE FEMALE

NEGOTIATING STYLE Competitive Co-operative

ORGANIZATIONAL Vertical and Horizontal and

STRUCTURE hierarchical Equalitarian

OBJECT Winning Interpersonal

relationship

PROBLEM SOLVING Rational and Objective Emotional and Intuitive

KEY CHARACTERISTICS High control Low control

Strategic Empathetic
Unemotional Collaborative
Analytical High performance
The ‘Dalal’ Street
- A look into 3rd party negotiations
Vignesh ! Help
Conflicting parties
“MEEEEE…..”
PLZZ

Vignesh ! Help
“MEEEEE…..”
PLZZ

Chalo.. Let me
help you…

Trusted third party

 Role 1 Mediator Short Term
Non-Binding
Requests
Reasons and persuades
Role 2 Conciliator
Parties decide outcome Non-Binding
Negotiator satisfaction Informal communication
Effectiveness Building positive relationship Role 3 Arbitrator
Seen as mere facilitator Proposes settlement terms Legal binding
Confidential Advices parties (also legally) Dictates an agreement
Seen as authoritative figure Always results in
settlement
Conflict resurfaces later
 Long Term

Role 4 Consultant
Knowledge of Conflict Management
Does not settle issues
Improves relation, perception and attitude
Parties reach a settlement
Helps parties learn to understand, and work with each other
 Increasing Decreasing Increasing
Professional skill Satisfaction level Cost incurred
Negotiator

Conciliator

Arbitrator
Decreasing Decreasing
Authority order of
Time elapsed
Not sufficient to only know language; critical
to understand crucial differences in cultural
values
Understanding Negotiation Styles
• For North Americans, negotiations are
businesslike; their factual appeals are based
on what they believe is objective
information, presented with the assumption
that it is understood by the other side on a
logical basis.
• Arabs use affective appeals based on
emotions and subjective feelings.
• Russians employ axiomatic appeals – that is,
their appeals are based on the ideals
generally accepted in their society.
 Antecedents to Negotiation –

 National Cultural Similarity:

 The more similar the cultural backgrounds of the parties
involved, the greater the chance for understanding and
agreement between the parties.

 If sales teams are utilized, then the more similar the

members of the sales teams are to those of
the prospective
buying group, the greater the chance for
understanding and agreement among all
parties involved.

 The salesperson should never should never make

assumptions about the thoughts and feelings of a cross-
cultural customer.
 Antecedents to Negotiation –

 Past Negotiation Experience:

 The more experience the salesperson brings to cross-
cultural negotiations, the greater their flexibility in
dealing with guiding cross-cultural customers to successful
negotiation outcomes.

 The global sales manager can provide training to

compensate for lack of negotiation experience.

 Training should be done periodically and can include such

mechanisms as shadowing and role playing.
 Antecedents to Negotiation –

 Pre-Negotiation Expectations:
 Compromise is a necessity in most negotiation processes.

 Some sizing up of the expectations of each of the parties

to negotiation is necessary so that potential conflict can
be minimized.

 If the salesperson knows what the negotiations

expectations are for the potential buyer, they will be in a
better position to succeed in negotiation.

 Often salespeople enhance their chances of success in

negotiations by spending time listening and acting as a
problem solver for the cross-cultural buyer.
 Antecedents to Negotiation –

 Goal Compatibility:
 The closer that the goals of the two parties are in sync
with each other, the greater the possibility of reaching a
successful agreement.

 National culture may have a significant effect on goal

compatibility since buyers from collectivist countries are
more focused on organizational goals than personal goals.
 Antecedents to Negotiation –

 Trust:
 The greater the amount of mutual trust that exists

among the negotiating parties, the greater the

chance for a successful agreement.

 Trust focuses on integrity among the individuals

involved and their personal benevolence.

 If the salesperson has had prior dealings with the

buyer, trust will be easier to establish.

 If there is no prior experience, the salesperson can

develop trust through openness, honesty and a
sharing of important information.
 Negotiations, however insignificant, are
always based on conflicts.
 BATNA isn’t a spontaneous process. It comes
from preparation and planning.
 No matter how the negotiation goes, always
stick to your ground rules.
 Always keep your tone calm during intense
negotiations.
 Personality traits affect negotiations, but all
can learn to be better negotiators.
 Positive moods generally lead to integrative
negotiations.
 Men are ‘slightly’ better negotiators than
women. The feminine nature of women itself
proves to be a major hurdle in negotiations.
 Culture has a deep impact on negotiations. The
following slides will illustrate that…..
I have 3 demands, or I’ll kill the boy!
 Police
negotiators assess the situation from the
next door.
 Head Negotiator dispatched!
 Negotiations Begin!
 Negotiations Concluded.
 In this country, we would block off the street,
take 12 hours to talk him out of it, spend 5 million
giving him a fair trial, and pay his food and lodging
for life. No wonder their products are cheaper
than ours.
 
 Thank You!
We welcome your queries.
(Because we don’t have an option….our BATNA is too low.)