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Date:-
Place
NAME:- ANSHIKA MISHRA
ROLL NO:- 500107617009
ENROLLMENT NO:- BD7103
MBA II Semester, 2018
SECTION:- “A”
CERTIFICATE BY THE EXAMINERS
Submitted by
________________ __________________
________________ __________________
Name & Signature of Name & Signature of
Internal Examiner External Examiner
Date: Date:
Forwarded by
Head
Department of Management
ACKNOWLEDGEMENT
First and foremost I thank Miss Samriddhi mishra Mam, my lab report supervisor
BIT, Durg who gave me her valuable Knowledge, skills to guide me on this lab report,
for keeping the faith in us and continually keeping us encouraged by his valuable
suggestion during the span of research development. Thanks to her suggestion that I could
improve upon a number of modules of the project.
Our greatest thanks are to all who wished us success especially my parents above all, I
render my gratitude to almighty who bestowed self-confidence, ability and strength into
complete these work.
S.NO TOPIC
1 MEANING OF NEGOTIATION
2 DEFINITION OF NEGOTIATION
8 ETHICS IN NEGOTIATION
DEFINITION OF NEGOTIATION:-
An activity, generally face to face, with two or more players who, facing interest divergence and
feeling that they are interdependent, choose to actually look for an arrangement, in order to put
an end to this divergence and thus create, maintain or develop a relationship between them
FUNCTION OF NEGOTIATION:-
• Trade and economic exchange (trading/dealing)
• Interactive decision making (joint project)
• Conflict resolution (an alternative to « war »)
• Drafting joint rules (institutionalization)
NEGOTIATION STYLE:-
GENERAL PRNCIPLES
1. Entering into negotiation or mediation in good faith.That is, genuinely being prepared to
listen and enter into the spirit of the “give and take” of the situation.
2. Win-Win, which aims to find solutions that satisfy or are acceptable to both parties. In
win-win negotiations both parties feel a balance of their needs has been achieved. In win-
win, both parties are left with the feeling they can live with the outcome now and in the
future.
The ways in which people manage situations of conflict can reflect how they negotiate. In
general terms there are five different styles of managing conflict.
avoidance
competition
accommodation
compromise
collaboration.
Most people use two different styles, but tend to favour one. Are you able to identify the style of
negotiation you tend to use?
Avoidance:-
Competition:-
• Sometimes called ‘hard positional bargaining’ because one person takes a stand on the outcome
• Can often result in one or both people focusing on what they want, rather than preserving
a relationship or considering the needs of the other.
• If one person begins with an extreme position, it can result in only giving small
concessions within the negotiation.
Accommodation:-
• The opposite of the competitive style, sometimes called ‘soft positional bargaining’.
• Main interest for this person is that they can see the other party finds a solution that is
satisfactory.
• The negotiator using this style tends to hope their position will lead to a better relationship.
• Can reinforce the power imbalance in the relationship and means it is more difficult in the long
term to change the status quo.
Compromise:-
•People using this style may say “Let’s just split the difference
•In this style, somebody has to give up something of value in order to get something of value.
Usually this means each side tries to get as much as possible while giving up as little as
possible.
Collaboration:-
•Often thought of as ‘the sum is greater than its parts’ by people using a collaborative approach.
• Also called interest-based negotiation, resulting from human needs, and often based on values
and beliefs.
• This approach allows each person to look for a solution which is the best for all concerned.
• Can only work if both parties are willing to examine each possible option and choose one that
gives what they need rather than what they want.
PROCESS OF NEGOTIATION:-
Every time involves you negotiate, you have to make choice that effect whatever you achieve
a successful outcome for your business. To get the best outcomes, you need
to understand the step involved in the negotiation process.
•Non-task sounding
•Task-related exchange of information
•Peruses
•Concessions and agreement
•Caution
Non-task sounding:-
Activities which can be described as targeting the development of an interpersonal rapport and
aim to reach better acquaintance of each other as well as learning key characteristics of other
negotiators (e.g. age, nationality, education, status, previous experience, etc.)
At this stage, negotiators more precisely indicate what are their interests, needs, and preferences
and supply the other side with information (more or less true) on situations, facts, and data which
underlies their positions.
Persuasion:-
parties try to modify the subjective utilities expected by the other party by using argumentation
and differences persuasion tactics.
Caution:-
This conceptual framework is based on a linear, anglo-saxon time perception – it may not be
fully verified in practice.
offer
Compromise Concioness
Promise A statement in which the source indicated his intention to provide the target with
a reinforcing consequence which source anticipates target will evaluate as
pleasant, positive, or rewarding.
Threat Same as previous, except that the reinforcing consequences are thought to be
noxious, unpleasant, or punishing.
Reward A statement by the source that is thought to create pleasant consequences for the
target.
Punishment Same as reward, except that the consequences are thought to be unpleasant
Positive A statement in which the source indicates that the target’s past, present, or future
behavior was or will be in conformity with social norms
normative appeal
Negative Same as positive normative appeal except that the target’s behavior is in
violation of social norms.
normative appeal
Commitment A statement by the source to the effect that its future bids will not go below or
above a certain level.
Command A statement in which the source suggests that the target performs a certain
behavior.
CONFLICT IN NEGOTIATION:-
A conflict or negotiation situation is one in which there is a conflict of interests or what one
wants isn't necessarily what the other wants and where both sides prefer to search for solutions,
rather than giving in or breaking-off contact.
Few of us enjoy dealing with conflicts-either with bosses, peers, subordinates, friends, or
strangers. This is particularly true when the conflict becomes hostile and when strong feelings
become involved. Resolving conflict can be mentally exhausting and emotionally draining. But it
is important to realize that conflict that requires resolution is neither good nor bad. There can be
positive and negative outcomes as seen in the box below. It can be destructive but can also play a
productive role for you personally and for your relationships-both personal and professional. The
important point is to manage the conflict, not to suppress conflict and not to let conflict escalate
out of control. Many of us seek to avoid conflict when it arises but there are many times when
we should use conflict as a critical aspect of creativity and motivation.
You will be constantly negotiating and resolving conflict throughout all of your professional and
personal life. Given that organizations are becoming less hierarchical, less based on positional
authority, less based on clear boundaries of responsibility and authority, it is likely that conflict
will be an even greater component of organizations in the future. Studies have shown that
negotiation skills are among the most significant determinants of career success. While
negotiation is an art form to some degree, there are specific techniques that anyone can learn.
Understanding these techniques and developing your skills will be a critical component of your
career success and personal success.
Opposing interests (or what we think are opposing interests) are at the core of most
conflicts. In a modern complex society, we confront these situations many times a day. The modern
organization adds a whole new group of potential causes of conflict that are already present:
reward systems: we work in situations with complex and often contradictory incentive
systems
differentiation: division of labor which is the basis for any organization causes people and
groups to see situations differently and have different goals
Equity vs. equality: continuous tension exists between equity (the belief that we should be
rewarded relative to our relative contributions) and equality (belief that everyone should receive
the same or similar outcomes).
It is useful to categorize the various responses we have to conflict in terms of two dimensions:
Answering this questions result in the following five modes of conflict resolution. None is these
is "right" or "wrong". There are situations where any would be appropriate. For example, if we
are cut off driving to work, we may decide "avoidance" is the best option. Other times
"avoidance" may be a poor alternative. Similarly, collaboration may be appropriate sometimes
but not at other times.
Satisfying your needs is important; satisfying the other's needs isn't important to you
Compromising:-
Satisfying both your needs and the other's are moderately important
Avoiding:-
You are indifferent about satisfying either your needs or the other's needs: no action is likely
Accommodating:-
Simply yield (it doesn't matter to you and it matters to the other person)
In general, most successful negotiators start off assuming collaborative (integrative) or win-win
negotiation. Most good negotiators will try for a win-win or aim at a situation where both sides
feel they won. Negotiations tend to go much better if both sides perceive they are in a win-win
situation or both sides approach the negotiation wanting to "create value" or satisfy both their
own needs and the other's needs. We will focus on the two most problematic types:
Collaborative (integrative) and Competitive (Distributive). Of the two the more important is
Collaborative since most of your negotiation and conflict resolution in your personal and
professional life will (or should) be of this nature. This is because most negotiation involves
situations where we want or need an on-going relationship with the other person. While it is
important to develop skills in "competitive" bargaining (e.g. when buying a car), or skills that
allow us to satisfy our concerns while ignoring the other's goals, this approach has many
negative consequences for both our personal lives and for our professional careers especially if
we are to have an on-going relationship with the other person.
The key to successful negotiation is to shift the situation to a "win-win" even if it looks like a
"win-lose" situation. Almost all negotiation have at least some elements of win-win. Successful
negotiations often depend on finding the win-win aspects in any situation. Only shift to a win-
lose mode if all else fails.
Organizations also take steps to reduce conflict. The following list suggests
some of these ways:-
Physical separation
Hierarchy (the boss decides)
Bureaucratic approaches (rules, procedures)
Integrators and third-party intervention
Negotiation
Rotating members
Interdependent tasks and super ordinate goals ("We are all in this together...")
Intergroup and interpersonal training.
People with strong leadership skills can be more effective Project Managers (PM). Organizations
are becoming flatter, culturally rich, geographically diverse, and intensely competitive. The
possibilities for conflict are greater in such environments, and PM’s must have sufficient
competencies to lead in such situations.
This paper will reflect on three complementary leadership competencies that are addressed in
worldwide competency standards, that of, conflict management, negotiation, and effective
communication, which the authors argue are not well, represented in the National (Australian)
Competency Standards for Project Management. These competencies have been found by the
authors to be most useful in practicing project management.
To manage conflict a PM must understand the basics of negotiation theory and effective
communications. This paper discusses some recognized negotiation techniques, and useful
communications skills that will enhance the ability of PM’s to be more effective not only in
conflict management, but in many aspects of Project Management.
Sometimes negotiators agree, however on different bases and they may not see the
divergence. The agreement may be perceived differently in terms:-
WRITTEN AGREEMENTS:-
The challenge of trust is then to progressively undermine the reasons for distrust and thus
increase bases for trust
Trust is built step by step by isolating potential sources of opportunistic behavior and
distrust and making them concrete situations and issues that may be discussed openly;
Highest trusting point is reached when signing
Questioning written and signed clauses (worse: not respecting them) is considered as a
breach of law by one party which justifies entering into litigation for the other
ORAL AGREEMENTS:-
Cultures which put more emphasis on oral agreements do not start from the assumption
that trust will be built during the negotiation process; trust (sometimes more simulated
than real) appears on the contrary as a pre-requisite to negotiation
Direct confrontation on a une clause is avoided as much as; negotiators tend to globalize
negotiations (package deal)
The formal signature of an agreement is not the actual time line (end) of the negotiation,
but rather important steps
Litigation (in code law or common law countries) is hardly separable from written
agreements (as a final recourse when a party does not fulfill its obligations)
Litigation is threatening for oral-agreement cultures in as much as it directly questions
the implicit trust assumption, undermines the relationship, and implies a possible loss of
face for the party which loses the trial
For oral-agreement cultures, questioning or not respecting a signed clause, may be a way
to open or re-open a negotiation processes that is perceived as continuous between parties
whose trust remains words and people-based.
COMMUNICATIN IN NEGOTIATION:-
Communication competencies that can be used to manage or resolve conflict are wide ranging,
and require the PM to be able to listen effectively and actively. The PM must also be able to
understand issues, propose solutions or methods of resolution, and lead the conflicting parties to
a place where the project can continue without ongoing resentment or other feelings of mistrust.
Communication competencies are essential when managing conflict that could be damaging to
the project. It is necessary for the PM to be decisive, to be clear in communicating the message,
and to ensure that information flow is secure, received, and understood by all the parties
involved within the conflict.
Many of the competencies identified for conflict management, communication and negotiation
are complementary or overlapping. The authors contend that the NCSPM for completeness needs
to increase the competencies addressed in the areas of conflict management, communications
and negotiations.
• Personal Space: The person at the head of the table is the apparent symbol of power.
Negotiators can repel this strategic advantage by positioning allies in the room to surround that
individual.
• First Impression: Begin the negotiation with positive gestures and enthusiasm. Look the person
in the eye with sincerity. If you cannot maintain eye contact, the other person might think you
are hiding something or that you are insincere. Give a solid handshake.
• Nervous Laugh: A laugh not matching the situation. This could be a sign of nervousness or
discomfort. When this happens, it may be good to probe with questions to discover the person’s
true feelings
• Positive words but negative body language: If someone asks their negotiation partner if they are
annoyed and the person pounds their fist and responds sharply, “what makes you think anything
is bothering me?”
• Hands raised in a clenched position: The person raising his/her hands in this position reveals
frustration even when he/she is smiling. This is a signal that the person doing it may be holding
back a negative attitude.
• If possible, it may be helpful for negotiation partners to spend time together in a comfortable
setting outside of the negotiation room. Knowing how each partner non-verbally communicates
outside of the negotiation setting will help negotiation partners to sense incongruity between
verbal and non-verbal communication within the negotiation setting.
Conveying receptivity:-
They way negotiation partners position their bodies relative to each other may influence how
receptive each is to the other person's message and ideas.
• Face and eyes: Receptive negotiators smile, make plenty of eye contact. This conveys the idea
that there is more interest in the person than in what is being said. On the other hand, non-
receptive negotiators make little to no eye contact. Their eyes may be squinted, jaw muscles
clenched and head turned slightly away from the speaker
• Arms and hands: To show receptivity, negotiators should spread arms and open hands on table
or relaxed on their lap. Negotiators show poor receptivity when their hands are clenched,
crossed, positioned in front of their mouth, or rubbing the back of their neck.
• Legs and Feet: Receptive negotiators sit with legs together or one leg slightly in front of the
other. When
Standing, they distribute weight evenly and place hands on their hips with their body tilted
toward the speaker. Non-receptive negotiators stand with legs crossed, pointing away from the
speaker.
• Torso: Receptive negotiators sit on the edge of their chair, unbutton their suit coat with their
body tilted toward the speaker. Non-receptive negotiators may lean back in their chair and keep
their suit coat buttoned.
Receptive negotiators tend to appear relaxed with their hands open and palms visibly displayed.
Team negotiations:-
Due to globalization and growing business trends, negotiation in the form of teams is becoming
widely adopted. Teams can effectively collaborate to break down a complex negotiation. There
is more knowledge and wisdom dispersed in a team than in a single mind. Writing, listening, and
talking, are specific roles team members must satisfy. The capacity base of a team reduces the
amount of blunder, and increases familiarity in a negotiation.
Barriers to negotiations:-
• Die hard bargainers.
• Lack of trust.
• Informational vacuums and negotiator's dilemma.
• Structural impediments.
• Spoilers.
• Cultural and gender differences.
• Communication problems.
• The power of dialogue.
Non-verbal signals show thoughts and emotions, attitudes and traits. They also support verbal
communication or they are a substitute for it. Gestures reveal moods and states, enabling us to
express agreement or disagreement, acceptance or rejection.
Any gesture can be seen as a specific act that indicates an action, starting someone or something.
Most modern research in the field of Communication Studies shows that non-verbal
communication is crucial in the first contact. As much as 60% of a complete impression when
meeting (first impression) is formed on the basis of non-verbal communication. This moment is
settled in the domain of intuitive, unconscious.
Words are often the backbone of human communication, but words can often deceive, mislead or
hurt if the evidence is not properly and clearly formed, or is wrongly decoded. If the meaning
and content are not transmitted and perceived in a desired way, it means that an error has
occurred in the process of communication. Body language, then, is the solution, i.e., the
communication bridge. In many cases, non-verbal signals are at an
advantage compared to the verbal ones, as they are prejudice free. Every speaker’s aspiration is
to harmonize the basic means of expression - voice, gesture, speech, statement and posture. The
gesture is sometimes used to supplement, explain or illustrate the text. On the other hand, the
movement can be in contradiction with the text – as a sign that expresses a deliberate, targeted
contradiction. The relationship between a gesture and a text can be seen in mutual conjunction of
several ways:
When the text is dominant, content and voice constants show all the speaker's intentions. The
gesture is reduced, minimal, expressed through the motions of seeing and mime;
The gesture complements, highlights the text, that is, the purpose is to supplement and interpret;
The gesture only follows the emphasized parts of speech, the focus of the argument. The
attention of a listener is drawn to the most important place in the speech. The movement acts as a
figure of gradation and the voice constant loudness may be accompanied by energetic gestures;
Disciplined action is actually part of preparation and strategy for a show. These are the
movements of the whole body, that is, the body language.
The choice of means of non-verbal communication depends on the area, of the environment, time
available, as well as the number of participants, or listeners. Addressing a wide audience in the
larger space requires larger, wider gestures, whereas the dialogue with one participant in a
smaller space and political speeches require careful choice movement, gestures and poses, as
well as their alignment with speech act.
This essay will explain the three types (levels) of non-verbal communication. These are:-
a) conscious
b) unconscious
c) manipulative non-verbal communication.
VIEW FOCUSING:-
Watching as the permanent movement that fully reveals a personality isn’t thought of enough.
Watching presents an orientation to the other party, and signifies that both parties in the dialogue
care about communication. Fixing the gaze, however, is not free, it is frantic behavior, while a
wandering glance presents unfocused viewing.