PLEASE READ CAREFULLY

• A guy was sitting in a restraunt. After

finishing his dinner, he approaches to a
pretty looking girl sitting on corner table.
• He asked her “will u sleep with me
tonight?”
• Girl got angry and started abusing him.
• Guy politely offers “I’ll pay you 1 lakh
rupees for 1 night.”
 CONTINUE READING…

• Girl gets up to leave.

• Guy raises his offer and says “OK, I’ll pay
you 10 lakh for 1 night.”
• Girl now starts thinking, but is very
hesitant and starts mumbling “ but my
family…?? my boyfriend…….??”
• Guy puts his final offer “ I’ll pay you 100
lakh for 1 night.”
 AND FINALLY…..
• Girl agrees shyly and says “OK.”
• Guy now sits down beside her and relaxes
a bit, after a pause of 2 minutes he says
“how about 100 rupees for 1 night?”
• Girl gets mad at this new development
and shouts “ what do you think, am I a
prostitute?”
• Guy laughs and says “ I have already
proved that. Now we are just
NEGOTIATING over the price…”
NEGOTIATION
 ENABLING OBJECTIVES

• Define negotiation.

• Explain the elements of negotiations.

• Describe the stages in negotiation.

• Enumerate the five negotiating roles.

• Identify the styles of negotiating.

2
 EVERYONE NEGOTIATES
• Buying a car, house or other object for
which the price may not be fixed
• Establishing a salary, workplace tasks,
office conditions, etc.
• Organizing team tasks or priorities
• Allocating household tasks
• Deciding how to spend a free evening

3
 SCOPE

• Definition

• Elements of negotiation

• Stages in negotiation

• Negotiating roles

• Styles of negotiating

4
 DEFINITION

• Process of bargaining to reach a mutually

acceptable agreement.
• Art of reaching an agreement by resolving
differences through creativity.
• Attempted trade-off between getting what
you want and getting along with people.

5
 ELEMENTS OF NEGOTIATION

• Power

• Time

• Information

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 POWER
• Power of expertise

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 POWER
• Power of expertise
• Power of investment

7
 POWER
• Power of expertise
• Power of investment
• Power of rewarding or punishing

7
 POWER
• Power of expertise
• Power of investment
• Power of rewarding or punishing
• Power of identification

7
 POWER
• Power of expertise
• Power of investment
• Power of rewarding or punishing
• Power of identification
• Power of morality

7
 POWER
• Power of expertise
• Power of investment
• Power of rewarding or punishing
• Power of identification
• Power of morality
• Power of persuasive capacity

7
 POWER
• Power of expertise
• Power of investment
• Power of rewarding or punishing
• Power of identification
• Power of morality
• Power of persuasive capacity
• Power of attitude

7
 TIME
• If I know your deadline and you don’t know
mine. Who has the advantage?

- I WILL.

8
 INFORMATION
• Knowledge of other party’s true interests,
needs and priorities.

9
 INFORMATION
• Knowledge of other party’s true interests,
needs and priorities.
• An experienced negotiator never gives
away such information during negotiation.

9
 INFORMATION
• Knowledge of other party’s true interests,
needs and priorities.
• An experienced negotiator never gives
away such information during negotiation.
• Better way is to gather this information
from other sources.

9
 STAGES IN NEGOTIATION

• Prepare

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 STAGES IN NEGOTIATION

• Prepare

• Discuss

1
 STAGES IN NEGOTIATION

• Prepare

• Discuss

• Propose

1
 STAGES IN NEGOTIATION

• Prepare

• Discuss

• Propose

• Bargain

1
 STAGES IN NEGOTIATION

• Prepare

• Discuss

• Propose

• Bargain

• Agreement

1
 NEGOTIATING ROLES

• The Factual Negotiator

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 NEGOTIATING ROLES

• The Factual Negotiator

• The Relational Negotiator

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 NEGOTIATING ROLES

• The Factual Negotiator

• The Relational Negotiator

• The Intuitive Negotiator

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 NEGOTIATING ROLES

• The Factual Negotiator

• The Relational Negotiator

• The Intuitive Negotiator

• The Logical Negotiator

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 NEGOTIATING ROLES

• The Factual Negotiator

• The Relational Negotiator

• The Intuitive Negotiator

• The Logical Negotiator

• The Lead Negotiator

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 STYLES OF NEGOTIATING
• Competitive Style
- winning at all cost

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 STYLES OF NEGOTIATING
• Competitive Style
- winning at all cost

• Collaborative Style
- negotiating for mutual satisfaction

1
 COMPETITIVE STYLE
Characteristics are:-

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 COMPETITIVE STYLE
Characteristics are:-
• Extreme initial position

1
 COMPETITIVE STYLE
Characteristics are:-
• Extreme initial position
• Limited authority

1
 COMPETITIVE STYLE
Characteristics are:-
• Extreme initial position
• Limited authority
• Emotional tactics

1
 COMPETITIVE STYLE
Characteristics are:-
• Extreme initial position
• Limited authority
• Emotional tactics
• Adversary concessions viewed as
weakness

1
 COMPETITIVE STYLE
Characteristics are:-
• Extreme initial position
• Limited authority
• Emotional tactics
• Adversary concessions viewed as
weakness
• Stingy in their concessions

1
 COMPETITIVE STYLE
Characteristics are:-
• Extreme initial position
• Limited authority
• Emotional tactics
• Adversary concessions viewed as
weakness
• Stingy in their concessions
• No value for time

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 COLLABORATIVE STYLE

Characteristics are:-

1
 COLLABORATIVE STYLE

Characteristics are:-
• Building Trust

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 COLLABORATIVE STYLE

Characteristics are:-
• Building Trust

• Gaining Commitment

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 COLLABORATIVE STYLE

Characteristics are:-
• Building Trust

• Gaining Commitment

• Managing Opposition

1
 SUMMARY

• Definition

• Elements of negotiation

• Stages in negotiation

• Negotiating roles

• Styles of negotiating

1
 HOME ASSIGNMENT
• Find out basic procedure of defence
purchases.
• Relate negotiations in the context of
defence purchases.

1
 FURTHER STUDY
• ‘You can negotiate anything’ by Herb
Cohen, 1983
• Successful Negotiations, Peter Flaming,
Barrons, 1997.
• Negotiate to succeed, Julie Lewthwaite,
Thorogood Ltd, London, 2003.
• How to be a better negotiator, John
Mattock and Jons Ehrenborg, Kogen
Page, 1996.

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THANK YOU !