Fundamentals of Negotiation

WHAT IS NEGOTIATION

Good negotiations help you to gain better control in business as well as personal situations.
They help you to identify and understand you’re as well as the other parties’ interests and also understand the differences between both.
It helps to reach a ‘Win-Win’ Solution, which is mutually beneficial to all the parties involved in a negotiation.
Good negotiations also help to improve interpersonal relationships.
They help to develop and maintain an overall harmonious and thriving interpersonal environment.
It is one of the easiest and quickest ways to solve conflicts and disagreements.
Negotiations help to reduces stress and frustration among two conflicting individuals.
Negotiations help to reach an agreement in cases where a dead ended may be reached if a consensus is not established between two differing needs, wants or opinions.

Essential of negotiations are referred as P' s of negotiation

Purpose

It is necessary to have a goal; otherwise, money, personnel, and time would be wasted.

Plan

Main agenda on which negotiations will take place

Pace

In conversations, the key ideas should be presented, and appropriate gaps should be introduced to keep people's attention.

Personalities

The negotiator who initiates the negotiation must have persuasive power, good communication skills, and the ability to influence others and the negotiating process.

TYPES OF NEGOTIATIONS

Distributive Negotiation

‘Distributive Negotiation’ is also known as ‘Positional’ or ‘Competitive’ or ‘Fixed Pie’ or ‘Win-Lose’ Negotiation. It is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value. The involved parties in a ‘distributive negotiation’ have a ‘win-lose’ attitude towards reaching the goal and is based on an attempt to divide up a fixed pie or amount of resources for oneself. ‘Distributive Negotiation’ involves holding on to a fixed idea, or position, of what you want and arguing for it and it alone, regardless of any underlying interests

Integrative Negotiation

‘Integrative Negotiation’ is also known as ‘Interest-based’ or ‘Cooperative’ or ‘Win-Win’ or ‘Non-zero Sum’ Negotiation. It is a type or style of negotiation in which the parties cooperate to achieve a satisfactory result for both. The involved parties in an ‘integrative negotiation’ have a ‘win -win’ attitude towards reaching the goal and attempt to strive not just for their own outcomes, but for favorable outcomes for both sides. ‘Integrative Negotiation’ involves reaching an agreement keeping into consideration both the parties’ interests which includes the needs, desires, concerns, and fears important to each side.

Place

Being familiar with your surroundings can help you feel more confident.

Time

Allow enough time for a smooth exchange of ideas and reaching an agreement before it's too late.

ATTITUDE

Both parties' attitudes should be favorable, indicating a willingness to reach an agreement or negotiate a deal.

SUBJECTIVE FACTORS

Subjective aspects include the relationship between the two parties involved, the difference in status, information, and competence.

Fundamentals of Negotiation

Essential of negotiations are referred as P' s of negotiation

TYPES OF NEGOTIATIONS

Distributive Negotiation

Integrative Negotiation

4 Phases of Negotiation

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