Theories, Development and Its Types Qualities of Negotiator and Process For Negotiation

Theories, Development and its types Qualities
of Negotiator and Process for Negotiation

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“Negotiation and discussion
are the greatest weapons we
have for promoting peace and
development,” said Nelson
Mandela.
Mahatma Gandhi and Mandela

are regarded as two of
history’s greatest negotiators.
They applied their intelligence
and displayed their fortitude as
they negotiated the futures of
their respective nations.
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Negotiation skills
 Negotiation comes in handy to achieve individual as

well as collective goals. Without team members
having good negotiation skills, no business is
successful.
 Every professional should acquaint themselves with

the proper negotiation process. Negotiation skills can
be developed with proper insights, mentoring, and
training.
This Photo by Unknown author is licensed under CC BY-SA.

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WHAT IS
NEGOTIATION?
 Negotiation is a strategic process of

arriving at an agreement by two or
more individuals, teams, or groups. It
is defined as ‘an interpersonal
decision-making process necessary
whenever we cannot achieve our
objectives single-handedly.’
 During a negotiation process, an

issue is addressed, a problem is
resolved, and a conclusion is derived.
Actions are based on what is agreed
upon in the negotiation. Having
great negotiation skills is an asset.
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Example
 Let’s look at an example.

Sabeer Bhatia, the Hotmail co-
founder, struck a massive deal
with technology giant Microsoft
in1998. He managed to bump
up the acquisition price for his
company from $160 million to
$400 million. Later, he
reportedly credited his
negotiation skills to the
bargaining he used to do in the
vegetable markets of
Bengaluru.
This Photo by Unknown author is licensed under CC BY-NC.

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Negotiating
We have to
• Negotiating a salary with a potential hire
negotiate in
many situations Asking
in our daily
• Asking your supervisor for a few days off
personal and
and planning the work schedule accordingly
professional
lives. Negotiating
They include: • Negotiating some time for entertainment
when your child is preparing for a
competitive examination
Negotiating
• Negotiating a project deadline assigned to
you by your boss
Negotiating
• Negotiating the price of the property you
want to invest in
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TYPES OF
NEGOTIATION
 Negotiation is an important skill for the modern

professional. Sometimes, negotiation also
involves meeting each other halfway as a
compromise when both sides are on opposite
sides of the spectrum. There are various types
of negotiation:
 1. DISTRIBUTIVE NEGOTIATION
 Distributive negotiation is when two parties

bargain over a single product or issue, such as
price. For example, negotiating with a dealer
over the price of a second-hand vehicle or
bargaining with a street vendor. Here, one party
wins and the other has to take a step back and
suffers a loss. Your success eventually
depends on your distributive negotiation skills.
This Photo by Unknown author is licensed under CC BY-SA-NC.

z Do you know what happens when
representatives of an employees’
union meet the management with
their demands? They discuss,
argue, present, oppose, convince,
and so on. Then, they strike a
deal on salaries and other
benefits. This is called
2. integrative negotiation.
INTEGRATIVE
NEGOTIATION It is one of the types of negotiation
where there is more than one
issue that has to be put through
the negotiation process. Both
parties gain something from the
negotiation. An integrative
negotiation process ensures a
win-win situation.
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The multiparty negotiation

process involves three or
more parties undertaking
various negotiation strategies
3. MULTIPARTY to drive home their points.
NEGOTIATION When six friends are deciding
the venue of the party and
discussing its pros and cons,
the type of negotiation can be
said to be multiparty.

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• 4. TEAM NEGOTIATION
 This type of negotiation process takes place between

the two teams. For example, negotiation strategies
between the teams of two companies that are looking
to merge are called team negotiations.
 While putting together a negotiation team, a company

looks for members with excellent negotiation skills and
highly-developed strategic thinking capacities.
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5. POSITIONAL
NEGOTIATION
 Positional negotiation is when

you spell out the position you
are in, at the outset. Then, you
defend that position against the
attack. Important among the
types of negotiation, positional
negotiation sees both parties
having fixed stances and
sticking to them obstinately.
They may not consider the
other party’s interest or see
where they are coming from.
Positional negotiation is not
considered very productive.
This Photo by Unknown author is licensed under CC BY-NC.

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Stages of Negotiation
 Being a master negotiator is not

rocket science. Neither is it an
overnight miracle. It is a five-stage
framework that can be learned,
practiced, and applied. Here are the
five stages of the negotiation
process:
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FIVE STAGES OF THE
NEGOTIATION PROCESS
 1. PREPARE
 Research is a building block of the negotiation process. While

preparing, you must weigh both sides, identify the strengths and
weaknesses of both sides, and then determine your negotiation
strategies. Define the kind of interaction you want to have and the
bond you intend to form with the other party.
 2. INFORMATION EXCHANGE
 The information exchange involves discovering and creating value for

the negotiation process. It also helps in building rapport.
 Both parties should explain their interests and exchange their

viewpoints to achieve the desired results. Unless there is a
transparent exchange of information, even sophisticated negotiation
strategies won’t work.
This Photo by Unknown author is licensed under CC BY-NC-ND.

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3. BARGAIN
 In all types of negotiation, a bargain is of

utmost importance. It is the beginning of
give-and-take deals. Each party proposes its
demands and seeks to secure benefits.
During the bargaining process, it is
imperative to keep yourself in check. Don’t
lose your cool or become emotional during
negotiations. To achieve your desired
outcomes, train yourself to be composed and
diplomatic.
4. CONCLUDE
 Once a solution that is acceptable to both

has been reached, both parties should thank
each other. They should confirm that
interests have been secured and the
outcome has been successful. A good
summing-up and amicable closing always
lead to rewarding long-term relationships.
This Photo by Unknown author is licensed under CC BY.

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5. EXECUTE

 All types of negotiation

lead to effective
implementation. The
steps to implement the
negotiated result
should be
categorically chalked
out. Often, in the
corporate context, a
written contract is
entered into to confirm
the intent to execute.

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BARRIERS TO GOOD
NEGOTIATION
 Ego is considered the biggest obstacle to good negotiation.
Knowing the other side is important before you put your cards on
the table. That’s the reason why big corporations send a multi-
functional team for an important negotiation.
Other barriers that may hamper a negotiation are:
 Taking negotiations as personal battles and focusing too much on

winning
 Maintaining a know-it-all attitude and failing to ask genuine

questions
 Being hostile and thinking negatively during

the negotiation process
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 Inability to grasp the problems

and positions of the other
party in the
negotiation process
 Entering a negotiation
unprepared and uninformed f
and having no credible
answers for the questions
asked
 Being short-tempered,
sarcastic, lacking listening
skills, and criticizing too much
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Look at negotiation
as a puzzle to be Listen with attention
solved rather than a and be empathetic
battle to be won
HOW TO
DEVELOP
Ensure that the Instead of focusing
GOOD negotiation is a win- on compromising,
NEGOTIATION win situation or it gear your efforts to
SKILLS creates frustration achieve your interest
Work on your people

skills and
communication skills
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Practice your negotiation skills and
Practice strategies with friends and family
Learn to accept mistakes and

Learn improve on them
Know your genuine value and learn

Know to say no whenever required
Treat negotiation as a presentation.

Treat Improve your body language so that
it will give you a winning edge
Be smart and strategic. It is said

that let them win the first
Be negotiation, and they will usually be
happy enough to let you win two to
three more
Define your personal strengths and

Define use them positively to impress and
convince

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Theories, Development and its types Qualities

of Negotiator and Process for Negotiation

Mahatma Gandhi and Mandela

 Negotiation comes in handy to achieve individual as

 Every professional should acquaint themselves with

This Photo by Unknown author is licensed under CC BY-SA.

 Negotiation is a strategic process of

 During a negotiation process, an

 Let’s look at an example.

This Photo by Unknown author is licensed under CC BY-NC.

 Negotiation is an important skill for the modern

 Distributive negotiation is when two parties

This Photo by Unknown author is licensed under CC BY-SA-NC.

The multiparty negotiation

This Photo by Unknown author is licensed under CC BY-SA.

 This type of negotiation process takes place between

 While putting together a negotiation team, a company

 Positional negotiation is when

This Photo by Unknown author is licensed under CC BY-NC.

 Being a master negotiator is not

 Research is a building block of the negotiation process. While

 The information exchange involves discovering and creating value for

 Both parties should explain their interests and exchange their

This Photo by Unknown author is licensed under CC BY-NC-ND.

 In all types of negotiation, a bargain is of

 Once a solution that is acceptable to both

This Photo by Unknown author is licensed under CC BY.

 All types of negotiation

This Photo by Unknown author is licensed under CC BY-SA.

Other barriers that may hamper a negotiation are:

 Taking negotiations as personal battles and focusing too much on

 Maintaining a know-it-all attitude and failing to ask genuine

 Being hostile and thinking negatively during

 Inability to grasp the problems

Work on your people

Learn to accept mistakes and

Know your genuine value and learn

Treat negotiation as a presentation.

Be smart and strategic. It is said

Define your personal strengths and

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