DEVELOPING AND

PRACTICING
NEGOTIAGION SKILLS
CONSIDER THIS SITUATION:
You are a leader of team tasked to develop a travel application
for a client. In your evaluation, the travel app that your team has
created is perfect and will certainly gain the client’s approval.
However, the client tells you that he does not like the app at all
and wants you to create a new one. You don’t agree with your
client. There’s no need to create another app because the current
one can be improved, you say to yourself.

How will you resolve the conflict of opinion? How will you
negotiate and convince your client to take your advice?
Know what type of conflict you are involve in

“It is important to know what

kind of conflict you are in
because the different kinds
require different types of
strategies and tactics”

(Deutsch, 1999)
 UNDERSTANDING THE CONFLICT

Conflict is the process Conflict is the self- Interpersonal conflict is

that begins when one interested struggle that a process that occurs
party perceives that arises when the goal- when one person, group,
another party has directed behavior of one or organizational subunit
negatively affected, or is person or groupblocks frustrates the goal
about to negatively the goal-directed attainment of another.
affect, something that behavior of another
the first party cares person or group.
about.
 THREE MAJOR TYPES OF CONFLICT

ZERO-SUM PURE COOPERATIVE MIXED-MIOTIVE

A pure win-lose Both can win and Both can win, both
conflict both can lose can lose, one can
win and the other
can lose
 NEGOTIATION
Definition and Guideline
Negotiation facilitates agreement
when some of your interests are
shared and some are oppose.

Negotiaiton is the process of

evolving communication to get from
opposition to consensus, manage
conflict and reach aggreement.
 Basic Negotiation Concepts

❑ Positions – are “what” the negotiators say they want. They are really solutions that have
been proposed by the negotiators. Positions are based upon the interests of the parties;
interests are usually not disclosed, at least not in competitive negotiations. In most
negotiations people take and then give up a series of positions. Behind every position lie
many interests.

❑ Interests –are “why” the negotiators take the positions they do. Interests lie behind the
positions of the negotiators. Interests represent the basic needs to be met. Money and
price are not interesting in themselves. Money represents purchasing power, the ability to
acquire other needs, status, or power itself. Understanding interests is the key to
understanding “win-win” negotiating.

❑ Best Alternative to a Negotiated Agreement (BATNA) – BATNA represents the best

result that a negotiator can get somewhere else if an agreement cannot be reached with
the other party. In other words, a BATNA is the alternative that the party will select if they
must walk away from the negotiation. If the negotiation involves finalizing a deal, the
BATNA is to walk away to another party who can offer you a better deal. If, however, the
negotiation involves a lawsuit, the BATNA is to go to court.
 Basic Negotiation Concepts

❑ Bottom Line – The bottom line or reservation price is the position at which the negotiator
will walk away from the negotiation. Relative to a purchaser, it is the highest price a
purchaser is willing to pay for goods or services. Relative to a seller, it is the lowest price at
which a seller is willing to sell the goods or services. The bottom line is also known as the
“reservation price.” If the negotiator cannot get at least their bottom line in the
negotiation, they will vote with their feet and walk away from the deal.

❑ Zone of Agreement – The zone of agreement represents the difference between the
bottom lines of the parties. If there is no overlap in the bottom lines of the parties, no
agreement is possible.
 NEGOTIATION STYLES

COMPETITIVE COOPERATIVE
Competitive negotiators want to “beat” their They use reasonable opening offers, show good faith,
opponents. They use high demands, threats, and and initiate the exchange of mutual concessions. Once
make few concessions. They generally try to interests are identified, the negotiators then jointly
undermine their opponent’s confidence and develop a wide-ranging set of alternatives, and then
seek the maximum for themselves. choose the best alternative. Cooperative negotiators
seek a fair and just settlement.
 TYPES OF NEGOTIATION
Integrative
a set of techniques
that attempts to
improve the quality.

Distributive
tends to approach
negotiation on the
model of haggling in
a market.
 TYPES OF NEGOTIATION
1. DISTRIBUTIVE NEGOTIATION
Distributive negotiation is also sometimes called positional or hard-bargaining negotiation.
It tends to approach negotiation on the model of haggling in a market. In a distributive negotiation, each
side often adopts an extreme position, knowing that it will not be accepted, and then employs a
combination of trickery, bluffing, and brinksmanship in order to give in as little as possible before reaching
a deal. This is a “zero sum” negotiation where the negotiator claims as much of the ‘pie’ as possible.
Usually there is just one issue for negotiation and more for one party means less for the other. Although
the goals of the parties are in direct conflict, a negotiator can adopt either a competitive or cooperative
negotiation style in a distributive bargaining situation.

DISTRIBUTIVE NEGOTIATION STRATEGY IDENTIFIERS

A distributive negotiation strategy is generally appropriate where:

• Parties do not know each other very well
• Parties are unlikely to work together in the future
• Negotiation is over a limited number of things or issues (e.g., price only)
 TYPES OF NEGOTIATION
NEGOTIATION TACTICS AND TECHNIQUES

✓ Early Anchoring: Anchoring is fixing or establishing the focus of discussion around a certain point,
whether it is a figure, a range, or an issue, simply by asserting it. Early anchoring involves being the
first party to make an offer that is beyond or at the fair margin of the range of credible or
reasonable offers. This tactic has the effect of fixing the apparent bargaining range around this point,
which is typically favorable to the person who anchors early.

✓ Feinting: Misleading the other party as to your true interests or objectives by stressing goals or
interests that are in fact unimportant to you and then giving them up for concessions from the other
side that are important to you. Such feints help to disguise your true bottom line and interests.

✓ Ultimatum (i.e. Take It or Leave It): This occurs where a party claims to be submitting their final
offer. The other side must take the offer, or the negotiation is over. In reality, nothing prevents any
party from making another offer at a later time.
 TYPES OF NEGOTIATION
NEGOTIATION TACTICS AND TECHNIQUES FOR DISTRIBUTIVE NEGOTIATION

✓ Splitting the Difference: When the parties are stuck at different positions, one solution is to each
compromise half the difference. For example, with offers at $600 and $1000, the compromise would
be $800. This technique gives the “appearance” of fairness.

✓ You Will Have To Do Better Than That (YWHTDBTT): If the other side is told “you will have to do better
than that,” often, they will make you a better offer. Some people claim not to even consider the first
offer. They just ask for a better offer, no matter what the first offer was. They assume that the person
who made the offer made an excessive demand. This is a particularly useful technique when the
other side anchors first, forcing them to re-anchor negotiations around a point closer to your own
desired result.

✓ Walkaway: This is a classic tactic in bazaars and markets. If you cannot get the price you want, walk
away from the deal and maybe the other party will follow you. This tactic is a bluff. To work effectively,
you must be able to truly walk away from the deal and exercise your BATNA.
 TYPES OF NEGOTIATION
2. INTEGRATIVE NEGOTIATION
Integrative negotiation is also sometimes called interest-based or principled negotiation.
It is a set of techniques that attempts to improve the quality and likelihood of “win-win” agreements
with parties working together to increase the amount of resources to maximize mutual gain. While
distributive negotiation assumes there is a fixed amount of value (i.e., a “fixed pie”) to be divided between
the parties, integrative negotiation often attempts to create value in the course of the negotiation (i.e.,
“expand the pie”). Integrative bargaining often requires two or more issues so that trades can be made. The
theory is that parties often have different underlying interests that can be integrated or reconciled to
create joint gains that improve the situation of both parties. A negotiator can adopt either a competitive or
cooperative negotiation style in an integrative bargaining situation.
INTEGRATIVE NEGOTIATION STRATEGY IDENTIFIERS

An integrative negotiation strategy is appropriate where:

• Parties know each other
• Parties are likely to have further interactions in the future)
 TYPES OF NEGOTIATION
NEGOTIATION TACTICS AND TECHNIQUES FOR INTEGRATIVE NEGOTIATION

✓ Focus on Interests not Positions: “Positions” are “what” negotiators say they want; “interests” are
“why” they take the positions. The interests of the opposing party are discovered by asking questions
and putting yourself in the other’s shoes. This creates an opportunity to devise solutions that address
these underlying interests. Although problem-solving negotiators may be willing to disclose their
interests, be aware that competitive negotiators will try to learn your interests without revealing their
own in order to gain an advantage.

✓ Open Information Exchange: This involves freely and honestly disclosing information to help the
other side understand your underlying interests, objectives, and priorities. Sometimes something
critical to one side is a minor concession to the other, and vice versa.

✓ Objective Criteria: Instead of allowing the negotiation to be determined by a contest of power or to

become a battle of wills, negotiators can select one or more objective criteria which can be used as
standards for a ‘fair’ settlement (e.g., market price).
 COMMUNICATION SKILLS DURING NEGOTIATION
1. Build Rapport – This pertains to contacting the other party. It may be helpful if both sides are
aware and want to get best out of discussion.

2. Active Listening – The skis means paying attention to the listener and capturing important
details in the process. Missing out on vital information may have an impact in the outcome of the
negotiation.

3. Positive Scripting – Participants in negotiation must always try to maintain positivity . Your
choice of language must always be appropriate.

4. Questioning Techniques – In order to classify issues, participants need to ask right questions.
Remember to employ different question such as open0ended questions (to expand the discussion
further) or close-ended (to clarify details.)

5. Speak Up – Both parties must identify what factors they wanted to considered in the negotiation.
 THANKS !
Does anyone have any questions?