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Negotiation PPT BC

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NEGOTIATION

SUBMITTED BY:-
MEENU GOYAL
ROLL NO:-351
MBA 2ND SEM
WHAT IS NEGOTIATION ?
Negotiation is :-

• one of the most common approaches used to make decisions


and manage disputes
• a dialogue intended to resolve disputes
• to produce an agreement upon courses of action
• to bargain for individual or collective advantage
• or to craft outcomes to satisfy various interests
• the primary method of alternative dispute resolution
Negotiation occurs in :-

• business

• non-profit organizations

• government branches

• legal proceedings

• among nations

• personal situations such as marriage, divorce,


parenting

• and everyday life


CONDITIONS FOR NEGOTIATION :-

• Identifiable parties who are willing to participate.

• Interdependence.

• Readiness to negotiate.

• Means of influence or leverage.

• Agreement on some issues and interests

• No major psychological barriers to settlement.


 
• The people must have the authority to decide.
CONTINUE..

• Will to settle.

• Unpredictability of outcome

• Resources to negotiate.

• External factors favorable to settlement.

• The agreement must be reasonable and implementable

• A sense of urgency and deadline


REASONS FOR CHOOSING NEGOTIATIONS:-
 
•  Test the strength of other parties

•  Obtain information about issues, interests and positions of other


parties

•   Educate all sides about a particular view of an issue or concern

•   Ventilate emotions about issues or people

•   Change perceptions
 
CONTINUE…
 
•     Mobilize public support
 
•     Buy time
 
•     Bring about a desired change in a relationship;
 
•     Develop new procedures for handling problems;
 
•     Make substantive gains;
 
•     Solve a problem.
REASONS FOR REFUSING NEGOTIATION:-
   
•   Parties are fearful of being perceived as weak by a constituency, by
their adversary or by the public;
 
•    Discussions are premature. There may be other alternatives
available--informal communications, small private meetings, policy
revision, decree, elections;
 
•    Meeting could provide false hope to an adversary or to one's own
constituency;
 
•    Meeting could increase the visibility of the dispute;
 
•    Negotiating could intensify the dispute;
 
•    Parties lack confidence in the process;
 
CONTINUE…
 
•   There is a lack of jurisdictional authority;
 
•   Authoritative powers are unavailable or reluctant to meet;
 
•   Meeting is too time-consuming;
 
•   Parties need additional time to prepare;
 
•   Parties want to avoid locking themselves into a position; there
is still time to escalate demands and to intensify conflict to
their advantage.
 
APPROCHES OF NEGOTIATION:-

•  positional bargaining

• interest-based bargaining
STAGES OF NEGOTIATION:-

Stage 1: Evaluate and Select a Strategy to Guide Problem


solving

Stage 2: Make Contact with Other Party or Parties

Stage 3: Collect and Analyze Background Information

Stage 4: Design a Detailed Plan for Negotiation

Stage 5: Build Trust and Cooperation

Stage 6: Beginning the Negotiation Session


CONTINUE..
Stage 7: Define Issues and Set an Agenda

Stage 8: Uncover Hidden Interests

Stage 9: Generate Options for Settlement

Stage 10: Assess Options for Settlement

Stage 11: Final Bargaining

Stage 12: Achieving Formal Settlement


Tips for negotiation :-

• Don't be afraid to ask

• Never negotiate against yourself

• Get it in writing

• Establish a fall-back plan

• Avoid form contracts

• Listen to the other side


THANK YOU…

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