Dr Shubha Dwivedi

 Negotiation is 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. It is the primary
method of alternative dispute resolution.
 Business
 Non-Profit Organizations
 Government Branches
 Legal Proceedings
 Among Nations
 Personal Situations such as
 marriage,
 divorce,
 parenting, and
 everyday life.
The study of the subject is called negotiation
theory. Those who work in negotiation
professionally are called negotiators.
Professional negotiators are often specialized,
such as union negotiators, leverage buyout
negotiators, peace negotiators, hostage
negotiators, or may work under other titles, such
as diplomats, legislators or brokers.
Negotiation Types

There are 2 opposite types or schools of

negotiation:
 Integrative
 Distributive
INTEGRATIVE DISTRIBUTIVE
NEGOTIATION NEGOTIATION

 Involve joint problem  Involve win–lose, fixed-

solving to achieve results amount situations wherein
benefiting both parties one party’s gain is another
party’s loss
 INTEGRATIVE NEGOTIATION BASICS

 Multiple Issues - Integrative negotiations usually entails a

multitude of issues to be negotiated, unlike distributive
negotiations which generally revolve around the price, or a single
issue. In integrative negotiations, each side wants to get something
of value while trading something which has a lesser value.
 Sharing - To fully understand each other's situation, both parties
must realistically share as much information as they can to
understand the other's interests. You can't solve a problem without
knowing the parameters. Cooperation is essential.
 Problem Solving - Find solutions to each other's problems. If you
can offer something of lesser value which gives your counterpart
something which they need, and this results in you realising your
objective, then you have integrated your problems into a positive
solution.
 Bridge Building - More and more businesses are engaging in long
term relationships. Relationships offer greater security.
 DISTRIBUTIVE BARGAININGN BASICS
 Play your cards close to your chest - Give little or no information to the other
side. The less they know about our interests as to why we want to make the
purchase, our preferences, or the point at which we'd decline to deal, the better
our position. Expressing eagerness or need, reveals a weakness which could be
exploited to our disadvantage.
 The opposite is equally true - Try to pry as much information from the other
side. Any additional information that we uncover can be used as leverage to
negotiate a better deal.
 The only thing you should ever tell - The only information we should ever
reveal are those alternative options, such as other sellers, which shows we are
prepared to walk from the negotiation whenever it suits us.
 Let them make the first offer - Whatever is used as the first offer will generally
act as an anchor upon which the rest of the negotiation will revolve. Try to get
the other side to set the stage from which to start.
 Be realistic - Being too greedy or too stingy will likely result in no agreement,
so keep it real.
We use the two types of negotiation described above all the
time. Occasionally, these two different forms of
negotiation even overlap. By understanding their nature,
we will be better prepared when faced with different
situations. By learning more, we can improve both our
interpersonal and professional relationships, through an
increased awareness of the negotiation process utilized
in our everyday lives.
The negotiation itself is a careful exploration of your position and the other person’s position,
with the goal of finding a mutually acceptable compromise that gives you both as much of
what you want as possible. People's positions are rarely as fundamentally opposed as they
may initially appear - the other person may have very different goals from the ones you
expect!

In an ideal situation, you will find that the other person wants what you are prepared to
trade, and that you are prepared to give what the other person wants.

If this is not the case and one person must give way, then it is fair for this person to try to
negotiate some form of compensation for doing so – the scale of this compensation will
often depend on the many of the factors we discussed above. Ultimately, both sides should
feel comfortable with the final solution if the agreement is to be considered win-win.

Only consider win-lose negotiation if you don't need to have an ongoing relationship with
the other party as, having lost, they are unlikely to want to work with you again. Equally,
you should expect that if they need to fulfill some part of a deal in which you have "won,"
they may be uncooperative and legalistic about the way they do this
 For a negotiation to be 'win-win', both parties should feel positive
about the negotiation once it's over. This helps people keep good
working relationships afterwards. This governs the style of the
negotiation – histrionics and displays of emotion are clearly
inappropriate because they undermine the rational basis of the
negotiation and because they bring a manipulative aspect to them.
 Despite this, emotion can be an important subject of discussion
because people's emotional needs must fairly be met. If emotion is
not discussed where it needs to be, then the agreement reached can
be unsatisfactory and temporary. Be as detached as possible when
discussing your own emotions – perhaps discuss them as if they
belong to someone else.
 Depending on the scale of the disagreement, some preparation
may be appropriate for conducting a successful negotiation.
 For small disagreements, excessive preparation can be counter-
productive because it takes time that is better used elsewhere. It
can also be seen as manipulative because, just as it strengthens
your position, it can weaken the other person’s.
 However, if you need to resolve a major disagreement, then make
sure you prepare thoroughly. Using our free worksheet, think
through the following points before you start negotiating:
 Goals: what do you want to get out of the negotiation? What do you
think the other person wants?
 Trades: What do you and the other person have that you can trade? What
do you each have that the other wants? What are you each comfortable
giving away?
 Alternatives: if you don’t reach agreement with the other person, what
alternatives do you have? Are these good or bad? How much does it
matter if you do not reach agreement? Does failure to reach an agreement
cut you out of future opportunities? And what alternatives might the
other person have?
 Relationships: what is the history of the relationship? Could or should
this history impact the negotiation? Will there be any hidden issues that
may influence the negotiation? How will you handle these?
 Expected outcomes: what outcome will people be expecting from
this negotiation? What has the outcome been in the past, and what
precedents have been set?
 The consequences: what are the consequences for you of winning
or losing this negotiation? What are the consequences for the other
person?
 Power: who has what power in the relationship? Who controls
resources? Who stands to lose the most if agreement isn’t reached?
What power does the other person have to deliver what you hope
for?
 Possible solutions: based on all of the considerations, what possible
compromises might there be?
 Prepare, prepare, prepare. Enter a negotiation without proper
preparation and you've already lost. Start with yourself. Make sure
you are clear on what you really want out of the arrangement.
Research the other side to better understand their needs as well as
their strengths and weaknesses. Enlist help from experts, such as
an accountant, attorney or tech guru.
 Pay attention to timing. Timing is important in any negotiation.
Sure, you must know what to ask for. But be sensitive to when you
ask for it. There are times to press ahead, and times to wait. When
you are looking your best is the time to press for what you want.
But beware of pushing too hard and poisoning any long-term
relationship.
 Leave behind your ego. The best negotiators either don't care or
don't show they care about who gets credit for a successful deal.
Their talent is in making the other side feel like the final
agreement was all their idea.
 Ramp up your listening skills. The best negotiators are often
quiet listeners who patiently let others have the floor while they
make their case. They never interrupt. Encourage the other side to
talk first. That helps set up one of negotiation's oldest maxims:
Whoever mentions numbers first, loses. While that's not always
true, it's generally better to sit tight and let the other side go first.
Even if they don't mention numbers, it gives you a chance to ask
what they are thinking.
 If you don't ask, you don't get. Another tenet of negotiating is
"Go high, or go home." As part of your preparation, define your
highest justifiable price. As long as you can argue convincingly,
don't be afraid to aim high. But no ultimatums, please. Take-it-or-
leave-it offers are usually out of place.
 Anticipate compromise. You should expect to make concessions
and plan what they might be. Of course, the other side is thinking
the same, so never take their first offer. Even if it's better than
you'd hoped for, practice your best look of disappointment and
politely decline. You never know what else you can get.
 Offer and expect commitment. The glue that keeps deals from
unraveling is an unshakable commitment to deliver. You should
offer this comfort level to others. Likewise, avoid deals where the
other side does not demonstrate commitment.
 Don't absorb their problems. In most negotiations, you will hear
all of the other side's problems and reasons they can't give you
what you want. They want their problems to become yours, but
don't let them. Instead, deal with each as they come up and try to
solve them. If their "budget" is too low, for example, maybe there
are other places that money could come from.
 Stick to your principles. As an individual and a business owner,
you likely have a set of guiding principles — values that you just
won't compromise. If you find negotiations crossing those
boundaries, it might be a deal you can live without.
 Close with confirmation. At the close of any meeting — even if
no final deal is struck — recap the points covered and any areas of
agreement. Make sure everyone confirms. Follow-up with
appropriate letters or emails. Do not leave behind loose ends.
When it comes to entrepreneurial talents that spell
success in the world of start ups, the ability to
negotiate well is one of the most vital attributes
you can possess. Take care to develop this skill.
Some people think they are good negotiators, but
in reality are not. From bringing in good people,
to arranging financing or nailing that first big
deal, sound negotiating techniques will be
essential.