NEGOTIATION IN BUSINESS
COMMUNICATION
Lecture 12
Business Communication
Instructor: Syeda Nitashah
syedanitashah@uosahiwal.edu.pk
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Learning Objectives
1. To explain conflict resolution.
2. To understand about conflict and negotiation.
3. To learn about how to do negotiation.
4. To know the importance of conflict resolution.
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Intro
Have you ever bargained for something? Describe your
experience. Was it successful?
How would you define negotiations?
1. A brief definition
A negotiation is:
• a back-and-forth communication where 2 or more parties
bargain for a desired outcome
1. A brief definition
The parties involved in negotiation have interests that may be:
• common
• opposed
• What communication skills are necessary for
successful negotiations?
2. Negotiation essentials
For successful negotiations, remember the following advanced
communication skills:
• a positive attitude
– beliefs can affect outcomes
– => believe that you deserve what you want to get
Follow-up
Do you usually think positively or negatively? What could the
implications be for business transactions?
2. Negotiation essentials
For successful negotiations, remember the following advanced
communication skills:
– state your desires and concerns clearly
– listen carefully to the other party’s desires and concerns
2. Negotiation essentials
For successful negotiations, remember the following advanced
communication skills:
• knowledge of the negotiation process
– know how to break down an issue into separate parts
– negotiate or bargain for who gets each part
– know how to address common interests for mutual gains
Follow-up
Give examples of some possible mutual gains in a negotiation.
2. Negotiation essentials
For successful negotiations, remember the following advanced
communication skills:
• an understanding of human behaviour
– know what motivates you and the other party
– be aware of what matters to you and to the other party
– know how to apply all relevant communication skills
(see the previous and subsequent units in this course)
2. Negotiation essentials
For successful negotiations, remember the following advanced
communication skills:
• knowledge of the negotiation subject
– inform yourself about the subject of negotiation
– do some research into the options prior to negotiation
3. Fairness standards
Consider the following three fairness standards that should
guide any negotiation:
• the standard of equity
– people are rewarded based on merit and effort invested
3. Fairness standards
Consider the following three fairness standards that should
guide any negotiation:
• the standard of equality
– each person gets an equal share, regardless of their contribution
3. Fairness standards
Consider the following three fairness standards that should
guide any negotiation:
• the standard of need
– the person with the greatest need gets the largest percentage
4. Negotiator types
You may be one of the two negotiator types below, based on
your personality, experience, fairness standards and
cultural background:
• the soft negotiator < the nurturing cultural dimension
– easier to negotiate with
– frequently loses
– may be forced to the extremes of acquiescence
4. Negotiator types
You may be one of the two negotiator types below, based on
your personality, experience, fairness standards and
cultural background:
• the hard negotiator < the achieving cultural dimension
– goes to great lengths to win
– frequently wins
– may bully the other party into a losing outcome
5. Negotiation factors
There are four basic factors that impact negotiation:
• the outcome
– the goal you want to achieve
– the items / issues for which you are negotiating
– compromise may be essential (i.e. give up one half of the items you
need in order to get the other half)
5. Negotiation factors
There are four basic factors that impact negotiation:
• the relationship
– may be as important as the outcome
– your relationship with the other party is an integral part of the
negotiation process
5. Negotiation factors
There are four basic factors that impact negotiation:
• the time
– time constraints heavily impact negotiation
– time pressures may lead to less desirable outcomes
5. Negotiation factors
There are four basic factors that impact negotiation:
• the transaction costs
– money, time, energy, wear and tear, stress etc.
– know when to stop bargaining and settle the negotiation
6. Bargaining: positional v principled
As a negotiator, you may assume:
• a positional bargaining stance, in which you
– take sides
– form camps
– fail to build rapport
– begin to fight over your position
– may go to extremes
– automatically have a debate
– cannot use your influence tactics to build a bridge
6. Bargaining: positional v principled
As a negotiator, you may assume:
• a principled bargaining stance, in which you
– look for what you have in common with the other party
– negotiate on merits
– separate the people from the problem
– focus on interests rather than positions
– come up with a variety of options before making a decision
– use objective standards to evaluate results
6. Bargaining: positional v principled
By assuming a principled bargaining stance, you must consider
the three criteria below:
• ‘Does it produce a wise agreement?’
– the solution makes sense
– the solution is the best one possible out of a variety of options
– all the options have been explored by participants
6. Bargaining: positional v principled
By assuming a principled bargaining stance, you must consider
the three criteria below:
• ‘Is it efficient?’
– the issues of transaction costs
7. Negotiation outcomes
Anticipate how a negotiation will end, before deciding how to
start it. Your choice of tactics and strategies will determine
the outcome:
• win / win
– an optimum occasion
– both the issues and the relationships matter equally
– may be time-consuming
7. Negotiation outcomes
Anticipate how a negotiation will end, before deciding how to
start it. Your choice of tactics and strategies will determine
the outcome:
• win / lose
– the issues matter more than the relationship
– time is needed to wear down the other side
– synonymous to getting the best deal
7. Negotiation outcomes
Anticipate how a negotiation will end, before deciding how to
start it. Your choice of tactics and strategies will determine
the outcome:
• lose / win
– long-term bonds are more important than momentary issues
7. Negotiation outcomes
Anticipate how a negotiation will end, before deciding how to
start it. Your choice of tactics and strategies will determine
the outcome:
• lose / lose
– sometimes, the best solution
– the issues are less important to both parties
– transaction costs are the most important
THANK YOU
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ANY QUESTIONS !!
Contact me at syedanitashah@uosahiwal.edu.pk
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