NEGOTIATION PROCESS
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NEGOTIATION PROCESS. Negotiation and Communication. Communication has no determinate beginning or end Human communication travels through a variety of signals, not just words, and depends on the CONTEXT for its meaning

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NEGOTIATION PROCESS

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Negotiation process

NEGOTIATION PROCESS


Negotiation and communication

Negotiation and Communication

  • Communication has no determinate beginning or end

  • Human communication travels through a variety of signals, not just words, and depends on the CONTEXT for its meaning

  • Context means the degree to which the communicator and listener share a common background of knowledge and experience

  • Communication depends on the competence of the communicators


Negotiation and communication1

Negotiation and Communication

  • The dimension of communication assume particular importance in the cross cultural context

  • To communicate with someone from a different culture, one must learn not only the language but also the rules regarding how the language is used in different context and situations

  • Culture influences hand gestures, tones of speech, clothing and so on

  • A negotiator must understand the barriers so that effective communication can take place with some one from a different culture


Negotiation and communication2

Negotiation and Communication

  • The more we consider our views and experiences to be absolute and universal, the less prepared we are to deal with people who have different background

  • Faulty attributions to others’ action or behavior and stereotyping can also cause barriers to cross cultural communications

  • Stereotyping can be a powerful barrier in cross cultural communication globally


Negotiation and communication3

Negotiation and Communication

  • Mexican Perception

  • Americans are:

    • Reserved

    • Rush/Time Conscious

    • Realistic/Hardheaded

    • Team worker

    • Quality-conscious

    • Unemotional

    • Serious/Business Like

    • Self-controlled

  • Taiwanese Perception

  • Americans are:

    • Friendly/Outgoing

    • Relaxed/Easygoing

    • Optimistic

    • Independent

    • Output-Oriented

    • Emotional

    • Fun-loving/Joking

    • Self-indulgent


Negotiation process

CROSS CULTURAL NEGOTIATIONS


Negotiation process

RELATIONSHIP BUILDING

EXCHANGE OF TASK REALATED INFN

PERSUASION

CONCESSION

AGMT


Us japanese negotiation

US-Japanese Negotiation


Us japanese negotiation1

US-Japanese Negotiation

3

4

HIGH

2

1

3

4

2

IMPORTANCE

1

LOW

TIME

Americans

Japanese


Zone of acceptance

ZONE OF ACCEPTANCE

B’s Zone of Acceptance

AGREEMENT

A’s Zone of Acceptance


Managing negotiations unequal powers

MANAGING NEGOTIATIONS – Unequal Powers


Managing negotiations

MANAGING NEGOTIATIONS

Bargaining Power

Host Country

Foreign Investor

Time


Managing negotiations equal powers

Managing Negotiations- Equal Powers


Managing negotiation equal powers

Managing Negotiation – Equal Powers

Bargaining Power

Foreign Investor

Host Country

Time


Steps in negotiation

Steps in Negotiation

CLOSE

BARGAIN

OFFER

PROPOSE

SIGNAL

DISCUSS

PREPARE


Negotiation process

PREPARING

  • Have you decided your objectives?

  • Have you prioritized them?

  • Are they realistic?

  • What are your opponents objectives?

  • Do you have any information regarding your opponents attitudes, personality, assumptions etc?

  • Is your strategy simple and flexible?

  • In a group negotiation, have each members tasks been clearly defined?


Negotiation process

II - DISCUSSION

  • Always try to avoid interrupting, talking too much, using sarcasm and threats.

  • Practice listening, summarizing


Negotiation process

III- SIGNALLING

IV - PROPOSING

  • Is your signal generating some movement?

  • What signals have you made?

  • If your signals have been ignored, have you tried rewording them?

  • Are you listening attentively for your opponents’ signals?

  • What is the language you are using to convey your proposal?

  • Have you itemized your proposal?

  • While receiving a proposal ensure that you do not interrupt it.


Negotiation process

V- OFFER

VI- BARGAINING

  • Before making an offer review your opponents and your own objectives

  • How can your offer meet all/some of your opponents inhibitions/objectives?

  • Have you considered all the possible variables in your offer?

  • Everything must be conditional

  • Decide what you require in exchange for your concessions?

  • Keep all unsettled issues linked?


Negotiation process

VII- CLOSING & AGREEING

  • Decide where you intend to stop trading

  • What type of close are you going to use?

  • Always list the agreement in detail.

  • If the agreement is oral, always send a written note to your opponent, as soon as possible after the meeting.


Principles of negotiation

Principles of Negotiation

  • Negotiation is about bargaining to reach a mutually agreeable outcome. Thus your endeavor should be a win-win outcome for both the parties.

  • Never neglect your preparation and you must have a clear plan. It is also advisable that you select the right starting point.

  • All the participants of the negotiation must regard each other as equals as mutual respect is essential to both the conduct and the outcome of negotiation.

  • Always keep in mind that negotiation is not a debate but a discussion. Therefore, each person must ‘fight his corner’ without trying to over-dominate or show one-upmanship.


Principles of negotiation1

Principles of Negotiation

  • Patience is a key characteristics of a good negotiation, thus take your time and do not rush into decision making. Delay is much better than poor outcome.

  • Empathy is another vital characteristics, therefore see things from other’s point of view objectively.

  • State clearly your objectives and take a feedback as to whether the other person has clearly understood your objectives or not.

  • Avoid confrontation and avoid getting into a corner you cannot get out of. When you have to disagree, do it carefully. When you have to make concessions, make them one at a time, unwillingly.


Principles of negotiation2

Principles of Negotiation

  • Aim high, and settle as high as possible. Know when to drop the whole thing rather than agree to a totally inappropriate deal.

  • Maintain you stamina.

  • Never underestimate people.

  • End positively. Neither party will get exactly what they want, but the deal should be agreeable.


Communications in negotiation

Communications in negotiation

  • Negotiation requires you to be a very good communicator.

  • If the objective of communication is Win-Win Situation, then you should show empathy with the other person.

  • If we consider empathy and overall projections (ie how you come over to others by your tone, language etc), we can have four kinds of communications in negotiation.


Negotiation process

HIGH PROJECTION

HIGH PRESSURE

IDEAL/ ASSERTIVE

LOW EMPATHY

HIGH

EMPATHY

LITTLE INTEREST

WEAK/NON PERSUASION

LOW PROJECTION


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