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NEGOTIATION PROCESS PowerPoint Presentation
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NEGOTIATION PROCESS

NEGOTIATION PROCESS

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NEGOTIATION PROCESS

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  1. NEGOTIATION PROCESS

  2. 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

  3. 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

  4. 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

  5. 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

  6. CROSS CULTURAL NEGOTIATIONS

  7. RELATIONSHIP BUILDING EXCHANGE OF TASK REALATED INFN PERSUASION CONCESSION AGMT

  8. US-Japanese Negotiation

  9. US-Japanese Negotiation 3 4 HIGH 2 1 3 4 2 IMPORTANCE 1 LOW TIME Americans Japanese

  10. ZONE OF ACCEPTANCE B’s Zone of Acceptance AGREEMENT A’s Zone of Acceptance

  11. MANAGING NEGOTIATIONS – Unequal Powers

  12. MANAGING NEGOTIATIONS Bargaining Power Host Country Foreign Investor Time

  13. Managing Negotiations- Equal Powers

  14. Managing Negotiation – Equal Powers Bargaining Power Foreign Investor Host Country Time

  15. Steps in Negotiation CLOSE BARGAIN OFFER PROPOSE SIGNAL DISCUSS PREPARE

  16. 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?

  17. II - DISCUSSION • Always try to avoid interrupting, talking too much, using sarcasm and threats. • Practice listening, summarizing

  18. 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.

  19. 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?

  20. 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.

  21. 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.

  22. 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.

  23. 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.

  24. 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.

  25. HIGH PROJECTION HIGH PRESSURE IDEAL/ ASSERTIVE LOW EMPATHY HIGH EMPATHY LITTLE INTEREST WEAK/NON PERSUASION LOW PROJECTION