13th November 2013- 19th November 2013
Negotiation
Negotiation can be defined as a particular bargain between two or parties which can be either advantageous or disadvantages. According to SKILLSYOUNEED (2013), Negotiation is a method where people make arrangements to settle differences. The process by which compromise or agreement is reached without getting into arguments. If a scenario such as a disagreement occurs, The parties try to achieve the best possible outcome from their side.
Why Negotiate?
According to SKILLSYOUNEED (2013), From time to time there will be conflicts, disagreements between parties due to different needs, wants and beliefs of different types of people. Without Negotiation, such disagreements will lead to arguments and dangerous conflicts where every party is dissatisfied. Negotiation helps by not letting parties reach that part of the segments through proper communication by coming to a mutual understanding.
Types of Negotiations
Negotiation types can be divided in to two types.
1. Distributive
2. Integrative
Distributive Negotiation
Distributive negotiation is where two or more parties have conflicts and arguments and cannot come to a mutual agreement. According to MindEdge (2013), Distributive Negotiation occurs when two or more parties are trying to claim the maximum amount of value for themselves. This is where one or more parties will fail to obtain the required outcome expected. This scenario is called a Win lose situation since one party will definitely fail to obtain what they want.
Integrative Negotiation
Integrative negotiation is where two or more parties engage in a negotiations and will come to a mutual understanding where both parties will be satisfied with what they obtained. According to wiseGEEK (2013), Intergrative negotiation is a strategy where the goal is a result that is as good as possible for both the parties/all parties. This is were every party obtain what they required and this scenario is called the Win-Win situation where every one gets what they want by coming to a mutual agreement.
After the above discussions the next lecture we had a role play where there were two teams to perform according to the above two negotiation types.
Role Play 1(Disruptive negotiation)
The first role play was about disruptive negotiations and the scenario is based on a foreign couple taking a ride in a local tuk-tuk for a distance of 2km, the standard price for the ride is close up around Rs.100(Rs.50 for the first km and 40 for the next) but the couple was charged Rs.1000. there was an argument involved in this role play which lead to the foreign couple paying the Rs.1000. Below shows the points which was pointed out by the Role play.
- Due to the lack of knowledge one can take advantage of thee other
- Since this negotiation lead to a big argument where both parties were disgusted of each other, these types of negotiations lead to damage in relationships.
Role Play 2(Integrative Negotiation)
The second role play was about Integrative negotiation and the scenario is based on a family incident where the father's death lead the two children to argue on what they should get from the last will and they come to a conclusion that they cant decide with each other and they take professional assistance by meeting a lawyer to decide who should get what. Below shows some of the points which was taken from the role play by the author,
- When two parties cannot come to a conclusion, they can get profession assistance to help come to a mutual agreement.
- In this case both parties will always come to a mutual agreement where everyone will be happy.
Personal Styles
Individuals have varies types of person styles for negotiating and below shows some of the personal styles which was given by Manesha (2013) Authors lecturer.
- Self Denying- These types of personalities are reluctant to provide information, has hidden feeling and is confused because of not providing information.
- Self protecting- Uses distraction to get in the other party and doesn't like talking about personal information.
- Self- Exposing- Likes to be the center of attention and speaks out what the person demands.
- Self Bargaining- He wont be the first one to approach, if some one initiates then will participate.
- Self Actualizing- This personality has a balance of everything which is provided above.
With the following personality types there are different skills involved which can be divided into 2 types.
- Tough negotiators
- Soft Negotiators.
Below shows some of the characteristics of both types.
Tough negotiators
- Will have high expectations
- Will never settle for something less than the idea.
- Can be categorize as a taker rather than a giver.
Soft Negotiators
- Never over ambitious
- Can be put into the category of givers
- Trusts others.
Negotiation Styles
When it comes to negotiating there are styles where a negotiation can be approached and below shows the 5 Negotiation styles.
- Competing
- Collaborating
- Compromising
- Avoiding
- Accommodating
source: Mindtools (2013)
The above table shows the grid to explain Negotiation styles. which explains in the diagram.
Guide lines for Effective Negotiating
According to Tjan (2013), Harvard Review have listed down 4 main Effective Negotiating styles for better Negotiating.
- Back Ground Homework.- before Negotiating checks and understand the other parties interest and runs a background check.
- During the process dont negotiate with yourself- This is where when you don't know the position, by so this helps to stay on what you want rather than giving it in to the opposition .
- The stalemate- When there is a scenario, that there is nothing towards either side.
- To close or not to close- Every negotiation someone has to give in but some rare occasions there are win win situations, This is ware you drive so hard in a negotiation that it comes to an end.
BATNA
According to Burgess (2013), BATNA is a term which was found by Fisher and william in 1981. It is a negotiating technique where the negotiator Gets to yes Negotiating without Giving in, it stands for best alternative to a negotiated agreement , "Saying there is another way", It is like what the best someone can do if the other one refuses to negotiate.
Reference
SkillsYouNeed, 2013, (. 2013. What is Negotiation? - Introduction to Negotiation | SkillsYouNeed. [online] Available at: http://www.skillsyouneed.com/ips/negotiation.html [Accessed: 13 Nov 2013].
Burgess, H. 2012. Best Alternative to a Negotiated Agreement (BATNA) | Beyond Intractability. [online] Available at: http://www.beyondintractability.org/essay/batna [Accessed: 13 Nov 2013].
Editor, N. 2013. What is Distributive Negotiation? Negotiation at Work. [online] Available at: http://negotiation.atwork-network.com/2008/05/21/what-is-distributive-negotiation/ [Accessed: 13 Nov 2013].
Tjan, A. and Tjan, A. 2009. Four Rules for Effective Negotiations. [online] Available at: http://blogs.hbr.org/2009/07/four-rules-for-effective-negot/ [Accessed: 13 Nov 2013].].
wiseGEEK. 2013. What Is Integrative Negotiation?. [online] Available at: http://www.wisegeek.com/what-is-integrative-negotiation.htm [Accessed: 13 Nov 2013].