A

REPORT
ON
Negotiation Skills and Techniques Lab

Submitted in partial fulfillment for the award of the degree

Master of Business Administration
Chhattisgarh Swami Vivekanand University, Bhilai

Submitted by,

Pritsh Kumar Nirala

Roll.No.- 503307621047
Enrollment No.-CB3887
MBA – Semester III
(Session 2022–2023)

Approved By, Guided By

Dr. Apoorva Mishra Dr. Sapna Sharma
Head Department of Associate Professor
Management Studies Department of Management

Shri Shankaracharya Institute of Professional

Management and Technology
Mujgahan, Raipur (C.G.)
 INDEX

S.No. Table of Content Pg. No.

1 1
Overview Of Negotiation

2 4
Negotiation Process

3 8
Cross Culture Issues In Negotiation

4 14
Over Coming Of Issues In Negotiation

5 Do’s And Dont’s Of Negotiation 18

6 23
What Are Ethics In Negotiation?

7 Conclusion 24-25
Overview of Negotiations
 Negotiation
Introduction:
Negotiation is defined as a discussion among individuals, each one trying to
present his best idea to come to a conclusion benefiting all. An individual gains
nothing out of conflict and misunderstanding; instead it leads to stress and anxiety.
It is always advisable to compromise to the best extent possible and try to find out
an alternative which satisfies all.

Eg: Let us suppose you want to buy a Parker pen for your friend’s birthday. Before
purchasing, it is always better if you check out the prices of other brands as well
for instance Mont Blanc. Also check out its features; it will help you in better
negotiation with the store owner. Don’t go blank; the other party might fool you.

Negotiation is a technique of discussing issues among one selves and reaching to a

conclusion benefiting all involved in the discussion. It is one of the most effective
ways to avoid conflicts and tensions. When individuals do not agree with each
other, they sit together, discuss issues on an open forum, negotiate with each other
and come to an alternative which satisfies all. In a layman’s language it is also
termed as bargaining.
Please go through the above two real life situations once again.
You want to go for a movie but you know that your parents will never agree to
your decision. Will you fight with your parents? Obviously NO, instead you will
sit with them and try your level best to convince them and negotiate with them
without fighting and spoiling everyone’s mood. Probably you will spend the
coming weekend with your parents if they allow you today for the movie else you
will negotiate with your friends so that they agree for a noon show. Negotiation
helps you to achieve your goal without hurting anyone. Your goal in this case is
to go for a movie and you negotiate either with your parents or friends to achieve
the same.
In the second situation, Tom could not afford to lose the CD player as it was an
exclusive one, thus he tries to negotiate with the store owner to lower the price so
that it suits his pocket and even the store owner earns his profit as well.
Negotiation is essential in the corporate world as well as personal lives to ensure
peace and happiness.
Your boss asks you to submit a report within two working days and you know that
the report is a little critical one and needs more time. Will you say a yes to your
boss just to please him? Your yes might make the boss happy then but later you
will land yourself in big trouble if you fail to submit it within the desired time
frame. It’s always better to negotiate with your boss rather than accepting
something which you know is difficult. Ask for some more time from your boss or
probably don’t make an exhaustive report. Negotiation is better as it would prevent
spoiling your relation with your superiors later.
Negotiation Process
 Negotiation Process
Negotiation process:
In order to achieve a desirable outcome, it may be useful to follow a structured
approach to negotiation. For example, in a work situation a meeting may need to
be arranged in which all parties involved can come together.

The process of negotiation includes the following stages:

1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action

1. Preparation
Before any negotiation takes place, a decision needs to be taken as to when and
where a meeting will take place to discuss the problem and who will attend.
Setting a limited time-scale can also be helpful to prevent the disagreement
continuing.
This stage involves ensuring all the pertinent facts of the situation are known in
order to clarify your own position. In the work example above, this would include
knowing the ‘rules’ of your organization, to whom help is given, when help is not
felt appropriate and the grounds for such refusals. Your organization may well
have policies to which you can refer in preparation for the negotiation.
2. Discussion
During this stage, individuals or members of each side put forward the case as they
see it, i.e. their understanding of the situation.
Key skills during this stage include questioning, listening and clarifying.
Sometimes it is helpful to take notes during the discussion stage to record all points
put forward in case there is need for further clarification. It is extremely important
to listen, as when disagreement takes place it is easy to make the mistake of saying
too much and listening too little. Each side should have an equal opportunity to
present their case.

3. Clarifying Goals
From the discussion, the goals, interests and viewpoints of both sides of the
disagreement need to be clarified.
It is helpful to list these factors in order of priority. Through this clarification it is
often possible to identify or establish some common ground. Clarification is an
essential part of the negotiation process, without it misunderstandings are likely to
occur which may cause problems and barriers to reaching a beneficial outcome.

4. Negotiate Towards a Win-Win Outcome

This stage focuses on what is termed a 'win-win' outcome where both sides feel
they have gained something positive through the process of negotiation and both
sides feel their point of view has been taken into consideration.
A win-win outcome is usually the best result. Although this may not always be
possible, through negotiation, it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this
point. Compromises are often positive alternatives which can often achieve greater
benefit for all concerned compared to holding to the original positions.

5. Agreement
Agreement can be achieved once understanding of both sides’ viewpoints and
interests have been considered.
It is essential to for everybody involved to keep an open mind in order to achieve
an acceptable solution. Any agreement needs to be made perfectly clear so that
both sides know what has been decided.

6. Implementing a Course of Action

From the agreement, a course of action has to be implemented to carry through the
decision. Negotiation helps you to achieve your goal without hurting anyone.

Elements of Negotiation:

Negotiation
↓
Process + Behaviour + Substance (Agenda)

 Process- The way individuals negotiate with each other is called the process
of negotiation. The process includes the various techniques and strategies
employed to negotiate and reach to a solution.
 Behaviour- How two parties behave with each other during the process of
negotiation is referred to as behaviour. The way they interact with each
other, the way they communicate with each other to make their points clear
all come under behaviour.
 Substance- There has to be an agenda on which individuals negotiate. A
topic is important for negotiation. In the first situation, going for the late
night movie was the agenda on which you wanted to negotiate with your
parents as well as your friends.To conclude, negotiation is simply a
technique, a discussion among individuals to reach to a mutual agreement
where everyone gains something or the other and conflicts are avoided.
Cross Culture Issues in
Negotiation
 CROSS CULTURE ISSUES IN
NEGOTIATION
Industrial business:International business deals not only cross borders, they also
cross cultures. Culture profoundly influences how people think, communicate, and
behave. It also affects the kinds of transactions they make and the way they
negotiate them. Differences in culture between business executives—for example,
between a Chinese public sector plant manager in Shanghai and a Canadian
division head of a family company in Toronto– can create barriers that impede or
completely stymie the negotiating process.

1. Negotiating goal: Contract or relationship?

Negotiators from different cultures may tend to view the purpose of a negotiation
differently. For deal makers from some cultures, the goal of a business negotiation,
first and foremost, is a signed contract between the parties. Other cultures tend to
consider that the goal of a negotiation is not a signed contract but rather the
creation of a relationship between the two sides. Although the
written contact expresses the relationship, the essence of the deal is the relationship
itself. For example in my survey of over 400 persons from twelve nationalities,
reported fully in The Global Negotiator, I found that whereas 74 percent of the
Spanish respondents claimed their goal in a negotiation was a contract, only 33
percent of the Indian executives had a similar view.

2. Negotiating attitude: Win-Lose or Win-Win?

Because of differences in culture, personality, or both, business persons appear to

approach deal making with one of two basic attitudes: that a negotiation is either a
process in which both can gain (win-win) or a struggle in which, of necessity, one
side wins and the other side loses (win-lose). Win-win negotiators see deal making
as a collaborative, problem-solving process; win-lose negotiators view it as
confrontational. As you enter negotiations, it is important to know which type of
negotiator is sitting across the table from you. Here too, my survey revealed
significant differences among cultures. For example, whereas 100 percent of the
Japanese respondents claimed that they approached negotiations as a win-win
process, only 33% of the Spanish executives took that view

3. Personal style: Informal or formal?

Personal style concerns the way a negotiator talks to others, uses titles, dresses,
speaks, and interacts with other persons. Culture strongly influences the personal
style of negotiators. It has been observed, for example, that Germans have
a more formal style than Americans. A negotiator with a formal style insists on
addressing counterparts by their titles, avoids personal anecdotes, and refrains from
questions touching on the private or family life of members of the other negotiating
team. A negotiator with an informal style tries to start the discussion on a first-
name basis, quickly seeks to develop a personal, friendly relationship with the
other team, and may take off his jacket and roll up his sleeves when deal making
begins in earnest.

4. Communication: Direct or indirect?

Methods of communication vary among cultures. Some emphasize direct and

simple methods of communication; others rely heavily on indirect and complex
methods. The latter may use circumlocutions, figurative forms of speech, facial
expressions, gestures and other kinds of body language. In a culture that values
directness, such as the American or the Israeli, you can expect to receive a clear
and definite response to your proposals and questions. In cultures that rely on
indirect communication, such as the Japanese, reaction to your proposals may be
gained by interpreting seemingly vague comments, gestures, and other signs. What
you will not receive at a first meeting is a definite commitment or rejection.

5. Sensitivity to time: High or low?

Discussions of national negotiating styles invariably treat a particular culture’s

attitudes toward time. It is said that Germans are always punctual, Latins are
habitually late, Japanese negotiate slowly, and Americans are quick to make a deal.
Commentators sometimes claim that some cultures value time more than others,
but this observation may not be an accurate characterization of the situation.
Rather, negotiators may value differently the amount of time devoted to and
measured against the goal pursued. For Americans, the deal is a signed contract
and time is money, so they want to make a deal quickly. Americans therefore try to
reduce formalities to a minimum and get down to business quickly. Japanese and
other Asians, whose goal is to create a relationship rather than simply sign a
contract, need to invest time in the negotiating process so that the parties can get to
know one another well and determine whether they wish to embark on a long-term
relationship. They may consider aggressive attempts to shorten the negotiating
time as efforts to hide something. For example, in one case that received
significant media attention in the mid-1990’s, a long-term electricity supply
contract between an ENRON subsidiary, the Dabhol Power Company, and the
Maharashtra state government in India, was subject to significant challenge and
was ultimately cancelled on the grounds that it was concluded in “unseemly haste”
and had been subject to “fast track procedures” that circumvented established
practice for developing such projects in the past.

6. Emotionalism: High or low?

Accounts of negotiating behavior in other cultures almost always point to a

particular group’s tendency to act emotionally. According to the stereotype, Latin
Americans show their emotions at the negotiating table, while the Japanese and
many other Asians hide their feelings. Obviously, individual personality plays a
role here. There are passive Latins and hot-headed Japanese. Nonetheless, various
cultures have different rules as to the appropriateness and form of displaying
emotions, and these rules are brought to the negotiating table as well. Deal makers
should seek to learn them.

In the author’s survey, Latin Americans and the Spanish were the cultural groups
that ranked themselves highest with respect to emotionalism in a clearly
statistically significant fashion. Among Europeans, the Germans and English
ranked as least emotional, while among Asians the Japanese held that position, but
to a lesser degree.

7. Form of agreement: General or specific

Whether a negotiator’s goal is a contract or a relationship, the negotiated
transaction in almost all cases will be encapsulated in some sort of written
agreement. Cultural factors influence the form of the written agreement that the
parties make. Generally, Americans prefer very detailed contracts that attempt to
anticipate all possible circumstances and eventualities, no matter how unlikely.
Why? Because the deal is the contract itself, and one must refer to the contract to
handle new situations that may arise. Other cultures, such as the Chinese, prefer a
contract in the form of general principles rather than detailed rules.
8. Building an agreement: Bottom up or top down?

Related to the form of the agreement is the question of whether negotiating a

business deal is an inductive or a deductive process. Does it start from an
agreement on general principles and proceed to specific items, or does it begin
with an agreement on specifics, such as price, delivery date, and product quality,
the sum total of which becomes the contract? Different cultures tend to emphasize
one approach over the other. Some observers believe that the French prefer to
begin with agreement on general principles, while Americans tend to seek
agreement first on specifics. For Americans, negotiating a deal is basically making
a series of compromises and trade-offs on a long list of particulars. For the French,
the essence is to agree on basic principles that will guide and indeed determine the
negotiation process afterward. The agreed-upon general principles become the
framework, the skeleton, upon which the contract is built.

9. Team organization: One leader or group consensus?

In any negotiation, it is important to know how the other side is organized, who has
the authority to make commitments, and how decisions are made. Culture is one
important factor that affects how executives organize themselves to negotiate a
deal. Some cultures emphasize the individual while others stress the group. These
values may influence the organization of each side in a negotiation.

10. Risk taking

In deal making, the negotiators’ cultures can affect the willingness of one side to
take risks– to divulge information, try new approaches, and tolerate uncertainties in
a proposed course of action. The Japanese, with their emphasis on requiring large
amount of information and their intricate group decision-making process, tend to
be risk averse. Americans, by comparison, are risk takers.

Among all respondents in the author’s survey, approximately 70 percent claimed a

tendency toward risk taking while only 30 percent characterized themselves as low
risk takers. Among cultures, the responses to this question showed significant
variations. The Japanese are said to be highly risk averse in negotiations, and this
tendency was affirmed by the survey which found Japanese respondents to be the
most risk averse of the twelve cultures. Americans in the survey, by comparison,
considered themselves to be risk takers, but an even higher percentage of the
French, the British, and the Indians claimed to be risk takers.
Over Coming of Issues in
Negotiation
Overcoming of conflict of culture on
Negotiation:

1. Know Yourself and Your Own Culture

Starting with yourself, examine your own beliefs, values, biases, and prejudices.
How do you behave? What are your hot buttons? Locate your individual culture in
the context of your family, regional, and national cultures. What is the social,
political and economic context of the day? Being aware of our own cultures helps
us to be open to different ideas. We are able to compare and contrast different
approaches without being threatened.

2. Learn others expectations

We should, as Federal Mediation and Conciliation Service Commissioner Jan
Sunoo has suggested, expect different expectations. (Sunoo) The only way we will
know what our team members expect is to have an explicit conversation about the
nature of conflict and how we prefer to deal with it when it arises. This should lead
to a more general conversation that addresses how the team wants to work
together. The sooner this happens the better. We can also read books
and watch movies to understand others culture. Learning about a new culture takes
time. Some liken culture to an iceberg where over nine tenths is out of sight. So it
is with culture. There is the surface culture, and then there is that which is hidden-
deep culture.

3. Check Your Assumptions

As we filter incoming information through our senses (Sight, sound, smell, taste,
and touch) it is natural to make assumptions. We should develop acceptable
communication protocols to check out the basis of our perceptions. Failure to do so
leads to inaccurate stereotypes and may foster negative feelings of hostility.

One approach is to give specific feedback on the behavior you observed ("I noticed
that you avoided eye contact when we were discussing the situation.") and to seek
clarification of your interpretations. ("I suppose you could have been bored. Can
you tell me what was going on?") Be open to various interpretations. Your first
interpretation is not necessarily correct. Another variation is to give feedback on
how you felt when the specified behavior occurred. ("I felt ignored when you
avoided eye contact during our discussion. Can you tell me what was going on?")
It sometimes helps to list all the possible interpretations you have thought of
almost as if brainstorming.

4. When in Rome . . . ask questions

Does the old saying-When in Rome, do as the Romans-still have currency? After
all, suggestions to learn about other cultures are so we can anticipate how
situations will be dealt with and avoid conflict. Some go so far as to say this is
necessary to show respect: "When we join a team that already exists we should
learn and be respectful of the existing culture, just as we would when we travel."

The danger of this adage, not only in a team environment, is that it supports the
prevailing/dominant culture and a rigidity that is counter productive to creativity
and growth. Newcomers/immigrants who do not conform to the majority views of
Romans may be expected to fall in line or 'go back to where they came from.'

The reformulation of the adage to encourage questions reflects an attitude of

inquiry. Rather than assuming you know, you ask to clarify why things are being
done differently. Open ended questions are generally less threatening,
but close ended questions will often eliminate confusion on a particular aspect of
culture.

5. Listen
Listening is widely acknowledged as a key conflict prevention and resolution skill.
Care should be taken not to impose an approach to listening that causes discomfort.
Not all cultures are comfortable expressing feelings in public.

Used in a team environment effective listening enables new norms to emerge that
reflect a deep knowledge for one another's 'ways.' This level of multi cultural
maturity will not always be achieved, and the norms will often reflect an issue by
issue compromise by the different cultures present. Each team member will adhere
to their own ways, and when their culture conflicts with others, adopt the others
through a mix match of procedures. However, a compromise over cultural norms is
better the imposition of values by a dominant group.
6. Consider the Platinum Rule
The Platinum rule encourages us to treat our team members as they would like to
be treated rather than the way we like to be treated (the golden rule). It is similar to
the difference between sympathy and empathy. Empathy is not about "walking a
mile in his moccasins" but imagining "how he feels walking in his moccasins."
Problems with the platinum rule arise when your way and the others way clash.

7. All conflict is multi cultural

There is as much diversity within a culture as between cultures. Thus, rather than
thinking that we should use our cross cultural communication skills when we
communicate between different cultural groups, we should assume that all
communications are essentially cross cultural. It helps to remember that men and
women form the two largest cultural groups.
Do’s and Dont’s of
Negotiation
Dos and Don’ts for Successful Negotiations
No matter what you need to negotiate, there are easy strategies to get anything
you want. But you must first remember it’s important to reach a fair compromise –
with win-win negotiating skills.
You’ll want both parties to feel positive after the negotiation is complete. In other
words, emotional needs for both of you have to be met.
So don’t carelessly let something slip out. Whether you struggle to protect your
turf, putting an end to people taking advantage of you, or you’re laboring to get
what you want in a transaction, there are basic skills you need to know to find
solutions that are acceptable to you and the other person.

The 22 Do's and Don’ts for Successful Negotiations

The do’s:
1. Determine goals. Decide on your objectives. Know your bottom line.
2. Anticipate the desires of your opponent. Think collegially – envision the
person as your partner in the deal.
3. Analyze the assets. What do both of you bring to the table?
4. Evaluate options. That means for both of you.
5. If you have a history with the other party, analyze your track record and
precedents with the person. What issues have impacted the two of you?
6. Assess the power you bring into the discussion, and that of the other person.
7. Anticipate the obvious consequences, the corollaries.
8. Pay attention to detail. Try to put the other person’s needs first. In that way,
the person feels as though you’re listening. Show empathy to the other
person’s concerns and problems.
9. Stay calm, no matter what. You’ll keep the emotional advantage. Focus on
issues, not personalities.
10. Keep in mind plan B. Know your options for a fallback position.
11. Document the deal – get it in writing immediately.
Understand that your position is strengthened by having the ability to walk away.
The don’ts:
1. Never bargain with someone using the word, “between.” If you offer a range
using this word, customers and vendors will only hear the minimum. Sellers
and employees will hear the maximum.
2. Don’t signal the person that you’re done negotiating by using the phrase, “I
think we’re close.” You’ll be giving away your power – the person will
believe you’re exhausted and that you put a higher priority on getting an
agreement instead of achieving your actual goals.
3. Don’t get into a bidding war. Brand yourself so that you’re the only party the
person should deal with. Don’t negotiate against yourself. If you make an
offer, wait for the response. Be careful in using the phrase, “Why don’t you
throw out a number?” Usually, the first amount mentioned by a seller is the
amount that’s ultimately agreed upon.
4. If you need time to think, don’t establish at the beginning that you’re the final
decision-maker. You’ll get more wiggle room if you indicate there’s another
person with whom you must speak.
5. Don’t be afraid to ask what you want – be specific about what you want and
don’t want.
6. Don’t negotiate with a person who doesn’t have authority to sign off on a
deal.
7. Don’t do all the talking. The best results occur when the other person does 90
percent of the talking. That’s accomplished by asking open-ended questions,
such as “What are your concerns about what I am suggesting?”
8. Don’t ignore the person’s body language. Know the green lights.
9. Don’t argue, but discuss items in which there are disagreements.
10. Steer clear of form contracts. They are designed for a pre-determined
outcome. The agreement must reflect the negotiations.
11. Don’t forget to prepare. Failure to prepare leads to failure in negotiations.
What are Ethics in
Negotiation
 What are Ethics in Negotiation

Ethics in negotiation can involve expectations of fairness, equity, and honesty

but, sometimes, despite your best intentions, circumstances might lead you to
behave unethically.

Whether we are aware of it or not, we make a series of “micro-decisions” during

our time at the bargaining table. Such decisions often revolve around ethics in
negotiation, including choosing whether to disclose, conceal, or misrepresent
information that would weight outcomes in your own favor.

Ethics in negotiation can involve expectations of fairness, equity, and honesty but,
sometimes, despite your best intentions, circumstances might lead you to behave
unethically.
Whether we are aware of it or not, we make a series of “micro-decisions” during
our time at the bargaining table. Such decisions often revolve around ethics in
negotiation, including choosing whether to disclose, conceal, or misrepresent
information that would weight outcomes in your own favor.

While that may seem like negotiators aren’t always forthright, most negotiators
strive to tell the truth. However, studies suggest the pliability of ethics in
negotiation. Many of us may unknowingly adjust our ethical standards based on
the negotiation context
Conclusion
Conclusion:
Negotiation is also important when you are dealing with vendors. An organization
needs money to survive and take care of the employees as well. It can’t afford to
spend money as it is. A single penny saved will help you and the organization
later. The person dealing with the external parties must be a good negotiator else
he will end up paying more amount than required. Always sit with the vendor and
quote a price little lower than you intend to pay. He will definitely ask you to
increase it and probably then you will reach to a figure well within your
organization’s budget. Don’t be rude with your vendor but be very confident and
convincing. Remember you are not dealing with him just once; you need to
maintain a healthy relationship with him for future business as well. Try to
convince the vendor at such a rate which would benefit your organization and save
money. Quote realistic figures and do take care of the vendor’s profits as well. Try
your level best to close the deal.
One should never accept terms and conditions verbally, it’s always better to have
something in black and white probably a contract as it is more reliable. The terms
and conditions must be discussed on an open forum and should be signed in
presence of both the parties so that no body backs out later.
One should also learn to negotiate with one’s superiors.
Remember negotiation does not mean you have to shout on others, you need to be
polite. Don’t accept responsibilities just because your boss wants it. If you are not
comfortable with any role, its better to decline it, rather than accepting something
you are not familiar with and losing interest later. After all there are other
employees as well, they can accept the same and you can do something else which
suits your profile. If you know you will not be able to submit the project within the
stipulated time frame, tell your boss. Never hide things from him. Be
straightforward. If you want to go for a leave, try to negotiate with him that
probably you will attend office the coming weekend or sit for somemore time in
the coming days to compensate for the loss. Be a little patient.