SEC- Personality Development
Unit 4:
Negotiation skills :
Negotiation skills are qualities that help two or more parties reach a compromise. Negotiation is a
strategic discussion that involves give and take. The goal is to resolve an issue in a way that both
parties find acceptable.
Negotiation in business has become one of the most important skills and abilities. While
negotiation will happen between two parties for reaching an agreement, it is said that the
most effective negotiator will be both competing as well as collaborating. An effective
negotiator is one who creates value for the other while claiming value for the self. There must
be meaningful give and take that should happen in negotiation.
Types of negotiation
There are broadly two types of negotiation namely distributive negotiation and integrative
negotiation.
1. In distributive negotiation, the parties area only looking for their gain. It leads to a win-
lose kind of outcome. In distributive negotiation, negotiation is carried out more as an
one time transaction, not keeping in mind any kind of long term relationship.
2. While in integrative negotiation, the negotiators look for long term relationships and
they try to ensure value for both sides. It leads to a win-win outcome.
Approach for Negotiation
Negotiation can always be sensitive and should be carries out in a planned manner keeping
in mind the end goals to be achieved. We should take care to ensure that negotiation does
not get into an argumentative situation.
The negotiations process is made up of five stages:
1. Preparation and planning
2. Definition of ground rules
3. Clarification and justification
4. Bargaining and problem solving and
5. Closure and implementation
In order to achieve the desired outcomes from negotiation, it will be extremely important to
do the initial homework. We must identify what we are looking at achieving from the
negotiation. What are our best alternatives to a negotiated agreement (BATNA). It is also
important for us to understand about the expectations of the other party and more
information about their BATNA.
It is important to lay down the procedures for carrying out the negotiation, such as who will
be part of negotiation, where the negotiation will happen and some basic ground rules to be
followed.
Then the actual information and offers must be exchanged between the parties. Arguments
and confrontations must be avoided in the process. At this stage the required bargaining
should be done keeping good faith. Negotiation should always be done as a win-win
outcome for both sides.
Once agreement is reached, the same should be implemented.
Some Negotiation Skills
1. Communication
Communication is the backbone of negotiation. The way you communicate decides the fate
of the negotiation. It involves identifying the nonverbal cues, using the right words and
expressing your thoughts in a compelling and engaging way. Without being verbose, you
need to communicate the right message to the party. Often, negotiators are active listeners
that help them understand the other party's message. A healthy conversation ensures a
mutually beneficial deal and avoids misunderstanding that could prevent the parties from
reaching a compromise.
2. Strategising
There may be instances where the other party disagree with the solution you provide. Good
negotiators often come with one or more backup plans. Consider all solutions to the problem
before entering a negotiation. For example, when negotiating your salary, the HR manager
may refuse to increase your dearness allowance (DA). Instead of focusing on the DA, you
could ask for better retirement or gratuity benefits.
3. Planning
Proper planning before the negotiation ensures you know the long-term consequences of
the negotiation terms. Planning comes in handy during the negotiation process and ensures
the successful execution of the decision.
4. Persuasion
Successful negotiators can influence other parties. Unless you possess the persuasion skills,
it becomes difficult to justify how your solution will benefit both parties. Your persuasion
skills decide whether the other party agrees to your solution.
5. Listening
Active listening is the key to a successful negotiation as it ensures that you listen to the other
party and understand what they are trying to say. Also, with active listening, you do not miss
out on crucial information, which builds trust and helps reach a consensus faster.
6. Problem-solving
Most negotiations occur to find a solution to an issue. With excellent problem-solving skills,
you propose viable and intelligent solutions that are beneficial for both parties.
7. Emotional intelligence
The ability to control and manage your emotions and deal with the other party's emotions
differentiates a successful negotiator from an unsuccessful one. People high on emotional
intelligence (EI) can accurately perceive and express their emotion, recognise others'
emotions and use these emotions to facilitate solutions.
