A

PROJECT REPORT
ON
“NEGOTIATION SKILLS &TECHNICAL LAB”

Submitted in partial fulfilment for the award of the degree

Master of Business Administration

Chhattisgarh Swami Vivekananda Technical University, Bhilai

Submitted by,

SHREYA VISHWAKARMA

MBA – 3RD Semester

(Session 2017-2019)

Approved By, Guided By,

Dr. MANOJ VERGHESE Dr. MANOJ VERGHESE
Head of the Department Head of the Department

1
Department of Management Studies
Rungta College of Engineering &
Technology
Kohka, Kurud Road, Bhilai (C.G.)
 DECLARATION

I the undersigned solemnly declare that the report entitled “Negotiation”

is based on my own work carried out during the course of my study
under the supervision of Dr. Manoj Verghese Sir (Head of the
Department).
I assert that the statements made and conclusions drawn are an
outcome of my research work. I further declare that to the best of my
knowledge and belief the report does not contain any part of any work
which has been submitted for the award of MBA degree or any other
degree/diploma/certificate in this University or any other University of
India or abroad.

SHREYA
VISHWAKARMA

MBA 3rd
Semester

Enrollment no:
BD7056
 ACKNOWLEDGEMENT

I would like to extend my sincere and heartfelt gratitude to my guide Dr.

Manoj Verghese Sir (Head of the Department) who has helped me in
this endeavour and has always been very cooperative and without his
help, cooperation, guidance and encouragement, the project couldn’t
have been what it evolved to be.

I extend my heartfelt thanks to my faculty for their guidance and

constant supervision, as well as for providing necessary information
regarding the project.

At last but not the least gratitude to my parents and all my friends who
helped me (directly or indirectly) to complete this project within a limited
time frame.

SHREYA
VISHWAKARMA

MBA 3rd
Semester

Enrollment no:
BD7056
 TABLE OF CONTENTS

CHAPTERS CONTENT PAGE NO.

1 Negotiation and Tactics of Negotiation. 5-7

2 International Negotiation. 8-10

3 Importance of controlling emotions as a 11-12

key to effective negotiation.
4 Dos and don’ts of negotiation. 13-14

5 The crux of negotiation on Telephone. 15-16

Q.1 Define Negotiation. Discuss the various tactics
adopted in Negotiation.

NEGOTIATION:

INTRODUCTION:

The word “negotiation” is derived from the Latin expression,

“negotiates” which means “to carry on business”
Negotiation is a method by which people settle differences. It
is a process by which compromise or agreement is reached while
avoiding argument and dispute.
In any disagreement, the individuals understandably aim to
achieve the best possible outcome for their position (or perhaps an
organization they represent). However, the principles of fairness,
seeking mutual benefits and maintaining a relationship are the key
to a successful outcome.
Specific forms of negotiation are used in many situations:
International affairs, legal system and government General
negotiation skills can be learned and applied in a wide range of
activities. Negotiation skills can be of great benefit in resolving any
differences that arise between you and others.
People negotiate daily, often without considering it a
negotiation. Negotiation occurs in organizations including
businesses, nonprofit organizations and in personal situations such
as marriage, divorce, parenting etc. Professional negotiators are
often specialized, such as Union negotiators, Leverage buyout
negotiators, peace negotiators, honest negotiators. They may also
work under other titles, such as Diplomats, Legislators, or Broker.

DEFINITIONS:

 It is a collection of behavior that involve communication,

marketing, psychological, assertiveness and conflict
resolution.
  ROBBINS: A process in which two or more parties exchange
goods and services and attempt to agree upon the exchange
rate for them.
 KAVITA SINGH: A process by which two or more parties
each which its own goals and perspectives coordinate areas of
interest through concessions and compromise to each an
agreement and take the joint decision about area of common
concerns in a situation in which neither side has nor wants to
use powers.
 MINTON: The degree to which the interests of the parties are
aligned can facilitate the range and type of outcomes available
for resolution.

TACTICS ADOPTED IN NEGOTIATION:

INTEGRATIVE DISTRIBUTIVE

NEGOTIATION NEGOTIATION

COOPERATIVE TACTICS COMPETITIVE

TACTICS

The characteristic feature of Integrative bargaining is that it

relies in win win situation and therefore use a collaborative model of
conflict resolution. Both the parties involved in negotiation process
jointly look at the problem, try to search for alternatives and try to
evaluate them and reach a mutually acceptable decision or solution.
The most distributive feature is that it operates under a zoo
sum game, that the gain made by one person is loss incurred by the
other person. Each person involved in the negotiation defines
ultimate point where the settlement will be made.
Negotiation tactics are the detailed methods employed by
negotiation to gain an advantage. Negotiation tactics are often
deceptive and manipulative and are used to fulfill one party’s goals
and objective often the detriment of others. This makes most tactics
in use today win-lose by nature. Here is a list of the 10 tactics in
negotiation as below:
1. Extreme demands followed up by small, slow
concessions: Perhaps the most common of all the hard
bargaining tactics, this one protects dealmakers from making
concessions too quickly. However, it can keep parties from
making a deal unnecessarily drag out business negotiations.
To head off this tactic, have a clear sense of your own goals.
2. Commitment tactics: Your opponent may say that his
hands are tied or that he has only limited discretion to
negotiate with you. Do what you can do to find out if these
commitment tactics are genuine. You may find that you need
to negotiate with someone who has a greater authority to do
business with you.
3. Take-it-or-leave-it negotiation strategy: Offers should
rarely be non negotiable. To defuse this hard bargaining
tactic, try to ignore it and focus on the content of the offer
instead, then make a counter offer that meets both parties’
needs.
4. Inviting unreciprocated offers: When you make an
offer, you may find that your counterpart asks you to make a
concession before making a counter offer herself. Don’t bid
against yourself by reducing your demands; instead indicate
that you are waiting for a counter offer.
5. Trying to make you flinch: Sometimes you may find
that your opponent keeps making greater and greater
demands, waiting for you to reach your breaking point and
concede. Name the hard bargaining tactic and clarify that you
will only engage in a reciprocal exchange offers.
6. Personal insults and feather ruffling: Personal attacks
can feed on your insecurities and make you vulnerable. Take
a break if you feel yourself getting frustrated and let the other
party know that you won’t tolerate insults and other cheap
ploys.
7. Bluffing, Puffing and Lying: Exaggerating and
misrepresenting facts can throw you off guard. Be skeptical
about claims that seem too good to be true and investigate
them closely.
8. Threats and warnings: Want to know how to deal with
threats? The first step is recognizing threats and oblique
warnings as the hard bargaining tactics they are ignoring a
 threat and naming a threat can be too effective strategies for
defusing them.
9. Belittling your alternatives: The other party might try
to make you cave in by belittling your BATNA. Don’t let her
shake your resolve.
10.Good cop, Bad cop: When facing off with two negotiators
team, you may find that one person is reasonable and the
other is tough.

Q.2 Explain in brief the concept of International

Negotiation.

INTERNATIONAL NEGOTIATION:

INTRODUCTION:

International negotiations engage stakeholders and

representatives from different countries. The issues involved in
conflict resolution of international negotiations directly affect
multiple countries and are generally not between individuals, but
rather between larger delegations.

BENEFITS OF INTERNATIONAL NEGOTIATION:

International negotiations can for communication between

differing delegations. Worldwide communication has become
extremely advanced and diplomats from countries around the world
have the ability to make deals and create multi-country solutions.
Multi party agreements can allow large scale approaches to world
problems. Environmental problems such as air quality, water quality
and climate change include a larger scope and need conflict
resolution agreements between governments of countries all over the
world.
Countries that engage in international negotiations can
positively influence public perception and opinion. When
governments enter into conflict resolution with other countries, they
can be seen as working towards larger solutions that will help the
international community. Environmental conflict resolution in
particular can create positive relationships between citizens and
diplomats.

CHALLENGES OF INTERNATIONAL NEGOTIATIONS:

Language and culture are two of the biggest challenges in

international negotiations. Most international diplomacy and
business is co ducted in English, which is helpful for English
speakers, but can be difficult for non-native English speakers. If
English is not the first language for international parties, spoken
English in international negotiations can be at different levels, use
different vocabulary and phrases, and include various dialects,
accents, syntax and cadences, which can add complications to
negotiations when representatives do not understand each other or
do not have efficient translations. Moreover phrases and vocabulary
cannot always be translated from language to language.
Different countries have different cultures and these cultures
may come into conflict in international negotiations. If delegates do
not complete background research on the other parties, cultural
differences can become apparent and harm resolution agreements.
Cultural differences can also influence concepts of time between
diplomats.
The large scope of environmental issues can be both a
positive and a negative. The wide nature of solving environmental
problems can seem daunting and may lead to challenges in
international parties coming to an agreement.

 Between Countries: International negotiation is as it says:

inter-national. It is about negotiation between countries. It
also happens between individuals and companies, where the
 traps and tricks of cross-border negotiation can ensure even
the most experienced home country negotiators. International
negotiation is often not just between individual people, but
between large delegations each of which is well organized
and where every person has specialized and skilled work.
There may be cultural experts, linguists and subject specialists
as well as a chief negotiators and support negotiators.
 Cultural Confusion: A big trap in negotiation lies in
misunderstanding the culture of other countries, especially in
the rules they use to negotiate. While other country may
emphasize politeness and integrity, another night use
deception and coercive methods as a norm of negotiation. It is
easy to offend people from other cultures without realizing
what you are doing. Body language and particularly gestures,
can have very different meaning and what may seem an
innocent movement to one person can be extremely rude to
another.
 Diplomacy and Tact: International negotiation, done well,
takes very careful notice of local cultures and customs, and is
often conducted with remarkable diplomacy and tact. Good
international negotiators are very smooth and practiced in
their art, and ensure they are extremely well informed not
only about national cultures but also about the very individual
perceptions of the people on the other side. Some negotiations
never conclude, but the very fact the two sides are talking is
sufficient to distract them from more violent interplay.
 Blocs and Alliances: International negotiation often happens
between many countries at the same time. These may band
together into economic blocs or develop shorter term strategic
alliances, such as where smaller countries band together to
confront a dominant larger nation. Whilst international
relationships are essential, each country eventually puts its
own needs above the needs of others. Even when other
countries go to war on behalf of one another, the ultimate goal
is still national at root.
 War and Destruction: International negotiation can be about
life and death, literally and eve survival of the entire planet. In
the cold war period, Russia and America engaged in an
endless series of strategic Arms Limitation Talks (SALT) to
prevent the horrors of mutually assured destruction (MAD).
The madness of not agreeing on matters of global survival
illustrates well the difficulties of international negotiation. It
is easy on the international stage to paint yourself into a
corner, and for personal posturing and ambition to morph into
extreme and ultimately foolish acts.
Q.3 Explain the importance of controlling self emotions
as a key to Effective Negotiation.

IMPORTANCE OF CONTROLLING SELF EMOTIONS AS A

KEY TO EFFECTIVE NEGOTIATION:

During negotiations, most people experience a range of

emotions. The way you control those emotions have a profound
impact on the progress and outcome of the negotiation. To gain a
greater sense of how you can control emotions during a negotiation,
keep the following thoughts in mind.

 Prior to the negotiation, consider what could possibly cause

you to become emotionally unglued and mentally prepare for
such situations. Consider possible recourses you might adopt
to maintain emotional control. Assess the other negotiator to
determine what might cause him to become emotionally
unglued, too.

 Validate emotions: Whenever you incur an emotion, validate

its purpose. Seek to uncover whether the emotion is real or
contrived. It may be portrayed as genuine, while hiding
behind a mask of deceit, to provoke a calculated reaction
within you. If you suspect such a ploy is being utilized,
consider displaying no emotion in return. By doing so, the
perpetrator will have doubt cast upon his actions, which in
turn will give him cause to reflect upon whether his ploy is
being met with success.

 Control emotions: You must control your emotions and

attempt to do so of the other negotiator. To control the
emotions of the other negotiator, you should possess a strong
awareness of what might trigger him to one action versus
another. Then, during the negotiation, strike the proper accord
to motivate him to move in the direction you seek. Your
degree of success will be determined by how well you’ve
estimated his reactions.
  Display appropriate emotions for environment: The
emotions you exude should be aligned with the outcome you
seek from the negotiation. Thus the proper mannerisms,
connected with the appropriate emotions, will lend
cohesiveness to your position.

 Body language and emotions: As you progress through a

negotiation, observe the alliance that a displayed emotion has
with one’s body language. If there’s incongruity between the
emotion and body language, the emotion may be contrived
and have less importance than what is being conveyed.
 Self-awareness
 Self-management
 Social awareness
 Relationship management

NEGOTIATION TIPS:

 Always be cognizant of controlling your emotions during a

negotiation. A loss of control could cause you to think
irrationally, and adopt actions that you might otherwise avoid.
 To the degree there’s congruity in your words and
emotions, your emotions will possess more credibility.
Q.4 Explain in brief the Dos and Don’ts of Negotiation.
The right communication degree can help boost your negotiation
skills. Whether you’re trying to increase your starting salary at a
new job or settling a high-profile business deal, strong negotiation
skills are a must. But what are the best negotiation tactics, and how
can you fine tune them?
Here are few approaches that work—and five to avoid.

 Do prepare: One of the most effective negotiation strategies

is preparation. Research the person with whom you’ll be
negotiating from the organization they are representing to the
deals they have made in the past. If possible, seek out
colleagues who have negotiated with the same individual or
group before to gain insight into what you should expect.
 Do use a friendly approach: When it comes to business
negotiations, warmth and friendliness go a long way, even as
you are aware of the need to be cautious and not too open.
Take time to smile and exchange pleasantries. You may be
surprised by how small talk can lead to share common
ground, which can lead to smoother negotiations and a better
outcome for everyone involved.
 Do know your bottom line: Before going into negotiation, be
sure to determine your desired outcome and make a pact with
yourself and others, if applicable not to stray from it. Setting a
bottom line will enable you to know when to step back from
negotiations and when to move forward.
 Do listen to others: The most important negotiation tactic is
one many of us were taught early in our lives, but are likely
still trying to master: listening. When you are eager to make a
business deal, it is easy to get caught up in your talking
points. The most effective negotiators follow the 80/20 rule:
Listen to 80% of the time and talk 20% of the time.
 Do consider all of your options: While it is important to
know your bottom line, it’s just as important to keep your
mind open to a variety of options. If you go into business
negotiations with a closed mind, you may miss an unexpected
opportunity you would have never thought to consider
otherwise.
 Don’t get caught up in emotions: When it comes to business
negotiations, don’t let your emotions dictate your approach.
Not only does it interfere with our judgment, it can lead to
highly charged blunder that hinders or halt negotiations
altogether. Stay calm and friendly, even if those you are
negotiating with aren’t.
 Don’t underestimate your worth: One of the biggest
potential pitfalls of negotiating, especially for those new to
business negotiations, is underestimating what you and your
organization have to offer the other party. Write down your
accomplishments or your organizations strength before going
into negotiations and keep them in mind as you advocate for
what you want.
 Don’t gloat after a win: If your negotiation tactics produce
your desired outcome, act as professionally as you did
throughout your discussions. After all, business changes
quickly. The person you gloated in front of yesterday may be
the person you’re working with or reporting to tomorrow.
 Don’t underestimate anyone: Regardless of the number of
people or appearance of strength and size on either side, don’t
underestimate the power of a determined competitor-
including you. Financial worth and business size may be
powerful, but so are preparation, a solid plan, and a great
attitude.
Q.5 Explain in brief the crux of Negotiation on
Telephone.
Increasingly negotiations are taking place through channels
other than face-to-face meetings. Sometimes certain sections or
parts of the negotiation will take place via telephone or email and in
some cases the entire negotiation will take place in this way.
In addition to the telephone and email you may also find other
medium being used such as VOIP, video conferencing, conference
calls, WebEx or instant messaging services. This post will largely
focus on the two most common channels – telephone and email as
the principles can then be applied to the other medium.

THE COMMUNICATION CHALLENGE:

Any time you are talking with someone, whether

you’re chatting about what you did at the weekend or negotiating an
important deal, you and the other person are receiving a lot of non-
verbal information or “contextual cues”. These cues give the words
that are spoken appropriate meaning. Research shows that words
make up 30% or less of communication – the other 70% consists of
non-verbal cues.
We rely heavily on body language such as gestures, posture, facial
expressions and tone of voice to give context to the words that we
hear.
Face-to-face communication is a “rich” medium as all of the
contextual cues, from which a significant proportion of the meaning
of a particular communication is derived, are present.
TELEPHONE AND EMAIL NEGOTIATION-THE
RESEARCH:

Research has identified a collection of

challenges to negotiating via telephone and email:
 Parties communicating via telephone were found to be prone
to more distrust, competition, and contentious behaviour than
those in comparable face-to-face interactions
 Email negotiators rely more heavily on logical argumentation
and the presentation of facts, rather than emotional or
personal appeals
 Email communicators are more task-orientated and
depersonalized than those engaged in face-to-face
interactions.
 Information exchanged in email tends to be less nuanced than
information exchanged face-to-face and the elimination of
important back-channel and clarifying information such as
speech acknowledgements (“OK”, “Uh-Huh” or Huh?”)
compound this.
 E-communication tends to be less inhibited than face-to-face
communication due to physical distance, reduced social
presence, reduced accountability and a sense of anonymity
 The lack of social cues in e-communication causes people to
act more contentiously than they do in face-to-face
encounters, resulting in more frequent occurrences of
swearing, name calling, insults and hostile behaviour.
 Email communicators trust their counterparts less than
negotiators in similar face-to-face interactions – at all stages
of the process.
 E-negotiators are more likely to suspect their opposite of
lying, even when no deception has taken place.