Negotiation Skills:
How to Strike a Win Win Deal
Md. Motiar Rahman
Senior Executive Vice President
Islami Bank Training and Research Academy
Definition: What is Negotiation ?
Negotiation is a dialogue/discussion between two or more
people or parties intended to ;
❑Reach an common understanding
❑Resolve point of difference
❑Gain advantage
Example:- Customer trying to negotiate with seller over a price
of a product.- Negotiation for salary between employee &
employer
Defining Negotiation
Negotiation is a process of discussion that is
intended to produce an agreement
What? Process
How? Discussion
Why? Agreement
Defining Negotiation Skill
❑Are qualities that allow two or more parties to reach a
compromise
❑These are soft skills
❑Abilities viz communication, persuasion, planning, strategies
and cooperating
❑Becoming a stronger negotiator
Relation between Negotiation &
Communication
Communicator
Negotiation
Communication
3Es for Negotiation Mind Set
Ground for Use of negotiation
Negotiation has many purposes:
1. conflict resolution
2. persuasive communication and selling
3. Purchasing/Delivering
4. dealing with staff
5. Arbitration
6. many business or personal transactions
7. dealing with industrial dispute
8. bringing more productivity at work place
Types of Negotiation
✓ Distributive Negotiation
✓ Integrative Negotiation
Types of Negotiation
Distributive negotiation (Win –Lose)
❖It is also sometimes called positional or hard-
bargaining negotiation
❖Each side often adopts an extreme position,
knowing that it will not be accepted.
Integrative negotiation(Win-Win)
➢ It is called interest-based or principled negotiation.
➢ It is a set of techniques by providing an alternative to
traditional distributive negotiation techniques. While
distributive negotiation assumes there is a fixed amount of
value to be divided between the parties, integrative
negotiation often attempts to create value in the course of
the negotiation
➢ Negotiations in which both parties come away winners and
both parties are committed to upholding their ends of the
agreement
Negotiation Styles
Negotiation Styles
Avoiding:
o Individuals who do not like to negotiate and don’t do it unless warranted.
o When negotiating, avoiders tend to defer and dodge the confrontational
aspects of negotiating
o They may be perceived as tactful and diplomatic.
Accommodating:
o Individuals who enjoy solving the other party’s problems
o Preserving personal relationships.
o Accommodators are sensitive to the emotional states, body language, and
verbal signals of the other parties.
o They take advantage of situations when the other party places little emphasis
on the relationship.
Negotiation Styles(Cont’d)
Competing:
• Individuals who enjoy negotiations because they present an opportunity to win
something.
• Competitive negotiators have strong instincts for all aspects of negotiating and
are often strategic.
• They can dominate the bargaining process, competitive negotiators often
neglect the importance of relationships.
Compromising:
• Individuals who are eager to close the deal by doing what is fair and equal for all
parties involved in the negotiation.
• Compromisers can be useful when there is limited time to complete the deal
• Compromisers often unnecessarily rush the negotiation process and make
concessions too quickly.
Negotiation Styles(Cont’d)
Collaborating:
• Individuals who enjoy negotiations
• Involve solving tough problems in creative ways.
• Collaborators are good at using negotiations to
understand the concerns and interests of the
other parties
Triangle Talk
Step 3:
Propose Action in a Way that They Can Accept
The
Step 1: Negotiati
Know Exactly What Step 2:
on Know Exactly What
You Want
Process They Want
Effective Negotiators Are:
❑Active listener
❑Empathetic
❑Emotional and logical intelligence
❑Purposeful not reactive
❑A great Communicator
❑Adaptable or flexible
Phases of Negotiation
There are four phases of negotiation
1st Phase of Negotiation
Preparation:
❑Negotiators need to review previous examples or other
incidents that might have bearing on the current situation.
❑Parties will decide to negotiate rather than pursue
❑When the cost of NOT negotiating a resolution is higher
than the cost of negotiating, then negotiation can be the
most desirable course of action.
2nd Phase of Negotiation
• Exchanging information is really an extension of
preparation, and allows both parties the opportunity to
consider all of the available information before a
bargaining meeting takes place.
3rd Phase of Negotiation
Bargaining
❑The “meat and potatoes” part of negotiation
❑The phase where actual sacrifices and concessions are
made
4th Phases of Negotiation
Closing
❑Once the parties have completed bargaining, made all the
adjustments, and agreed upon the least uncomfortable result,
the negotiation is ready for commitment and closure
❑Commitments can be made public as a way to share the
conclusion of the process
❑One final, important note in the process is to make absolutely
sure that you have a commitment to carry out the agreement
that has been negotiated
Techniques for preparation of win
win negotiation
1. An effective negotiation is preparation: One should be well
prepared before going for a negotiation
2. Very specific about expectation from Negotiation: Don’t
expect anything you yourself know is not possible
3. Always be ready with an alternative plan: Don’t rely on a
single plan. It might not work out sometimes, learn to be a little
tactful and intelligent.
4. Be transparent and honest with second party: honesty always
pays in the long run. Don’t hide anything from the other party.
So no terms and condition should be hide.
Techniques for preparation of win
win negotiation
5. Be very confident: Never show your need and helplessness
to anyone
6. Understand the second party well: One should try his level
bevel best to come to a conclusion which would make
both the parties happy.
7. Be a good communicator: Don’t play with words; make
sure you carefully chose relevant words. Avoid using foul
words against anyone.
8. Be patient: Negotiation needs time and one ought to be
patient enough to interact. Never impose your decision on
others on rush for ----------
Techniques for preparation of win-
win negotiation
9. Don’t drag the conversation too long: One the
conclusion is reached, Its better to chose the
dead. Don’t wait for some more miracles to
happen.
10. Chose a proper room for business negotiation.
Closing of Negation
(Win-Win Deal)
O= Desire level equal to determined level
Negational Style
Win-Lose Win-Win
BULLY Negotiator
Low- Assertiveness –High
Compiling Collaborating
Compromising
Lose-Lose Lose-Win
POLITICIAN Doormat
Avoiding Accommodating
Low- Cooperativeness –High
