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Akash Niranjane
Blog for Managers.

Notes on Selling and Negotiation Skills

- August 28, 2012

Selling and Negotiation Skills Notes for Mumbai University MMS Students

1. Introduction

Definition of 'Negotiation'

“A strategic discussion that resolves an issue in a way that both parties find acceptable. In a
negotiation, each party tries to persuade the other to agree with his or her point of view”

In advance of the negotiation, participants learn as much as possible about the other party's
position and what the strengths and weaknesses of that position are, and are prepared to defend
their positions and counter the arguments the other party will likely make to defend their
position.
Negotiation is a technique of discussing issues among oneself 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 to 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 to in corporate 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 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.

Negotiator
An individual representing an organization or a position who listens to all the parties carefully
and comes to a conclusion which is willingly acceptable to all is called the negotiator.
Skills of a negotiator

A negotiator ideally should be impartial and neutral and should not favour anyone.
He needs to understand the situation and the parties well and decide something which will
benefit all.
It is not always that people will easily accept the negotiator’s decision; they may counter it if
they feel their personal interests are not satisfied. In such a situation, where the negotiator is left
with no choice, he must use his power to impose his ideas on all, after all, one can’t please
everyone.
A negotiator has to be a little tactful and smart enough to handle all situations and reach to a
conclusion.

1. 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 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 a mutual
agreement where everyone gains something or the other and conflicts are avoided.

2. Types of Negotiation

There are two primary kinds f negotiation, Chances are, you have been involved in both at one
time or another in your work as a Management Professional.

• Distributive: In a distributive negotiation, the parties compete over the distributive of a fixed
sum of value. The key question in a distributed negotiation is “Who will claim the most value?”
In distributive negotiations, again by one side is made at the expense of others.

• Integrative: In an Integrative negotiation, the parties cooperate to achieve maximum benefits

by integrating their interests into an agreement. These negotiations centre on creating value, in
addition to claiming it.

Few of the negotiations you participate in are likely to be purely distributive. Although direct
competition between the interest and goals of negotiating parties is commonplace, opportunities
to integrate the parties, interests and preferences usually exist. But for the purpose of learning,
this chapter examines each type in its pure form. These forms are complicated by two other facts
of life. negotiations often take place in phases and may involve multiple parties which are
addressed at the end of the chapter.

Distributive Negotiation:
In distributive negotiations, the bargaining centres on who will claim the most value. Some
people refer to this type of negotiation as zero-sum or constant-sum negotiation. The term win-
lose is probably more representative of what involved classic example include the following.

• The sale of an automobile when the buyer and the seller do not know one another. There is no
relationship; all that matters is the price and each side haggles for the best deal. Every gain by
one party represents a loss to the other.

• Wage negotiations between business owners and their union employees. The owners know that
any amount conceded to the union will come out of their own pockets and vice versa.

In purely distributive negotiation the value at stake is fixed, and each side’s goal is to get as
much of the transaction as possible. Consider the example of two people negotiating over shares
of a freshly baked apple pie. Each aims to negotiate for a large portion of another party will
reduce his or her share by an equal amount. In purely distributive negotiation the seller's goal is
to negotiate as high price as possible the buyer's goal is to negotiate as low price as possible; the
dollar more to one side is a dollar less to the other. Thus the seller and buyer compete to claim
the greatest possible value for themselves. This competition results in a tug of war. Each
negotiator aims to pull the final outcome as close to him or her side’s desired goal as possible.
Relationship or reputation means little in this kind of exchange; the negotiator not willing to
trade value in the deal for value in their relationship.

Distributive negotiation, also known as positional bargaining, zero-sum negotiation, competitive

negotiation or negotiation win-lose, is a type or style of negotiation in which parties compete for
the distribution of a fixed amount of value.

At the end of purely distributive bargaining, which a party has won the other has lost. The final
points keep adding zero as has been previously created value, unlike what happens in an
integrative negotiation.

Distributive bargaining usually occurs in negotiations based on the sale of products where all that
matters is price, for example in the sale of an automobile or real estate.
The purely distributive bargaining is usually an aggressive person, ruthless, stubborn, cunning,
deceitful, self-centred and, above all, manipulative.

Before seeing the different strategies and tactics that can be used in a distributive negotiation,
you need to know some important characteristic of this type or style of negotiation:

Bargaining power: benefits that you have to win a negotiation. Is basically given by the
alternatives that you have a negotiation, for example, buyers today usually have more power than
sellers, as they have more options to choose a product.

Perception: what one side thinks the other, in distributive bargaining is not so much what one
has, but what the other party thinks you have.

Alternatives: alternatives that you have a negotiation, for example, if you have a single client
than the client that is negotiating, only have an alternative. The more options you have will have
greater bargaining power.

BATNA (best alternative to a Negotiated Agreement) is a better alternative to a negotiation

(the alternative that one would take in case of not reaching an agreement). Before any
negotiation, we must determine our BATNA and thus know when no agreement is better and
retire (when possible agreement less favorable than our BATNA), for example, if we calculate
that we can charge a client 1000, that amount will be our BATNA when negotiating with a
second client, in this case, our goal is to reach an agreement where we pay 1000 or more and
preferably, should offer a lower figure, we know that it is preferable to a non- agreement and
seek the first customer.

Some peculiarities of BATNA is dynamic, i.e. constantly changing, and it is psychological, ie

based on a personal perspective, which tends to be subjective (e.g., a seller might consider that
his product is worth much more than actually worth).

Backup point: The point that sets the lower limit of a negotiation. Is the minimum (or maximum)
that you are willing to accept. The backup point adrift of BATNA though not always coincide
(eg, when to buy a place, not only consider the price of another similar facility, but also its
location.) Before any negotiation, we must determine our point of reservation and, thus, how
much is the minimum (or maximum) that we should accept.

Zone of possible agreement: range within which you can close a deal. It is located between the
reservation points of the two parties, for example, if a buyer of a product sets its reserve price in
3000 (the most you would pay), and a seller of the product sets its reserve price in 2500 (least
you could accept), the zone of possible agreement between the two sides would be located
between 2500 and 3000.
Distributive bargaining strategies

The distributive bargaining strategies are aimed at shaping the perception of the counterpart on
the limits of the zone of possible agreement, looking to the other party change its point of
reservation to do so back, and think that ours is closer than their own it really is.
For that, thereby, once shaped the perception of the counterparty to the limits of the zone of
possible agreement, it is easier to influence their perception of the solution, and thus achieve the
ultimate goal, which is that the agreement ends near its reservation or, if possible, in himself.

Therefore, distributive bargaining strategies basically consist of:

Do not reveal proprietary information, not reveal, conceal or distort information as one’s own
motivations, needs and interests, your own BATNA and reservation point, etc. For this purpose,
information is distorted, half-truths are told, shut up relevant information, it answers questions
with other questions or incomplete responses, there is silence, it diverts attention to other issues,
not shown much interest in something, dissimilar emotions or reactions, etc..

Counterparty information: get as much information counterpart, their true motivations, needs and
interests, their alternatives, their BATNA and reservation point, your trading style, their way of
trading (if it is aggressive or passive ), their strengths and weaknesses, etc.. For this purpose, are
formal and informal questions, read between the lines, analyze their actions, interpreting
nonverbal language, you get information from other sources, etc.

Distributive bargaining tactics

The tactics of distributive bargaining, unlike the strategies, are specific actions but have the same
goal, which is to reach an agreement as close as possible to the point of booking the other hand,
basically pre-shaping their perception of boundaries of the zone of possible agreement.

The following are some of the main tactics used in distributive bargaining:

• To bid high is to establish a high bid and thereby raise the other party “anchor” their perception
of the range of possible agreement.

• Make excessive demands, is to make excessive demands, some of which might be irrelevant
and would have the sole purpose of being traded for concessions.

• Make miniconcesiones: miniconcesiones is to make in order to give the impression of yielding

enough.

• Setting limits: is to set limits in order to convince the other party that will not give more, for
example, “it is impossible to accept, would imply an increase of 10% of our costs.”

• Previous: the previous point is to support our arguments, for example, “we have always paid
that amount, why we now call this one?”
.
• Comparisons: comparisons are to achieve the same result as the preceding, for example, “I
know of other similar premises were rented recently at least $ 1000.”

• Casting aspirations: it consists in shaping perceptions of the partner seeking to lower their
aspirations, for example, if an employee wanted a raise, we could speak of the bad year we’ve
had.

• Saw, is to seek to change the position of putting the other party against a second alternative,
either real or imagined, for example, when a potential client to believe the owner of a local rent
that had contact with other owners.

• Influence their subjective utilities, is to ensure that the other party lower the point of reservation
to be influenced by the idea of getting benefits or subjective utilities, for example, if you want a
seller to sell cheap we could promise to recommend to others.

• Capture core values is to build something that we know that the other party wants or cares a lot
and, for example, ask enough in return.

• Real or feigned anger, is to have rabies or pretend to demonstrate the seriousness of our
position, to doubt the other party of its position, or to intimidate.

• Reduce the time, is rushing to the other party either directly or indirectly, in order that you
tense, giddy and make a decision without the Mediterranean much.

• Control the Anchor point – the first offer made by either party can become a strong
psychological anchor point, one that sets the bargaining range. Studies show that negotiation
outcomes often correlate with the first offer. So start at the right place.

• Share Information shrewdly- Do not disclose any significant information about your
circumstances including why you want to make a deal, your real interests or business constraints,
your preferences among issues or options or the point at which you’d walk away from the
beginning. However, do let the other side know that you have good options if this deal falls
through.

• Learn about the other party – Information about the other party can benefit you. Learn as much
as possible about their want to make a deal their real interest and business constraints’. And their
preferences among issues or options. Then leverage what you’ve learned in setting your first
offer or request.

• Don’t overshoot – If you claim value too aggressively or greedily, the other side may walk
away possibly depriving you of an opportunity of fashion a valuable agreement

For example, a business executive being transferred to another metropolitan area is hoping for a
house. She is not concerned with her long term relationship with a home seller when she begins a
negotiation to purchase the seller’s house. Chances are that the seller is a total stranger and will
remain so after the transaction takes place.
Information plays an important role in distributive negotiations the less the other party knows
about your weaknesses and real preferences and the more they know about your bargaining
strength the better your position becomes., for examples, Jorge would not want La Nita to now
that his company was struggling for cash, of course, would be eager to let Jorge know that other
consulting were currently knocking or the door, each eager to get Wild Wear’s business. To
achieve success in distributive negotiations. Remember the following

Integrative Negotiation:
In integrative negotiation, the parties co-operate to achieve maximum benefits by integrating
their interests into an agreement while also competing to divide the value. In integrative
negotiations, you have to be skilled at both creating value and claiming it.
Example like this one hence become more and more commonplace in business as big companies
shift their tactics from squeezing vendors and dealing with many of them through short-term
transactions to developing a long-term relationship with .few selected loyal suppliers. In many of
these cases, both parties may end up with collaborating in unexpected, highly positive ways such
as Minda and TATA motors. Collaboration for the supply of TATA Nano parts. The growing use
of joint ventures and outsourcing has likewise motivated organizations appears to be a zero-sum
game.
In integrative negotiation, your task is twofold:
1. To create as much value as possible for yourself and for the other party.
2. To claim value for yourself.
May use of the term imply that all parties get everything they want, which is rarely the case.
More likely, each makes tradeoffs to get the things they value most while giving up other, less
critical forms of value. For example, in the TATA motors and Minda agreement Minda agreed to
supply parts at lower prices for TATA motors. However both the companies won other forms of
value in the exchange.

Sometimes as in the TATA motors and Minda the interest of tow parties in integrative
negotiations can relatively easily fashion an agreement that integrates their interest as efficiently
as possible.
Agreeing to yield mere of what one negotiator values does not necessarily require the other
negotiator to take less of anything he or she values. Thus the ability of one side to claim or win
what it wants or needs in the negotiation does not necessarily detract from the others ability to
claim or win just as much.

Negotiation specialist mark garden Gordon, who coined the term “collaborative bargaining” for
this type of negotiation says that the parties should look for creative options, and not focus on
which concessions to make you have to believe that it’s in your interest to look for ways to
benefit your negotiation counterpart. Your goal is not to hurt them, but to help them at little.

Integrative negotiation, also known as principled negotiation, cooperative bargaining or win-win

negotiation is a type or style of negotiation in which the parties cooperate to achieve a
satisfactory result for both.

Instead of approaching the problem in a competitive as distributive bargaining (claiming value

only for one), integrative negotiation the parties adopt an attitude aimed at solving the problem
and seek a favourable outcome for both.

Hence the goal of integrative negotiation is to create as much value as possible for oneself and
for the other party, for example, through the stock exchange where each party makes
concessions, makes or gives up some that values therefore little or no return for something he
values greatly.
Integrative negotiation usually occurs in negotiations where there are several things to negotiate,
for example, in creating a society in which each partner can bring different resources, but
complementary to those of other partners.

Integrative negotiation strategies

The integrative negotiation strategies are aimed at creating the most value for both parties, so the
distributive negotiation strategies basically consist of:
Disclose proprietary information, identify own needs, preferences, interests, concerns, capacities,
resources, etc.
Learn from the other party to get information about their motivations, needs, preferences,
interests and concerns, for instance, during formal and informal questions, or trying to
understand their motivations.
Integrative bargaining tactics
The tactics of integrative bargaining, unlike the strategies, are specific actions but has the same
goal which is to create as much value as possible for both parties.
The following are some of the main tactics used in integrative negotiation:
• Send a message about the intention to cooperate: to send a clear message to the other party of
our intention to cooperate, to solve the problem, to be flexible, for example, to let you know that
we both face the same problem, by showing concern for their interests, to show willingness to
dialogue.
• Create a climate of problem-solving: a climate of problem-solving, unlike what happens in
distributive bargaining where it often creates a climate of competition and belligerence.
• Ensure good communication: to create conditions for good communication, maintain open
communication channels.
• Find differences: it is through the differences (whether in needs, preferences, tastes, values,
interests, resources, skills, etc.) That can create value, for example, to identify something that is
not as valuable to one but for the other party itself, and exchange it for something that the other
party is not so valuable, but for one another. For example, suppose two rare book collectors, John
and Peter begin a negotiation. John is interested in buying a book by Peter Hemingway. During
the negotiation, Peter mentions that she is looking for a book by William Prescott and it happens
that John has and is willing to part with it. In the end, Peter John sold the book of Hemingway in
exchange for a few dollars more the book of Prescott, ending the two sides met, as the goods
exchanged were of moderate value to their original owners, but exceptional value for its new
owners.

Models of Negotiation

Negotiation is defined as a discussion among individuals to reach to a conclusion acceptable to

one and all.
It is a process where people rather than fighting among themselves sit together, evaluate the pros
and cons
and then come out with an alternative which would be a win-win situation for all.
Sam wanted to purchase a mobile handset, he tried his level best to buy it at the lowest possible
rate and the shopkeeper also ensured that he could earn his profits as well.
Thus the negotiation benefited Sam who didn’t have to shell out loads of money and the
shopkeeper was also satisfied because even he earned his profits.
Negotiation helps in reducing conflicts and disputes among each other.
Negotiation is essential in every walk of life for a peaceful and stress-free living.
Let us go through various models of negotiation:

Win-Win Model - In this model, each and every individual

involved in negotiation wins. Nobody is at loss in this model
and everyone is benefited out of the negotiation. This is the
most accepted model of negotiation.
Let us understand it with the help of an example:
Daniel wanted to buy a laptop but it was an expensive model. He went to the outlet and
negotiated with the shopkeeper to lower the price. Initially, the shopkeeper was reluctant but
after several rounds of discussions and persuasion, he quoted a price best suited to him as well as
Daniel. Daniel was extremely satisfied as he could now purchase the laptop without burning a
hole in his pocket. The negotiation also benefited the store owner as he could earn his profits and
also gained a loyal customer who would come again in future.

1. Win Lose Model - In this model one party wins and the
other party loses. In such a model, after several rounds of
discussions and negotiations, one party benefits while the
party remains dissatisfied.
Please refer to the above example once again where Daniel wanted to buy a laptop. In this
example, both Daniel and the store owner were benefited out of the deal. Let us suppose Daniel
could not even afford the price quoted by the store owner and requests him to further lower the
price. If the store owner further lowers the price, he would not be able to earn his profits but
Daniel would be very happy. Thus after the negotiation, Daniel would be satisfied but the
shopkeeper wouldn’t. In a win-lose model, both the two parties are not satisfied, only one of the
two walks away with the benefit.

2. Lose-Lose Model - As the name suggests, in this model, the

outcome of the negotiation is zero. No party is benefited out
of this model.
Had Daniel not purchased the laptop after several rounds of negotiation, neither he nor the store
owner would have got anything out of the deal. Daniel would return empty-handed and the store
owner would obviously not earn anything.
In this model, generally, the two parties are not willing to accept each other’s views and are
reluctant to compromise. No discussions help.
Let us understand the above three models with an example from the corporate world.
Mike got selected with a multinational firm of repute. He was called to negotiate his salary with
Sara- the HR Head of the organization.
Case 1 - Sara quoted a salary to Mike, but Mike was not too pleased with the figure. He insisted
Sara to raise his salary to the best extent possible. After discussions, Sara came out with a figure
acceptable to Mike and she immediately released his offer letter. Mike got his dream job and
Sara could manage to offer Mike a salary well within the company’s budgets - A Win-win
Situation (Both the parties gained)
Case 2 - Sara with her excellent negotiation skills managed to convince Mike at a little lower
salary than he quoted. Mike also wanted to grab the opportunity as it was his dream job and he
was eyeing it for quite some time now. He had to accept the offer at a little lower salary than
expected. Thus in this negotiation, Mike was not completely satisfied but Sara was - A win-lose
negotiation
Case 3 - Mike declined the offer as the salary quoted by Sara did not meet his expectations. Sara
tried her level best to negotiate with Mike, but of no use.-A lose lose model of negotiation.
Nobody neither Mike nor Sara gained anything out of this negotiation.

3. RADPAC Model of Negotiation

RADPAC Model of Negotiation is a widely used model of negotiation in corporate companies.
Let us understand it in detail
Every alphabet in this model signifies something:
R - Rapport
A - Analysis
D - Debate
P - Propose
A - Agreement
C - Close

R - Rapport: As the name suggests, it signifies the relation between parties involved in
negotiation. The parties involved in negotiation ideally should be comfortable with each other
and share a good rapport with each other.
A - Analysis: One party must understand the second party well. It is important that the individual
understand each other’s needs and interest. The shopkeeper must understand the customer’s
needs and pocket, in the same way the customer mustn’t ignore the shopkeeper’s profits as well.
People must listen to each other attentively.
D - Debate: Nothing can be achieved without discussions. This round includes discussing issues
among the parties involved in negotiation. The pros and cons of an idea are evaluated in this
round. People debate with each other and each one tries to convince the other. One must not lose
his temper in this round but remain calm and composed.
P - Propose: Each individual proposes his best idea in this round. Each one tries his level best to
come up with the best possible idea and reach to a conclusion acceptable by all.
A - Agreement: Individuals come to a conclusion at this stage and agree to the best possible
alternative.
C - Close: The negotiation is complete and individuals return back satisfied.

Let us again consider Mike and Sara’s example to understand RADPAC Model
R - Rapport between Mike and Sara. They must be comfortable with each other and should not
start the negotiation right away. They must first break the ice. The discussions must start with a
warm smile and greetings.
A - Both Mike and Sara would try their level best to understand each other’s needs. Mike’s need
is to grab the opportunity while Sara wants to hire an employee for the organization.
D - The various rounds of discussions between Mike and Sara. Mike and Sara would debate with
each other trying to get what they want.
P - Mike would propose the best possible salary he can work on while Sara would also discuss
the maximum salary her company can offer.
A - Both Mike and Sara would agree to each other, where both of them would compromise to
their best possible extent.
C - The negotiation is complete and probably the next course of action is decided like in this case
the next step would be the generation of the offer letter and its acceptance.
The dialogue between individuals to come to a common conclusion benefiting all is called as
negotiation. Negotiation refers to the discussions among individuals evaluating the pros and cons
of a situation and coming to an alternative best suited to all. In negotiation, individuals try their
level best to come to a conclusion which would satisfy all. In simpler words, it is also called as
Bargaining.
How to prepare for Win-Win Negotiation?
A discussion among individuals to reach an alternative which involves the interest of all the
participants is termed as negotiation. An individual must try his level best to negotiate with each
other and reach a common conclusion to avoid conflicts and misunderstandings. In a win-win
negotiation both the two parties are benefited and both of them get whatever they expect.
One needs to prepare well for a win-win negotiation:

 The first and foremost requirement for effective negotiation is preparation. One should
be well prepared before going for a negotiation. Don’t attend negotiations just for the sake of it.
Make it a habit to go through even the minutest details related to the deal. Check all the related
websites and gather as much information as you can. If you intend buying a pen, try to check out
the prices of other leading brands as well. For expensive items, it is always better to check a few
shops before finalizing the product. The second party might ask you anything and you should be
ready with your facts. Never be in a rush. For business deals, check out all the relevant
documents so that you don’t miss out anything. Do carry all the necessary documents along with
you at the time of negotiation, you might need them.
 One should be very specific about his expectations from the negotiation. The purpose of
the negotiation must be clear. Why do you need the negotiation? What purpose will it solve?
Don’t be in a confused state of mind. Be focused and don’t change your mind quite often. If you
expect a particular salary, it’s better to stick to it. If you have the calibre and talent, you will
definitely get what you want but it is important to have realistic expectations. Don’t expect
anything you yourself know is not possible.
 One should always be ready with an alternate plan. Don’t rely on a single plan. It might
not work out sometimes. You should always have some other option to convince the other party
else you might end up sitting blank at the time of discussion.
If you want to purchase a laptop and you have decided to ask for a discount but you realize that
the shopkeeper is a little reluctant to offer the discount, don’t start fighting with him. Don’t be
adamant. You can always ask for a laptop bag or probably some accessories. Learn to be a little
tactful and intelligent
 Be transparent and honest with the second party. Lies and manipulations never help.
Honesty always pays in the long run. Don’t hide anything from the other party. If you hide the
terms and conditions, the deal might turn in your favour but you might land yourself in trouble
later. If you are honest with the second party, you will be at peace and there is no need to worry
at all.
 Be very confident. Never show your need and helplessness to anyone. You might be in dire
need of something, but keep the feelings to yourself only. A business deal might be very crucial
for your promotion but the second party must not come to know about this, otherwise he will try
to act pricy. Show a positive attitude and do flaunt your smile more often.
 Understand the second party well. Try to find out more about his needs and interests as well.
You have to take into consideration his expectations as well. Do not decide on something which
would not be feasible for the other party. One should try his level best to come to a conclusion
which would make both the parties happy.
 Be a good communicator. Don’t play with words; make sure you carefully chose relevant
words. Avoid using foul words against anyone; it goes a long way in spoiling the ambience.
There are other ways by which you can show your displeasure. Avoid being rude to anyone. Be
precise and crisp in your speech. Take care of your tone and pitch as well. It should not be too
high and must be audible to all. Don’t stammer in between.
 Take care of your dressing as well. An individual must be well dressed for a negotiation.
Don’t adopt a casual approach as the other person will never take you seriously. Prefer wearing
formals to create the desired first impression on others.
 An individual should learn to compromise to his best extent possible. One must know
where to compromise as it is important to reach a conclusion. Remember you can’t get
everything. If everyone is rigid on his views, no conclusion would ever come out. For a win-win
negotiation, it is better if the individuals try to adjust with each other and decide on something
best suited to all.
 Once you are done with the negotiation, do sign contracts and agreements in the presence of
both the parties. Make sure that all the necessary terms and conditions are mentioned clearly in
the contract.
 One must go with a positive attitude for a win-win negotiation. Adopting a negative
attitude will lead to negativity all around. Don’t pretend, just be yourself and things will
definitely fall into place.

Negotiation takes place in various ways in corporate companies for increased output and better
relations among employees.
Let us go through the various types of negotiation in detail:
 Day to Day Negotiation at the workplace- Every day we negotiate something or the other at
the workplace either with our superiors or with our fellow workers for the smooth flow of work.
These are called day to day negotiations.

 Negotiation between employee and superior- At the workplace, an employee has to

negotiate with his superiors so that he is assigned the responsibilities as per his interests and
specialization. Don’t accept anything you are not comfortable with. Sit with your boss and
discuss things with him. Let’s suppose your boss wants you to prepare a report on branding and
marketing strategies of the organization and marketing was never your specialization. Do not
accept it just because your boss has told you to do so. Negotiate with him, probably you can
cover some other subject and somebody else can be asked to prepare the report on marketing and
branding. It is better to negotiate in the first place to avoid conflicts and misunderstandings later.
An individual before accepting any offer should negotiate his salary with the concerned person to
avoid tensions later. If you are not getting what you deserve, you will never enjoy your work.
Don’t just accept any offer just because you need a job, its always advisable to negotiate well
before joining any organization.

 Negotiation between colleagues- Negotiation is essential among team members to reduce the
chances of disputes and conflicts. Any particular team member should not be overburdened
while the other member is relaxing. One should negotiate with his fellow workers and accept
only those responsibilities he feels he is best capable of doing. The responsibility of achieving
the targets should not rest on only one shoulder but equally divided among all. Negotiate with
your team members and accept the responsibilities willingly. If you want to go for leave for
some days, negotiate with your team member to take care of your work in your absence. When
he takes leave, you can help him in the same way.

Negotiation helps to increase the output of the team and eventually the productivity of the
organization. People achieve what they expect and hence misunderstandings and conflicts are
reduced to a large extent and the office becomes a better place to work.

 Commercial negotiations- Commercial negotiations are generally done in the form of

contract. Two parties sit face to face across the table, discuss issues between them and come to
conditions acceptable to both the parties. In such cases; everything should be in black and white.
A contract is signed by both the parties and they both have to adhere to its terms and conditions.
Cherry was representing the administration department of a reputed organization. He was
assigned the responsibility of buying bulk laptops for the office employees from a vendor. He
asked the vendor to quote a price for him. Cherry found the price was beyond the company’s
budget and thus sat with the vendor, negotiated the price with him and finally both of them
agreed to a price suitable to both. A contract was signed between Cherry and the vendor
mentioning the payment details, mode of payment, date of delivery, warranty details and other
important terms and conditions. Commercial negotiation generally involves an external party and
thus a contract is essential so that no party backs out later.

 Legal Negotiation- Legal negotiation takes place between individual and the law where the
individual has to abide by the rules and regulations laid by the legal system and the legal system
also takes into account the needs and interest of the individual.
Negotiations are essential at workplace so that everyone is satisfied and nobody feels left out or
neglected. It also reduces conflicts and misunderstandings among fellow workers
Importance of Negotiation in Corporates

Negotiation is nothing but a discussion among individuals to find out an alternative which takes
into account the interest of all and nobody is at loss. In a win-win negotiation people try their
level best to come to a solution where everyone is benefited and nobody is at loss. Negotiation is
essential in corporates to avoid conflicts and improve the relations among the employees. Don’t
be too rigid and adamant in the office.

Let us understand how negotiation is important in the workplace:

The process of negotiation starts the moment an employee gets a selection call from an
organization. It is essential that the individual responsible for hiring employees negotiates well
with the candidate and offers him the best salary. Every organization runs for earning profits and
thus the HR Professional must try to make the person join at the lowest possible salary but make
sure you do not offer him anything less than his previous salary. He will never be interested to
join. Even if he joins, he will not take his work seriously and the results would be zero.
Discussions are important. Make him realize that money is not the only criteria for selecting a
job. Other things like one’s job responsibilities, job security as well as the brand name should
also be considered.

The negotiation style plays an important role in corporates. Do not offer anything exceptionally
high as it would again create a problem among the existing employees. Ensure that you are little
tactful and do flash your trillion-dollar smile. It helps. No way can you annoy the individual.

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 the presence of both the parties so that
nobody 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, it's 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 some
more time in the coming days to compensate for the loss. Be a little patient.

Conflict must be avoided at the workplace as it only leads to negativity all around. Negotiations
help to reduce conflicts in the workplace. Conflicts arise when individuals are too rigid and are
just not willing to compromise with each other.
Negotiations help in finding an alternative which benefits all.
Let us understand the importance of negotiation in corporates with the help of a simple example:
Ted was working with a leading organization. He was a smart negotiator. He always negotiated
well with his superiors as well as his fellow workers and thus a enjoyed his work. He only
accepted those responsibilities he knew he was capable of doing. No doubts his work was error-
free, and he was his boss’s favourite.
He was always well informed before going for any negotiation with vendors, never lost his
temper and always closed the deal in favour of the organization. Good negotiation skills helped
Ted be the most appreciated employee among all.

Importance of Negotiation in Daily Life

The conflict has never benefitted anyone, instead, it adds to one’s tensions and anxiety. It is
better to discuss things and reach to an alternative benefitting all. Issues must not be dragged
unnecessarily and efforts must be made to come to a conclusion involving the interests of all. No
point in being adamant and rigid. One should strive hard to negotiate with each other and
consider the needs, interests and expectations of all.

Negotiation is essential everywhere. It is not only the corporates where negotiation is important
but also in our daily life. We all must try our level best to adopt negotiation skills to avoid
misunderstandings and lead a peaceful and stress-free life.
Let us understand how negotiation is important in daily life:

Negotiation is essential in everyone’s family to maintain peace at home. We all need to

compromise with each other to some extent to avoid disagreements at home.
Terren’s mother baked one of his favourite cakes but he had to share it with his brother Peter as
well.

 Situation 1
Terren negotiated with Peter that if Peter gives him the larger share, he would probably finish all
his marketing assignments to which Peter gladly agreed as now he could enjoy his weekend with
his friends. It was also a win win situation for Terren as now he could relish his favourite cake.

 Situation 2
Terren fought terribly with Peter over the cake and neither Terren nor Peter could enjoy the cake.
They spoiled the evening and got a good scolding from their parents as well.

Situation 1 is any day a better option as both Terren as well as Peter could get whatever they
wanted. The negotiation benefitted both of them and reduced the chances of disputes between the
two brothers.

Negotiation also helps in effective buying. Every individual needs to save money for rainy days.
You just can’t spend money like anything. One must try his level best to negotiate with the
second party to reduce the costs to the best extent possible. If you do not negotiate well you will
end up spending more than required. Always remember the shop owner keeps a profit margin on
almost all selected products. Don’t go and just pay whatever he asks for. Quote a price little less
than what he quotes but do not forget to calculate the shop owner’s profits as well. If you intend
buying some expensive brand, it is better to check out the prices of its competitors as well.

Negotiation is important but does not forget to be polite and dignified. Convince the shopkeeper
as to why the price of a particular item should be a little less than what he has quoted. Discuss
with the store owner. He will feel happy after all he needs to sell his products and even he looks
forward to a loyal customer. It is better if both the parties negotiate with each other and come to
a price which would satisfy both of them. (The customer as well as the store owner). The
customer would afford to buy his product at a reasonable price and the store owner would also
manage to earn his profits. Ask for discounts when you go out for shopping.

Negotiation reduces conflicts and improves the relationships among individuals. We are human
beings and unlike animals, we live in societies and need people around. How would you feel if
your next-door neighbours don’t talk to you? People can’t stay all alone. They need the company
of others to share happiness, sorrows and take each other’s help whenever required. Don’t
always find fault in others. It is okay if your next-door neighbour has parked his car in front of
your house. Don’t go and fight with him. You might even need him someday. Don’t get hyper or
overreact. Try to understand the other person as well.

An individual must learn the skills to an effective negotiation to lead a happy and peaceful life.
Life is short and one must enjoy each and every moment of it. Why to unnecessarily fight with
each other and complicate issues? Negotiation is essential for better bonding among individuals,
lesser conflicts and happy life.

Negotiation Skills - How to Negotiate Effectively

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.
An individual needs to adopt certain skills for a successful negotiation. Let us understand in
detail:
An individual before starting with the negotiation must be very clear with the agenda (topic) of
the negotiation. Ask yourself - why this negotiation? What is the objective of the negotiation?
One must be well informed. Try to find out more about the competitor’s products or services.
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.

Before any important deal, do make it a habit to go through as many details as you can. The
second party might ask you anything, you must be well prepared to clear all their doubts and
convince them. If you yourself are confused, he would never bother to listen to you.

 React sensibly - A good negotiator must react sensibly. He should never lose his temper or
over react. If you are unhappy with the deal, show your displeasure. Don’t keep things to
yourself or assume that the others will understand it on their own. One has to voice his opinions.
Make the other person realize that you are not satisfied with the deal and it must be revised.
Show your unhappiness to others.
If your boss assigns you a project you are not very comfortable with, show your displeasure to
your boss in a polite way and ask for something else. But make sure you are not rude; otherwise,
your job might be at risk.

 Patience - One needs to be patient enough for a good negotiation. It is not always that the
other person will accept your suggestions in the first attempt itself. You need to convince him
and it needs patience. Never be in a hurry to close the deal.

 Confident - One needs to be confident enough for effective negotiation. You might need
something but never show your desperation to anyone. They will take undue advantage of your
helplessness. Take care of your facial expressions. Never be nervous in front of the second party.
Don’t start sweating
.
Greg was offered a job with a leading advertising agency. He was really very happy as he was
jobless for quite some time now. The HR quoted a figure to Greg, which did not impress him
much. Greg tried his level best to negotiate with the HR, but unfortunately, the HR had already
found that Greg was in dire need of the job. He refused to negotiate further. Poor Greg had no
option than to accept it.
Where did Greg go wrong?
The only mistake he did was he made it very obvious that there was no way he could afford to
miss this opportunity.
 Be dignified - One should maintain the decorum of the place and should not stoop to any level
for getting the best deal. Present your ideas in a dignified way. Remember it is just a discussion,
not a battlefield. Avoid shouting or using derogatory statements against anyone. If you are not
satisfied with the deal, it's better to quit rather than fighting and using abusive languages.
 Be very clear in your communication - Stay firm on your quotes and do not change
statements quite often. Don’t play with words or try to confuse others. One needs to be
straightforward from the very beginning.

 Be a good listener - Don’t jump to conclusions; instead, listen to what the other party offers.
Understand his situation well. It’s okay to think about your personal interests but doesn’t be mad
about it. If the deal is not benefiting the other party, he will obviously not accept it, don’t be after
his life. If you don’t listen to others, they would obviously not respond to you.
When a customer goes to purchase something, he must not forget that the store owner also has to
earn his profits. The store owner should also understand the customer’s needs and pocket.
Negotiation depends on mutual understanding.

 Be reasonable - Don’t quote anything just for the sake of it. Be reasonable. Don’t quote
imaginary or unusually high figures. Don’t ask for anything you yourself know is not possible. It
will just be wastage of time and no one would benefit out of it.
Nobody is born with good negotiation skills; you need time to acquire them. Be tactful and
patient. Understand the second party well - his needs, expectations and find out a solution
beneficial to both the parties.

Negotiation Techniques
Negotiation is referred to as the style of discussing things among individuals in an effort to come
to a conclusion satisfying all the parties involved. Discussions should be on an open forum for
everyone to not only participate but also express their views and reach an alternative acceptable
to all.
It is important how we negotiate with each other. One must know the difference between
negotiating and begging. Do not stoop too low to get a deal closed. Negotiation must be in a
dignified way. One has to be extremely patient and also understand the second party’s needs and
interests as well. Never impose your ideas on anyone. Let everyone speak their mind and decide
something which would favour one and all.
Let us go through some negotiation techniques in detail:

 The first and the foremost technique for an effective negotiation is one should be well
informed with everything related to the deal. Find out even the minutest detail you think is
important and you might require at the time of negotiation. Be prepared for everything.
Remember the second party might ask you anything.
Janet wanted to purchase a new laptop. She checked out the prices of almost all the leading
brands along with their features before going to the outlet. She went well prepared and thus
managed to crack the best deal and took the best quality laptop with the maximum possible
discount.

 Take good care of your posture as well as your body movements. Look confident. While
speaking, don’t look around or play with things. It’s just a discussion, no one will kill you if you
are not able to close the deal. Don’t stammer in between or start sweating in front of others. The
second party will take undue advantage if they find you nervous. Take care of your dressing as
well. Don’t wear anything which is too casual. If you dress casually people will not take you
seriously.

 Be very focused. One should be very specific to what he wants. First, ask yourself what is
the purpose of this negotiation? What do you actually want? What is an affordable price for you?
Be firm and stick to it. Be very specific and clear.

 Never keep things to yourself and crib later. Don’t assume that the other person can read
your mind on his own. One needs to ask for what he wants. A mother will not feed her child
unless and until he cries. Speak your heart out. If you are not satisfied with the deal, show your
displeasure to others. Express them that you are not very happy with the price and it needs to be
revised.

 Be a patient listener. Listen to others as well. Think about their interest and needs as well.
Don’t ask for anything which would not benefit the second party. Don’t jump to conclusions and
never interfere when the other person is speaking. Listen to the other party’s proposal as well; he
might come up with something unique which you could not even think.

 Be realistic. Don’t ask for something you yourself know is not possible. Don’t quote
anything just for the sake of it. One should be a little practical in his approach. Don’t ask for
irrational discounts. Be logical. It’s nothing bad to think about your personal interests, but one
should not be mad for it. If you want to purchase something, also remember that the store owner
has to earn his profits as well.

 Don’t be in a hurry to close the deal. Take your time to discuss things among yourselves.
Make sure you are deciding something which would be a win-win situation for all. Never drag
any discussion and make the conversation too long. Too much of pleading and persuasion result
in a big zero and no conclusion can be drawn out of it.

 Know where to compromise. An individual has to compromise sometimes to come to an

output. If you feel that if you accept some terms and conditions, things would be better and it
would not harm you much, go ahead. Everyone needs to compromise sometimes or the other.
Even in marriages, one partner needs to negotiate with the other for better understanding.

 Communication is also important in negotiation. Speak clearly and precisely. One should
not confuse others. Playing with words is one of the biggest threats to negotiation. Don’t use
derogatory or lewd remarks against anyone.

 For a third party, it’s always better to sign a contract or have something in black and
white so that nobody backs out later. It’s always better to sign agreements in the presence of
both the parties for better transparency. At the workplace after every discussion and negotiation,
emails or minutes of the meeting must be circulated among all the team members for everyone to
get a clear and the same picture.

Challenges for an Effective Negotiation

When individuals find it difficult to adjust with each other, the best way is to sit together and
discuss among themselves and adopt the middle path. Instead of fighting with each other, it is
better to discuss things and come to an alternative benefiting all. Negotiation takes into account
the personal interests of all and helps individuals to come to a common conclusion.
When the targets of a team are set, all the team members are invited to discuss with their
superiors. If the boss assigns a target of 20 sales a month and the team members find it
unachievable, they should negotiate with their boss to slightly lower their targets, rather than
saying a yes to it.
When you want to go to a party, you probably negotiate with your parents that if they allow you
to go for the same, you will study for the whole weekend. The process of negotiation is designed
to benefit all but sometimes it is a little difficult to reach a conclusion and satisfy all.
There are few challenges to negotiation and one must try his level best to overcome them. Let us
study them in detail:

 The biggest challenge to negotiation is when individuals are not ready to understand the
second party at all. There are individuals who only think about their interests and tend to ignore
the interest and needs of the other.

Jim wanted to buy a shirt for himself. He was only concerned with his pocket and never bothered
about the store owner. He quoted an unusually low price and the store owner refused to sell the
shirt. The outcome was a big zero. Nobody could get what they wanted. Jim failed to understand
the fact that the store owner is not sitting for charity. He also has a family to look after and thus
even his profits are important. Why would he sell something at a less rate which would not earn
him his profits?

Try to find out the expectations of the other party as well. For business negotiation, you will
definitely be appreciated if you save your organization’s money but remember the other party is
also doing business. Quote something which will save your company’s money as well as earn
some profits for the other party as well.

 Lack of time is also a major challenge to effective negotiation. One should never be in a
hurry. You need time to convince others. Never be in a rush to purchase things or close a deal.
Analyze things carefully and then only come to conclusions.

 Going unprepared for negotiation is unacceptable. Don’t underestimate the second party.
One should do his homework carefully. Check out even the smallest details before going for a
negotiation. Don’t think that the other person is not as smart as you, he can ask you anything and
remember even he will try his level best to convince you. You need to have valid answers to his
questions.

 Lack of patience also leads to bad negotiation. Every individual has the right to express his
views and one should not interfere in his speech. You might not agree to him but at least listen to
him first. Sit with the second party and make him realize how the deal would benefit you as well
as him. If possible take a note pad and a pen with you to explain things in a better way. Carry all
the necessary documents which you might require at the time of negotiation.
 Criticism, sarcasm, derogatory remarks are the biggest threats to effective negotiation.
Never ever say anything which might hurt others. Remember everyone is here to do business and
make profits, so be logical and justified. Don’t get too involved and over-emotional. One should
be a little diplomatic and intelligent for effective negotiation.

 Avoid last-minute changes as it results in confusions and misunderstandings. The two

parties must be very clear on what they expect from each other and must stick to it. Don’t change
statements every now and then. Once a conclusion is reached or a deal is cracked, it’s always
better to sign an agreement in the presence of both the parties.

 Being too rigid is one of the biggest challenges to effective negotiation. Be a little flexible.
Compromise to your best extent possible and don’t crib always. One should adopt a positive
attitude and try his level best to adjust with each other and find out a solution which will satisfy
all. The only price is not important, other factors like quality, brand name, durability must also
be taken into consideration. One CD player might cost you $5 but another might cost you $4, a
little cheaper than the first one, but it is quite possible that the first one is far superior in quality
than the second one. Be a little sensible and understand things. If you have purchased something
for $6, would you sell it to someone for $3. Obviously no, the same goes with others as well.
Stay alert while you are negotiating. Don’t accept any terms and conditions without carefully
studying them. You might create problems for yourself later. Keep your ears and eyes open
while negotiating.

 Lack of confidence is again one of the major threats to negotiation. Don’t forget to make
an eye contact with the person sitting on the other side of the table. It’s important to be serious
but that does not mean you will not even greet the other person. Be straightforward and crisp in
your communication. Take care of your dressing and appearance as well.

Role of Communication in Negotiation

Communication plays an important role in negotiation.
What is negotiation?
Negotiation is nothing but a discussion among individuals to reach to an alternative which would
satisfy all.
How is an effective discussion possible? Only through communication.
Effective communication is directly proportional to effective negotiation. The better the
communication is the better the negotiation would be. The discussion does not mean fighting and
shouting, instead, it is simply the exchange of one’s ideas, thoughts and opinions with each
other. One needs to have excellent communication skills for a healthy and an effective
discussion. Communication is an art and one should master it to excel in all kinds of negotiation.
The other person will never come to know about your thoughts and ideas unless and until you
share it with them. One can’t see your grey matter. A lot depends on how you speak.

One should very sensibly convert his thoughts into a speech by carefully selecting relevant
words. Be careful about your words. One should never use derogatory sentences or foul words in
his speech. Understand the power of speech. The way you present your thought matters a lot.
Don’t speak just for the sake of it. Haphazard thoughts and abstract ideas only lead to
confusions. One must speak clearly what he expects from the other person. Don’t eat your words
and try to confuse others. Your thoughts and ideas must be expressed clearly for others to
understand well. Be crisp and precise in your speech.
Ben wanted to purchase a pen for himself. He was not very convinced with the price the
shopkeeper quoted and found it a little too high. Ben wanted him to reduce the price of the pen.
Unfortunately Ben lagged good communication skills and whatever he spoke only confused the
shopkeeper. He kept on cribbing and pleading which further irritated the shopkeeper and he
refused to further entertain Ben.
What was Ben’s mistake?
Ben wanted to buy the pen, but his only mistake was he did not speak in a convincing manner.
Had he spoken clearly and explained the shopkeeper as to why the price of the pen should be a
litter lesser than what he had quoted, the pen would have been his. In this case, the negotiation
was not a fruitful one as nobody gained anything.

Effective communication is important in salary negotiations as well. Express your salary

expectations clearly in front of the recruiter. If you want your salary to be more than what he has
quoted, mention it very clearly but politely. Try your level best to convince the recruiter why you
need salary hike and probably how will you justify it once you join the organization. There is
nothing to be afraid of; even the organization needs talented people like you. Learn to be a bit
tactful. Your style, your accent, your pronunciations are also important. Do lay emphasis on
words that you feel are important. If you are not satisfied with the offer, it’s better to decline it
but in a very polite way. Remember we all belong to good families and must behave like
educated and cultured people.

Effective communication is of prime importance in business deals also. The terms and conditions
must be mentioned clearly for better transparency and don’t try to hide anything from the second
party. It’s always better to depend on written modes of communication like emails, letters,
documents or agreements for better reliability. Use corporate terminologies, professional jargons
and never use irrelevant statements in your speech. It is considered highly unprofessional.

One should also be very careful with his pitch and tone. Always remember battles can be won
just by being decent and polite. Don’t be rude and harsh on others. Speak slowly and
convincingly in a tone audible to one and all. Do not speak either too fast or too slow. The other
person must understand your speech. Never be loud or shout on anyone. It’s unethical to speak ill
or insult anyone just for a deal. Relationships are more important and must be valued.

Non-verbal communication also plays an important role in effective negotiation. Our facial
expressions hand movements, posture matter a lot and must never be ignored.
Please go through the below example for better clarity:
If you come across a person who is nervous, sweating unnecessarily and fiddling with things
around, will you entertain such a person?
Obviously No.
The same happens with the other party also. If they come to know that you are nervous, they
would definitely try to sit on your head and the deal would never be in your favour. Don’t
express your helplessness to anyone. You might need the job badly but don’t let the other person
know about it. Be very confident and show a positive attitude. Whenever you are going for
negotiation, don’t forget to carry your smile. Flash your million dollar smile but don’t laugh
unnecessarily or crack silly jokes in between. Exchange greetings and compliments to break the
ice.Sit straight, don’t lean on the chair and do make eye contact with the person sitting on the
other side of the table. It shows your confidence and strong will power. Don’t play with things
kept on the table. Concentrate on the negotiation and don’t look here and there.

Negotiation is no rocket science. You just have to be very clear about your expectations and
interests; express the same clearly, convince the other party and come to something acceptable to
both. Don’t speak anything which might hurt the other person. Be very polite in your speech,
involve everyone in the discussion and decide in favour of all the participants for effective
negotiation.

Role of Personality in Negotiation

An impressive personality goes hand in hand with good communication for effective negotiation.
A charming personality is key to effective negotiation.
Let us understand how one’s personality traits help in effective negotiation.

 During negotiations, an individual must try to be himself. One should not fake things or
pretend to be good. If you are not satisfied with the deal, do not pretend that you are happy. It’s
better to raise a concern then and there, rather than crib later. Be normal and relax, things will
automatically fall into place.

 It’s important to be sincere rather than just being serious. Sincerity is one of the most
important personality traits required in negotiation. One has to be sincere for effective
negotiation. Don’t take things casually. Go well prepared for your negotiation. For a business
deal, try to study everything related to the deal beforehand. The agenda of the negotiation must
be very clear to you. Carry all the related documents which you might require at the time of
negotiation. Don’t go just for the sake of it.

 Be honest. Don’t fake things. During negotiations, honesty plays an important role. One
should never manipulate his salary to get a hike in the next organization. Don’t speak
unnecessary lies just for some money. The fear to get caught would always be there and
somehow it would reflect on your face as well. Don’t worry; you will definitely get what you
deserve.
If you know the laptop costs you xyz amount, don’t go and lie to the shopkeeper that it is much
cheaper in the next shop. He is not a fool doing business. Remember even he keeps a check on
the price what his fellow shopkeeper is offering. It’s better if you ask for some discounts or
probably some additional accessories rather than reducing the price which you know is little
difficult for the shopkeeper.

 One should go smartly dressed for a negotiation. Our dressing plays an important role in
enhancing our personality. A shabbily dressed person will find it very difficult to convince the
other person.
Remember the first impression is the last impression and one has to be very careful about it.
Let us suppose if you go to a shop where the shopkeeper is not smartly dressed, has a very casual
approach and is almost half asleep, will you feel interacting with him? You will obviously not
bother to even listen to him.

Jack went on a t-shirt and denim for a business deal. The other person assumed that Jack himself
is not serious about the deal and thus did not take much interest in the negotiation. The smart
dressing does not mean wearing expensive clothes; instead, it is dressing appropriately according
to the occasion. Prefer wearing formals for business deals and do not forget to polish your shoes
for the desired impact. People do look at your shoes.

 Be Patient. It has been observed that impatient individuals are poor negotiators. Don’t think
that if you want that the price of a particular item should be $4, the shopkeeper will agree to it
immediately and gladly give it to you. You need to convince him and that requires patience. You
can’t lose your temper and shout on him.

 Be flexible and learn to compromise. It’s okay to give priority to one’s personal interests but
one should not be selfish. If you are the first one to accept something, you will not become
unimportant or lose anything, instead the other person would look up to you and both of you will
gain whatever you want.

 One has to trust the second party for better negotiation. Don’t always find faults in others.
Not all people are bad; there are people who are really good and helpful. One should not always
think that the other person would do harm to him. The second part is there just to do business; he
is absolutely not your enemy. Don’t just come to the point, start the conversation with a warm
smile. If he is wearing a nice shirt, do take the initiative to give him a compliment. Treat him as a
friend. One should never be arrogant. He is also representing his company just like you. Order
coffee and some snacks. It will help in breaking the ice and strengthening the bond between the
two parties. Do remember that one should not be too casual and over-friendly.

 Be professional in your approach. Once your deal is closed, do sign a contract in the
presence of both the parties. The minutes of the meeting must be circulated among all the
participants for better clarity. Don’t forget to collect your bills from the shopkeeper after you are
done with your shopping. Don’t only rely on verbal communication.

 Enhance your listening skills for better negotiation. Listen to the other party as well. He
might come up with something interesting and beneficial to you as well. Don’t think that the
other person doesn’t know anything; even he has come well prepared. One should never
underestimate the second party. If you go shopping, don’t ignore the shop keeper, listen to him
and then only decide what to purchase and what not to.

 Be a little tactful and diplomatic. Being diplomatic does not mean being clever. There is a
difference between the two. One needs to be intelligent and should know what to speak and what
not to speak. Analyze the situation and respond accordingly. Don’t speak anything because your
boss has asked you to do the same. Apply your brains and react in an appropriate manner. If you
feel your statements would sound foolish in a particular situation, it is better not to speak.
Role of Emotions in Negotiation
Negotiation is defined as a discussion among individuals where everyone contributes equally to
reach to a conclusion benefiting all. Lot of factors influence the process of negotiation, our
emotions being one of the major factors. Our mood decides a lot many things.
If one is in a happy mood, everything seems perfect and good to him. Individuals with a positive
attitude tend to trust each other better. They take keen interest in the negotiation and actively
participate in discussions. They try their level best to come up with a suggestion and contribute
effectively in the discussion. They do not unnecessarily find faults in other people and always try
to take things in a positive way. A happy and a positive person would always look forward
towards a concrete solution which would benefit him as well as the other party involved. Try to
be cheerful always. One looks his best when he smiles.
Anger is one of the most negative emotions acting as a hurdle to an effective negotiation. A
person loses control on his mind and is not in a position to think constructively in a state of
anger. One’s anger must be kept under control for an effective negotiation. Don’t overreact on
petty issues. Anger only leads to conflicts and misunderstandings and does not solve any
problem. An individual should learn to keep a control on his tongue. Don’t say anything which
might hurt the other person. If you are getting angry on someone, it’s always better to think
something pleasant; your anger would soon disappear. Take a pause and think will this anger
benefit you?
One needs to be friendly with the second party. Learn to trust him but don’t get too involved in
friendships. Everything has a limit and same goes with friendship as well. The other person
might expect unnecessary favours from your side.
Nadia knew Mac since childhood; Mac was working with a retail outlet. Nadia wanted to
purchase some clothes for herself and went straight to Mac’s outlet. Nadia and Mac were child
hood friends and thus Nadia asked for more discounts as compared to what originally is offered
to the other customers. Mac was bound by the store policies but he could not even refuse Nadia.
He was really helpless and could not manage to offer Nadia the discounts she had quoted. Nadia
went back empty handed, the negotiation was not at all fruitful and no body gained anything out
of it.
Friendship should be within a limit, otherwise unrealistic expectations arise which are a little
difficult to fulfill.
Negotiations must be with a clear and a tension free mind. A mind clouded with tensions can’t
concentrate on anything and eventually one loses focus. An individual’s mind is unable to take
any decisions and he finds it difficult to develop an interest in the negotiation. We all know that
tensions come uninvited, but it would be wise, if you keep the tensions on the back burner for
some time when you are involved in negotiation.
One should be calm and composed. Never lose your cool and shout on the second party. Always
ensure that you are comfortable with the second party. Don’t take rash decisions and one should
not interfere while the other person is speaking. Always analyze the situation well and then only
come to any conclusion. One should try and adopt a step by step approach. Don’t expect the
result to come out within a second. Take your time to convince the other party but do not drag
the conversation too long. It becomes monotonous and one tends to lose interest.
Don’t stress yourself at the time of negotiation. Relax. Whatever has to happen will definitely
happen. Taking stress does not help. It’s better to relax and let things happen on their own. No
one will kill you, if you are not able to close the deal, there is always another opportunity.
Unnecessary stress makes you feel nervous and you tend to lose your confidence as well.
Take interest in the discussion. Don’t develop a laid back attitude. Be active and participate
willingly in the discussion. Don’t sit in the negotiation just because your boss has asked you to
do the same. It’s better to express your opinion at the time of negotiation rather than cribbing
later. If you are not satisfied with anything, express your displeasure. If you feel you are not
prepared for the negotiation; it’s better to postpone it, rather than attending it half-heartedly and
messing up things.
Avoid being clever. Don’t try to fool the other person. One should not fake things or manipulate
the truth. Tampering data would only add to confusions. Be honest in your dealings. Never
underestimate anyone. The second party is also aware of what is happening around you and is
well prepared just like you.
Learn to compromise sometimes. An individual must not be too rigid. At times it’s good to take
the initiative and be the first one to accept things. One should avoid being adamant.
Being positive always helps. Negative emotions only lead to negativity around and trigger
conflicts and misunderstandings among individuals. Fighting till date has never benefited
anyone; it simply adds on to one’s tensions and nullifies the effect of negotiation.
Whenever you are going for any negotiation make sure you are not in a foul mood, otherwise
you will definitely end up fighting with the other person. One should not let his emotions come
in between negotiations. Avoid being partial. A deal is a deal whether it is with a friend or with a
stranger. Don’t ignore things just because you know the other person well. It is always better to
be safe from the beginning than suffer later. Paper work is important and the documents must be
signed in the presence of both the parties. Don’t skip agreements if you are dealing with your
friend. He will not feel bad; instead appreciate your professional approach. Don’t mix your
personal interests with your professional life. Negotiation is just a mere discussion to reach to a
common solution, nothing more. Don’t treat it as a battle field. Keep your emotions under
control and just be normal.
Tips for Professionals for a Successful Negotiation
Negotiation is a technique employed to avoid conflicts and decide something which would
benefit all. Individuals negotiate with each other and try to reach to a solution satisfying all.
Negotiation is not possible unless and until individuals learn to compromise to some extent and
stop finding faults in each other.
Professionals must know how to negotiate well to successfully close deals, avoid conflicts, better
relations among the employees and making the organization a better place to work. An
individual spends his maximum time at his workplace and thus it is important that he is relaxed
and tension free here for better concentration and output. If you do not agree with your team
members, do not fight with them, it is always better to negotiate and find out a solution which
would make you as well as them happy. One can’t afford to have enemies in his organization,
thus negotiation is really essential in corporate.
Let us go through some handy tips for professionals for a successful negotiation.
 Preparation - It is essential that an individual prepares well for negotiation. Remember if your
company has chosen you for the negotiation with an external party; they must have noticed some
spark in you. No way you can let them down and must try hard to live up to the expectations of
your superiors as well as your organization. Accept the challenge willingly; don’t accept
anything out of fear. You will never be able to do anything great. Go through all the relevant
details carefully. If you are not clear with anything, do clarify with your superiors beforehand
rather than going for a negotiation with a doubt in your mind. If you yourself are not clear with
the details and facts, you would never be able to convince the other party.
 Stay alert - Keep your eyes and ears open during negotiation. Remember the other party would
try hard to convince you and impose their decisions on you. You don’t have to fall a prey to the
other party. If you are not in a mood to negotiate, it is always better to postpone it rather than
messing up things.
 Confidence - Confidence is the key to an effective negotiation. A professional needs to be
confident enough to make his points clear in front of the other party. The other person can ask
you anything and you can’t afford to be nervous in front of him. Be intelligent enough to answer
all his questions. A confident person always leaves his impression on others and people look up
to him.
 Be cautious - Be very careful with your paper work. Study the papers carefully and do take all
the necessary documents along with you when you are going for any negotiation. Prepare the
necessary agreements and contracts well in advance and leave space for the terms and conditions
as well as signatures of both the parties. These formalities ought to be done once the negotiation
is complete.
 Avoid delays - One should always reach for business meetings on time. Don’t keep the other
party waiting. If the time for the negotiation is 10 am make sure that you are there at 9.45 am.
Time is precious for everyone and one should make the best use of it.
 Understand the other person well - For an effective negotiation, it is important that you
understand the needs and expectations of the other person as well. It is natural to be more
concerned for one’s own things, but one must not also ignore the other person’s interests as well.
Remember he has also come for business. It is important that both the parties are involved in a
healthy discussion on an open forum and evaluate the pros and cons of the plans carefully to
decide something which would be beneficial to all. Never underestimate anyone. Make sure that
everyone is happy after the negotiation. No one should complain.
 Don’t cheat anyone - One should be honest during negotiation. One should speak only when
he is sure about it. Don’t depend on guess works or assumptions. They don’t work in
professional scenarios. It is unethical to fake things or manipulate truth. One should be honest in
his dealings for a fair negotiation and to avoid confusions later. You will not gain much out of
lies and dishonesty.
 Always have an alternate plan with you - If your plan A fails, make sure you are ready to
present your plan B. An option is important. You should not rely on a single plan. You never
know which plan would click with others.
 One must know the purpose of negotiation - Why do you think you need the negotiation? One
should be clear about his expectations from the negotiation. The agenda of the negotiation must
be clear. Make sure you have realistic expectations. Don’t ask for something which would incur
a loss to the other party. Please don’t expect impossible things to happen.
 Don’t get too involved in the negotiation - Do learn to keep a control on your emotions. One
should not take any decision out of emotion. Don’t tend to ignore things just because you are
dealing with your friend. Professional life must be kept separate from your personal interests.
Give more priority to your work.
 Maintain the decorum of the place - Don’t use foul words or abusive language against anyone.
Never insult anyone. If the second party is not convinced, discuss with him but never stoop to
derogatory acts. That is absolutely unacceptable.
 Be a good communicator - Clarity in thoughts is important and ideas must be communicated
clearly to the other person. Don’t try to confuse others. Make sure you don’t adopt a casual
approach. Use relevant words. Add professional jargons and corporate terminologies in your
speech. One should be careful about his pitch and tone as well. Pitch should neither be too high
nor too low. It must be audible to everyone.
 Be patient - Negotiation needs time and one ought to be patient enough to interact, understand
the second party and make his points clear. Don’t try to wind up the negotiation quickly. Never
impose your decisions on others or rush for conclusions.
 Don’t drag the conversation too long - Once the conclusion is reached, it’s better to close the
deal. Don’t wait for some more miracles to happen. Make sure you don’t make the negotiation
too monotonous otherwise the parties will lose interest in the discussion. The discussion should
be interesting and everyone should participate in it.Express your opinions at the time of
discussion, rather than cribbing later.
 One should not act pricy or pretend things - Be yourself and try to react in a normal way.
Don’t be rude to anyone. Be at ease and things will automatically fall in place. One should be
comfortable with the second party for a better negotiation.
 No one would hang you if you are unable to close the deal, so avoid fighting with anyone
unnecessarily. It’s better to ignore minor things. Don’t make issues out of petty things. One
should learn to compromise sometimes and strive hard to come to a conclusion.
 Chose a proper room for business negotiations - A conference room, a meeting room or
probably the board room is the ideal choice. Opt for a noise free place. Don’t make the
discussion too formal. You can order some snacks as well. Always carry a pen and a notepad to
jot down important points for future reference. If you have to deliver any presentation, make sure
it is properly downloaded in your laptop. Do check once before going for the negotiation. It
might embarrass you in front of others. Dress appropriately for the deal. Prefer formals for the
desired impact.

Salary Negotiation
The discussion among individuals to find out an alternative best suited to all is termed as
negotiation. It’s always better to sit and discuss things face to face and reach to a conclusion
satisfying all, rather than fighting and cribbing. One needs negotiation everywhere. Negotiation
is the most required when it comes to deciding the salary of an individual. How will you feel if
you are underpaid? An individual if is not paid as per his calibre will never find his work
interesting and there is no way he can be motivated. Monetary factor is one of the most important
factors to decide the performance of an individual at the work place.
Salaries must be justified to extract the best out of the employees and for them to develop
interest in work and strive hard to achieve the goals of the organization. If they themselves are
not well paid, they would not bother to generate revenues for the organization.
Let us go through some important tips an individual should keep in mind during salary
negotiation:
Always remember that the organization also needs you as much as you need the job. There is
always a dearth of talented people. The organizations are also in search of best talents and if you
have the calibre and skills, you will definitely be paid a handsome salary. If you have reached the
salary negotiation round, which in all probable cases is the last round, the company officials
must have seen a spark in you. No need to panic or get nervous. Just be yourself and relax. Take
care of your posture as well. Sit straight and make an eye contact with the person sitting on the
other side of the table. Look confident and smart.
Go well prepared before the salary negotiation round. If possible try to find out the current
market trend and also the salary structure of the organization you have applied for. Find out how
much salary the organization offers to its employees at the level you have applied for. One gets a
salary hike on his current salary. Be honest about your current salary. Don’t lie or fake things as
it might land you in trouble later. There are some organizations that do go for salary verification
and you might be caught. You will get what you deserve, nothing more, and nothing less
Be very clear in your mind about your salary expectations. Ask yourself do you deserve this
salary? If yes go for it. Be firm and do not change figures frequently. It sounds fishy. One should
know how to justify his salary. If you are quoting any figure, make sure you have valid reasons
to support that. Be very specific as to why the organization should pay you that much? Don’t
assume that you will just cook stories and the HR would trust you. Be specific and clear in your
communication. Don’t try to confuse the other person.
Quote a realistic figure. Don’t ask for anything which is unrealistic or exceptionally too high.
Salaries are decided on your current salary, your educational qualifications, your level in the
team hierarchy and organization’s budget. Do keep in mind all these factors before asking for a
salary.
Be very polite. Don’t start fighting with others. After all money is not the only deciding factor.
One’s designation, the brand value of the organization, the roles and responsibilities are also
important. Don’t just run after money.
When the other person asks for your salary expectations, quote a figure higher than what you
expect. It is a thumb rule that whatever you ask, the organization would definitely offer you less.
Discuss with him and make him understand why you have asked for a particular figure. Try to
convince him why you need the hike? Give him sensible and valid reasons.
Never show your desperation to anyone. Don’t make it obvious that you need the job at any cost.
Remember the organization is not doing any favour to you. They will make you work also once
you join the firm. Don’t beg for your salary. It’s your right.
If you find the salary offered by the organization is not meeting your expectations, its better to
quit on a positive note rather than arguing and fighting. One should never spoil his relations with
anyone. You might need them later. If you are not happy, walk away gracefully. If you are
comfortable with the salary, do accept it, sign an acceptance letter and confirm your joining date
and gear up to give your level best to the organization and stand apart from the crowd.

Negotiation Tactics
Negotiating tactics are specific actions that are carried out in order to achieve a favourable
settlement in a negotiation.
The following is a list of some of the main tactics used in a distributive bargaining (where the
gains for part represent losses to the other) that allow us to achieve a settlement located as close
as possible to the trading limits of the other part:
To bid high
Many times the initial offer sets the range of horse-trading, ie the point of agreement in a
negotiation is usually close to the point of the initial offer.
As a negotiating tactic is to bid high and thus make the other party “anchor” their perception of
the range of possible agreement, but not exceed their backup point (limit of negotiation), it could
lose credibility be considered not serious, be considered uninterested and / or make the other
party decides to withdraw from the negotiations early.
Something to note is that by setting a high bid, we must always be prepared to explain why our
offer is reasonable.
If, after having established our offer, we realize that is beyond the point of booking the other
hand, we should take stand back in style. In this case we must avoid giving signs that our initial
offer is final, and always have on hand a logical reasoning to support our move to less aggressive
bidding.
If the other party is the one who established the first offer and it is exaggerated, we have the
following options:
also establish a counter-high, and thus most likely end up somewhere in between, although we
must bear in mind that when using this alternative could hinder further negotiations.
a better option is to react with surprise or disappointment, stating that his offer is out of range we
had anticipated, explain why the offer is unreasonable, and then set our supporting it with solid
reasoning.
and a third option is to remove the discussion of its proposal, and after a while also establishing
our supporting it with solid reasoning.
Whatever the case, if the other party insists on its initial offer, we respectfully ask you to explain
why it considers that the offer is reasonable, or ask on what basis to make us the proposal.
On who should set the first offer, it is advisable to take the initiative when we know the point of
reservation of the other party, and let the other side what to do when the situation is uncertain. In
the latter case, if the other party urges us to make the first offer, we could respond with “I’d
better not talk about numbers yet.”
To bid high
Many times the initial offer sets the range of horse-trading, ie the point of agreement in a
negotiation is usually close to the point of the initial offer.
As a negotiating tactic is to bid high and thus make the other party “anchor” their perception of
the range of possible agreement, but not exceed their backup point (limit of negotiation), it could
lose credibility be considered not serious, be considered uninterested and / or make the other
party decides to withdraw from the negotiations early.
Something to note is that by setting a high bid, we must always be prepared to explain why our
offer is reasonable.
If, after having established our offer, we realize that is beyond the point of booking the other
hand, we should take stand back in style. In this case we must avoid giving signs that our initial
offer is final, and always have on hand a logical reasoning to support our move to less aggressive
bidding.
If the other party is the one who established the first offer and it is exaggerated, we have the
following options:
also establish a counter-high, and thus most likely end up somewhere in between, although we
must bear in mind that when using this alternative could hinder further negotiations.
a better option is to react with surprise or disappointment, stating that his offer is out of range we
had anticipated, explain why the offer is unreasonable, and then set our supporting it with solid
reasoning.
and a third option is to remove the discussion of its proposal, and after a while also establishing
our supporting it with solid reasoning.
Whatever the case, if the other party insists on its initial offer, we respectfully ask you to explain
why it considers that the offer is reasonable, or ask on what basis to make us the proposal.
On who should set the first offer, it is advisable to take the initiative when we know the point of
reservation of the other party, and let the other side what to do when the situation is uncertain. In
the latter case, if the other party urges us to make the first offer, we could respond with “I’d
better not talk about numbers yet.”
Make excessive demands
A negotiating tactic that has the same objective as the tactic of setting a high bid (the other party
try to reduce their levels of aspiration) is making excessive demands, some of which may be
irrelevant and would have only meant to be exchange for concessions.
Make miniconcesiones
Make miniconcesiones is intended to give the impression of being very giving, but we must be
careful when using this tactic for several concessions combined could mean a lot without
realizing it.
Ask miniconcesiones
Just as it is possible to miniconseciones to give the impression of yielding enough, you can also
order several miniconcesiones to which combined all of these, mean enough, for example, by
asking for a small discount for each product, and then ask for an overall discount for all.
Set Limits
The limits are intended to convince the other party that will not give more, for example, “it is
impossible to accept, would imply an increase of 10% of our costs,” only gives us our budget to
pay this price, ” “My latest offering is …” “this is fair and not change our position,” is a non-
negotiable and final offer “,” take it or leave it. ”
By using this tactic should be careful because the counterparty could break negotiations, for
example, when a worker threatens to resign if something is not met, and, if we are forced to
retreat this could reduce flexibility, reason for it is preferable that the limits are vague and
generic.
If used this tactic against us, we must consider that the limits are not absolute but always be
altered and, for example, we could ignore the limit imposed by the other party and continue the
process.
Precedents
The above are used as a basis to support our arguments, for example, “we have always paid that
amount, why we now call this one?”.
Comparisons
The comparisons have the same purpose as the preceding, for example, “I know of other similar
premises were rented recently at least $ 1000.”
Molding aspirations
Negotiating tactic is to shape perceptions of the partner seeking to lower their aspirations, for
example, if an employee wanted a raise, we could speak of the bad year we’ve had, the losses we
have suffered, and so on.
Saw
Is to attempt to change the position of putting the other party against a second alternative, either
real or imagined, for example, when a potential client to believe the owner of a local rent that
had contact with other owners, thus making it is more likely to make concessions. Or when
someone gets up in the middle of a meeting to answer the call of a major customer of course, is
actually his secretary.
Influence their subjective utilities
Is to ensure that the other party lower the point of reservation to be influenced by the idea of
getting benefits or subjective utilities, for example, if you want a seller to sell cheap we could
promise to recommend to others.
Use of deception
Tricking the facts, for example, “because it will leave it to you …” “I would like to respect that
figure because …” “That would cover my expenses, such as my food, my tickets ….”
Capture core values
Is to build something that we know that the other party wants or cares a lot and, for example, ask
for enough in return.
If we who care much about anything, to deal with this tactic, we should hide or show little
interest in what interests us both.
Threats
The threats are commitments to do something that the other party does not want if you do not, or
do something. Usually occur after the other party agrees to do something that has been asked or
required.
We should note that the threats are of value only when they are credible, and be careful about
them because we could end up bound by them (otherwise it would lose credibility), which is why
it is preferable that they are not so radical, for example, before threatening to fire workers, it is
preferable threatened to apply sanctions.
If we make threats to us, it is advisable not to give in and let them come true (and thus
demonstrate that only yield to reason and not to the force.) Another option is to ignore them and
continue the process as if they had never given. And another alternative is to threaten something
else, for example, if we say “do this, if you do not do this”, we could respond with “ok., We
accept, but only if you do this instead.”
Real or feigned anger
Negotiating tactic is to have rabies or pretend to demonstrate the seriousness of our position, to
doubt the other party of its position, or to intimidate, for example, could feign anger at the lack
of seriousness or at abuse orders from elsewhere, or feign anger (even to raise his voice) to meet
our demand.
If we discover that the other party is using this tactic against us, we must stay calm and wait to
calm down, and continue the dialogue.
Duality: the role of good and bad
Is to create a contrast between two options, so that the other party will choose its opinion the
least bad. This tactic is often used in police interviews where a bad cop and tough and a good and
flexible, but is also used in other areas.
Expose the jugular
Is to ask the other party proceeding according to principles and ethics, for example, “we know
you are much more powerful than us so we are willing to hold them at will rely on their sense of
justice, accept an agreement on the terms you raise, “as we know from his long business career
and want to maintain harmony with its dealers, pay what you consider fair.” This tactic is often
used when one is faced with an untenable situation.
Bypasses
Is to try to get in touch with the top of the other party to undermine its position and isolate it
from all support.
To avoid using this tactic against us, we must obtain in advance the support of our superiors and
to warn the entire organization of the possibility of this tactic.
Fait accompli
Is to perform an action, either before or during the negotiation process, which directly affects the
interests of the opposing face one allegedly made irreversible, for example, when someone sells
a good of another person and then just told to talk or negotiate.
Rounding effect
It consists of round figures taking into account the attraction of round numbers have on people
because of its simplicity, eg 9.89 instead of asking could we ask for 10, even if that difference
means a lot of money, the other party could accept.
Time Management
Time in some cases working in our favor and others against us, it can be used in two ways:
Reduce the time, is rushing to the other party either directly or indirectly, in order to tighten up,
it was muddled and make a decision without which the Mediterranean therefore, for example,
“the sooner we start, the better” , “and how much is the last thing left to buy us,” so much and we
pay right now, “because it is both, but I want for lunch.”
Other examples, to talk a lot and fast, to slow us to get to a meeting and thus ensure that the other
party has less time than expected to negotiate, or to address other issues that have nothing to do
with the problem and thus ensure same effect.
Extending the time, is to lengthen the time available through delays, suspensions or the
introduction of new issues or topics for negotiation, with the aim of delaying the process, either
to exhaust, control our anxiety, gather information, find better alternatives, expected external
conditions influence the development of negotiation, etc.
Last-minute demand
Negotiating tactic is that just when you are about to sign the agreement after lengthy
negotiations, a demand is small and of little importance, for example, “is rather small but we can
not fail to mention”, in order to the other party in the position of having to accept to avoid having
to cancel the contract after such a long process.
To avoid using this tactic against us, the contract must clarify all issues and avoid any last minute
surprises. In any case, if they use this tactic against us, it is possible to express dismay, and if the
other party maintains its position, it is possible to request other concessions in return.
Using humor
Is to use humor to make the other part is more flexible, or to ease tense situations, for example,
to tell a joke, a joke, tell a funny story, etc..
Providing a variety of proposals
Offering more than one proposal or option allows us to achieve the other party does not feel
trapped in an ultimatum and end by comparing our proposals together rather than in relation to
their targets. This tactic also allows the other party to ask questions to clarify and compare our
rates, and thereby make available information that allows us to better understand their interests
and concerns.

Comments

1.

bhadrakaliJune 6, 2014 at 12:19 AM

interesting and useful notes

Reply
 1.

Akash NiranjaneOctober 3, 2019 at 10:35 AM

Thanks for your encouraging comment .. please share link with your friends.

2.

Gaurav_dj.Mahi™October 17, 2015 at 10:50 PM

thanks for this useful notes sir

Reply

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position in the negotiation table nImprove your BATNA to improve your negotiating position
nIdentify the other side’s BATNA nWeaken the other party’s BATNA nYou might for example,
ask Rs. 50,00,000 for your house and agree between yourselves to accept no offer below Rs.
46,00,000. nHaving bottom line makes it easier to resist pressure and temptations of the moment.
In the house for example, it may be impossible for buyer to pay more that Rs. 44,00,000 and
everybody involved may know that you have brought the house for Rs. 41,00,000. But if you
have strong BATNA then you have opportunity to crack the deal.
nReservation Price nAlso Known as the “wa…
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Benefits of Baidyanath Digivin Ayurvedic Syrup, the Best Digestive Tonic In

India.

- June 29, 2010

Indias most popular ayurvedic manufacturer adds Digivin the ayurvedic Digestive tonic into their
Product range.
Baidyanath already has more than 700 ayurvedic and herbal product in the portfolio,
the Product Information is publised by Baidyanth is as follows.
Shree Baidyanath Ayurved Bhavan Pvt. Limited.
Great Nag Rd. Nagpur 440 009.
Regd. Office Gupta lane Kolkata 6.

Product Profile.

Baidyanath Digivin an Ideal Digestive Tonic the best tonic for digestion in India.

Irregularities in diet, consumption of fast food and stressful lifestyle coupled with mental tension
results in digestive problems like gases, anorexia, dyspepsia, constipation, etc. If the functioning
of the digestive system gets disturbed, the accumulation of toxins (Aam-Tatva) occurs in the
body. Due to which health of person gets affected.
The liver plays an important role in digestion in Ayurveda it is described that ‘Tikta-Rasatmak’
herbs tones up the function of the liver or Digestive system. To overcome the above-…
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