Negotiation Strategies and Techniques

NEGOTIATION STRATEGIES AND TECHNIQUES

Madhavanarayanan. R

Indian Institute of Management, Raipur

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The Process of Negotiation and the Techniques Involved

Negotiation can be defined as a discussion in which the parties involved try to resolve an issue in a way that both find acceptable. It is process in which each party involved tries to persuade the other party to agree with his or her point of view and gain an advantage at the end of the process.

A successful negotiator is an excellent listener and a careful observer as oftentimes much is disclosed by the opposition without them realising it. There are no hard and fast rules in any area of negotiation. The tactics available to the negotiator are only limited by his/her creativity.

Pre-Negotiation:

Preparation is the most important part of a negotiation as no technique, strategy or negotiation trick can replace the real value of planning and preparation. It is important to have knowledge of opposite party’s needs and concerns and a list of deal points must be prepared which will be helpful during the course of negotiation. The negotiator must ‘free think’ each issue so that he or she is able to provide additional approaches to an issue. Flexibility is necessary to enable a party to compromise a position in a manner in which what one party has given up is less valuable than that which he/she has been able to obtain from the opposite party, thereby allowing him/her to realize a benefit and yet cause the parties to reach an agreement.

Deciding Venue/Setting:

The venue/setting of the meeting is also an important factor to be considered. The setting of the meeting can be used to set the tone for the meeting – either formal or informal.

Three Act Play:

A good negotiation should be a ‘three act play’ with a beginning, middle and an end. It is important to have substantive knowledge about the issue being discussed and to be able to understand the personality traits of the other...