Business Negotiations

Harshall Gandhi

Lecture 1
Index

1. 14th & 15th Oct 20.

2. 22nd Oct.
3. 28th Oct 20 & 29th Oct 20.
2hours each lecture.
• 1. Collect all the information you can from open sources and from
experts you know.
• 2. On the basis of the information you collected, make your
preliminary assumptions. Try to visualize them in the same way as is
shown above.
• 3. Test and adjust your assumptions during the negotiation round.
• Visualizing and testing your assumptions in terms of BATNA's,
Reservation Values and ZOPA is a powerful method to improve your
performance in every negotiation.
Six Strategies for Creating Value at the Negotiation
Table
1. Explore your alternatives (and know your best alternative to a
negotiated agreement, or BATNA).
2. Assess their alternatives.
3. Set the stage for success.
4. Make the first offer.
5. Insist on reciprocation.
6. Explore interests further.
3 WAYS TO CREATE VALUE IN A NEGOTIATION
HOW TO ADD VALUE IN A NEGOTIATION
1. Build Trust
2. Find Uncommon Ground
3. Be Agile
3 dimensions of negotiations
Logrolling

https://www.youtube.com/watch?v=ZErAYSGH6t0

https://blog.blackswanltd.com/the-edge/why-logrolling-negotiation-is-garbage-and-what-to-do-about-
it?utm_medium=social&utm_source=pinterest
Integrative Negotiation
• Integrative negotiation is possible when the parties have some
shared interests or opportunities to realize mutual gains through
trades across multiple issues.
Integrative Negotiations
1: Try breaking the problem down into more easily managed
component parts.
2: Use deal structuring to help to close the divide on differences or
“barter your way to the finish line.”
3: It is often helpful to play ‘mind games’ or to create cognitive maps
that both reduce the group mentality and foster creative outlooks.
Negotiation Strategy

1.Try Out a Bold New Strategy

2.Work on Multiple Fronts
3.Keep Pushing the Game Forward
4.Provoke Opportunities
5.Avoid Strategic Gaps
 • Typical integrative tactics reflect a ‘pull’ influencing
approach, in which the aim is to align the interests of
both parties ,this may take form of:
• Being open about your own needs and concern in the
situation and seeking to understand those of the other
party
• Collaboratively generating options seeking to find
Tactics used those with genuine mutual or trade – off benefits
in Integrative • Focusing on areas of common ground and mutual
benefit, to keep a positive and collaborative
Negotiations atmosphere
• Supporting the other party in accepting your proposals,
by emphasizing joint problems – solving offering
additional informational or help with follows – up etc
• Maintaining and modeling flexibility by making and
inviting reasonable counter – offers and compromise
Non verbal communications
• What does "nonverbal communication" include?
• Why is nonverbal communication effective?
• How can I read nonverbal cues from others?
• What are the real-world applications of nonverbal
communication?
• Nonverbal communication is nearly anything that sends
an idea from one person to another without the use of
words.
• One of the common phrases used when talking about
nonverbal communication is "body language." Body
language can include gestures, movements, and even
posture, that is used to send messages about what you
mean – most of which is defined at length below.
Sometimes body language doesn't match what is being
said, and having an understanding of how to read it can
be very helpful in determining what another person
really wants or needs.
• Eye contact is an important component of nonverbal communication. If
someone is interested in what is being said, he or she will engage in more eye
contact with the speaker. Too much eye contact, however, signals that the
listener is somewhat aggressive or distrustful. Too little eye contact is often a
sign that the listener is either not really interested or feels negatively about
what is being said.
• Speaking of eye contact, it is possible to determine that someone is bored by
noticing that they looking directly at the person speaking, but that the eyes
are a little unfocused. This may be accompanied by a tilt of the head and
fiddling with the hands.
• People who cross their arms over the chest are often keeping something to
themselves, or they may even be protecting themselves from something. Of
course, this has to be related to the situation. If the people speaking are very
comfortable with one another, the crossed arms could signify that one person
is thinking very deeply about what is being said.
•
• Nonverbal communication includes the following: - Tone of voice -
Rate and volume of speech - How we articulate our words - Rhythm,
intonation and stress placed on words - Facial expression - The
amount of eye contact we make - Gestures/touch - Body language
and posturing
• Research shows that when we communicate feelings and attitudes,
only a small percentage of our overall message comes from the words
we use. - 55% of our message comes from body language (especially
from movements of the small muscles around the eye which can
convey shock, disbelief, doubt or disgust) - 38% of our message comes
from tone of voice - Only 7% of our message is conveyed by the words
we use (Mehrabian, 2007)
Nonverbal Communication Conveys Important Interpersonal and
Emotional Messages

• For example, if a classmate delivers a speech in class and her

verbal content seems well-researched and unbiased, but her
nonverbal communication is poor (her voice is monotone, she
avoids eye contact, she fidgets), she will likely not be viewed as
credible.
Nonverbal Communication Is More Involuntary
than Verbal
• Barriers to Sending Consistent Messages We sometimes send confusing or
negative non-verbal signals without knowing it. Many things can
compromise our ability to communicate effectively: - Our stress level:
When we are experiencing personal or work-related stressors, we may be
more likely to misread other people’s messages and to send inconsistent or
negative non-verbal signals. This may make it more likely for us to display
inappropriate behaviours (e.g., yelling, blaming or impatience). - Our well-
being (psychological and/or physical): If we are not feeling well physically
or emotionally, we can be more likely to focus on the negative aspects of a
conversation and we may be more likely to send negative or uncaring non-
verbal signals. - Distraction: If we are distracted by thoughts or our
environment (e.g., looking at emails on our computer screen while
speaking to a worker) our non-verbal signals almost certainly convey
disinterest. We may give people the impression that we don’t care or are
not listening, even when this may not be true.
• Give full attention to your communication partner. Show people you
speak to that you are ‘present’ and eager to understand them.
Convey attentiveness by: o Leaning slightly toward the other person o
Facing the other person squarely o Keeping eye contact o Maintaining
an open and relaxed posture (with arms uncrossed) - Give signals that
express understanding. Indicate that you understand, acknowledge
and care with the following non-verbal signals: o Appropriate head
nodding and facial gestures o Sounds such as “ah”, “hm”, “oh,”
expressed with matching eye and facial gestures
• The appropriate amount of personal space is something
that can vary from person to person, but it is more-or-
less dictated by social norms within a culture. U.S.
norms dictate approximately an arm's length between
two people. Someone who is very engaged in what
another is saying will be more likely to lean forward or
to touch the other person.
• Facial expressions convey a lot about what a person is
thinking. While we can control our facial expressions to
some degree, there are many times when they just
naturally occur (as is common with verbal cues, as we
learned in the previous section).
• studies have repeatedly shown that there are seven
facial expressions that are actually universal throughout
the human race. These include anger, contempt,
disgust, fear, happiness, sadness, and surprise.

• In fact, it has been estimated that as much as 80

percent of communication is about what is not being
said. Rather, it's based on perceptions of a person's
gestures, eye contact, clothing, and environment.
• Aggressive: frowns, pursed lips, glaring, squinting,
clenching fists, red face, invading personal space, shaking a
finger, sudden movements
• Attentive: holding still while listening, leaning forward,
gazing, ignoring distractions, nodding slowly, paraphrasing
what's been said
• Bored: looking around, drumming fingers, yawning,
slouching, finding other things to do, looking at the clock
repeatedly
• Deceptive: forced smiles (eyes aren't smiling when the
mouth is), sweating, sudden movements, twitching, seems
distracted, fidgeting
• Defensive: covering vital organs, lowering chin,
crossing arms, using a physical barrier, making oneself
small, tensing up, glancing around, as if looking for an
escape
• Relaxed: steady breathing, lowered voice, arms hang to
sides, using hands when talking, smooth gestures,
smiling, even speed and pitch in speaking, little
blinking, unwrinkled forehead
Case study

• Marcus has arrived 10 minutes early for his job interview at ABC Company. His suit is pressed, and his tie is brand new.
He checks in with the receptionist, who sits behind a glass desk with nothing on it but a computer, a phone, and a
framed photo of a Golden Retriever. Her hair is intricately styled, and her nails are perfectly manicured. She looks
Marcus up and down, smiles a bit, nods, and asks him to have a seat. Marcus sits upright quietly in the lobby, with his
briefcase on his lap.
•
• Twenty minutes later, the company's manager enters and shakes Marcus's hand in both of his. The manager asks Marcus
to follow him, and the two walk down the stark hallway to his office. Once inside, the manager moves a stack of files off
of a chair to make room for Marcus to sit down. He closes the door and takes his place behind a desk crowded with
family vacation photos, wind-up toys, and more files. Marcus sits back in his chair with his arms crossed over his chest.
The manager also leans back in his chair.
•
• The manager reviews Marcus's resume, looks directly at him, and tells him how great it looks. He asks Marcus about his
previous employment. Marcus looks at the floor and fidgets with his fingers as he talks about his experience working at
another company. When finished, he looks back at the manager who asks a question about his interests. As Marcus talks
about his love for music, he leans forward and talks more rapidly. He uses his hands to emphasize what he is saying and
smiles while speaking.
•
• The interview is concluded a few minutes early. The manager offers a firm handshake, which Marcus accepts, but both
men are aware that a future working relationship isn't likely.
•
Communicating assertively
• Communicating assertively also includes: - Speaking in a calm, clear
and well-modulated voice - Showing interest and sincerity by keeping
eye contact, smiling and nodding your head (as appropriate) -
Maintaining an open and relaxed posture - Communicating your
feelings and needs appropriately and respectfully - Communicating
respect for others - Asking for what you want/need (instead of
ordering it) - Asking questions in order to hear other people’s feelings
and needs - Listening to the other person’s point of view (without
interrupting) - Saying “no” in a productive and respectful way
aggressive communication
• Other characteristics of aggressive communication may include: -
Speaking in a loud, bossy and demanding voice - Having piercing eye
contact - Maintaining an overbearing posture -
Dominating/controlling others by blaming, intimidating, criticizing,
threatening or attacking them - Acting impulsively and rudely (low
frustration tolerance) - Commanding what you want/need (instead of
requesting it) - Rarely asking questions (only interested in your needs
and goals) - Not listening well to the other person - Interrupting the
other person frequently - Being unwilling to accept “no” or to make
compromises
passive communication
• Characteristics of passive communication may include: - Speaking in
an overly apologetic or submissive manner - Avoiding eye
contact/poor eye contact - Having a slumped body posture - Holding
back on stating your feelings and needs - Giving in to other people,
and ignoring your own needs - Doing what you are asked regardless
of how you feel about it - Being unable to say “no” when asked for a
favor - Rarely asking other people for help
• https://www.youtube.com/watch?v=4jwUXV4QaTw
• https://www.youtube.com/watch?v=VAB9cUlGrRo
• https://www.youtube.com/watch?v=tpJcBozuF6A
• https://www.youtube.com/watch?v=KQgObU77lV8
• https://www.youtube.com/watch?v=0IowGcxmAgc
• https://www.youtube.com/watch?v=JZ1sVLFivEw
• https://www.scribd.com/read/140081644/Overcoming-Obstacles-
Creating-Success
• https://www.slideshare.net/AsiaMastersCenterAMC/negotiation-
conflict-management-presentation-slides
• https://www.scribd.com/presentation/124755676/Rational-and-
Behavioral-Decision-Making
Selling Videos
• https://www.youtube.com/watch?v=4ostqJD3Psc
• https://www.youtube.com/watch?v=EBK64vdljZ0
• https://www.youtube.com/watch?v=moei-hMED-c
• https://www.youtube.com/watch?v=IxTv_EFIxio
• https://www.youtube.com/watch?v=0VEMbTj4OX0
• https://www.youtube.com/watch?v=emzARZsJntw&pbjreload=10
• https://www.youtube.com/watch?v=eRbEg5HosBo

• https://www.youtube.com/watch?v=LYFBu8z3-Zw
• https://www.youtube.com/watch?v=zC0zaA-JaCY
• https://www.youtube.com/watch?v=V2je9xPR7YI
• https://www.youtube.com/watch?v=-MlkASchodc
• https://www.youtube.com/watch?v=nuGpRUqLY1A ( sales convincing)
• https://www.youtube.com/watch?v=9hv91SewiBs ( closing sales)
Persuasion

https://www.youtube.com/watch?v=6bGdIAf2J_k
https://www.youtube.com/watch?v=E6Csz_hvXzw&t=29s
Controlling
Organizing
Leading
6 Cs of Decision making
Managing Diversity
• https://www2.slideshare.net/lauraanso/case-study-international-
bussiness-negotiation
https://www.researchgate.net/publication/340020828_Multiparty_Negotiation_Conceptual_Approach_of_Met
hod_Selection
• https://study.com/academy/lesson/multiparty-negotiation-definition-
challenges-examples.html
• https://www.negotiations.com/articles/multiparty-solutions/
• https://www.pon.harvard.edu/daily/dealmaking-daily/managing-a-
multiparty-negotiation/
• 1. Choose coalitions wisely
• Amid the clamoring voices in a multiparty negotiation, it can be difficult to be
heard. In such instances, you might choose to form or join a coalition with parties
who share one or more of your goals.
• Coalitions can be powerful organizational tools that build on strength in numbers
in multiparty negotiation. But as anyone who has watched the TV
show Survivor knows, coalitions are unstable and tend to promote adversarial
bargaining. According to Susskind and Mnookin, your goal should be to build
alliances to increase leverage without undermining relationships with other
parties. That means reaching across party lines to keep communication flowing
among all negotiators.
• You’ll need to carefully plan how and when to meet with potential coalition
partners, say Susskind and Mnookin, as you could be asked to commit to a
particular side before you have a chance to talk to other potential partners. If you
do join a coalition, keep the flexibility you need to switch allegiances
• 2. Manage the process
• Whether you are negotiating with three parties, 30, or 300, interactions in your multiparty
negotiation are bound to be more complicated than when you are dealing with just a single party.
• Sometimes it makes sense to appoint a manager to oversee a multiparty negotiation. The
manager can be in charge of putting together the group’s agenda, setting rules, summarizing
understandings among parties, and communicating the final agreement to outsiders, among
other tasks.
• Another way to tame the potential chaos of multiparty negotiation is to create a payoff matrix of
parties and interests before talks begin, according to professor Elizabeth Mannix of Cornell
University. A payoff matrix is essentially a spreadsheet that lists the names of the parties in rows,
the issues to be discussed in columns, and the parties’ priorities on those issues in the boxes that
are formed. The negotiation manager can update the spreadsheet during the meeting, allowing
parties to see at a glance what they have achieved and what still needs to be done.
• When the numbers involved in a multiparty negotiation are especially large, consider breaking
into smaller working groups to develop preliminary proposals on elements of the overall agenda,
says Susskind. Such functional groups can serve to bridge differences among members of
different coalitions.
• 3. Calculate dynamic BATNAs
• As in a two-party negotiation, you should enter multiparty negotiations with a solid idea
of your BATNA—that is, what you will do if a deal fails to materialize. Knowledge of your
BATNA can help you stand firm in the face of offers that fall short of your goals.
• You should also attempt to analyze the BATNAs of the other parties at the table. Roughly
calculating the minimum you can offer someone to secure a commitment will help you
immensely.
• In multiparty negotiations among a large number of parties, determining each party’s
BATNA can be a daunting, even impossible, undertaking. At the very least, try to foresee
how parties may align and estimate the BATNA of each possible coalition.
• Once discussions begin, parties’ BATNAs will begin to fluctuate, according to Susskind
and Mnookin. A payoff matrix will help you keep track of shifting BATNAs in addition to
parties’ preferences.
• https://www.negotiations.com/articles/multiparty-negotiation/
• Many business partnerships that are forged in today’s
increasingly specialised business milieu, often involves 3 or more
partners who are co-joining into complex agreements. This
bubbling stew pot of positions, needs, and ambitions requires
dexterous handling of the right ingredients. This ambitious
blend makes the difference between savouring a rich and
inviting texture of tastes, or storming out the door in disgust. It’s
a delicate balancing act where everyone is jostling, both
delicately and aggressively, on the same high wire act, and all at
the same time. Making it work and run smoothly requires a level
head and keen vision.