Chapter 4: The Art

of Negotiation
Lecturer: Dang Thi Thao Ly
 Factors Affecting Negotiation

Power or
Credibility Information
Authority

Time Communication Culture

Power or Authority
Negotiation may start with deliberation but to be
effective, it has to end up in a conclusion or
settlement. For this, both the parties should have
the power or authority to conclude the deal

Personality
Position
and Ethics

Knowledge
or Gender
Expertise
Trust and mutual confidence are very relevant in Build your credibility
any process of negotiation. People who are known
The other party must accept you as a credible
to be honest, sincere, steady and reliable have an
counterpart worthy of engaging in deep discussion.
edge when they enter the process of negotiation.

 Chose words that demonstrate your knowledge of

“Can we trust this person’s perspectives, the topic.
opinions and statements?”  Adopt a tone and attitude that show that you are
legitimate
 Information
Negotiation often proceeds on the basis of facts, figures,
past data, future trends and outlook, studies, empirical
data and calculations. Logical and persuasive arguments
cannot be put forth in the absence of relevant
information.

Before coming to the negotiating table, each

party should make conscious efforts to gather
as much information as possible on all the
issues that will be raised during negotiations.
 Time
One of the parties may have a certain urgency as a result of which they may be in a hurry to conclude
the negotiation. It is due to time constraints that negotiations cannot go on endlessly and both the
parties should agree on a time, the very process of negotiation is such that the other party cannot be
hurried too much.

• How much time is available overall?

• At what stage different issues, offers,… are to be
introduced?
• What other pressures or demands are in operation?
• 80% of concessions ate made in the last 20% of the time
• Opportunity to gain impact
 Communication in
Negotiation
Communication processes, both verbal
and nonverbal, are critical to achieving
negotiation goals and to resolving
conflicts.

• Negotiation is a process of interaction

• Negotiation is a context for communication
subtleties that influence processes and
outcomes.
• Communication is only partly responsible
for the negotiation outcomes.
 Communication
The process of sharing our ideas, thoughts, and feelings with other people and having
those ideas, thoughts, and feelings understood by the people we are talking with
 Types of
Communication
 Active Listening Skills
A communication skill that involves going beyond simply hearing the words that another person speaks but also
seeking to understand the meaning and intent behind them. Active listening requires you to listen attentively to
a speaker, understand what they’re saying, respond and reflect on what’s being said, and retain the information
for later. This keeps both listener and speaker actively engaged in the conversation.
Active Listening Skills in Negotiation
By really listening, you can identify information to use
as leverage, or identify other options that could work
for you.

SCENARIO: CHOOSING A SUPPLIER

If you are listening to a potential supplier for your business:
• Listen closely and repeat back what they tell you
• Ask questions – particularly “Why?”
• Make a note of any information you can use as leverage
 Asking the Best
Questions in a
Negotiation

To ask the best questions, know when and

how to use assumptive questions, leading
questions, and questions meant to
intimidate. Having the format of those
questions in your negotiation toolbox will
enhance your negotiation outcomes
 Leading questions:
• A line of questions that leads the person questioned to a particular outcome.
• For example:
I know there’s a better deal you can offer,
What might we do together to make this deal work?
 Assumptive questions:
• Gives the impression you may know more than you do.
• Some assumptive questions may start with, when, at what point, how, who might
be able to …
• For example:
When was the last time you offered a discount on this product?
Þ The assumption is that he offered a deal in the past.
 Intimidation questions:
• To either browbeat the other negotiator into submission or possibly scare him to
the point of not having his assertions challenged
• For example:
You know you can do better, don’t you?

Question Formats
Guess the Situation
 What is Culture?
Culture refers to a set of patterns of
human activity within a community or
social group and the symbolic structures
that give significance to such activity.
The culture of a people is everything that
one must learn in order to behave in
ways recognizable, predictable and
understandable to those people
 The 3 Types of
Cultural Negotiators
Most common clashes occur
between Linear-Active, Multi-Actives
and Reactives tend to respond and
adapt to the particular style they
encounter rather than seek to
impose their own cultural style
Cultural Differences in Negotiation

National/Regional differences:
 Collectivism vs individualism
 Power distance
 High – context vs low – context speech
 Ethical values
Institutional values:
 Business vs government
Collectivism vs Individualism
Collectivism:
 Prefer harmony  Pass information to

 Compromising group for decision

 Face (external)  Slow – paced, tentative

 Need to earn trust

Most non – Western cultures

Individualistic:
 Aim to win  Make decisions based on

 Polarizing personal options

 Pride (internal)  Fast – paced, decisive

 Give trust easily

Most Western cultures

Power Distance
High Power Distance:
 Status/rank valued  Resistance to change

 Power persuades  Agreement at the top is

 Form is essential normally sufficient

Two-third of all countries

Low Power Distance:

 Change accepted
 Expertise/talent valued
 Agreements must
 Reason persuades
be sold to all
 Substance over form
stakeholders

Anglo-Saxon, Germanic and Nordic countries

High–context vs Low–context Speech
High Context:
 Indirect/Non-verbal  Past-oriented

 Circular  Avoid disagreement

 Intuitive

Asia, South America, Africa, Middle East

Low Context:
 Future-oriented
 Direct/Verbal
 Open disagreement
 Linear
 Rational

Europe, North America, Australia and NZ

 Culture and Ethical Values

Particularism: Universalism:
 Relationships paramount  Rules paramount
 Emotional persuasion  Logical persuasion
 Goal is relationship  Goal is contract
 A good partner honors changing  A good partner honors his contract/word
circumstances  Equal treatment for all
 Loyalty to in-group

Asia, south America, Africa and Western countries and

Middle East Singapore
 Businesses vs Governments
Business: Government:
 Profit  Providing public service
 Expansion  Maintaining public goals:
 Investment opportunities • Economic growth
• Resource maintenance
• Sovereignty
 Covering program costs
 Satisfying voter demands
 Re-election
 Historical reputation
Dealing with Cultural Differences

Learn about the other culture

Þ A local expert will start you on the right foot
Be clear and precise in meanings
Þ Don’t assume they understand and don’t leave concerns unspoken
Þ Problems not dealt with now will come back to bite you later.
Get to know the other side carefully
Þ Is this the right fit? Best to find out if you can work together before you
have committed yourself.
Cross-cultural negotiation shouldn’t be rushed
=> Don’t let the other side force you into making unwise agreements or
include terms that you don’t understand.
 Exercises – Brain Teasers

Look at the chart and say the COLOR not the word
Within 15 secs
 Exercises – Brain Teasers

Look at the chart and say the COLOR not the word
Within 15 secs
 Exercises – Brain Teasers

Look at the chart and say the COLOR not the word
Within 15 secs
 Exercises – Brain Teasers

Look at the chart and say the COLOR not the word
Within 15 secs
Exercises – Brain Teasers
Exercises – Which side of foot YOU step on???
 Cognitive vs Intuitive Negotiator
LEFT BRAIN – Cognitive Negotiator RIGHT BRAIN – Intuitive Negotiator

Left Brainers can be trained in the skill of active Right Brainers can be trained in the same skills, but
listening and empathy to become very effective because they have more innate ability to recognize and
negotiators. articulate affective cues, hence they become great
negotiators
Negotiator Personalities
Optimism, assertiveness, and a lively, friendly personality are all
traits that we know from experience can be powerful assets in
negotiation, enabling dealmakers to build bridges, draw out
others' interests, and advocate persuasively on their own behalf.
• Analytics: They think carefully and methodically and favor
charts, graphs, and reams of supporting documentation
• Practical: They are prone to snap decisions. They are toward
goals and competition
• Extraverts or Expresser: They too are impulsive, and
competitive. They value feelings and relationships.
• Amiable: They like conformity to the groups and they follow
rules readily, do not follow through and need reassurance
 Practical
Practical’ behavior How to make a relationship with Practical?

Predict the outcome. Pay a lot of attention to work. Driver will

Pay a lot of attention to the results. Consider the relationship
probably think you are weak if you bring up personal issues at
with the partner to be less important than result
the negotiating table.

Pay attention to the work and ignore the emotions. Prepare well to increase your confidence before entering.

Fast processing of information without the need for further

Get to the point directly, concentratedly, and succinctly.
explanations or details.
You can talk, but you shouldn’t talk much. Ask them for
Impatient
solutions and offer acceptable measures.
Don't let work get in the way of personal matters. For them
Partners can be viewed as enemies.
work is work.

Competition makes Driver unwilling to give in. So try to avoid a

win-lose situation if you can find a viable option. However, you
Always wanted to win.
should not just give and forget to take something back from
them.

Confident and decisive. At times become domineering and

Increase assertiveness to accommodate them.
belligerent.
 AMIABLE
Amiable’ behavior How to make a relationship with Amiable?

Pay a lot of attention to the relationship. Show respect and interest in the relationship. Honest and frank

Pay more attention to emotions, less

Show that you care about their feelings.
attention to matters.

Want to be respected by others Acknowledge their contribution or opinion in the negotiation.

Ask many questions, sometimes rambling Be patient and relax. Know that your partner can ask questions to create harmony.

Want to be trusted by others. Show your trust in your partner.

Ask your partner about their feelings and opinions on the issues discussed. Be an
Listening carefully
attentive listener.
Feel free to talk about personal matters and Understand that Amiable see negotiation as not only a business but also a personal
personal concerns. matter. Never say "don't take it personally here".

Work at a certain pace, do not like to rush. Know that amiable might say: let me think again, I'll answer later

Provide positive and oriented solutions. Do not take a confrontational attitude in the
Always wanted harmony
negotiation.
 ANALYTICAL
Analytical’ behavior How to make a relationship with Analytical?
Need detailed, accurate and timely
Prepare well before negotiating. Ensure complete and accurate research.
information and data.
Not comfortable bringing personal
Keep the discussion authentic and centered around work.
issues into the negotiation.

Slow processing of information. Patient. Repeat information and provide additional information if requested

Ignore your partner's aloof attitude. Understanding that is just a feature of their
Can become cold and confusing.
personality.
Pay attention to the logic of the Pay attention to the logic of the negotiation problem. Appreciate it to earn respect and
problem. harmony.
High principles. Be honest because if they feel cheated they will lose their patience

Understanding this is the strong point of people with this personality. Shouldn't be in a
Speak slowly and straight.
hurry.

Cautious and oriented. Respect the partner's request to know details before accepting.

Answer fully when asked. If you can't bring out both the pros and cons of an issue they
Ask many questions.
will consider you to be dishonest.
 EXPRESSIVE
Expressive’ behavior How to make a relationship with Expressive?

Take the time to build a personal relationship before you

Comfortable and friendly. get to work.

Make sure the issues are clear and specific before

Flexible and adaptable.
concluding the negotiation.

Be humor – makes work less stressful than other

personality. Let everything be bright and cheerful.

Creative and easy to change Focus on making multiple possible choices. Look for new
and unique methods.

Collectivism Making them recognize their approval is a shared

success.
What if They Won’t Play?
Use Negotiation Jujitsu
 Getting Them to Play
Other party might focus on “bargaining” and not negotiating

What they may What a third-

What you can do
do party can do

Principled Negotiation, Redirect attacks and Third party focuses on

concentrate on the use negotiation Jujitsu interests, options, and criteria
issues for both parties involved
 Overcoming Deadlock in Negotiation
Negotiation
Negotiation Flow Deadlock Cause Deadlock Breaker
Objectives

Introduction and Entry Creating climate Personality Differences Take it to another place

Information exchanging
Uncovering interest You don’t understand Walk in their shoes
and Exploration

Offering and Negotiating:

Developing alternatives Resistance to your ideas Bridge the gap
Give and take

Closing Agreeing to best They don’t understand Use power to convince

THANK YOU