its about negotiation in an organization.the topic of this presentation is negotiation in telecom company ufone

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3. Learning Objectives
 What is negotiation?
 Why negotiation is
important?
 Bargaining Strategies
 The Negotiation Process
 Issues in Negotiation
 Third party negotiation
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4. History of Ufone
•Ufone GSM is a Pakistani GSM cellular service provider. It is
one of the five major GSM Mobile companies in Pakistan
•Ufone’ a wholly-owned subsidiary of PTCL commenced its
operations on 29th January 2001
• As a result of PTCL’s privatization, 26% of its shares were
acquired by Emirates Telecommunication Corporation
(Etisalat)
•In 2012 Ufone launched their social networking service for
their Ufone customers Club Ufone, available in English and
Urdu languages.

5. A process in which two
or more parties exchange goods
or services and attempt to agree
on the exchange rate of them.

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Importance of negotiation
 The person dealing with the external parties
must be a good negotiator else he will end up
paying more amount than required.
 One should also learn to negotiate with one’s
superiors.
 Conflict must be avoided at the work place as
it only leads to negativity all around.

7. Negotiation myths
 Good negotiators are born
 Experience is a great teacher
 Good negotiators take lots of risks
 Good negotiators rely on intuition
 Negotiations are always win-lose
 The only negotiations are formal or
explicit negotiations
 Good negotiators are tough,
intimidating, and try to get everything
they can
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8. Key points for effective negotiation
 Has Confidence
 Come prepared
 Build a buffer
 Know your limits
 Stay cool

9. SWOT analysis of Negotiation:
Strengths
•Relationship with customer
•Knowledge of customer’s need
•Experience
•Market position
•Financial resources
•Knowledgeable staffing
•Product strengths over competition
Weaknesses
•Staffing
•Margins too low
•Market position
•Product weaknesses
•Financial resources
Opportunities
•New complimentary market
•Market poised for growth
•Competition Weaknesses
•Strategic alliance
Threats
•Economy
•Loss of key staff
•Cash Flow
•New technology
•New government regulations
•Increased competition

10. BARGAINING STRATEGIES
There are two general approaches to
negotiation.
• Distributive bargaining
• Integrative bargaining
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DISTRIBUTIVE BARGAINING
Negotiation that seeks to divide up a fixed
amount of resources; a win–lose situation.
INTEGRATIVE BARGAINING
Negotiation that seeks one or more
settlements that can create a win–win
solution.

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EXPLANATION OF DISTRIBUTIVE
BARGAINING
• Its identifying feature is that it operates under
zero-sum conditions—that is, any gain I make
is at your expense and vice versa.
FIXED PIE
• The belief that there is only a set amount of
goods or services to be divvied up between the
parties.

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Distributive Bargaining Zones
13-13
PLAYER
A
PLAYER
B B’s Resistance
Point
A’s Resistance
Point
B’s Target Point
A’s Target Point
B’s Aspiration
Range
A’s Aspiration
Range
SETTLEMENT
RANGE

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DISTRIBUTIVE BARGAINING TACTICS
Make the first offer, and make it an aggressive
one.
Anchoring bias i.e. People tend to fixate on
initial information.
Another distributive bargaining tactic is
revealing a deadline.

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EXPLANATION OF INTEGRATIVE
BARGAINING
 In contrast to distributive bargaining, integrative bargaining
operates under the assumption that one or more of the
possible settlements can create a win–win solution.
 In terms of intra-organizational behavior, all things being
equal, integrative bargaining is preferable to distributive
bargaining because the former builds
 long-term relationships. Integrative bargaining bonds
negotiators and allows them to leave the bargaining table
feeling they have achieved a victory.

16. WAYS TO ACHIEVE MORE INTEGRATIVE
OUTCOMES
Negotiate in teams
Put more issues on the table
Focus on the underlying interests of both sides rather
than on issues

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BARGAINING STRATEGIES

18. The Pros and Cons of Distributive Bargaining
• Some conflict resolution theorists believe that distributive bargaining is
unnecessary.
• Any conflict, they argue, may be solved cooperatively through integrative
bargaining.
• It has also been criticized because it tends to lead to destructive actions
and sometimes forces the involved parties to focus too much on their
differences
• However, in cases where the "negotiator wants to maximize the value
obtained in a single deal and when the relationship with the other party is
not important," distributive bargaining tactics may be very useful.
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19. Advantages of integrative negotiation
• Integrative negotiation, on the other hand, creates a win-win situation for all
parties by focusing on the joint resolution of problems
• The integrative style’s emphasis on relationship allows parties in conflict to
maintain or develop trust.
• In addition, the shared responsibility of problem solving leads to greater
commitment to decisions
• Collaborative effort enhances the probability of successful negotiations by
discouraging groupthink and enabling parties to look at problems from
multiple perspectives.
• It can also help develop or support an organizational culture that supports
openness, diverse viewpoints, continuous questioning, and information
sharing
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20. 20
Negotiation Process

21. Preparation & Planning :
Understand the nature and background of the
situation.
Identifies the self goals as well as other parties
goals.
The negotiator prepares the strategy to be
adopted by collecting possible information.
Understanding priority objectives of the other
party.
BATNA - The Best Alternative to a negotiated
agreement, the least the individual should accept.

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Negotiation Process(
Defining Ground Rules :
Both parties arrive at the negotiation table and
established the basic rules and procedure that will
guide the negotiation process.
Clarification and Justification :
Both parties exchange their demands & justify them.
Present documents in support of their position.

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Negotiation Process(
Bargaining & Problem Solving :
The parties start bargaining with each other.
Each party gives concession to another party.
Negotiating parties should take a break to avoid
heated arguments.
Closure & Implementation :
The bargaining process is complete & the final
agreement is written and signed.
Monitoring & implementation of agreement.

24. Good negotiations contribute significantly to business
success
 Help to build better relationships
 Deliver lasting, quality solutions rather than poor short-term solutions that
do not satisfy the needs of either party
 Help to avoid future problems and conflicts
How to negotiate efficiently
 you need to make sure that you’re not too pushy
 Don’t adopt harsh words and rude attitude
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25. Characteristics of a negotiation
1. Voluntary
2. Bilateral/Multilateral
3. Non-adjudicative
4. Informal
5. Confidential
6. Flexible
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26. Factors for Successful Negotiating Skills
 Know what you want
 Know the other side
 Consider the timing and method of negotiations
 Prepare point by point
 Offer benefits for accepting your offer
 Frame your negotiation around one or two key points
 Know your BATNA
 Prepare options for mutual gain
 Listening is the most powerful negotiation skill
 Use the power of the draft
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27. Negotiation styles
Avoider
Compromiser
Accommodator
Competitor
Problem Solver

28. Individual Differences in Negotiation
Effectiveness
Four factors influence how effectively individuals
negotiate:
 Personality,
 Mood & emotions,
 Gender,
 Cultural negotiations

29. Personality traits in negotiation
 Negotiators who are agreeable or extraverted aren’t very
successful in distributive bargaining as they are outgoing
and friendly, they tend to share more information than they
should.
 So the best distributive bargainer appears to be a
disagreeable introvert, someone more interested in his or her
own outcomes.
 Intelligence is a weak indicator of effectiveness
 Traits do not appear to have a significantly direct effect
on the outcomes of either bargaining

30. Moods and emotions in negotiation
 Emotions play an important
part in the negotiation process;
Negative emotions can cause intense
and even irrational behavior, and can
cause conflicts to escalate and
negotiations to break down.
 On the other hand, positive emotions
often facilitate reaching an agreement
and help to maximize joint gains.

31. Gender differences in negotiations
 Women negotiate no differently from men,
although men apparently negotiate slightly
better outcomes
 Men and women with similar power bases use
the same negotiating styles
 Women’s attitudes toward negotiation and their
success as negotiators are less favorable than
men’s.
 Women and men take on gender stereotypes in
negotiations: tender and tough.

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Cultural Negotiations
 Negotiating styles clearly vary across national
cultures
 Use of question and answer methods of
negotiation were associated with negotiation
outcomes

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THIRD PARTY NEGOTIATION
 Occasionally, individuals are
unable to reach direct negotiation
 In such case they may turn to a
third party to help them find a
solution.

34. when should you use a third party to
negotiate on your behalf?
 When the situation is either very stressful or very
emotional.
 When you lack technical expertise on what you are
negotiating.
 When you can’t get your ego out of the way
 When your strategy is not working.

35. THIRD PARTY ROLES
 Mediator
 Arbitrator
 Conciliator
 Consultant

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Third party roles
Mediators
• A neutral third party
who facilitates a
negotiated solution by
using reasoning ,
persuasion, and
suggestions for
alternatives.

37. Mediator
 Neutral third party
 Use reasoning and persuasion
 Suggest alternatives
 Depends upon intensity of conflicts(most
effective under moderate level of conflicts)
 Results in satisfaction of both parties.

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Third party roles
Arbitrator
• A third party to a
negotiation who has the
authority to dictate an
agreement

39. Arbitrator
 Third party with authority
 Voluntary(requested)
 Or compulsory (forced by law)
 Authority varies according to rules set
by negotiator

40. • MEDIATOR
Result in satisfaction of
both parties at the end
of settlement.
• ARBITRATOR
Always results in
settlement but parties
may not be satisfied

41. Conciliator
“A trusted third party who provide an informal
communication link between the negotiator and
the opponent”
Engaged in :
• fact findings
• Interpreting messages
• Develop agreements

42. Consultant
“An impartial third party, skilled in conflict management,
who attempts to facilitates creative problem solving
through communication and analysis”
 Role is not to settle issusebut to improve relations between
conflicting parties so that they can reach settlement
themselves
 Tries to help the parties learn to understand and work with
each other

43. Conclusion
By summing up this project about negotiation we get some stages like
o Preparation is mandatory
o Communication is very important
o Negotiate wisely
o Close the deal
All in all, if we follow these four stages mentioned above, we will see that
negotiating has never been simpler! We will be able to obtain an excellent
outcome that will contribute to the success of company.

44. Recommendation
There are many ways to negotiate good business relationships in your
workplace. We recommend some suggestions
 On the Job: Be Nice to Everyone
 On the Job: Keep an Open Mind About People
 On the Job: Be a Good Listener
 On the Job: See Beyond the Job Titles
 On the Job: Don't Be Too Personal Too Quick
 With Clients: Communicate Frequently and Offer Rewards
 With Clients: Host an Event.
 With Contacts: Keep in Touch.
 With Contacts: Encourage Feedback
 With Contacts: Know the Details