1. IJBMRDEC 20171

International Journal of Business
Management & Research (IJBMR)

ISSN (P): 2249-6920; ISSN (E): 2249-8036
Vol. 7, Issue 6, Dec 2017,1-10
© TJPRC Pvt. Ltd.

ENHANCING THE POWER OF NEGOTIATION-A DECISION MAKING

PERSPECTIVE

DEEPIKA GAUR 1 & BHAWNA GAUR 2

Assistant Professor, American University in Emirates, Dubai, United Arab Emirates
2 Assistant Professor, Amity University Dubai Campus, Dubai, United Arab Emirates

ABSTRACT

The need to negotiate is vital in daily chores, to reach to a consensus, for taking any decision. Despite the facts
that people bring into action their negotiation skills every day, in the personal or professional lives, but hardly have they
gone for any negotiation skills training. The notion of excelling in negotiation skills can lead people to bargain for some
minor requirements but does not make them expert of the skills of negotiating. Every individual has a unique personality
and lienee the skills administered by them require the merger of their personality traits to the skill effectiveness. The
proper flow of negotiation depends upon various individual and situational factors. In an organization setting employees
have to negotiate as a part of their job either with outside or inside customers; however, the skill if not learned may lead
to suboptimal decisions. Negotiation is a primary approach to reach to any decision when an individual, team or
organization has to deal with any other party. Organizations play a large emphasis on the negotiation outcomes rather
than focusing on the teaching of the skills to negotiate. However, there is a large gap in understanding the outcome of
negotiation skills training. Large amount of data is focused on negotiation tactics and its outcome but lack the
implementation of the skills on an individual and the training required. This research aims to place an initial platform
for the need of negotiation skills training.

KEYWORDS: Negotiation Skills, Communication, Training, Information Technology & Decision-Making

TRANS

STELLAR

•Journal Publications • Research Consultancy

Received: Sep 12, 2017; Accepted: Oct 02, 2017; Published: Oct 28, 2017; Paper Id.: IJBMRDEC20171

INTRODUCTION

“Major public policies are the outcome of a complex round of negotiation between interests, choices
between values and competition between resources... there are no single ‘best’ options for any player in this game,
for the ‘best’ outcome depends on what others do and what deals are possible.” (Davis et ah, 1993)

Negotiation is a skill which is required to be upgraded after a time interval. This is because of the nature of
negotiation which depends on skills, culture, psychology, economy and managerial perspectives. Negotiation is a
prime approach in an organization to reach to any decision whenever a person, organization, or another entity
cannot achieve its goal unilaterally. Negotiation is an unavoidable part of work and everyday life.

Negotiation is a tool to settle differences. It is a process to reach to compromise and agreement while
avoiding argument and discomfort. Hence, in business, negotiation starts right from the place of bargaining for
employee’s own compensation to the discussions of projects and finalizing the deals with clients. Thus, the need of
skilled negotiators is common to all industry types, so a model that inculcates the skill of negotiation in employees
is of great necessity. Self help material supports the human tendency to consider themselves as skilled negotiators,
but the kind of demand being fostered by organizations need employees to be well versed with the intricacies of this

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Deepika Gaur & Bhawna Gaur

ability. This proves the importance of imparting training to employees periodically to enhance their ability to negotiate and
settle the argument in right direction.

A lot of material is focused on the development of negotiation skills and suggest various tactics for the same.
But, the question is how the skill could be developed, much like great leaders, some people believe (Malhotra & Bazerman,
2007) that, great negotiators are born with the talent. However, similar to the concept of leadership, the typical definitions
of negotiation (e.g., Fells, 2010; Fisher, Ury, & Patton, 1991; Thompson, Wang, & Gunia, 2010) suggest that, negotiation
is a process that transpires between people. Just like leadership, negotiation might be developed and further honed, but the
way of training is ignored. Similar to leadership skills, negotiation skills are challenging to teach, assess, and provide
feedback on (Nadler, Thompson, & Boven, 2003). Though, scholarly researchers have presented comprehensive tutorials
and guides for effective negotiation (e.g., Lax & Sebenius, 2006; Thompson, 2008; Watkins, 2002), our intent is to state
and prove the importance of negotiation skills training, which can build the awareness towards the gaining of the skills
from an expert.

The present research aims at not only proving the effectiveness of formal training program but also build an
insight for the industry to measure the after effects of training and the utility of it for the organization. Additionally,
we examine the components of negotiation skills and a comparison between the components which shows greater
improvement with the effect of training. Based upon limited existing research on these issues, the proposed way of
measuring the training effectiveness is an initial effort toward the creation of a more efficient framework of developing
means to study the pre-post skills of employees receiving training. Thus, the hope is that the initial efforts draw the
attention of future researchers to take the initiative ahead and contribute to the elaboration and expansion of the model.

IT Industry - An Overview

The term technology commonly refers to society’s application of scientific knowledge to solve practical problems
in industry or commerce. Technological innovation, or the application of technology, takes many forms and often involves
the interplay of expertise across multiple disciplines and industry verticals. One framework for categorizing technology
entails the use of five distinct groupings (Comptia, Research Report, and January, 2016).

Information

Technology

(IT)

Life

Sciences

Advanced

Manu¬

facturing

Advanced

Materials

Energy &
Environ¬
mental
Sciences

Source: https://www.comptia.org/resources/it-industry-outlook-2016-final

Each segment of this technology framework has contributed to economic growth and the well-being of society.
The magnitude of advances in medicine, transportation, safety, manufacturing, agriculture, media and communication are
almost difficult to comprehend.

Since the turn of the millennium though, the one segment that arguably has had the greatest impact on businesses,
consumers and other industry sectors is information technology (IT). This collaboration among various professionals and
customers brings in different skills of negotiation. IT industry being internationally collaborative demands association of

Impact Factor (JCC): 6.9876

NAAS Rating: 3.43

Enhancing the Power of Negotiation-A Decision Making Perspective

3

different cultures and lays the burden on negotiator to associate negotiation skills applicable in different cultures in a
smooth way.

Growth Aspects

According to the research consultancy IDC, the global information technology (IT) industry market,
encompassing hardware, software, services, and telecommunications, was expected to reach $3.8 trillion in 2016, up from
$3.7 trillion the previous year. The U. S. market accounts for approximately 28% of the total, or slightly more than $1
trillion.

The IT channel plays an integral role to facilitate the flow of information technology goods and services from
producer to customer.

LITERATURE REVIEW

The present research is an attempt to create awareness among professionals for a formal skill development which
can strengthen the ability of decision making. Decision making in the organization is not dependent on any one person
rather involves various structures, minds and cultures. To initiate a smooth process in the merger of these an efficient
negotiator is of utmost importance. Negotiation basically described by a noted statesman and negotiator Henry Kissinger
as, “a process of combining conflicting positions into a common position, under a decision rule of unanimity” (Kissinger,
1969). Elsewhere, theorists have portrayed negotiations as events of diplomatic artistry, mechanical reflections of relative
power, and weighted interactions between personality types or rational decision-making processes.

Many negotiators trust their intuition. Much as we might be inclined to view a successful negotiator as one who is
naturally gifted, we might also believe that we should privilege our gut feelings when it comes to facing and responding to
an opponent negotiator. Keith Stanovich and Richard West (2000) have distinguished between System 1 and System 2
thought, characterizing the former as automatic, effortless, and influenced by emotions, and the latter as conscious,
deliberate, and systematic. While we may believe we have control over how we think about situations, when it comes to
the most important and complex decisions and negotiations, the limits to our cognitive resources shift us toward System 1
thought. This reliance on intuition that often comes with emotionally charged interactions (Loewenstein 1996) and with
time pressure allows for the psychological biases that lead to irrationality, improper weighting of information (Petty and
Cacioppo 1986; Petty and Wegner 1999), and sub-optimal outcomes.

The only way that an organization and its employees will know how to negotiate is by training them.
Organizations across the globe spend many millions of dollars each year on negotiation training for their employees.
This training can be in-house, led by consultants and other experts, or employees can travel to training programs at
universities and elsewhere. After engaging in a couple of days of training, employees return to the office and attempt to
apply what they learned. Unfortunately, their new knowledge often fails to “stick.” They quickly abandon the best
practices they learned during negotiation training and replace them with ineffective old habits (Pon
staff,https://www.pon.harvard.edu/daily/negotiation-training-daily/negotiation-training-skills/—on September
25th, 2017).

Across the globe, negotiation skill training has become a common activity in managerial life. Organizations often
take steps to improve their managers’ negotiation skills and their ability to manage other negotiators by enrolling them in

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Deepika Gaur & Bhawna Gaur

negotiation skills training programs.

Yet often when these managers return to the office, they fail to thoroughly apply the lessons they’ve learned to
their real-life negotiations. Instead, they tend to fall back on their old habits and end up getting the same subpar results
because the negotiation skills training they receive is not structured in a way that encourages managers to question their
past practices and replace them with a more effective strategies. In addition, there is more that individual negotiators and
their organizations can do to ensure that best practices from negotiation skills training are being applied back at work
(Katie Shonk, https://www.pon.harvard.edu/daily/negotiation-training-daily, Harvard, edu. on September 7th, 2017).

OBJECTIVES

The overall objective of the primary research was to study the effectiveness of negotiation skills training for the
software professionals in Indian IT sector. The research will help to

• Determine the level of negotiation skills prior to training

• Feedback on the effect of negotiation skills training

• Review changes in employees’ negotiation skills level to determine if the training was effective.

Hypothesis

There is no significant difference in pre-post training of negotiation skills for software professionals.

Data Collection

In the present research the target population is the Indian software professionals working in IT industry.
The sample was Software professionals who had undergone the assertiveness skills training and was willing to give
feedback for the effectiveness of training. For the analysis, data was collected from both primary and secondary sources.
204 questionnaires have been collected from IT companies across India.

The questionnaire was an attempt to study effectiveness of negotiation skills training covering a variety of areas
like compromise, self-control, flexibility/adjustability, togetherness, coping with situation and other’s opinion.
The questionnaire was divided into two sections. The first section consists of eight questions related to personal profile of
respondents. Section B consists of 16 statements on assertiveness skills.

All the statements of Section B were evaluated on five point rating scale. There was no right or wrong answer to
the statements. The candidate just needed to mark the response which first came to their mind after reading the statement.
The ratings were as follows Mostly (M), Often (O), Sometimes (S), Rarely (R) and Never (N). The scale of 1 denoted that
the particular emotion or task mentioned in the statement was mostly felt or done by the candidate. Similarly the scale of 2,
3, 4 and 5 meant often, sometimes, rarely and never respectively.

Secondary data is acquired through Newspapers, Periodicals, Industry Publications and other reports of the
selected companies of Software Industry in India.

METHODOLOGY

The Questionnaire was administered on employees and the result collected was then analyzed through Factor
analysis. Factor analysis gave four major areas of negotiation skills questions. The six areas came out to be compromise,

Impact Factor (JCC): 6.9876

NAAS Rating: 3.43

Enhancing the Power of Negotiation-A Decision Making Perspective

5

self-control, flexibility/adjustability, togetherness, coping with situation and other’s opinion. These questionnaires were
assessed on various IT companies:

Table 1: Company Wise Distribution

Sn

Company

N

%

1

Atos

3

1.47

2

Cignex datamatics

1

0.49

3

Cognizant Technical Solution

15

7.35

4

CSC

22

10.78

5

Dot Square

13

6.37

6

IBM

12

5.88

7

iGATE Inc

20

9.80

8

INFOSYS

6

2.94

9

Macfee

3

1.47

10

NUT

52

25.49

11

Patni

10

4.90

12

Persistent

3

1.47

13

Syntel Ltd.

27

13.24

14

TCS

1

0.49

15

TECH MEHINDRA

8

3.92

16

WIPRO

7

3.43

17

No Response

1

0.49

Total

204

100.00

Surveys shows that, CMMI 4* and CMMI 5* levels companies are considered for analysis. More than 90 %
candidates are from CMMI 4 and 5 level companies, so that level of training, skills of trainer, quality of training content,
methodology used for training are at same level and there is no discrepancy in the standard and quality of the procedure
and resources of the training.

WIPRO, Infosys, IBM, TCS, Cognizant and others are trend setting companies of Indian IT sectors having major
market share in Software industry. Survey covers service based and product based companies. Above mentioned
companies cover all the technology and geographical regions of India.

Factors of Negotiation Skills after Factor Analysis

• Compromise

• Self- control

• Flexibility/ Adjustability

• Togetherness

• Coping with Situation

• Other’s opinion/ Agreement
Factor Analysis - Negotiation Skills

Factor analysis was applied using principal component analysis method on negotiation skills dimension of
communication skill. The varimax rotation was used to rotate the factors. The detailed results are given below.

Overall six components were extracted for negotiation skills dimension explaining 78.10% of variation in the

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Deepika Gaur & Bhawna Gaur

Presentation skills variables. Only those factors were retained whose Eigen values were more than 1.

Table 2: Negotiation Skills Variance Explained

Component

Initial Eigen values

Rotation Sums of Squared Loadings

Total

% of Variance

Cumulative %

Total

% of Variance

Cumulative %

1

4.976

24.881

24.881

4.304

21.521

21.521

2

3.326

16.628

41.509

2.619

13.095

34.617

3

2.905

14.525

56.034

2.535

12.675

47.292

4

1.736

8.681

64.714

2.468

12.340

59.632

5

1.677

8.383

73.097

2.215

11.077

70.708

6

1.001

5.005

78.102

1.479

7.394

78.102

Rotated Component Matrix

In the following table the extracted component along with the statement and their respective factor loading values
are given. The six component / factor extracted were named as - Factor 1 Compromise, Factor 2 = Self-control, Factor 3 =
Flexibility/ Adjustability, Factor 4 = Togetherness, Factor 5 = Coping with the situation and Factor 66 = Other’s opinion/
Agreement. Brief descriptions of these factors are given after this table.

Table 3: Negotiation Skills Rotated Component Matrix

Factor

Factor Loading

Q13_16. I feel people take advantage of me.

0.925

Q13_20. All that matters to me is getting what I want in a deal - it doesn't
matter how.

-0.887

<D

C/3

Q13_13. I am a very patient person.

-0.867

a

o

u

a

o

U

Q13_19. I have no problem with using or manipulating others to get ahead.

-0.852

Q13_18. Making conversation is something I'm good at.

0.610

Q13_5. I can calm myself down when I'm under stress.

0.788

Self Control

Q13_8. When preparing for a negotiation, I try to get as much
feedback/advice from outside sources as possible

-0.644

Q13_ 1. I am able to resolve problems without losing control of my
emotions.

0.562

Q13_l 1. When a situation requires a change of plan or strategy on the spot,
I get flustered/ anxious.

-0.695

S

x x

Q13_12. I can easily build a good rapport with people.

0.666

ee

X t ct

Q13_15. I am comfortable dealing with conflict when it arises.

0.644

u ^

E <

Q13_9- In general, when I fail at something, I am devastated.

0.566

C/3

C/3

<D

S

<D

X

<D

W)

Q13_4. I tend to just go along with what everyone else wants, instead of
stating my own desires.

0.837

Q13_3. I will stop a speaker in mid-sentence to interject my opinion if I
disagree with a statement he/she has made.

-0.819

o

H

Q13_14. When making a decision, I try to consider all points of view.

0.799

X

£

e

w) 2

li

Q13_7. When small things go wrong, I become frustrated.

0.895

Q13_10. When faced with a problem, I try to look at it from different
angles in order to come up with the best solution.

-0.683

8- 3

CJ c r>

Q13_6. I find it difficult to function normally when I'm under pressure.

0.660

\ c
_ 0)

^ § a

Ut CD

Q13_2. In an argument, I can see things from the other person's point of
view.

0.777

<D C <D

"5 'Eh 00
o o < «

Q13_17. I carefully consider views that are different from my own.

0.713

Impact Factor (JCC): 6.9876

NAAS Rating: 3.43

Enhancing the Power of Negotiation-A Decision Making Perspective

7

As per the above table the dimensions of negotiation skills are factorized into six factors namely compromise,
self-control, flexibility, togetherness, coping with the situation and Agreement.

Compromise: This factor is covered under the statement number 16, 20, 13, 19 and 18. The factor denotes a
compromising or in opposite confronting way of dealing with matters while working with someone. The scores in this
factor indicates that either the respondent surrenders to other people's wish and other’s might take advantage of respondent
or the respondent can manipulate the situation or the person to have the things work.

Self-Control: The statements covered in this factor are 1, 5 and 8. This shows the control on self under the
situation of stress or otherwise. The scores depict either the respondent is able to manage the situations while negotiating or
communicating with others in stress by keeping themselves calm, or else on the other extreme might lose control of
emotions while handling problems.

Flexibility: This factor covers statements number 9, 11, 12 and 15, which involves both positive and negative
frame of statement. The statements indicate the flexibility of respondent dealing with the situation exemplifying, when the
circumstance demands change of strategy or plan, dealing with failures or dealing with conflicts when it arises how
comfortably it is handled.

Togetherness: This factor incorporates statement number 4, 3 and 14. It emphasizes the team work ability of the
respondent. The statements suggest weather the person takes everyone’s viewpoint in consideration while handling the
negotiating situation puts his or her opinion above the others view.

Coping with Situation: This factor includes statement number 7, 10 and 6. It refers to the ability of the person, to
cope with the situation under stress. Score indicates either the respondent slowly hails towards the solution of the problem,
or become frustrated when encounter any problem.

Agreement: The factor of Agreement involves statements number 2 and 17. This includes the ability to agree
with other’s opinion. According to the statements under this factor the respondent either welcomes others viewpoint for a
situation and considers others area of interest while taking any decision or is vice-versa.

Post Training Negotiation Skill Analysis

This data represents the level of candidates in present circumstances on whom the questionnaire is administered.
It specifies the employees’ negotiation skills level as per the dimension of compromise, self-control, flexibility
/adjustability, togetherness, coping with situation and other’s opinion at the time of answering questionnaire.

Table 4: Inter-Comparison of Factors-Negotiation

Factor

N

Mean

SD

F

Result

Compromise

204

3.13

0.66

143.32

***

Self-Control

204

3.85

0.36

Flexibility

204

3.31

0.49

Togetherness

204

3.34

0.44

Coping with Situation

204

3.28

0.48

Others' Opinion

204

4.18

0.42

To see whether there is any significant difference in the factors of negotiation dimension, one way ANOVA was
applied. The test result shows highly significant difference (F=143.32, p is less than 0.001) between different factors of
negotiation skills as measured on the current level of the respondent. Though all the factors showed above average

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Deepika Gaur & Bhawna Gaur

effectiveness of training but Opinion from others or agreement with others shows the highest and compromising is the
weakest area in comparison to others where the current negotiation skills effectiveness is considered.

Graphical representation of the above score is underneath:

Negotiation Skill Factors

Graph 1: Inter-Comparison of Factors-Negotiation

Negotiation

Hoi: There is no significant difference in the compromise factor of negotiation, between pre-test scores and post¬
scores.

H 02 : There is no significant difference in the self-control factor of negotiation, between pre-test scores and post¬
scores.

HoT There is no significant difference in the flexibility factor of negotiation, between pre-test scores and post¬
scores.

H 04 : There is no significant difference in the togetherness factor of negotiation, between pre-test scores and post¬
scores.

H os : There is no significant difference in the coping with the situation factor of negotiation, between pre-test
scores and post-scores.

H 06 : There is no significant difference in the other’s opinion or agreeableness factor of negotiation, between pre¬
test scores and post-scores.

Table 5: Pre-Post Training Comparison-Negotiation Skills

Factors

Period

N

Mean

SD

t

Result

Compromise

Pre

204

2.85

0.71

-15.72

***

Post

204

3.13

0.66

Self Control

Pre

204

3.47

0.42

-17.99

***

Post

204

3.85

0.36

Flexibility

Pre

204

3.00

0.54

-17.92

***

Post

204

3.31

0.49

Togetherness

Pre

204

3.04

0.48

-19.32

***

Post

204

3.34

0.44

Coping with Situation

Pre

204

3.00

0.52

-16.63

***

Post

204

3.28

0.48

Other s Opinion

Pre

204

3.79

0.50

-18.06

***

Post

204

4.18

0.42

Impact Factor (JCC): 6.9876

NAAS Rating: 3.43

Enhancing the Power of Negotiation-A Decision Making Perspective

9

The test result shows highly significant difference in each factor namely compromise (t= -15.72, p is less than
0.001), self-control (t= -17.99, p is less than 0.001), flexibility (t= -17.92, p is less than 0.001), togetherness (t= -19.32, p is
less than 0.001), coping with situation (t= 16.63, p is less than 0.001), other’s opinion (t=-18.06, p is less than 0.001)
between pre-test and post-test scores.

Thus all null hypotheses are rejected and it is concluded that there is highly significant difference in pre-test and
post-test result in each factor of negotiation skills dimensions. Hence it can be said that there is highly significant effect of
communication skills training on negotiation skills dimension.

Graphical representation of the above score is underneath:

Graph 2: Pre-Post Training Comparison-Negotiation Skills

CONCLUSIONS

For the dimension of Negotiation skills, mainly respondents stand on higher level and also some stand on medium
and few on very high level, in the factors of Compromise, Self-Control, Flexibility, Togetherness, Coping with the
situation and Other’s opinion. This shows, according to respondents their current status is good in negotiation skills.
Analysis of the dimensions of negotiation skills denotes other’s opinion or agreeableness, in the factor getting more
influenced after the training, in which candidates learn to give value to other’s opinion even if, it is different from the
viewpoint of self.

After review of previous literature it is observed that, post training feedback analysis and action on the basis of
feedback lacks consideration. Companies mainly focus on reaction feedback, but they should also emphasize learning and
behavioural feedback, which will show the implication of the training attended. In need assessment procedure HR can also
involve manager and consider the profile and academic background of the employees, for understanding the exact
requirement of the candidate and the work profile. External researches could be given importance in the companies and the
analysis could be used for the betterment of the company procedures. Even research can be done jointly by ensuring
company confidentiality instead of restricting the researchers, so that later the results can be beneficial to both researcher
and company. As language skills is an undefined prerequisite for such type of trainings, so candidate should try to enhance
their language, by doing practice or taking some outside learning source. In another variable of Negotiation skills, the
dimension of self-control shows less effect of training, in comparison to other dimensions and other's opinion, which
shows greater amount of training effectiveness, as it is difficult to control the emotions and attitude of self, even after
learning. This requires self-awareness by employees and the trainer needs to focus on, one to one session, for making
trainees effective on this point.

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Impact Factor (JCC): 6.9876

NAAS Rating: 3.43