Negotiation is a crucial aspect of various aspects of life, including business, personal relationships, and even international diplomacy. It involves two or more parties trying to reach a mutually beneficial agreement. However, not all negotiations are the same, and different types of negotiation require unique approaches and strategies. In this article, we’ll explore the different types of negotiation, their characteristics, and when to use them.
Distributive Negotiation
Distributive negotiation, also known as competitive negotiation, is a type of negotiation where one party’s gain is equivalent to the other party’s loss. This type of negotiation is often used in situations where there is a fixed resource or a limited number of options. The goal of distributive negotiation is to get the best possible deal, even if it means the other party gets a worse deal.
For example, in a salary negotiation, an employee may want a higher salary, while the employer wants to pay as little as possible. In this case, the negotiation is distributive, as the employee’s gain (a higher salary) is equivalent to the employer’s loss (paying more).
To succeed in distributive negotiation, it’s essential to:
-
Know your walk-away point
-
Be willing to make concessions
-
Use objective criteria to support your position
-
Be prepared to negotiate aggressively
Example of Distributive Negotiation
In a real estate transaction, the buyer and seller may engage in distributive negotiation. The buyer wants to pay the lowest possible price, while the seller wants to get the highest possible price. The negotiation may involve making concessions on the price, repairs, or other terms of the sale.
Integrative Negotiation
Integrative negotiation, also known as collaborative negotiation, is a type of negotiation where both parties work together to find a mutually beneficial solution. This type of negotiation is often used in situations where the parties have a long-term relationship or want to maintain a positive relationship.
The goal of integrative negotiation is to find a solution that satisfies both parties’ interests. This type of negotiation requires creativity, trust, and open communication.
To succeed in integrative negotiation, it’s essential to:
-
Focus on interests, not positions
-
Seek creative solutions
-
Be transparent and open
-
Build trust and rapport
Example of Integrative Negotiation
In a business partnership, the partners may engage in integrative negotiation to resolve a dispute over the direction of the company. They work together to find a solution that satisfies both parties’ interests, such as finding a new market or product line that benefits both partners.
Tactical Negotiation
Tactical negotiation involves using tactics and strategies to influence the other party’s behavior or perception. This type of negotiation is often used in situations where there is an imbalance of power or information.
The goal of tactical negotiation is to gain an advantage over the other party. This type of negotiation requires a deep understanding of human psychology and behavior.
To succeed in tactical negotiation, it’s essential to:
-
Use time to your advantage
-
Make strategic concessions
-
Use anchoring and framing effects
-
Create a sense of urgency
Example of Tactical Negotiation
In a labor negotiation, a union may use tactical negotiation to influence the employer’s behavior. They may use strikes or threats of strikes to create a sense of urgency and gain concessions from the employer.
Principled Negotiation
Principled negotiation involves using objective criteria and fair procedures to reach a mutually beneficial agreement. This type of negotiation is often used in situations where there is a need for transparency and fairness.
The goal of principled negotiation is to find a solution that is based on fair and objective criteria. This type of negotiation requires a commitment to fairness and transparency.
To succeed in principled negotiation, it’s essential to:
-
Use objective criteria to support your position
-
Focus on interests, not positions
-
Seek fair and transparent procedures
-
Be willing to compromise
Example of Principled Negotiation
In a dispute over a contract, the parties may engage in principled negotiation to resolve the dispute. They use objective criteria, such as industry standards or expert opinions, to support their positions and reach a fair and mutually beneficial agreement.
Emotional Negotiation
Emotional negotiation involves using emotions to influence the other party’s behavior or perception. This type of negotiation is often used in situations where there is a strong emotional component, such as in personal relationships or crisis negotiations.
The goal of emotional negotiation is to create an emotional connection with the other party and influence their behavior. This type of negotiation requires empathy, emotional intelligence, and self-awareness.
To succeed in emotional negotiation, it’s essential to:
-
Understand the other party’s emotions
-
Use emotional labeling to acknowledge and validate emotions
-
Create an emotional connection with the other party
-
Use emotional appeals to influence behavior
Example of Emotional Negotiation
In a hostage negotiation, the negotiator may use emotional negotiation to create an emotional connection with the hostage-taker. They use empathy and emotional labeling to understand and validate the hostage-taker’s emotions, and then use emotional appeals to influence their behavior and resolve the crisis.
FAQ
What is the most effective type of negotiation?
The most effective type of negotiation depends on the situation and the parties involved. However, integrative negotiation is often considered the most effective type of negotiation, as it focuses on finding a mutually beneficial solution.
Can I use multiple types of negotiation in a single negotiation?
Yes, it’s possible to use multiple types of negotiation in a single negotiation. For example, you may use distributive negotiation to reach a compromise on the price, and then use integrative negotiation to find a creative solution to a related issue.
How do I know which type of negotiation to use?
To determine which type of negotiation to use, consider the situation, the parties involved, and the goals of the negotiation. Ask yourself questions like: Is this a competitive or collaborative situation? Are there any power imbalances or informational asymmetries? What are the interests and needs of the parties involved?
Can I learn to negotiate effectively?
Yes, negotiation is a skill that can be learned and improved with practice, training, and experience. It’s essential to develop a deep understanding of the different types of negotiation, as well as the strategies and tactics involved.
Are there any cultural differences in negotiation styles?
Yes, cultural differences can significantly impact negotiation styles and approaches. For example, in some cultures, direct and assertive negotiation is valued, while in others, indirect and polite negotiation is preferred. It’s essential to be aware of these cultural differences and adapt your negotiation approach accordingly.
Team Assertyve
