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Negotiation is an essential skill in various aspects of life, from personal relationships to business deals. Effective negotiation can lead to mutually beneficial outcomes, while poor negotiation can result in conflicts and missed opportunities. In this article, we will explore the two primary types of negotiation: distributive negotiation and integrative negotiation.

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 approach is often used in situations where there is a fixed pie to be divided, and each party tries to get the largest share possible. Distributive negotiation is commonly seen in price negotiations, where one party tries to get the lowest price, and the other party tries to get the highest price.

In distributive negotiation, each party typically has a target outcome and a walk-away point. The target outcome is the desired result, while the walk-away point is the minimum acceptable outcome. Negotiators using this approach often employ tactics such as making extreme opening offers, using time pressure, and taking a hardline stance to achieve their goals.

For example, in a salary negotiation, an employee may make an initial demand for a higher salary, while the employer may counter with a lower offer. The employee may then compromise and accept a salary that is higher than their walk-away point but lower than their target outcome.

Characteristics of Distributive Negotiation

• Zero-sum game: One party’s gain is equivalent to the other party’s loss

• Fixed pie: The resources to be divided are fixed

• Competitive: Each party tries to get the largest share possible

• Tactical: Negotiators use tactics such as making extreme opening offers and taking a hardline stance

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 approach is often used in situations where the parties have a long-term relationship or where the outcome is not a fixed pie. Integrative negotiation is commonly seen in business partnerships, where both parties work together to achieve a common goal.

In integrative negotiation, each party shares information and resources to find a solution that satisfies both parties’ interests. Negotiators using this approach often employ tactics such as active listening, open communication, and creative problem-solving to achieve a win-win outcome.

For example, in a business partnership, two companies may work together to develop a new product. They may share resources, expertise, and risks to create a product that benefits both parties.

Characteristics of Integrative Negotiation

• Win-win: Both parties work together to find a mutually beneficial solution

• Open communication: Parties share information and resources to find a solution

• Collaborative: Parties work together to achieve a common goal

• Creative: Negotiators use creative problem-solving to find a solution

When to Use Each Type of Negotiation

Distributive negotiation is often used in situations where the outcome is a fixed pie, such as in price negotiations or salary negotiations. Integrative negotiation is often used in situations where the parties have a long-term relationship or where the outcome is not a fixed pie, such as in business partnerships or joint ventures.

However, it’s essential to note that both types of negotiation can be used in various situations, and the approach may depend on the specific context and goals of the negotiation. Effective negotiators often use a combination of both distributive and integrative negotiation tactics to achieve their goals.

Common Mistakes in Negotiation

One common mistake in negotiation is failing to prepare. Negotiators who do not prepare may not have a clear understanding of their goals, alternatives, and walk-away points, which can lead to poor outcomes. Another common mistake is being too rigid or inflexible, which can lead to impasse and conflict.

Effective negotiators also avoid making assumptions about the other party’s interests and goals. Instead, they use active listening and open communication to understand the other party’s perspective and find creative solutions.

The Role of Power in Negotiation

Power plays a significant role in negotiation, as parties with more power may have an advantage in achieving their goals. However, power is not always a fixed entity, and negotiators can use various tactics to level the playing field.

For example, a party with less power may use coalitions or alliances to increase their bargaining power. They may also use time to their advantage, as time can be a powerful tool in negotiation.

Conclusion

In conclusion, effective negotiation requires an understanding of the two primary types of negotiation: distributive negotiation and integrative negotiation. By understanding the characteristics and tactics of each approach, negotiators can adapt their strategy to achieve their goals in various situations. Remember to prepare, be flexible, and use active listening and open communication to find creative solutions.

FAQ

What is the main difference between distributive and integrative negotiation?

The main difference between distributive and integrative negotiation is the approach to achieving goals. Distributive negotiation is a competitive approach where one party’s gain is equivalent to the other party’s loss, while integrative negotiation is a collaborative approach where both parties work together to find a mutually beneficial solution.

When should I use distributive negotiation?

You should use distributive negotiation in situations where the outcome is a fixed pie, such as in price negotiations or salary negotiations.

What are some common mistakes in negotiation?

Common mistakes in negotiation include failing to prepare, being too rigid or inflexible, and making assumptions about the other party’s interests and goals.

How can I improve my negotiation skills?

You can improve your negotiation skills by practicing active listening, being open to creative solutions, and understanding the interests and goals of the other party.