What is Negotiation?

Whether you're a beginner or an expert, you will find this Glossary useful.

Negotiation refers to a type of bargaining between two or more parties with the aim of overstepping differences and reaching an understanding, often called compromise, to everyone's satisfaction.

what-is-negotiation


Negotiation definition

Negotiation refers to a type of bargaining between two or more parties with the aim of overstepping differences and reaching an understanding, often called compromise, to everyone's satisfaction.

In companies negotiation is carried out in situations like wages negotiation at the time of recruitment, negotiations with unions regarding their requests, resolving employee conflicts, making downsizing decisions, etc.


Negotiation types

1. Distributive negotiation: aka hard bargaining with a clear indication of what all involved parties will and won’t accept. Main goal is to gain a competitive advantage so that their outcome is relatively superlative.

2. Integrative negotiation: aka interest based negotiation where parties try to increase the value through talks. Main goal is to build mutual trust with the belief that this will result in a better outcome for all parties.

3. Bad faith negotiation: when a party pretends to be willing to seek a compromise but is in fact unwilling to do so.


Negotiation styles

• Accommodating: involves preserving the relationship and giving in to the others’ requests.

• Avoiding: involves individuals who do not like negotiations and will not engage in it unless absolutely required.

• Collaborating: inolves individuals who are empathetic to the problems of the other parties, and easily use negotiation to solve complex problems.

• Competing: involves individuals who try to win and maximize their own benefits in the deal.

• Compromising: involves individuals who are too eager to close the deal by giving in to the requests of the opposite party.



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