Negotiation is when two or more parties come together to reach some end goals by a resolution that is agreeable to all of them. For example, a consumer and vendor may negotiate for minutes or hours to sell a vehicle. 7 Major Types of Negotiation also refers to discussing any important agreement and argument to solve any conflict. You can negotiate many times with your coworkers or managers in the workplace.
It contributes significantly to business success because it helps a businessman build better relationships with others. It also focuses on long-lasting or quality solutions rather than poor or short-term solutions that do not fulfill the needs of either party. Moreover, it also helps people to avoid future problems and conflicts.
In the world, many people who want to become a negotiator but suffer from different problems must focus on negotiation skills that are helpful for them to create a win-win situation. In the workplace, negotiation is important, and you must focus on skills that are helpful for you. Therefore, it also involves meeting each other central as a compromise when both parties are on opposite sides of the spectrum.
7 Major Types of Negotiation
Negotiation is important because when you negotiate with another person, you share your opinion, get knowledge about others, and improve your skills. Negotiation is the strategic discussion that is used to reach agreements. We engage in different types of negotiation that depend upon the situation, but the most important are seven, and these are discussed below:
- Win-Lose Negotiations
- Win-Win Negotiations
- Lose-Lose Negotiations
- Adversarial Negotiations
- Integrate Negotiations
- Multi-Party Negotiations
- Bad Faith Negotiations
Win-lose negotiation refers to a distributive negotiation, where one negotiator loses, and another one wins. Both parties compete to take away or claim the most value in a negotiation. This situation occurs in many negotiations, and it is less likely to be accepted voluntarily.
Moreover, win-lose is considered a style of negotiation where few negotiators will only finish a deal if they have won and the other party has lost. For example, two departments have projects that they want to deliver on time, but there is only one pool of assets. One department exaggerates the enterprise value to get the challenge prioritized. The business loses a possibility with the opposite department, and the alternative department loses credibility as crew individuals realize they exaggerated the advantage.
Some people focus on different strategies to create a win-lose situation all around the world. It is focused on by people when both negotiators are competitors. The point of interest is achieving goals, with no regard for building future relationships.
Little time and energy are required to resolve conflicts using a win-lose strategy because some innovative and creative solutions are considered. This negotiation strategy is ordinary for aggressive negotiators that belong to such emerging international locations as China, Russia, or Arab nations. This method is the opposite of a win-win approach, also known as distributive bargaining.
In some cases, people focus on the solution that gives benefits to both parties during negotiation. They avoid win-lose negotiations. So, here is the question that comes to our mind, why should people avoid a win-lose approach to negotiation? There are many reasons that we should avoid this situation. First, we want the solution of negotiation to be beneficial for both parties. For instance, win-lose negotiation may turn the negotiation into a conflict situation and damage any possible long-term relationship. It is essentially dishonest for both sides to hide their real views and mislead others.
Win-win negotiation is the second type where both parties benefit, and the end of the negotiation is positive for both. This situation occurs when both parties compromise and focus on an innovative solution that is useful for both of them. Most people prefer this negotiation, and for this, they focus on the different negotiation skills. Many negotiation skills are very helpful for them to get a win-win situation in the end.
Moreover, win-win negotiations are agreements in which both parties feel comfortable and committed to the action plan. For example, a country that is good at producing coffee and many other products but terrible at growing rice imports rice from other countries and gives them coffee. In the end, both countries get benefits and create a win-win situation. Many strategies are used to create a win-win situation in the workplace or in personal life. It would be best if you focused on these strategies because these will be useful in negotiations; some of them are discussed below:
a. Prepare and Set Goals
It is necessary that before you come to the table to negotiate, you must be prepared for it. You must have enough knowledge about the negotiation. Before the negotiation, you should determine the alternatives for both parties by doing proper research. You should use social media to talk to other vendors that offer similar solutions for the research.
You must focus on facts and data that support your evidence during the research. This way helps to get knowledge about the solution which will be best for both parties. From this strategy, you can easily create a win-win situation. Moreover, this should be based on both parties’ interests.
When you set your goals, you must focus on the other parties that help find out the best solution that fulfills the needs of both parties. Line up your interests and what you plan to get out of the negotiation. You also focus on how you plan on creating values for both parties. This way also helps create a win-win situation because you have clear goals.
b. Ask Questions for Clarification
Misunderstanding occurs when one party does not clarify the confusion. So, if you have some confusion, you must ask questions that help to clarify the agreement. Misunderstanding creates many problems for both parties, and it affects the relationship between the parties.
So, it would help if you asked questions for more clarification. Gather information on any uncertainties and validate the expectations you had been making against them. Moreover, seek explanations with facts as well as evidence that support the other party’s position and why they are taking that position. This will help you collect information, show more involvement in the negotiation, and create a win-win situation.
c. Treat Other Parties with Respect
Respect is one of the most important components of the negotiation. It would help if you focused on respect and ensuring that the other party is satisfied with the deal and happy in the end. When you treat the other party with respect, you can easily create a win-win situation and benefit. This strategy will also be helpful for you to develop new skills. These skills will be very beneficial for you in the workplace.
Benefits of Win-Win Negotiation
Many strategies are discussed above, which are very important for those who want to create a win-win situation at the end of a negotiation. The most important type of negotiation is win-win, so there is a need to be focused on why it is important. It provides many benefits to us. Some of them are given below:
- It helps to build a positive working relationship. The win-win negotiation strategies encourage the development of a healthy relationship with the other parties.
- It helps to focus on mutual interests.
- It helps to focus on discovering new options, and you learn a lot of new things from the win-win negotiation strategies. You will improve your skills from these strategies.
It is the negotiation in which both parties leave the agreement in the worst place. The outcome of this negotiation is lost for both of them. Both parties do not like this situation because it is the worst situation, and they want to avoid this. This negotiation creates a no-win situation. For example, if an executioner offers the condemned the choice of death by being hanged or poisoned, all options lead to death; the condemned is in a no-win situation.
Another example of this negotiation would be a budget-cutting negotiation in which both lose money and suffer from different problems. This negotiation is not beneficial for each person so, we need to avoid this negation. If you want to avoid the lose-lose negotiation, you need to focus on the negotiation skills that will be helpful for you. There are many tips that will be helpful for you to avoid the lose-lose negotiation. Some of them are discussed below:
- You should identify your goals in the negotiation because these will help to pay attention to the goals, and it is very important for you to get the benefit at the end of the negotiation.
- Building your confidence and preparing yourself before the negotiation helps create a win-win situation.
- Don’t rush to make a decision, and do not be afraid of making mistakes; when you make mistakes, you learn many things.
- Understanding your strengths and weaknesses helps to improve yourself. This will help to avoid the lose-lose negotiation.
This approach to negotiation sees it as a fight; the tougher and more aggressive negotiator wins, and the conciliatory one loses. One party wins who behaves rudely and uses power and the party with no power loses and is weak. The adversarial approach offers itself to competition between negotiators. This negotiation is also referred a win-lose situation in which the negotiator uses force and wins the negotiation.
This negotiation is mostly used in business, and many people follow this. Both parties attempt to force the other when business negotiations become adversarial. In this situation, negotiations become a zero-sum game, where one wins, and others lose. A competitive negotiation means a winner and a loser, and many people are entering into negotiation with this approach. Many people in business follow different tips and techniques to do adversarial negotiation; some of them are given below:
- Frist technique is to adopt a gain frame. They try to identify any benefits that may go with the burdens they anticipate and encourage their counterpart to do the same.
- The second one is to think multiple steps ahead. Instead of enchanting a tough stance, top negotiators teach their complements about what aspects of their offers are most palatable and think about what they might ask for in return for concessions.
- The last one is to keep talking. When talks have reached a stalemate, try building trust and goodwill by proposing to negotiate relatively minor issues.
Integrate negotiation is where both parties collaborate and find a win-win situation in which parties prefer benefits for all and create win-win negotiation. Both of them want to end the negotiation in a positive way and build a strong relationship with others. For example, suppose there is only one apple in the refrigerator, and two people demand it simultaneously.
In that case, a distributive bargain might well involve each of them getting half of it. The integrative bargain is better for both. In the end, both of them get an apple and positively end the deal. There are some characteristics of directions of a negotiator that tend to advance their skill in integrative negotiations.
- Negotiators should seek unity in goals or objectives about any interest. Both parties must have common goals because it is necessary to get a win-win situation at the end of the negotiation.
- Integrative negotiation requires a person to accept his own and the other party’s attitudes, needs, and desires as valid. Empathy is the ability to understand the place of the other party. It is significant to employ a cooperative strategy in an integrative negotiation successfully. When you focus on your attitude, you easily create a win-win situation.
- Mistrust constrains collaboration. Building trust is a complex, undefined process, but it is important. In negotiation, both parties must trust each other, which helps solve the conflict with many benefits.
- Prepare before any negotiation, and you must know about each and everything about negotiation that helps to increase confidence, and when you are confident, you can achieve your goals.
Multi-party negotiation is a negotiation that involves more than two parties. You can imagine this type of communication during the conference where multiple party members are involved during the negotiation, and every one of them conveys their message. You can take its informal example as you are with your family for dinner and decide what to eat.
Some of you don’t like Chinese food, while others don’t like traditional food. So, negotiation over deciding the dinner becomes difficult and time-taking because multiple participants are negotiating. You can take an example of official meetings where all the members in the conference sit down and join their heads together for negotiation to solve an issue. They suggest something and a second or third party may agree or disagree with them. This practice is mostly used on major issues to achieve positive outcomes.
Multi-party negotiation can occur at an international level where two or more countries can negotiate their issues and get proper agreements. In this situation, large amounts of information need to be handled during the negotiation. Each party starts with their interests and suggestions, but all you need is to calm down during this negotiation because if one party is calm and listening carefully, then the other parties can communicate their message and information effectively. During multi-party negotiation, all you need is to be very careful in selecting arguments. If arguments are properly selected and conveyed, it can help eliminate the issues and reach a good conclusion.
Multiple-party negotiations occur at a higher level, and there are many members involved in this negotiation, so you have to take care of certain things during the negotiation process. You must follow communication etiquette and not create pressure on other members during the communication. You should be at the spot or venue of negotiation on time. It shows your interest in the negotiation.
It may strengthen your argument, and you can analyze the situation and make changes to your arguments. Try to communicate with positive gestures because it is one of the most positive vibes to the next party. These positive gestures like a handshake, giving respect, etc., create a positive environment during the multi-party negotiation. Prepare a list of priorities that needs to be discussed. It can help you to align your content and arguments during the negotiation. This preparation is necessary to get to the conclusion on time.
Bad Faith Negotiations
Bad faith in negotiation is when parties communicate to resolve a matter do not intend to do so. For example, during the negotiation process, one party may present themselves that they want to negotiate but do not intend to. They are not willing to compromise and collaborate.
It initiates further issues during the negotiation rather than solving a problem. The reasons for bad faith in negotiation can be different, and they may include the personal conflicts of individuals. If there is a competition for political influence, parties are expected to be reluctant to collaborate and compromise. They tend to stick to their point of view and do not accept reality. This leads to major issues during the negotiation.
Bad faith in negotiation has a negative impact on the results of negotiation. The individuals involved in negotiation may waste their time, and no solution is described in the end. To avoid bad faith in negotiation, you have to prepare your mind for positive results.
It may help you to look at the positive aspects of the matter. If you see that the next party is not compromising, you have to show gratitude and present yourself as you are willing to listen to their point of view. In this way, they may get inspired or get involved in the negotiation to compromise. Compromise enables both parties to resolve the issues and get on to the results rather than wasting.
- What are the major types of negotiation?
There are seven major types of negotiation:
- Win-Lose Negotiation
- Win-Win Negotiations
- Lose-Lose Negotiation
- Adversarial Negotiations
- Integrate Negotiation
- Multi-Party Negotiations
- Bad Faith Negotiation
2 How do avoid conflicts during a negotiation?
There are higher chances of conflicts because multiple people and groups are involved in the negotiation. Their choices and interest, and ways of communication may differ from yours. All you need to practice before and try to compromise where needed. Try to collaborate with other members’ viewpoints rather than engage in conflicts. This conflict can raise more issues. So, it is important that you have to take care of certain ethics to get appropriate and effective results from negotiation.
3 How do avoid bad faith in negotiation?
Consideration of last-minute demands is very necessary to get onto the results. Once you are engaged in negotiation, you have to value the next party even when finalizing a decision and entering into an agreement. At this point, if someone has any concerns, try to consider them. Don’t pressurize the individuals for being late in the negotiation.
4 How to be calm in negotiation?
Try to listen to the next party. Give them value. They may have a better solution for this issue. This solution can be beneficial for you and the overall group.
Negotiation aims to resolve an issue so that both parties can benefit from it. There is a need for patience in every type of negotiation because, with patience and compromise, no matter can be resolved. As more than two parties are involved during the negotiation, you have to prepare yourself for good communication skills.
Good and appropriate communication conveys a complete message to the listeners and increases your reputation among members. They may agree or disagree with your interest and opinion. Whenever entering into any type of negotiation, try to follow etiquette and show respect to the next party. Developing a positive atmosphere where communication can be easily handled is necessary. If the next party has disagreed with your point of view, don’t feel bad or bad. It is a part of the negotiation. Try to achieve conclusions with positivity.