Negotiation is the process that aims to generate benefits in which two or more parties or agents are involved. There are different types of negotiation, depending on the style and the way it proceeds.
The negotiation usually aims to resolve the differences between the parties involved and generate an advantageous position for both interests. This action occurs not only in business but also in everyday situations. Knowing how to negotiate helps people to fulfill their interests and objectives.
What are the Negotiating Styles?
Good negotiation requires that its participants have adequate communication skills. We distinguish three styles of negotiation:
Immediate Negotiation: An attempt is made to reach an agreement, leaving aside personal relationships (for example, buying and selling).
Advanced Negotiation: It is one in which, little by little, an approximation is generated in the personal relationship, creating an environment of trust before moving on to business.
Situational Negotiation: The latter adapts to the circumstances: the details of the situation, the abilities, and the weaknesses are known. It is the most elegant and practical style because a technique adapted to the problem is used here, switching between the other two negotiating styles as necessary.
Types of Negotiation and What Each one Consists of
Apart from the three negotiation styles mentioned above, different types of negotiation can be used when doing business or reaching an agreement. Each of them can be adapted to the individual’s personality, values , and principles.
Although someone identifies more with a specific technique, it is convenient to know how to recognize them all to anticipate the actions of other negotiators. In addition, it is essential to take into account the 8 phases of negotiation, applicable to any of the following types:
Accommodative Negotiation
In this negotiation, the negotiator adopts a more submissive and conciliatory behavior concerning the other party. When carrying out this strategy, the negotiator knows that will not obtain the best results will not receive the best results in the short term.
In this technique, what prevails is patience, hoping to reap the benefits in the long term. It’s like letting the other party win at first. It is used when the relationship with the other party is essential or when it is necessary to gain their trust with a view to the future.
Competitive Trading
It is a type of aggressive negotiation where the intervener hopes to obtain most of the benefits in the agreement. Here the relationship with the opponent becomes less critical since the fundamental thing is to get the best result. The negotiator is victorious, losing the other party.
There are certain circumstances in which this technique is recommended. For example, if you are only going to negotiate once and there is no need to take care of the relationship with the other party. Also, in negotiations where several parts of the benefit are distributed, what the others lose, one part gains. Or those in which the price is the only thing that matters.
Collaborative Negotiation
Also known as cooperative or integrative. It is the one in which the two negotiators win. Both show assertive behavior to reach an agreement that provides more benefits for both. Here the relationship development with the other party plays an important role. They both win.
It is the ideal technique to negotiate within an organization, avoiding conflicts. It is also used when the aim is to improve the relationship with the other party and, in turn, obtain the best results. Typically, it occurs if both parties have common goals and objectives.
Distributive Trading
With this negotiation technique, the parties to the agreement aim to obtain the most significant benefit. Here it is already known in advance that there is a clear winner and a loser in the negotiation. This is the most traditional trading technique.
The ultimate goal is to obtain the maximum possible benefit from what you are competing for. All parties know perfectly well that what one wins, the other loses. Whether or not the parties achieve their goals depends on the strategies and tactics they employ. It is typical in “haggling” situations.
Negotiation by Compromise
With this type of negotiation, the aim is to reach a superficial agreement but sufficient so that the objectives are achieved with what has been agreed, even if these objectives are not fully completed. Both parties to the negotiation recognize that there may be some loss but that it is better to settle than to lose everything entirely.
The compromise technique means that both parties get more or less what they were looking for when they started negotiating. Consequently, this type of negotiation requires a high level of trust between the parties. It is an ideal negotiation for circumstances where you have to act quickly.
Avoidant Negotiation
It is used when the agreement is counterproductive for one or both parties. In this case, the supposed benefits obtained in the said agreement will not compensate for the problems of carrying it out. This is when the negotiator chooses not to negotiate, creating a lose-lose situation for the parties.
