Types of Negotiation
Applications of Negotiation
- Business negotiation: Develops in the workplace and involves representation of the company and workers.
- Commercial negotiation: Not only carried out by commercial professionals, but people use it regularly; for example, negotiating prices of items.
Strategies
- Integrative / cooperative: Based on the interests of both parties; it aims to secure benefits for all in the development of the negotiation.
- Distributive / competitive: Based on the taking of positions by the parties, which makes it a power struggle between them.
- Joint: This type of negotiation converges cooperative bargaining characteristics and competitive characteristics.
Number of Parties
- Bilateral negotiation: Only two negotiating parties involved.
- Multilateral negotiation: Involving more than two parties.
Entrusted Business Types
- Overconfidence: Profit for both, but sometimes it kills trust.
- Mistrust: Suspicion of the sincerity of the other party. Requires verification of all information presented and could create problems.
- Authoritarian: Imposes its decisions and objectives regardless of the other party. Competitive negotiation style.
- Conciliator: Much dialogue. Creates an atmosphere of cordiality and usually gets good results.
- Assertive: Stands firm without harming the other party. The other party feels heard.
Key Business Practices
- Punctuality: Suitable to be initiated at the appointed time.
- Verbal and nonverbal: Be aware of both; avoid damaging your image.
- Be clear in the exposition and answer questions: You must prepare a script that lets you present your ideas and create a climate of confidence between the parties.
- Be patient: Do not lose your temper; listen to the other party.
- Do not discuss irrelevant issues: Avoid them.
- Avoid personal judgments: Do not take it personally if you do not convince the other party; avoid blaming or attacking the person.
- Emotional intelligence: Empathize with the other party and persuade. Aim to benefit all and motivate the people around you.
Phases of Negotiation
- Preparation phase: Collect, study, and analyze all information on the subject to identify targets, routes, and barriers that may hinder the meeting.
- Discussion phase: Each party displays its position firmly; negotiators defend their ground.
- Rapprochement and exchange of views phase: Negotiators should try to reconcile their positions in order to reach agreements beneficial to both.
- Closing phase: May end with the signing of an agreement between the parties. It is important to sign it as soon as possible on both sides to avoid any misunderstanding later.
Three Objectives
- Minimum acceptable objective: Below this, there is no negotiation.
- Reasonable objective: Helpful and achievable. Reaching it would benefit both sides.
- Utopian objective: Achieving what you want without giving anything in return.
