7 Types of Negotiation You Should Know

Negotiation is a process of communication between two or more parties who have different interests, goals, or preferences, and who seek to reach an agreement that benefits all of them. Negotiation can take place in various contexts, such as business, diplomacy, politics, personal relationships, and everyday life. Depending on the situation, different types of negotiation may be more or less appropriate or effective. In this article, we will explore seven types of negotiation that you should know and how to use them.

Key Takeaways

Negotiation is a process of communication between two or more parties who have different interests, goals, or preferences, and who seek to reach an agreement that benefits all of them.

There are seven types of negotiation: distributive, integrative, mixed-motive, principled, multi-party, cross-cultural, and online.

Each type of negotiation has its own characteristics, advantages, disadvantages, and applications.

Negotiators should be aware of the type of negotiation they are engaged in and use appropriate strategies and tactics accordingly.

Negotiators should also consider the cultural, relational, ethical, and technological aspects of their negotiation context.

1. Distributive Negotiation

Distributive negotiation is also known as competitive, zero-sum, or win-lose negotiation. It is based on the assumption that there is a fixed amount of value or resources to be divided among the parties, and that each party tries to maximize their share at the expense of the other(s). Distributive negotiation is often characterized by hard bargaining, positional tactics, threats, and ultimatums. It is suitable for situations where the parties have no long-term relationship or trust, where the issues are simple and independent, and where there is no possibility of creating more value through cooperation.

2. Integrative Negotiation

Integrative negotiation is also known as cooperative, collaborative, or win-win negotiation. It is based on the assumption that there is potential to create more value or resources for all parties through mutual problem-solving and creative thinking. Integrative negotiation is often characterized by interest-based bargaining, mutual concessions, trust-building, and relationship management. It is suitable for situations where the parties have a long-term relationship or interdependence, where the issues are complex and interrelated, and where there is room for innovation and synergy.

3. Mixed-Motive Negotiation

Mixed-motive negotiation is a combination of distributive and integrative negotiation. It is based on the recognition that most real-life negotiations involve both competitive and cooperative elements, and that the parties have both conflicting and compatible interests. Mixed-motive negotiation requires the parties to balance their own needs and goals with those of the other(s), and to adopt a flexible and adaptive approach that can switch between distributive and integrative strategies as needed. It is suitable for situations where the parties have some degree of relationship or dependence, where the issues are moderately complex and interrelated, and where there is some potential for creating more value through cooperation.

4. Principled Negotiation

Principled negotiation is a method of negotiation developed by Roger Fisher and William Ury in their book Getting to Yes: Negotiating Agreement Without Giving In. It is based on four principles: separate the people from the problem, focus on interests rather than positions, generate a variety of options for mutual gain, and use objective criteria to evaluate options. Principled negotiation aims to achieve fair and mutually beneficial outcomes while preserving the relationship and respect between the parties. It can be applied to any type of negotiation, but it is especially useful for situations where emotions, values, or principles are involved.

5. Multi-Party Negotiation

Multi-party negotiation involves more than two parties who have different interests, goals, or preferences, and who seek to reach an agreement that benefits all of them. Multi-party negotiation is more complex and challenging than bilateral negotiation because it involves more issues, perspectives, dynamics, and stakeholders. Multi-party negotiation requires the parties to manage multiple relationships, coalitions, agendas, and communication channels, and to coordinate their actions and decisions across multiple levels and stages. It is suitable for situations where the parties have a common problem or opportunity that requires collective action or cooperation.

6. Cross-Cultural Negotiation

Cross-cultural negotiation involves parties who come from different cultural backgrounds who have different values, norms, beliefs, expectations, and communication styles, and who seek to reach an agreement that benefits all of them. Cross-cultural negotiation poses additional challenges and opportunities for negotiators because culture influences how people perceive, interpret, express, and respond to information and behavior in a negotiation context. Cross-cultural negotiation requires the parties to be aware of their own and the other’s cultural assumptions and preferences, and to adapt their strategies and tactics accordingly. It is suitable for situations where the parties have a shared interest or goal that transcends their cultural differences.

7. Online Negotiation

Online negotiation involves parties who use information and communication technologies (ICTs) such as email, chat, video conferencing, or social media platforms to conduct their negotiation process. Online negotiation offers advantages such as convenience, accessibility, cost-effectiveness, and anonymity, but it also poses disadvantages such as lack of nonverbal cues, miscommunication, delayed feedback, and cyber-security risks. Online negotiation requires the parties to choose the appropriate ICTs for their situation, and to use them effectively and ethically. It is suitable for situations where the parties are geographically dispersed, have time constraints, or prefer a low-context communication style.

Tips

Know your own and the other’s interests, goals, preferences, and alternatives before entering a negotiation.

Choose the type of negotiation that best suits your situation and objectives.

Be flexible and adaptable to changing circumstances and new information during the negotiation process.

Seek to create value for all parties through cooperation and creativity.

Communicate clearly, respectfully, and persuasively with your counterparts.

What are the types of negotiation?

Negotiation is a skill that can help you achieve your goals in various situations, such as business, sales, purchasing, or personal relationships. Negotiation involves two or more parties with different interests or preferences who try to reach an agreement that satisfies everyone. However, not all negotiations are the same. Depending on the context, the goals, and the relationship of the parties, different types of negotiation may be more suitable or effective.

Distributive negotiation

Distributive negotiation is a type of negotiation where the parties compete over a fixed or limited resource, such as money, time, or market share. In this type of negotiation, any gain for one party comes at the expense of the other party. Therefore, distributive negotiation is also known as win-lose or zero-sum negotiation. Distributive negotiation often involves haggling, bargaining, or making concessions to reach a deal. Distributive negotiation is common when the parties have no pre-existing or long-term relationship and are only interested in maximizing their own outcomes. Examples of distributive negotiation include buying or selling a car or a house, negotiating a salary or a contract, or bidding for a project.

Integrative negotiation

Integrative negotiation is a type of negotiation where the parties cooperate to create value and find solutions that benefit both sides. In this type of negotiation, the parties try to understand each other’s interests, needs, and priorities and look for ways to expand the pie or create win-win outcomes. Integrative negotiation often involves brainstorming, problem-solving, or sharing information to reach a mutually beneficial agreement. Integrative negotiation is common when the parties have a pre-existing or long-term relationship and are interested in maintaining or enhancing it. Examples of integrative negotiation include negotiating a partnership or a joint venture, resolving a conflict or a dispute, or collaborating on a project.

Adversarial negotiation

Adversarial negotiation is a type of negotiation where the parties openly compete against each other and use aggressive or deceptive tactics to gain an advantage. In this type of negotiation, the parties do not trust each other and may lie, bluff, threaten, or manipulate to achieve their goals. Adversarial negotiation can lead to breakdowns in communication, escalation of conflict, or damage to relationships. Adversarial negotiation is often used in distributive negotiation situations where the stakes are high and the parties have no concern for each other’s interests or feelings. Examples of adversarial negotiation include negotiating with an enemy or a rival, negotiating in a crisis or an emergency, or negotiating in a legal or political context.

Principled negotiation

Principled negotiation is a type of negotiation where the parties use objective criteria and fair standards to reach an agreement. In this type of negotiation, the parties focus on the merits of the issues rather than the positions of the parties. They also separate the people from the problem and treat each other with respect and dignity. Principled negotiation can help the parties avoid emotional reactions, personal attacks, or irrational behavior that can hinder the negotiation process. Principled negotiation can be used in both distributive and integrative negotiation situations where the parties want to achieve a fair and reasonable outcome. Examples of principled negotiation include negotiating with a friend or a family member, negotiating with a customer or a supplier, or negotiating with a colleague or a boss.

Frequently Questions

What are the types of negotiation?

There are seven types of negotiation: distributive, integrative, mixed-motive, principled, multi-party, cross-cultural, and online.

What is the difference between distributive and integrative negotiation?

Distributive negotiation is based on the assumption that there is a fixed amount of value or resources to be divided among the parties, and that each party tries to maximize their share at the expense of the other(s). Integrative negotiation is based on the assumption that there is potential to create more value or resources for all parties through mutual problem-solving and creative thinking.

What are the four principles of principled negotiation?

The four principles of principled negotiation are: separate the people from the problem, focus on interests rather than positions, generate a variety of options for mutual gain, and use objective criteria to evaluate options.

What are the challenges and opportunities of cross-cultural negotiation?

Cross-cultural negotiation poses additional challenges and opportunities for negotiators because culture influences how people perceive, interpret, express, and respond to information and behavior in a negotiation context. Cross-cultural negotiation requires the parties to be aware of their own and the other’s cultural assumptions and preferences, and to adapt their strategies and tactics accordingly.

What are the advantages and disadvantages of online negotiation?

Online negotiation offers advantages such as convenience, accessibility, cost-effectiveness, and anonymity, but it also poses disadvantages such as lack of nonverbal cues, miscommunication, delayed feedback, and cyber-security risks. Online negotiation requires the parties to choose the appropriate ICTs for their situation, and to use them effectively and ethically.

References:

http://psych.cf.ac.uk/home2/manstead/Van%20Kleef%20et%20al.%20%282006b%29.pdf

http://www.psych.nyu.edu/gollwitzer/771.pdf

https://deepblue.lib.umich.edu/bitstream/2027.42/26263/1/0000344.pdf