NEGOTIATIONS, GOALS & ITS TYPES

NEGOTIATIONS, GOALS & ITS TYPES

Ashish kapoor

A2305210072

WHAT IS NEGOTIATION?

A NEGOTIATION is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two people/parties involved in negotiation process.

In other words, it is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. It is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument.

GOALS OF NEGOTIATION:

When you start preparing for negotiations, one of the critical items is to establish your goal.  A lot of people assume that your negotiation goal is to get the best price.  Usually it’s not that, but a higher objective, such as getting the best value or establishing a business relationship or becoming a preferred supplier. 

The Goal should be to:

v  Improve personal and professional profitability.

v  Achieve desired outcomes and create synergy while fostering relationships.

v  Maximize financial returns and value in negotiations.

v  Improve personal relationships with colleagues, clients and loved ones.

v  Produce an agreement

v  Have efficient negotiation

v  Improve or at least not damage the relationship between the parties

TYPES OF NEGOTIATION:

Negotiation can take a wide variety of forms, from a trained negotiator acting on behalf of a particular organization or position in a formal setting, to an informal negotiation between friends

There are basically  two types of negotiation:

·         Distributive negotiation

·         Integrative negotiation

Distributive negotiation:-

Distributive negotiation is also sometimes called positional or hard-bargaining negotiation. In a distributive negotiation, each side often adopts an extreme position, knowing that it will not be accepted, and then employs a combination of guile, bluffing, and brinksmanship in order to cede as little as possible before reaching a deal.

Distributive bargainers conceive of negotiation as a process of distributing a fixed amount of value.

The term distributive implies that there is a finite amount of the thing being distributed or divided among the people involved. A distributive negotiation often involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future. Simple everyday examples would be buying a car or a house.

Integrative negotiation:-

Integrative negotiation is also sometimes called interest-based or principled negotiation. It is a set of techniques that attempts to improve the quality and likelihood of negotiated agreement by providing an alternative to traditional distributive negotiation techniques.

While distributive negotiation assumes there is a fixed amount of value to be divided between the parties, integrative negotiation often attempts to create value in the course of the negotiation. It focuses on the underlying interests of the parties rather than their arbitrary starting positions, approaches negotiation as a shared problem rather than a personalized battle, and insists upon adherence to objective, principled criteria as the basis for agreement. This type of negotiation often involves a higher degree of trust and the forming of a relationship. It can also involve creative problem-solving that aims to achieve mutual gains.