The document discusses three types of negotiation: distributive negotiation, where parties compete over a fixed resource; integrative negotiation, where parties cooperate and share interests to create mutual value; and team negotiation, where negotiation occurs between two teams rather than individuals. Distributive negotiation involves competition, while integrative negotiation involves sharing information and finding creative solutions to meet both sides' interests. Team negotiation refers to negotiations between teams of companies or organizations.
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TYPES OF NEGOTIATION.pptx
1. TYPES OF NEGOTIATION :
• Distributive Negotiation
• Integrative Negotiation
• Team Negotiation
2. Distributive Negotiation
• A distributive negotiation is a negotiation in which the parties complete over the distribution of a
fixed sum of value. The issue in a distributive negotiation is who will claim the most value out of
the fixed value. This is also referred as zero-sum or constant-sum negotiation. Here relationship
and reputation mean little in this tug of war. Information plays an important role in this type of
negotiation. The less the other side knows about weakness and real preferences and more it
knows about your bargaining strength , the better will be your position.
3. Example :
• The sale of clothes, carpet, etc where the buyer and the seller do not know each
other. There is no relationship , all that matters is the price and each side haggles
for the best deal. One party’s gain is equal to the loss of the other party.
4. Integrative Negotiation
• In an integrative negotiation , the parties cooperate to achieve maximum
benefits by integrating their interests into an agreement while competing to
divide the value. Here both parties strive to create values and claim it.
5. Example :
• A situation where buyer of marble is approaching the seller and both are sharing
their interests and requirements . Seller is offering the tacit knowledge of marble
that can help the buyer to enhance the beauty of floor besides catering his
requirements.
6. To Make Integrative Negotiation Successful One Should
Remember the Following :
1. Provide significant information about the circumstances and reasons of making a deal.
2. Talk about their real interests or business constrains.
3. Reveal and explain in general terms their preferences among issues or options.
4. Consider and reveal any additional capabilities or resources they have that might meet the other
side’s interests and could be added to the deal.
5. Find the creative option that will meet the interests of both parties to the greatest extent possible.
7. Team Negotiation
• This type of negotiation process takes place between the two teams .
• Example :
Negotiation strategies between the teams of two companies that are looking to
merge are called team negotiation.
While putting together a negotiation team, a company looks for members with
excellent negotiation skills.