Negotiation is the mean by which people deal with their differences. Whether those differences involve purchase of a new automobile, a labor contract dispute, the terms of sale, a complex alliance between two companies, or a peace accord between warring nations, resolutions are typically sought through negotiations. To negotiate is to seek mutual agreement through dialogue.
A business negotiation may be a formal affair that takes place across the proverbial bargaining table, in which you haggle over price and performance.
It could be much more casual, such as meetings of a manager with his subordinate employees whose collaboration is needed to get a job done. If you are a supervisor, manager, or executive, you spend probably a good part of your day negotiating with people inside or outside your organization – often without even realizing it. Given the role of negotiations in our personal and professional lives, it is important to improve our negotiating skills. Even a modest improvement in those skills can yield a sizable payoff, such as larger pay raise, a better deal on a home purchase, or more effective working arrangements in the office.
Q2] Types of negotiations?
Distributive Negotiation: A negotiation in which the parties compete over the distribution of a fixed sum of value. The key question in a distributed negotiation is “who will claim the most Value”?. In distributive negotiations, a gain by one side is made at the expense of the other.
Distributive Negotiation can also be referred as a Zero-sum, or constant-sum, or the win-lose situation.
A seller’s goal is to negotiate as high as possible, a buyer’s goal is to negotiate as low as possible.
Distributive negotiation is more like a tug of war, each negotiator aims to “pull” the final deal point as close to his or her side’s desired price as possible.
Information plays an important role in Distributive Negotiation. The less the other side knows about your...