types of negotiation
What are the Types of Negotiation?
In business, there are different types of negotiation, each needing distinct approaches for success.
When preparing to negotiate, business professionals often wonder what types of negotiation are available to them. Some of the most common are distributive negotiation, integrative negotiation, team negotiation, and multiparty negotiation.
In distributive negotiation, parties compete over the distribution of a fixed pool of value. Here, any gain by one party represents a loss to the other. You may also hear this referred to as a zero-sum negotiation or win-lose negotiation.
Integrative negotiation gives us one of the biggest chances of a win-win. In these types of negotiation situations, there is more than one issue to be negotiated, and negotiators have the potential to make tradeoffs across issues and create value. In many cases, distributive negotiations can become integrative if we take the time to search for additional issues to include.
Team negotiations are those types of negotiation situations where the negotiating parties are made up of more than one person. These might include union contract negotiations or major business negotiations.
Lastly, mulitparty negotiations include, as you might imagine, multiple parties. These types of negotiation situations might include municipal projects or international negotiations. Multiparty negotiations do require more complex negotiating skills, but there is also more opportunity to find tradeoffs and create value.
One of the final types of negotiation that you may encounter is the “one-shot” negotiation where parties have no intention of continuing to work together. One-shot negotiations often carry a risk of unethical behavior and hard bargaining if parties believe they have no need to build a trusting relationship.
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