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Monday, 14 May 2012

Types of Negotiation

'Negotiation' is a discussion between two individuals regarding a contract, agreement or relationship. It is a process of getting best terms, acceptable to both the parties and a means of getting what one wants from others.

Making crucial strategic choice between substantive outcome and relationship plays a role in deciding te type of negotiation. Every negotiation can be measured by the importance of the relationship and substance. Knowing this will help one design goals and approach in that specific situation.


  • Tacit Cooperation:- In this, neither substance nor relationship matter greatly. For example, two strangers arrive at an entrance door of a building out who should go first. In such a situation, avoiding or accommodating approach make sense. One person either lets the other person go first or allows the other person go first the choice of going first or second.

  • Transactions:- Transactions are negotiations in which the substantive outcome is of high value and the relationship value is low.

  • A competitive approach would seem to be the natural response to such negotiations and that certainly makes sense. However, many negotiators too often fail to recognize the importance of rapport and trust-building in such situations.

  • Relationships:- There are negotiations in which the parties perceive a high importance for the relationship and place a low value on the substantive stakes of the negotiation. For example, friendhships and family are where such negotiations would occur.

  • An accommodating approach is important to take in such situations. Communicating clearly and building trust skills practiced either too infrequently or too unskillfully.

  • Balanced Concerns:- Balanced concerns are negotiations in which both relationship and substance matter. Classic examples involve co-workers, partnerships, and alliances.

  • When an owner of a smaller business merges with an owner of a larger one, both obviously care greatly about the financial health for themselves individually and the new company as a whole.