Types of Basic Negotiations
To gain important skills in conducting negotiations, consider joining Negotiation Training Course offered by pdtraining in Sydney, Canberra and other cities in Australia.
The two basic types of negotiations require completely different approaches:
Integrative negotiations are based on cooperation.
Both parties believe they can walk away with something they want without giving up something important. The dominant approach in integrative negotiations is problem solving.
Integrative negotiations involve:
• Multiple issues. This allows each party to make concessions on less important issues in return for concessions from the other party on more important issues.
• Information sharing. This is an essential part of problem solving.
• Bridge building. The success of integrative negotiations depends on a spirit of trust and cooperation.
Distributive negotiations involves a fixed pie.
There is only so much to go around and each party wants as big a slice as possible. An example of a distributive negotiation is haggling over the price of a car with a car salesman. In this type of negotiation, the parties are less interested in forming a relationship or creating a positive impression.
Distributive relationships involve:
• Keeping information confidential. For example, you don’t want a car salesman to know how badly you need a new car or how much you are willing to pay.
• Trying to extract information from the other party. In a negotiation, knowledge truly is power. The more you know about the other party’s situation, the stronger your bargaining position is.
• Letting the other party make the first offer. It might be just what you were planning to offer yourself!
Pdtraining delivers 1000’s of professional development courses each year in Brisbane, Sydney, Parramatta, Melbourne, Adelaide, Canberra and Perth, so you can be assured your training will be delivered by a qualified and experienced trainer.
All public Negotiation Training courses include am/pm tea, lunch, printed courseware and a certificate of completion. Customised courses are available upon request so please contact pdtraining on 1300 121 400 to learn more.