There are many basic examples of negotiating in our day-to-day lives happening right before our eyes. Deciding to wash clothes on a particular day, or postpone the plan for a later date too is a negotiation with self. A typical negotiation follows the three steps given below −
● Exchange of Information
● Closing the deal
In general, there are two types of negotiations −
● Integrative Negotiations
● Distributive Negotiations
Let us get acquainted with both these core negotiation approaches.
These are built on cooperation. Both the parties think that they can benefit something without any significant investment. The prominent approach in these negotiations is problem solving.
This approach allows each party to consider low-priority problems, in return for the other party to consider high priority problems. It is important to have trust and cooperation between the two parties to achieve a successful integrative negotiation.
These negotiations involve a fixed total. Each party desires to gain as much as possible. A perfect example would be bargaining over the cost of a cloth with a cloth storekeeper.
In these type of negotiations, the parties do not intend to form a relationship and the information is kept confidential. Both the parties try to acquire information from the other party.