Negotiation - Term Overview

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The concept of negotiation, key to understanding the business world, refers to the process of exchanging information and promises in which two or more interested parties intervene. These parties, who have common interests, try to reach a common agreement that benefits them equally. Given that the most characteristic feature of negotiation is the power of interaction between the parties involved, it's understandable that dialogue is the most common way to implement this concept.

Characteristics of the negotiation

In order for two or more people to be able to exchange a series of commitments and promises, it's necessary that the following premises are met. If any of them fail, the dynamics of the negotiation would not come to fruition and the purpose of the negotiation would not be fulfilled:

  • The main objective of the negotiation is to obtain benefits.
  • There are two or more negotiating parties who are interested in this dynamic.
  • Each of the parties has its own negotiation strategies to ensure that most of its conditions are accepted.
  • The negotiating parties speak, share their points of view and dispute the opinion of others. The objective? Find out how much each is willing to compromise before the final verdict.

Negotiation types

While every negotiation process has the same rationale, the truth is that there are different types that serve different purposes. Discover the most common:

1. Accommodative negotiation

The negotiating person accepts all the conditions of the counterpart as long as a long-term relationship between the two can be established. It's possible that, with the passage of time, the negotiating person has grown enough to begin to demand some of its conditions.

2. Competitive or distributive negotiation

Unlike accommodative negotiation, in this type of negotiation there is equality of conditions between both parties and, therefore, competition. The objective is to compete so that the greatest number of own conditions are accepted by the other negotiating party.

3. Collaborative or integrative negotiation

In this case, all the negotiating parties are willing to compromise on most of their conditions as long as a favorable agreement is produced for all parties.

4. Avoidance negotiation

It's probably the most unusual case, since this type of negotiation consists precisely in avoiding the same negotiation process. Both parties understand that there will be no deal that brings benefits, so the negotiation will not make much sense.

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