TUGAS 6 : TYPES OF NEGOTIATION

Negotiation comes from the Latin neg (no) and otsia (leisure) referring to businessmen who, unlike the patricians, had no leisure time in their industriousness; it held the meaning of business (le négoce in French) until the 17th century when it took on the diplomatic connotation as a dialogue between two or more people or parties intended to reach a beneficial outcome over one or more issues where a conflict exists with respect to at least one of these issues.Thus, negotiation is a process of combining divergent positions into a joint agreement under a decision rule of unanimity.

It is aimed to resolve points of difference, to gain advantage for an individual or collective, or to craft outcomes to satisfy various interests. It is often conducted by putting forward a position and making concessions to achieve an agreement. The degree to which the negotiating parties trust each other to implement the negotiated solution is a major factor in determining whether negotiations are successful.

People negotiate daily, often without considering it a negotiation. Negotiation occurs in organizations, including businesses, non-profits, and within and between governments as well as in sales and legal proceedings, and in personal situations such as marriage, divorce, parenting, etc. Professional negotiators are often specialized, such as union negotiators, leverage buyout negotiators, peace negotiator, or hostage negotiators. They may also work under other titles, such as diplomats, legislators, or brokers.

Negotiations should all be win-win. After all, why shouldn't everyone win?

There are 7 types of negotiations. It's important to consider which type you're facing — each demands a different strategy.

1.     1.Win-Lose Negotiations

In game theory they call a win-lose negotiation a zero-sum game.

The vast majority of games are zero-sum.

A common analogy for a zero-sum game is dividing a pie. The pie doesn't get smaller or bigger — the players play a game to decide who gets the bigger slice.

If you're facing a win-lose negotiation focus your strategy on determining the other party's minimum requirements (e.g. bottom price).

2. Win-Win Negotiations

Win-win negotiations involve expanding the pie. For example, if two people decide to go into business together: their partnership negotiations are win-win.

One partner may win and the other may lose. However, a win-win outcome is possible because they hope to make money on their investment (expand the pie).

Salary negotiations and business-to-business sales can usually be considered win-win.

Win-win negotiations may be just as focused on building a bigger pie as dividing the pie fairly. Every effort should be made to keep negotiations friendly and constructive.

3. Lose-Lose

Lose-Lose negotiations involve a situation in which everyone is going to lose.

Lawsuits are often lose-lose.

Let's say you leave your jacket at a restaurant coat-check and they lose it. Your negotiations for compensation with the restaurant's manager are lose-lose. Your not likely to get more money than the coat was worth. The restaurant also loses.

Lose-lose negotiations can quickly turn bitter and adversarial. Despite the fact that both parties will lose it's important to try to maintain a collaborative approach.

4. Adversarial Negotiations

Adversarial negotiations are highly competitive in nature.

Win-lose and lose-lose negotiations are most likely to be adversarial. Nobody wants to lose, this tends to drive intense competition.

In some cases, win-win negotiations are also adversarial. For example, high stakes business-to-business sales negotiations often become adversarial (customer vs seller).

In extreme cases, negotiations are adversarial because the parties involved intensely dislike each other. In such cases, negotiators may not be interested in winning. Instead, they may seek to maximize the losses of the other party. Negotiations between political rivals may turn destructive in this way.

Adversarial negotiations require battle strategies.

5. Collaborative Negotiations

Collaborative negotiations are creative and friendly. For example, business partnership negotiations are often collaborative. Win-win negotiations that are expected to yield big wins tend to be collaborative.

Collaborative negotiations rely on persuasive techniques, optimism and creativity.

6. Multi-Party Negotiations

Multi-Party negotiations are complex negotiations between two or more parties. They can be extremely challenging and may take years to complete.

International treaties between nations are often multi-party.

Multi-party negotiations require advanced diplomatic techniques.

7. Bad Faith Negotiation

Bad faith negotiation occurs when a party makes commitments that they have no intention of keeping.

Bad faith negotiation is often used as a delay or diversionary tactic. For example, a country may sign an environmental treaty with no intention of implementing it just to relieve political pressure from its citizens.

If you suspect that the other side is negotiating in bad faith, it's time to start thinking about penalties in your agreement.