Negotiation - Meaning & Types

Published in Human Resources Terms by MBA Skool Team Last Updated: November 13, 2023Reading time:

What is Negotiation?

Negotiation involves discussion between two or multiple parties with the aim of ending differences and reaching an understanding. Each party tries to further their interests and also tries to attain a compromise. There are several situations when a negotiation is carried out in an organization- from wages negotiation at the time of recruitment, negotiations with unions regarding their requests, resolving employee conflicts, making downsizing decisions, making budgetary allocations etc.


Types of Negotiation

There are essentially two main types i.e. distributive, integrative

Distributive negotiation is also called hard bargaining and is similar to haggling in the market. It is viewed as distributing a fixed amount of value between the parties. Parties employ guile and deceit to cede as little as possible to the others.

In integrative negotiation, both parties try to increase the value through talks. There is also greater cooperation and trust between the two parties. It is also called principled or interest based discussion.


Styles of Negotiation

The common styles are as follows:

• Accommodating – They involve preserving the relationship and giving in to the others’ requests. Such people can be easily taken advantage of.

• Avoiding – These people will not engage in it unless absolutely required.

• Collaborating – They are empathetic to the problems of the other parties, and easily use negotiation to solve complex problems.

• Competing – These individuals try and win the negotiations i.e they try to maximize their own benefits in the deal. They do not pay any importance to relationships.

• Compromising – They are too eager to close the deal by giving in to the requests of the opposite party.

Hence, this concludes the definition of Negotiation along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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