4 Effective Negotiation Strategies

The ability to negotiate is crucial in many facets of life and the workplace. Discover the various negotiation processes and four successful negotiation tactics.

What Is Negotiation?

When two or more parties with conflicting interests negotiate a deal, an agreement is reached. The parties can arrive at innovative solutions to a potentially adversarial situation through back-and-forth bargaining activity. You can handle these occasionally tense situations with the aid of effective negotiation skills.

6 Types of Negotiation

There are various negotiation styles, including:

1. Adversarial negotiation: Distributive negotiation situations are where adversarial negotiation happens most frequently. The parties engage in open competition with one another during this type of negotiation. Each side is aware that the stakes are high and that the other will lose if one side prevails. When one party lies about their willingness to negotiate during an adversarial negotiation, it can result in a breakdown of the process.

2. Distributive negotiation: When two parties bargain over a fixed or limited resource, it is referred to as a distributive negotiation, a win-lose negotiation, or a zero-sum negotiation. Any party's gain in a distributive negotiation must come at the expense of the other. Clear priorities, perseverance, and emotional control are necessary for this kind of negotiation because emotions can be difficult and contentious.

3. Integrative negotiations: Also referred to as collaborative negotiations, these discussions can involve more than one topic or resource. Because of this, you can also refer to this negotiation as a win-win negotiation where both parties benefit. In a win-win scenario, both parties can benefit from the negotiation process even though they may both have to give up something.

4. Multiparty negotiation: As the name implies, more than two parties engage in this type of negotiation in order to find a resolution. Multiparty negotiations are difficult because of their complexity, which calls for careful planning. But more parties to a negotiation often mean more chances for success. This increases the likelihood of integrative outcomes, in which all parties make compromises to arrive at a solution that benefits both parties.

5. Principled negotiation: To reach an integrative agreement, principled negotiation depends on the standards and principles of the participants. This type of negotiation is preferred because it aims to find a solution that benefits all parties and stays away from hard bargaining or deceit. A principled negotiator is constantly looking for ways to benefit both parties.

6. Team negotiations: Teams of negotiators from each party work together during team negotiations. Inexperienced negotiators may find it difficult to coordinate and specialize in negotiation teams. Greater effectiveness from the team as a whole may result from the division of tasks. This cooperative strategy aids teams in winning difficult negotiations.

4 Effective Negotiation Strategies

Different negotiation styles are more appropriate in certain circumstances. Keep these negotiation tactics in the forefront of your mind whether you're engaged in a business negotiation or trying to resolve a conflict:

1. Accept the best substitute for a negotiated deal. Some negotiations quickly make it clear that both parties are adamant about their stances. As a result, it might be impossible for one or both parties to reach an agreement. The best alternative to a negotiated agreement (BATNA), which establishes guidelines for what occurs if you can't reach an agreement, must be considered in these circumstances. For instance, a BATNA resolution might stipulate that if a worker insists they need a raise to keep their job and their boss flatly declines, they must work for the company for another six months at the current rate before quitting. A BATNA should, in theory, make allowances for both sides, even though it has many more trade-offs than a productive business resolution. The employer has six months to find a replacement, and the employee has six months to find a job that pays more.

2. Use body language to convey clues. When presented with an offer you don't like, one of the more subtle but effective negotiating techniques is to covertly display negative body language. For instance, you might allow yourself to flinch visibly if you are given a lowball offer. This flinch may convey your response to your partner more viscerally than any vocal response, and it may cause them to reassess. The best negotiators use body language strategically to quickly deconstruct complex negotiations and facilitate commercial success.

3. Set a deadline for your offer. Give your negotiating partner a deadline to accept your offer or leave if you think it's reasonable. Be mindful that the other party might make a counteroffer even if you present your offer as "take it or leave it." But putting a deadline on it makes the other side take things seriously. Because of this, it's one of the more successful negotiating strategies, and competitive negotiators use it at different points throughout the negotiation process.

4. Strive for a win-win scenario. In a negotiation that is successful, you want both parties to feel like they came out on top. Then, a skilled negotiator might see their work as solving problems. Consider: What am I negotiating for, and what is my partner negotiating for? How can we benefit each other? Next, put forth a plan that satisfies everyone's needs while improving the situation.