Negotiation strategies

Definition

Negotiation strategies are approaches and techniques used by individuals or groups to reach agreements and resolve conflicts effectively. These strategies can be influenced by the different bases of power, as they determine how negotiators leverage their authority, influence, and resources during the negotiation process.

5 Must Know Facts For Your Next Test

1. Understanding different negotiation strategies can significantly impact the outcome, as they help negotiators adapt to various contexts and leverage their strengths.
2. Power dynamics play a crucial role in shaping negotiation strategies, with individuals possessing more power often using assertive or competitive tactics.
3. Negotiators often assess their counterpart's bases of power to determine the most effective strategy, balancing cooperation and competition.
4. Effective negotiation requires preparation, including identifying goals, understanding needs, and developing potential concessions.
5. Nonverbal communication and emotional intelligence are important components of successful negotiation strategies, influencing perceptions and outcomes.

Review Questions

• How do different bases of power influence the choice of negotiation strategies?
  • Different bases of power, such as legitimate, referent, expert, reward, and coercive power, greatly influence the choice of negotiation strategies. For instance, individuals with expert power may adopt more collaborative approaches due to their specialized knowledge, while those with coercive power may lean toward competitive tactics. Understanding these dynamics helps negotiators tailor their strategies according to the specific power relationships at play.
• Compare and contrast collaborative negotiation and distributive bargaining in terms of outcomes and approaches.
  • Collaborative negotiation focuses on creating win-win outcomes through cooperation and understanding shared interests, fostering long-term relationships between parties. In contrast, distributive bargaining operates under the assumption that resources are limited, leading to a competitive environment where each party aims to claim the largest possible share. These contrasting approaches highlight how varying negotiation strategies can lead to significantly different results in terms of relationship dynamics and satisfaction levels.
• Evaluate the role of emotional intelligence in enhancing negotiation strategies and outcomes.
  • Emotional intelligence plays a critical role in enhancing negotiation strategies by enabling negotiators to read emotions, manage their own feelings, and navigate interpersonal dynamics effectively. High emotional intelligence allows negotiators to build rapport, empathize with counterparts, and adapt their approach based on nonverbal cues. This adaptability can lead to more successful outcomes by fostering trust and facilitating open communication during negotiations.

Related terms

Collaborative Negotiation: A negotiation approach that focuses on mutually beneficial outcomes, where parties work together to find solutions that satisfy the interests of all involved.

Distributive Bargaining: A competitive negotiation strategy where parties view the resources as fixed and limited, aiming to maximize their own share at the expense of the other party.

BATNA: Best Alternative to a Negotiated Agreement; it represents the most advantageous alternative course of action a party can take if negotiations fail.