As you advance through the ranks of a company, you will inevitably be required to negotiate with others. Nonetheless, not all negotiators use the same strategy. Negotiation strategies are competition, cooperation, compromise, avoidance, and accommodation. Although we have previously discussed them, we felt that this “at-a-glance” format would be more beneficial for readers interested in their negotiating style. Please read our article if you want to learn more about the various stages of negotiation. As a result, you will have the necessary knowledge to negotiate the best contract or service.
Accommodation negotiation style: Maintaining a positive relationship with the opposing party is a top priority for those who use this negotiating strategy. They excel at defusing conflicts, downplaying disagreements, and putting the welfare and happiness of others ahead of their own. This approach needs to be higher in assertiveness and higher in cooperation. Typically, these negotiators place a greater emphasis on the relationship’s nature than on the negotiated deal’s specifics.
Competitive negotiation style: This negotiation strategy prioritizes victory regardless of the cost to the opposition. Competitive negotiators use high-pressure tactics to achieve their objectives, regardless of the cost to the other party. When the relationship between the parties is less important than the goal, but the plan itself is, a more adversarial approach to negotiations can be practical. This tactic can be effective when the parties’ goals are both short-term and incompatible. It is critical to focus on actual, tangible gains. When you anticipate a competitive response from the other party, the competitive style can effectively counterbalance.
However, the adversary’s negotiating strategy is risky. Not only is it inconvenient, but it can also be costly, time-consuming, and frequently results in a stalemate. This strategy is commonly used by inexperienced negotiators who initially found success or believe it is the only viable strategy.
Cooperative negotiation style: rather than attempting to make both parties lose during negotiations, the collaborative style aims for an “I win, you win” outcome. The most important aspect of this win-win model is that the needs of each party are met. This strategy places a strong emphasis on developing relationships and personal growth. While maximizing productivity, the harmony of the partnership must be maintained. For a collaborative approach, focusing on relationship development and maintenance is the most effective. When a novel and long-term solution is desired, both parties are open to understanding one another’s perspectives and priorities.
New solutions take time and effort to develop, making cooperative negotiation difficult when the parties’ interests coincide, as in a small group or family.
Compromise negotiation style: In negotiations, the “I win some, you lose some” model of compromise is more common than the “we both win” strategy. Most people believe that negotiations necessitate concessions, but this is simply bargaining. Compromisers use this strategy instead of finding a solution that benefits both parties.
The goal of “splitting the difference,” another term for a compromising strategy, is to arrive at a compromise roughly in the middle of both parties’ initial positions. The ability to compromise is an admirable trait in many situations. By reaching an agreement, both parties can show concern for the relationship while benefiting from the contract terms. This approach may meet some of the needs of all parties, but it needs to realize the situation’s full potential, which can only be realized through collaboration. The drawback is that you may feel you gave too much and received too little in return. As a result, this strategy works best when participants’ time constraints prevent them from collaborating, but they still want positive outcomes and relationships.
Avoidance negotiation style: This method is known as the “I lose, you lose” strategy. This mode is used when either the connection or the result is unnecessary. Negotiation can take a significant amount of time and effort. Is it worth negotiating, given the potential benefits to both parties’ relationships and jobs? Otherwise, it would be best if you avoided haggling. This strategy entails either not participating in the negotiations or withdrawing from them in the middle. Avoidance is a helpful tactic when negotiating a minor issue for both parties, but it is rarely used.
People frequently experience anxiety before finalizing a transaction. They occasionally doubt their communication abilities. They are skeptical of their ability to score occasional bargains. Many people always use the same negotiating strategy. This is almost always a losing strategy. They decide what they want and add 20% as an opening bid. Then, during the negotiation process, both parties make adjustments. They are more interested in each other’s positions than in what each side truly desires.
Reevaluating one’s perspective on the negotiation process is the first step toward improving one’s negotiating skills. There are numerous negotiation strategies, which is an important realization. The more important point to remember is that the best negotiation strategy is determined by both the desired outcome and the nature of the relationship. You will need to negotiate effectively daily, so investing time in learning these concepts is worthwhile.