Key Takeaways

  • There are two main types of negotiation: distributive (win-lose) and integrative (win-win).
  • Beyond these, understanding different negotiation strategies and styles—such as collaborative, competitive, compromising, accommodating, and avoiding—can help you adapt to different contexts.
  • Recognizing negotiation stages (from preparation to closing) improves outcomes and prevents costly mistakes.
  • Strategies like BATNA development, framing, concession planning, and relationship-building play crucial roles in effective negotiation.
  • Your negotiation style—competitive, cooperative, individualistic, or altruistic—can significantly impact outcomes and relationships.

There are many types of negotiation strategies and many circumstances under which you may find yourself needing to smartly and soundly negotiate for yourself or others.

Negotiating can be a frightening prospect for some people, and it may be hard to know the best way to approach a negotiation. The good news is that you probably already have a lot of experience negotiating things in your everyday life, whether you realize it or not. After all, negotiation is just another form of communication, a means of problem-solving.

The Two Main Forms of Negotiation

Negotiation theorists generally agree that there are two primary forms of negotiation:

  • Distributive Negotiation: this is also referred to as positional or hard-bargaining negotiating. It generally pertains to a single issue and often ends up with one person walking away with a bigger piece of the pie (usually financial) than the other. An example of this could be in the case of a divorce, where one party walks away with the house, both the cars, alimony and the 401K, where the other party walks away with their frequent flier miles.
  • Integrative Negotiation: this is the softer side of the two forms of negotiation, often referred to as win-win. This form may also be referred to as interest-based, merit-based, or principled negotiation. Essentially this means that all parties walk away happy and with more or less equal pieces of the pie. Additionally, integrative negotiation generally involves multiple moving parts as opposed to a single issue. An example of this could be negotiating a contract upon hiring a new employee. In order to provide them more paid time off, perhaps you negotiate a different salary.

Types of Negotiation Strategies Beyond the Basics

While distributive and integrative negotiations form the foundation of most discussions, there are several other types of negotiation strategies that professionals use depending on the stakes, relationships, and goals involved. These approaches provide a more nuanced framework for navigating complex negotiations:

  1. Collaborative (Problem-Solving) Negotiation:
    Often used in long-term partnerships or joint ventures, this strategy focuses on expanding value rather than dividing it. Both parties work together to explore interests, brainstorm creative solutions, and reach a mutually beneficial agreement.
  2. Competitive (Win-Lose) Negotiation:
    This approach emphasizes achieving one party’s goals at the expense of the other. It’s common in one-time transactions or high-stakes deals where relationships are less important. Skilled negotiators using this style anchor high, make strategic concessions, and use persuasive tactics to maximize their gains.
  3. Compromising Negotiation:
    A middle-ground strategy, compromising involves both sides making concessions to reach a solution. This is often used when time is limited, stakes are moderate, or maintaining the relationship is important but not critical.
  4. Accommodating Negotiation:
    In this approach, one party prioritizes the relationship over the outcome and concedes more to preserve goodwill. This style is useful when the issue is minor for one side but significant for the other.
  5. Avoiding Negotiation:
    Sometimes, the best negotiation strategy is to walk away or postpone discussions. This tactic is used when the timing is poor, the issue is trivial, or when entering negotiation would create unnecessary conflict.

By understanding and mastering these different types of negotiation strategies, individuals and businesses can adapt their approach to fit the specific context—maximizing outcomes while safeguarding relationships.

Forging Ahead

Regardless of what form your negotiation is going to take, there are always things to keep in mind. This will ensure that in either scenario, things can go as smoothly as possible and hopefully take some of the anxiety out of the negotiating scenario.

  • Know your limits. You want to go into a negotiation with an open mind and heart, but you don’t want to be taken advantage of, either. If negotiating a salary for a new job, know (and, be honest with yourself and possible employer) what the salary range is that you are willing to accept. This will save you from feeling resentful, later on, if you accept a job making less than what you know you are worth.
  • Be patient. This is not a time for rushing, as that is when rash decisions get made. Make sure that you have allowed enough time for reasonable and thorough negotiations.
  • Be prepared. Walk into your negotiation with a clear proposal as to what you are looking to obtain or achieve and be able to justify those requests. Being well prepared and able to make clear arguments will decrease the likelihood that you walk away with quite a bit less than what you wanted. It will also better enable you to “stick to your guns.”
  • In addition to being prepared with solid arguments, you may also need to be prepared to walk away from the negotiating table. A potential employer may simply not be in the financial position to offer you the salary you want, so you may not be able to reasonably accept the salary that is being offered. This is an example of a time in which you would simply have to walk away, as neither party is going to be able to change their stance, at least not without resentment and potential issues down the road.
  • Buy low, sell high. Don’t be afraid to come out of the barn with extreme requests, provided you are fully aware that they are extreme and you most likely will not get them. The strategy behind this being that it is much easier to start at the top and work your down to a mutually beneficial agreement, rather than starting low and trying to work your way up the negotiating table.

Negotiation Styles and Personality Dynamics

Your negotiation style—shaped by your personality, priorities, and cultural background—can dramatically influence the outcome. Understanding these styles helps you predict behavior, adapt tactics, and manage expectations:

  • Competitive: Focuses on winning and often uses assertive tactics. Works best when the stakes are high and relationships are secondary.
  • Collaborative: Prioritizes joint problem-solving and seeks outcomes beneficial to all. Effective in long-term partnerships.
  • Compromising: Strives for middle ground, balancing outcomes and relationships.
  • Accommodating: Values the relationship over the result, often conceding more.
  • Avoiding: Withdraws from negotiation when issues are minor or conflict is counterproductive.

It’s also useful to understand individual motivations. Negotiators can be individualistic (focused on personal outcomes), competitive (aiming to outperform), cooperative (seeking mutual gain), or altruistic (prioritizing others’ success over their own). Recognizing your default style—and adapting it to the situation—can significantly improve negotiation outcomes.

Key Stages of an Effective Negotiation Process

Every negotiation follows a series of stages, and recognizing these can help you approach discussions with more confidence and structure:

  1. Preparation:
    Research thoroughly, define your objectives, understand the other party’s needs, and establish your BATNA (Best Alternative to a Negotiated Agreement). Preparation sets the stage for strategic advantage.
  2. Opening and Framing:
    Set the tone for the negotiation by framing the discussion around mutual interests and desired outcomes. Early communication should clarify priorities and establish trust.
  3. Information Exchange:
    During this phase, both sides share relevant details, clarify interests, and explore areas of agreement. Active listening and strategic questioning are essential here.
  4. Bargaining and Problem-Solving:
    This is the heart of the negotiation, where offers, concessions, and counteroffers are exchanged. Focus on value creation and trade-offs that align with both parties’ interests.
  5. Closing and Agreement:
    Once terms are agreed upon, formalize the deal and confirm mutual understanding. This may include drafting a written agreement, setting implementation timelines, or establishing follow-up procedures.
  6. Implementation and Relationship Management:
    Post-agreement steps are just as critical. Following through on commitments builds credibility and sets the stage for future collaborations.

Frequently Asked Questions

  1. What are the main types of negotiation?
    The two primary types are distributive (win-lose, focusing on dividing resources) and integrative (win-win, focusing on mutual gain). However, collaborative, competitive, accommodating, compromising, and avoiding strategies are also widely used.
  2. How do I choose the right negotiation strategy?
    Your choice depends on factors like stakes, time, relationship importance, and goals. For example, collaborative strategies are ideal for long-term partnerships, while competitive tactics may work in one-off deals.
  3. What is BATNA and why is it important?
    BATNA stands for Best Alternative to a Negotiated Agreement. It’s your fallback option if negotiations fail. Knowing your BATNA strengthens your position and prevents you from accepting unfavorable terms.
  4. How does personality affect negotiation style?
    Your personality influences how assertive, cooperative, or flexible you are in negotiations. Recognizing your style—and adjusting it to fit the situation—can improve results.
  5. What are common mistakes in negotiation?
    Mistakes include inadequate preparation, revealing too much too soon, failing to listen, rushing to close, and not understanding the other party’s interests.

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