How Understanding Two Different Styles of Negotiating Can Lead to Better Outcomes
Summary: Negotiating is a key skill in both personal and professional contexts. There are two distinct styles of negotiating – integrative and distributive – that are based on different underlying psychological principles. Understanding these two styles can help negotiators achieve better outcomes and build stronger relationships with their counterparts.
Introduction:
Negotiating is a crucial skill that is used in a variety of contexts, from business deals to personal relationships. Negotiations can be complex and emotionally charged, and the outcome can have significant consequences. There are two distinct styles of negotiating – integrative and distributive – that are based on different underlying psychological principles. In this article, we will explore these two styles of negotiating, their underlying psychology, and how they can be used to achieve better outcomes.
Integrative Negotiating:
Integrative negotiating is a style of negotiating that is based on collaboration and problem-solving. In this style of negotiating, both parties work together to find a solution that meets both of their needs. The focus is on creating value, rather than dividing it up. Integrative negotiating is often used in situations where the parties have an ongoing relationship or where the outcome of the negotiation will have long-term consequences.
Example: A business negotiation between two companies that are looking to form a long-term partnership. In this situation, both parties want to ensure that the partnership is beneficial for both of them, and that the terms of the agreement are fair and reasonable. Through integrative negotiating, the two companies can work together to find a solution that meets both of their needs, rather than focusing on getting the best deal for themselves.
Psychology of Integrative Negotiating:
Integrative negotiating is based on the principle of collaboration, which is rooted in social psychology. The idea is that by working together, both parties can achieve better outcomes than they would if they were working independently. This style of negotiating also involves active listening and empathy, as both parties need to understand each other’s needs and concerns in order to find a solution that works for everyone.
Distributive Negotiating:
Distributive negotiating is a style of negotiating that is based on competition and the division of resources. In this style of negotiating, both parties are focused on getting the best possible outcome for themselves, regardless of the other party’s needs or interests. The focus is on dividing up the pie, rather than expanding it. Distributive negotiating is often used in situations where there is a fixed amount of resources to be divided, such as in a real estate transaction.
Example: A negotiation between a buyer and a seller in a real estate transaction. In this situation, the buyer wants to pay as little as possible, while the seller wants to get as much as possible. Through distributive negotiating, both parties will try to get the best possible deal for themselves, without necessarily considering the other party’s needs or interests.
Psychology of Distributive Negotiating:
Distributive negotiating is based on the principle of competition, which is rooted in evolutionary psychology. The idea is that in a competitive environment, individuals need to look out for their own interests in order to survive and thrive. This style of negotiating also involves assertiveness and persuasion, as both parties need to make a strong case for their position in order to get the best possible outcome.
Choosing the Right Style of Negotiating:
Both integrative and distributive negotiating can be effective, depending on the situation and the goals of the parties involved. In general, integrative negotiating is more effective when the parties have an ongoing relationship, when the negotiation will have long-term consequences, and when there is potential for creating value. Distributive negotiating is more effective when there is a fixed amount of resources to be divided and when the parties are in a competitive environment.
However, it’s important to note that these two styles of negotiating are not mutually exclusive. In fact, many successful negotiations involve elements of both integrative and distributive negotiating. For example, in a business negotiation, the parties may begin with distributive negotiating to establish the terms of the deal, but then switch to integrative negotiating to find ways to add value to the agreement and build a stronger relationship.
Tips for Successful Negotiating:
No matter what style of negotiating you choose, there are certain tips that can help you achieve better outcomes and build stronger relationships with your counterparts. Here are some key tips to keep in mind:
- Prepare thoroughly: Before entering a negotiation, take the time to research the other party, understand their needs and interests, and identify your own goals and priorities.
- Focus on interests, not positions: Instead of focusing on what each party wants, try to understand the underlying interests and concerns that are driving their positions. This can help you find creative solutions that meet both parties’ needs.
- Listen actively: Actively listening to the other party can help you understand their perspective and build rapport. Paraphrasing what they say and asking clarifying questions can also help you show that you understand their needs and interests.
- Be flexible: Don’t be afraid to explore different options and be open to compromise. This can help you find solutions that meet both parties’ needs and build a stronger relationship.
- Build rapport: Building a positive relationship with the other party can help you achieve better outcomes and make future negotiations easier. Simple things like finding common ground and showing respect and appreciation can go a long way.
Conclusion:
Negotiating is a complex and challenging skill, but understanding the underlying psychology of integrative and distributive negotiating can help you achieve better outcomes and build stronger relationships with your counterparts. By choosing the right style of negotiating and following key tips for success, you can find creative solutions that meet both parties’ needs and achieve your goals. Whether you’re negotiating a business deal, a personal relationship, or anything in between, these principles can help you succeed.