6 Types of Negotiation: Effective Negotiation Strategies

Negotiation is when two or more parties with competing interests come to an agreement. Through back-and-forth bargaining activity, the parties can reach creative solutions to a potentially adversarial situation. Good negotiation skills can help you deal with these sometimes tense situations.

There are different types of negotiation, including:

1. 1. Adversarial negotiation: Adversarial negotiation occurs most often in distributive negotiation situations. In this type of negotiation, the parties openly compete against each other. Each party acknowledges that the stakes are high and that if one side wins, the other will lose. Adversarial negotiation can involve bad-faith negotiation tactics, where one party’s dishonesty about willingness to negotiate can lead to breakdowns in the process.
2. 2. Distributive negotiation: A distributive negotiation, also known as a zero-sum negotiation or a win-lose negotiation, is a negotiation over a fixed or finite resource. Distributive negotiation requires any party’s gain to come at the other’s expense. This type of negotiation requires clear priorities, persistence, and control over your emotions, as they can be contentious and difficult.
3. 3. Integrative negotiation: This type of negotiation, also known as collaborative negotiation, can occur when parties negotiate over more than one area or resource. This makes it possible for both parties to come out ahead, which is why you can also refer to this as a win-win negotiation. In a win-win situation, while both parties may have to give something up, both can also gain something in the bargaining process.
4. 4. Multiparty negotiation: As the name suggests, the multiparty negotiation type involves more than two parties seeking a solution. The complexity of multiparty negotiations, which require careful organization, makes them challenging. However, more negotiating parties often means more opportunities for gain. This increases the odds of integrative outcomes, where all parties make concessions to reach a mutually beneficial result.
5. 5. Principled negotiation: Principled negotiation relies on the principles and standards of the negotiators to come to an integrative agreement. This is a preferred negotiation type, as it seeks to find a solution that works for all parties and to avoid hard bargaining or deception. A principled negotiator is always on the lookout for mutual gain.
6. 6. Team negotiation: Team negotiation occurs when each party has a team of negotiators working in concert. Negotiation teams require coordination and specialization, and can challenge inexperienced negotiators. The distribution of responsibilities can lead to greater effectiveness from the team as a whole. This collaborative approach helps teams prevail in complex negotiations.

Different negotiation types lend themselves to different situations. Whether in the throes of a business negotiation or working on conflict-resolution, keep these negotiation strategies at the front of your mind:

1. 1. Embrace the best alternative to a negotiated agreement. Some negotiations quickly reveal that both sides are steadfast in their positions. This means getting to yes may be impossible for one or both parties. In these situations, you must explore the best alternative to a negotiated agreement (BATNA), which establishes parameters for what happens if you can’t reach an agreement. For instance, if a worker insists they need a raise to remain in their job and their boss simply refuses, a BATNA resolution might call for the worker to remain in the job for six more months at the current rate and then leave. While a BATNA has far more trade-offs than a successful business resolution, it should ideally make concessions to both sides. In this case, the employee has six months to find a better-paying job, and the employer has six months to find a replacement.
2. 2. Send clues with body language. One of the more subtle yet effective negotiating strategies is to stealthily show negative body language when presented with an offer you don't like. For instance, if you receive a lowball price, you might allow yourself to visibly flinch. This flinch may communicate your reaction on a more visceral level than any vocal response, and it may cause your partner to recalibrate. The best negotiators make strategic use of body language to quickly simplify complex negotiations and lead to business success at the negotiation table.
3. 3. Set an expiration date for your offer. If you believe you've made a reasonable offer, give your negotiating partner a deadline to accept it or walk away. Be aware that even if you present the offer as "take it or leave it," the other person may still come back with a counteroffer. Nonetheless, setting an expiration date forces the other side to get serious. For this reason, it's one of the more effective negotiating tactics, and competitive negotiators employ it at various stages of the negotiation process.
4. 4. Work toward a win-win situation. In successful negotiations, you want both sides to feel as though they secured a win. An effective negotiator might then view their work as problem-solving. Ask yourself: What do I want, and what does my negotiating partner want? How can we both come out ahead? Then, propose a deal that addresses both sides' needs and produces a better outcome.

Learn more about negotiation strategies and communication skills from Career FBI hostage negotiator Chris Voss. Perfect tactical empathy, develop intentional body language, and get better results every day with the MasterClass Annual Membership.