Negotiation

The process of engaging in dialogue between two parties with the intention to resolve conflict, reach an understanding, or to achieve a compromise on a matter that is beneficial to both parties. People engage in negotiation, mediation and conflict resolution practically everyday of their lives without realising, not only in a business context. Generally negotiation is categorised into distributive and integrative negotiation. Distributive negotiation refers to a slightly more competitive variation, where both parties in the negotiation are looking for a different outcome. The issue being negotiated often involves price and often relates to the bargaining process. Often involving people who have never previously had an interactive relationship, distributive bargaining is usually self-serving, e.g. buying a car. Integrative Negotiations tend to be more co-operative with a greater intention of benefit to both parties, usually involving a multitude of issues, e.g. Negotiating salary increases within an organisation. Integrative bargaining is thus a matter of finding a common interest or 'goal' between both parties concerned, and obtaining win-win solutions to the problem. Experts affirm that anyone can learn to negotiate effectively and successfully, all it takes is knowledge of the issue and strategies to implement it.