What is your Negotiation Style?

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Approaches to Negotiation

Negotiation theorists make several overlapping distinctions about approaches to negotiation. Fisher, Ury and Patton distinguish between positional bargaining, which is competitive and interest-based bargaining or principled negotiation, which is primarily cooperative. But they also make the distinction between soft, hard and principled negotiation, the latter which is neither soft, nor hard, but based on cooperative principles which look out for oneself as well as one’s opponent.

Morton Deutsch also makes the distinction between competitive and cooperative approaches. According to Deutsch, the most important factors that determine whether an individual will approach a conflict cooperatively or competitively are the nature of the dispute and the goals each side seeks to achieve. Often the two sides’ goals are linked together or interdependent. The parties’ interaction will be shaped by whether this interdependence is positive or negative. According to Deutsch:

• Goals with positive interdependence are tied together in such a way that the chance of one side attaining its goal is increased by the other side’s attaining its goal. Positively interdependent goals normally result in cooperative approaches to negotiation, because any participant can attain his goal if, and only if, the others with whom he is linked can attain their goals.
• On the other hand, negative interdependence means the chance of one side attaining its goal is decreased by the other’s success. Negatively interdependent goals force competitive situations, because the only way for one side to achieve its goals and ‘win’ is for the other side to ‘lose.’

Although Fisher, Ury and Patton argue that almost any dispute can be resolved with interest-based bargaining (i.e. a cooperative approach), other theorists believe the two approaches should be used together. However, a tension exists between creating and claiming value. This is because the competitive strategies used to claim value tend to undermine cooperation, while the cooperative approach makes one vulnerable to competitive bargaining tactics. The tension that exists between cooperation and competition in negotiation is known as ‘The Negotiator’s Dilemma’:

• If both sides cooperate, they will both have good outcomes.
• If one cooperates and the other competes, the co-operator will get a terrible outcome and the competitor will get a great outcome.
• If both compete, they will both have mediocre outcomes.
• In the face of uncertainty about what strategy the other side will adopt, each side’s best choice is to compete.
• However, if they both compete, both sides end up worse off.

In real life, parties can communicate and commit themselves to a cooperative approach. They can also adopt norms of fair and cooperative behaviour and focus on their future relationship. This fosters a cooperative approach between both parties and helps them to find joint gains.

Now let’s study three key approaches to negotiation.

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