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NEGOTIATION

Negotiation styles

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OBJECTIVES

- Identify different negotiation styles and to choose the best fitted


to a given specific situation.

- Detect negotiation practices and strategies so they can put into


practice them.

- Facing a negotiation process presenting proposals in an efficient


way and being able to close a negotiation successfully and
exposing correctly the agreements reached.

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NEGOTIATION
WHAT ARE THE 5 NEGOTIATION STYLES?
People have different communication styles. Individuals bring sets of experiences, skills, and tools that affect the way they
interact with others, both at home and in the workplace. Individual communication styles also translate into how they
negotiate.
From these patterns of communication, five distinct negotiation styles have emerged:
Competing, collaborating, compromising, accommodating, and avoiding.
Negotiators often fall into one or more of these five styles whether they are trying to reach an agreement or resolve a
conflict with multiple parties. Master negotiators know how to use their primary negotiation style to their advantage and
when it’s beneficial to introduce the others. Learn about the common characteristics of the five negotiation styles, their
strengths, and their weaknesses.
 

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NEGOTIATION
Negotiation Style: Compete
A competitive negotiation style follows the model of “I win, you lose.” Competitive negotiators tend to do whatever
it takes
to reach their desired agreement, even when it comes at the expense of another person or entity.
 
They are results-oriented and focused on achieving short-term goals quickly. Their desire for success motivates them,
 
though the process of negotiation can blind them to potentially harmful impacts.
Competitive negotiators use all tools possible to boost their negotiation success, including:

Their position within a company structure


Their personality and humor
Aggression
Their economic prowess
Their company’s strength and size
Their brand’s visibility and influence

A competitive negotiation style is beneficial when you need to reach a short-term agreement quickly.

If the terms of an agreement are critical and must be complied with, a competitive negotiator will be your secret
weapon. If the second negotiator is also competitive, having another competitive negotiator on your team will be
able to counter-balance their aggression.

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NEGOTIATION
Negotiation Style: Compete, “I win, you lose.”
Competitive negotiators work best in a highly competitive industry or for once-off sales, such as selling a home or a
  car. However, for negotiations with another highly competitive body, it is best to blend negotiation styles to avoid
  gridlock between two competitive negotiators.
These types of negotiators may focus more on winning than reaching a mutually beneficial agreement with the
other party. Business relationships might break, and a company’s reputation may tarnish if a negotiation style is too
competitive and crosses the line into bullying.
If you are a competitive negotiator, make sure to blend your style with a bit of accommodation or collaboration.
Invite a partner to balance out your natural competitive streak.

Business is as much about building strong relationships as it is about closing deals!

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NEGOTIATION
Competing

Negotiators that exhibit this style are assertive, self-confident, and focused on the deal and results. These individuals
 tend to pursue their own concerns, sometimes at their counterpart’s expense, and in the extreme can become
 aggressive and domineering. On the assertive vs. cooperative scale, this style is higher in assertiveness and lower in
cooperativeness. Using the substance vs. relationship axes, competing negotiators tend to be more focused on the
substance than the relationship

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NEGOTIATION
Competing
Use this style if:

You need to act fast


 
You  are 100% sure you’re right about the situation

You are dealing with an opponent who will abuse you if you show non-competitive behavior

The situation is important and an unpopular decision needs to be taken

Other negotiation styles are not possible

Potential downsides of the competitive negotiation style:

Fear of admitting ignorance of uncertainty


Reduced communication and no opportunity to explore alternative solutions
You’ll be surrounded by a ‘yes’ team. Because it’s tough to disagree with a competitive negotiator in your team
You might damage the relationship with your opponent
You’ll receive little commitment from your opponent which adds risks to the implementation phase of your deal

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NEGOTIATION
Negotiation Style: Collaborate
In contrast, a collaborative negotiation style follows the “I win, you win” model.
Collaborative negotiators focus on making sure all parties have their needs met in an agreement.

They value strengthening, establishing, and building relationships without compromising their company’s best interests.
 
Collaborative negotiators often evolve into this negotiation style from another. As time goes on and a negotiator
 
gains confidence in reaching agreements, they become more comfortable advocating for their needs.
They also become skilled in finding a mutually beneficial balance between their needs and the other party’s.
Individuals with a collaborative negotiation style are willing to invest time in finding innovative solutions and building
business partnerships with other organizations. Other negotiation styles are often too impatient to invest this time, but
collaborative negotiators are confident that they will benefit in the end.

A collaborative negotiation style is effective in most business negotiations.


Collaborating with competitive negotiators is something to be wary of, however; since this negotiation style focuses
on winning the most for their company, they might not be interested in developing a collaborative relationship. As a
result, the more collaborative company can lose out so be careful and always keep track of the agreement’s value.

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NEGOTIATION
Collaboration (win-win):
In
contrast to the competitive style, a collaborative negotiation style seeks a “I win, you win” outcome. 
This
  win-win model focuses on making sure all parties have their needs met.  With this style, both relationship and
outcome
  are important.  The purpose is to maximize outcome and preserve the relationship. 
A collaborative style is appropriate in situations where developing and maintaining a relationship is important, where
both parties are willing to understand the other party’s needs and objectives, and when finding a long lasting and
creative solution is desired.
A collaborative negotiation style is often the most difficult to employ because it requires an investment in time and
energy in finding innovative solutions.  It is successful in situations where the party’s goals are compatible such as
within an organizational or family unit.

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NEGOTIATION
Collaboration (win-win)

Use
  this style if:
 
You want a long-lasting solution with your opponent

The interests of both parties are too important to be compromised

You want to develop and maintain a relationship with your opponent

Potential downside of the collaboration negotiation style:

It’s very time consuming to come to an agreement

You’ll end up spending time on insignificant issues

Your trust in your opponent could lead to the other party taking advantage of you

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NEGOTIATION
Negotiation Style: Compromise
Many students of negotiation styles confuse the collaborative style with the compromising one. Unlike the “win-win”

collaborative style, the compromising negotiation style follows a “I win/lose some, you win/lose some” model.
 
When reaching the terms of the agreement, compromisers often relinquish some terms in favor of gaining others.
 
For example, if two governments are trying to reach a trade agreement, a compromiser might give the other government
greater access to their country’s dairy market to gain protections for digital media trade. Simply put, a compromising
negotiation style is a form of bargaining. Compromisers split the agreement’s value between the two parties versus finding
a solution so that everyone benefits from an agreement’s full value.
A competitive negotiator can easily take advantage of a compromising negotiator.

A compromising negotiation style is most useful in situations where the opposite party is trustworthy, and the agreement is
under a tight deadline. However, compromising will cause your company to lose out on collaborative partnerships and
innovative solutions.

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NEGOTIATION
Compromise (split the difference): “I win/lose some, you win/lose some”
Unlike the collaborative style, the compromising negotiation style follows a “I win/lose some, you win/lose some” model. 
Compromising is the style most people think of as negotiation, but it is really only bargaining. 
Compromisers use this style instead of finding a solution that fully benefits everyone.
Often described as splitting the difference, a compromising style results in an agreement about half way between both
party’s opening positions.  Compromising is an adequate style in many circumstances.  Compromising shows some
concern for the relationship and does achieve gains on the outcome dimension.  It may result in satisfying some of each
party’s needs, but it does not maximize the situation as collaboration can.  However, it can often bring about an
unsatisfactory feeling that you gave too much and didn’t get enough in return.  Thus, this style is best used in
circumstances where factors, such as time, prevent the players form achieving a true collaboration but still wish to achieve
positive outcomes and relationships.

 
 

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NEGOTIATION

Compromise (split the difference): “I win/lose some, you win/lose some”

Use this style if:

The issue isn’t with it to be negotiated to the fullest

A temporary agreement is needed to settle a complex situation

An expedient solution is needed because you’re running out of time

Potential downside of the compromising negotiation style:

No one will be fully satisfied with the outcome.

This could live to a short-term agreement which could cost both parties lots of time.

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NEGOTIATION
Negotiation Style: Avoid
An avoiding negotiation style follows a “I lose, you lose” model.

People who identify with the avoiding negotiation style highly dislike conflict and tend to talk in vague terms
 
about the issue at hand rather than the issue itself. If an agreement is reached and an avoiding negotiator dislikes
 
the outcome, they may try to take revenge on the opposite party before the party even knows that they were
unhappy with the agreement.

Since avoiders dislike conflict and struggle with direct communication, they come off as passive-aggressive. This
can cause rifts in interpersonal business relationships. Avoidance is a typical reaction when a negotiator is pitted
against someone who is highly competitive. Avoiding negotiation styles work best in situations where the
negotiation concerns a matter that is trivial to both parties. In conflict resolution, avoiding negotiators work best in
situations where the investment of time to resolve the issue outweighs the outcome of the discussion.
 

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NEGOTIATION
Avoidance (lose-lose):
This
style is the “I lose, you lose” model. 
This
  style is used when both outcome and relationship are not important.  Negotiations can be costly in terms of
time
  and energy. 

Do the costs of negotiation outweigh the likely outcome and relationship returns? 

If not, it may be preferable not to negotiate at all. This strategy is implemented by withdrawing from active
negotiations or by avoiding the negotiations entirely. An avoidance style is used infrequently in negotiating and is
often used when the negotiation concerns a matter that is trivial to both parties.

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NEGOTIATION
Avoidance (lose-lose):

Use this style if:


 
  The issue isn’t important to you

You’re unable to get what you want anyway

You need time to cool down and regain perspective on the situation

You need more time to gather information on the situation

A team member is able to handle the negotiation better than you

The issue is just a small symptom of a bigger, more important issue

Potential downsides of the avoiding negotiation style:

Decisions will be made on autopilot

Your personal reputation could be damaged

You’re unable to give creative input to improve the situation


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NEGOTIATION
Negotiation Style: Accommodate
An accommodating negotiating style follows the “I lose, you win” model which does not seem to be in a negotiator’s
best interest.
Accommodating negotiators are the direct opposite of competitive negotiators.
 
They focus on preserving relationships and building a friendly rapport by sacrificing some of their company’s interests in
favor  of the opposite party’s interests.
Accommodators tend to try to win people over by giving in to their requests. They tend to share more information than
they should. They are often well-liked by their colleagues because of their kindness, but kindness doesn’t work in every
negotiation situation. Accommodating negotiation styles work best in situations where your company has caused harm
to another and needs to repair a significant relationship.
These negotiators are skilled at peacemaking between different bodies.
However, don’t send a pure accommodator alone to a negotiation with a competitive body. They can easily be taken
advantage of. An accommodating style can easily turn into a collaborative style with proper training and teamwork.
 

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NEGOTIATION
 
Accommodation (lose-win):
This
style can be described as the “I lose, you win” model and is the direct opposite of the competitive style. 
  For accommodating negotiators, the relationship means everything and the outcome is not important.
The
  accommodating style might be used in situations where one party has caused harm to another party and needs
to repair the relationship.  Additionally, this style might be preferred in order to increase support and assistance from
the other party and hope they will be accommodating in the future.

Accommodation is sometimes the best style to employ because it serves to strengthen personal factors. 
It can build trust, show respect, and enhance relationships.  The major drawback, however, is that it may appear to
be condescending toward the other party or cause the other party to feel uncomfortable because of an easy win.

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NEGOTIATION
 
Accommodation (lose-win):

  Use this style if:
 
You find out you are in the wrong

You want to seem like a reasonable person

You’re afraid a competitive negotiation style will harm the relationship too much

You want to preserve the relationship with your opponent

You want to minimize losses

Potential downsides of the accommodation negotiation style:

You’ll end up frustrated as your own needs aren’t met

Your self-esteem will be undermined

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NEGOTIATION
Style Selection Criteria
In deciding
  what style to use in each negotiating situation, the two most important elements are what outcome is to
be gained and how important is the past, present and future with the other party.
 
There are certain factors to take into consideration as you select a style for each negotiation.
 

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NEGOTIATION
Style Selection Criteria


 
 

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NEGOTIATION
Situation:
Look at each situation and asses the circumstances.  Which strategy would work best?  Do you really care about the

outcome and relationship?  And if so, how much?  Remember all negotiation styles have advantages and disadvantages.
 
 

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NEGOTIATION
Preferences:
What are your personal preferences of the different styles? 
stronger you have preferences for a particular style, the more likely you will choose it. 
The
  preferences are influenced by your values.  How much do you value truth, courtesy, and respect? 
Your
  important is ego, reputation and image to you?  These are all factors that contribute to a particular style that you
How
are comfortable with.

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NEGOTIATION
Experience:
Consider your experience with various negotiation styles.  The more experience success you have with a particular
style, the better you become at employing it.
 
 

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NEGOTIATION
BATNA
An acronym for Best Alternative To a Negotiated Agreement. A technique used to negotiate a better contract or
agreement mainly in international business negotiations. There are seven basic steps to developing a BATNA:

List what you will do if you fail to reach an agreement.
 
Convert the most promising options into practical choices.
 
Select the single best option (that becomes your BATNA).
Compare your BATNA to all proposals.
If an offer is better than your BATNA, consider improving or accepting it.
If an offer is worse than your BATNA, consider rejecting it.
If the other party will not improve their offer, consider exercising your BATNA.
One of the determinants of your power in a negotiation is the attractiveness of your BATNA as compared to the
proposals made during the discussions.

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NEGOTIATION
Perceptions:
As you approach any given negotiation session, consider your perceptions of the other party. 
 
Ask yourself, how well do you like them?. How much do you trust them?  How well do you communicate with them? 

What does the future hold for your relationship?  Answering these questions will serve you in selecting your negotiation
 
style.
 

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NEGOTIATION
  Conclusion

People are often fearful of the negotiation process.  Sometimes they lack confidence in their ability to communicate. 
Sometimes
they feel they are incapable of attaining the best deal.  Many people use the same method every time they
negotiate. 
  Typically, this is a zero-sum approach.  They decide what they want and increase it by twenty percent for
their opening
  position.  Then, the negotiation is process of engaging in compromises.  The focus is on positions and not
the needs and interests of both parties.
Changing the way you think about negotiations is the first step in becoming a successful negotiator.
It is important to recognize there are various styles of negotiating that can be used in different circumstances.  More
importantly, however, is that selecting the appropriate negotiation style depends upon two factors, outcome and
relationship.  Understanding these concepts will improve your negotiating skills that you will use each and every day.

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NEGOTIATION
 
Conclusion

 
 

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NEGOTIATION
 
Conclusion

 
 

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NEGOTIATION


 
 

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NEGOTIATION


 
 

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EXERCISES




IN WHICH NEGOTIATION STYLE WOULD YOU FEEL MOST COMFORTABLE AND WHY?


https://www.youtube.com/watch?v=DlV6phTGjoU

https://www.youtube.com/watch?v=ufN2y-4W5ec

https://www.youtube.com/watch?v=q-0wJGZ_J3I

https://www.youtube.com/watch?v=LhiBDyyl3ig






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