The most common business negotiation examples are distributive and integrative negotiations. What are these? Let us know more below.

Business Negotiation Examples

1. Distributive negotiations

Distributive negotiations attempt to achieve maximum benefit for the individual; while integrative negotiations aim to achieve win-win solutions. Both types of negotiations involve parties that have some type of conflict or disagreement. For instance, between them during the negotiation process. Although both types of negotiations require communication, but they differ in their approach.

Distributive negotiations require that the parties attempt to maximize their gains at the expense of the other parties involved in the process. In distributive negotiations, each party attempts to achieve its maximum benefit. That is, regardless of whether it is good for the other party in the process or not.

The main goal is to get as much as possible from another party involved in the process; and give as little as possible; therefore a zero-sum game is created for all parties involved in this type of negotiation process. Thus, resulting in an unstable solution since no one wins if each party only takes without giving anything in return.

Distributive Negotiation Examples

A distributive negotiation example involves two parties; one party pushing for the most they can get without regard for what others involved in the negotiation process may want or need; while the other party involved in the negotiation process gives up as much as possible without regard for what they may get out of the agreement reached during this type of negotiation process. Both parties seek a win-lose outcome of an agreement during this type of negotiation process, which is why it is called a distributive business negotiation example.

2. Integrative Negotiations

Integrative Negotiations on the other hand involve all parties in a process attempting to find solutions; perhaps that will satisfy all parties involved. Therefore, there must be a way for all to win; or at least not lose too much if there is no way for everyone to win and still stay competitive with one another. For instance, if that is what is necessary for everyone to be satisfied with the outcome of an agreement during this type of negotiation process. Perhaps leading to an optimal solution. Since everyone wins if each party gives up something they wanted; but still feel they did not lose too much and didn’t give up more than they were willing to give up. While still getting enough out of an agreement reached during this type of negotiation process that all parties must be able to live with and be willing to accept as a solution.

This process allows for a compromise of some sort to occur. Since each party involved in the negotiation isn’t required to give up everything they want and still feel they didn’t give up too much while still getting enough out of the agreement reached during this type of negotiation process that they are willing to accept as a solution. This allows each party involved in the negotiation to have a sense of ownership for an outcome of an agreement reached during this type of negotiation process leading to a sustainable solution that everyone involved in the negotiation process can live with and accept.

Integrative Negotiation Examples

An integrative business negotiation example involves two parties, both willing to find a middle ground instead of moving farther apart or trying to reach their maximum gain without regard for what others involved in the negotiation process may want or need; therefore, both parties try to reach an agreement that will satisfy both parties involved in the business negotiation process. Both parties seek a win-win outcome of an agreement; for instance, during this type of business negotiation process, which is why it is an integrative business negotiation example.