001

Recommendations

Info

6 Institute of Leadership & Management Negotiating strategy Choosing the best negotiation strategy to match the situation can make a considerable difference to your success. There are two main strategies for bargaining. Competitive bargaining (also called distributive or positional) is about negotiating over who gets what share of a fixed ‘pie’. The parties are less interested in forming a lasting relationship or creating a positive impression than winning. Haggling over the price of a second-hand item is an example of competitive bargaining. You keep information confidential (for example, you do not let your counterpart know how badly you want the item), because information is power and the more you know about the other person’s situation, the stronger your bargaining position. So, for example, you let your counterpart make the first offer. You can always go lower! Cooperative bargaining (also called interest-based or integrative) is about collaborating to find and agree the best win-win solution that meets everyone’s interests and results in good long-term relationships. All parties feel they have gained something they want without giving up something important. To succeed it requires openness, information sharing, willingness to be flexible and trust. This means you try to make the first offer. Copyright © The Institute of Leadership and Management 2015. These materials may not, in whole or part, be copied, reproduced, communicated, or otherwise distributed without the prior written permission of ILM.
7 Institute of Leadership & Management •• Click the icon to reveal elements of each bargaining style. Competitive bargaining Cooperative bargaining Copyright © The Institute of Leadership and Management 2015. These materials may not, in whole or part, be copied, reproduced, communicated, or otherwise distributed without the prior written permission of ILM.
Page 1 and 2: Institute of Leadership & Managemen
Page 3 and 4: 3 Institute of Leadership & Managem
Page 5: 5 Institute of Leadership & Managem
Page 9 and 10: 9 Institute of Leadership & Managem
Page 11 and 12: 11 Institute of Leadership & Manage

001

Create successful ePaper yourself

Delete template?

Save as template?