Five Basic Negotiating Strategies - Key Concepts in Negotiation

during the bargaining stage of a negotiation there are five principal strategies that you can take and I've lifted these from the work of Kenneth Thomas and Ralph Killman Thomas and Killman develop five strategies by looking at two dimensions the first is concern for the outcome of the negotiation or indeed a conflict which they caught assertiveness and the second was concern for the relationship between the parties which they called cooperation and if you draw a chart of assertiveness against cooperation you can see different zones there are five the first zone is competing and the competing strategy is suitable where the outcome is far more important than the long term relationship for a one-off transaction you will try to get the best possible outcome for your organization if you're buying you'll be getting the cheapest price and the best quality goods if you're selling you'll be looking to get the highest possible price however computing is not always appropriate if the long term relationship is of high importance because if you or the other party feels that the outcome of this negotiation isn't strongly to their advantage they may be unwilling to negotiate in good faith in future at the other end of the spectrum if the long term relationship is far more important than the outcome of this particular negotiation you may adopt an accommodating strategy one that says you know what we have repaired to accept less than the idea outcome from this negotiation if it helps to build a long-term relationship this is where you might inverted commas by work by offering a service or goods but lower than the normal cost in order to build the relationship with a buyer as a buyer you may be prepared to offer a better chunk of work to a supplier so you can build a long-term relationship and lock in a good quality supplier into your supply chain the next strategy is to avoid a negotiation sometimes it just isn't worth the effort the outcome you're looking for isn't that important to your organization the relationship isn't that important and therefore rather than negotiate just do the deal quickly often this means procuring something from a catalogue from a website from a store without negotiating at all if you waste time on negotiations where the benefit that you'll gain from the government where the benefit that you gain from the negotiation is marginal he won't have as much time to spend on negotiations where there is a significant advantage to be achieved if both the long term relationship and the outcome are important but not paramount then we come to the old favorite a compromise a compromise is where both parties are prepared to give something up in order to get a deal but a compromise works where what I give up what you give up are both equal we feel it's fair a compromise is fair because I'm giving up as much as you're giving up you're giving up as much as I'm giving up and we're both equally miserable no equally happy equally content that a fair deal has been had the fifth strategy is of course collaboration where the long-term relationship is of paramount importance but so is the outcome it's worth investing the time and effort to work together to get the best possible outcome for both of you and the difference for me between collaboration on the one hand and compromise on the other is that in compromise we're both prepared to give up as much as the other in collaboration which often comes first we have both prepared to contribute more to the transaction and what we both contribute is of equal value collaboration or win-win negotiation is often seen as the ideal negotiating strategy it isn't always the right strategy though because it takes a lot of time it takes a lot of effort and commitment to collaborate you're both looking for things you can contribute to the negotiation to make it better this is hard work and sometimes that hard work isn't justified and a compromise is good enough but those are the five strategies that Kenneth Thomas and Ralph Killman suggested we can compete we can accommodate we sometimes need to avoid we can compromise and the ideal for negotiations that really matter is to cooperate please give us a thumbs up if you liked this video this loads more great management courses content to come so please subscribe to our channel and hit the belt so you don't miss any of it I look forward to seeing you in the next one and in the meantime keep learning

Channel: Management Courses - Mike Clayton

Views: 8,877

Rating: 4.6666665 out of 5

Keywords: Negotiating Strategies, negotiation strategies, competing, avoiding, compromising, compromizing, accommodating, collaborating, collaboration, compromise, Bargaining, negotiation, negotiation process, negotiating, negotiating process, negotiation model, model of negotiation, basics of negotiation, basics of negotiating, negotiation principles, negotiating principles, Thamas-Kilmann Conflict Modes, Kenneth Thomas, Ralph Kilmann

Id: DlV6phTGjoU

Length: 6min 6sec (366 seconds)

Published: Wed Jul 22 2020