Negotiation is a fundamental skill in both personal and professional realms, enabling parties to reach agreements and resolve conflicts. Two common approaches to negotiation are positional bargaining and interest-based negotiation, each with distinct strategies and outcomes.
Positional Bargaining
Positional bargaining, often referred to as “hard” negotiation, involves parties staking out fixed positions and aiming to defend their stated demands. Each party advocates for its own interests and focuses on achieving its specific goals1. This approach can lead to a competitive atmosphere, where concessions are minimal, and compromise may be challenging.
Steps of Positional Bargaining:
- Identify Positions: Each party states their desired outcome.
- Defend Positions: Parties argue for their positions, often making minimal concessions.
- Reach Compromise: If possible, parties agree on a middle ground, often resulting in a win-lose outcome.
Examples:
- Real Estate Negotiation: A buyer offers $200,000 for a house, while the seller wants $250,000. After several rounds of negotiation, they agree on $225,0002.
- Labor Dispute: A union demands a 10% wage increase, while the employer offers 3%. After prolonged negotiations, they settle on a 6% increase1.
Interest-Based Negotiation
Interest-based negotiation, also known as “soft” negotiation or principled negotiation, takes a different approach. This method focuses on understanding the underlying interests, needs, and concerns of both parties1. Collaborative problem-solving and mutual gain are central to interest-based negotiation.
Steps of Interest-Based Negotiation:
- Identify Interests: Parties explore the underlying reasons for their positions.
- Generate Options: Parties brainstorm creative solutions that address both sets of interests.
- Evaluate Options: Parties assess the proposed solutions for mutual benefit.
- Reach Agreement: Parties agree on a solution that satisfies both parties’ interests.
Examples:
- Business Partnership: Two companies want to collaborate on a project. Instead of competing for control, they identify shared goals and create a joint venture that benefits both3.
- Family Dispute: Siblings disagree over the division of inherited property. By discussing their emotional attachments and financial needs, they agree on a fair distribution that respects everyone’s interests3.
President Donald Trump’s Approach
President Donald Trump is known for his use of positional bargaining in his approach to international negotiations. His confrontational style and focus on achieving specific outcomes often lead to adversarial negotiations4. For example, his trade wars with China and tariffs on goods from Mexico and Canada reflect his preference for hard bargaining tactics.
Conclusion
Understanding the differences between positional bargaining and interest-based negotiation can help individuals and organizations choose the most effective approach for their specific situations. While positional bargaining may be useful in certain contexts, interest-based negotiation often leads to more sustainable and mutually beneficial outcomes.
For more information on negotiation strategies and conflict resolution, visit Civic Reinventions, Inc. or contact Dr. Mark Smutny directly:
Email: mark.smutny@civicreinventions.com
Phone: 626-676-0287
Website: https://civicreinventions.com