In: Accounting
Answer a)
What is negotiation?
Negotiation is a process between two or more parties to reach an outcome over an issue, optimising their individual utilities.
Difference between two Distributive negotiation & Integrative Negotiation
Particulars |
Distributive Negotiation |
Integrative Negotiation |
Definition |
It is a bargaining strategy in which one party gains only if the other party loses something. |
It is a negotiation strategy in which involved parties work together to find optimum solution, so that it satisfy needs & concern of each. |
Approach |
Competitive approach is followed. |
Collaborative approach is followed. |
Orientation |
Based on win-lose. |
Based on win-win. |
Relationship |
Here negotiation is carried out more as an one time transaction, not keeping in mind any kind of long term relationship. |
These are future focused with long term relationship in mind. |
Resources |
Resources are limited. |
Resources are in abundance. |
Issue |
At a time, only one issue is discussed. |
Multiple issues are discussed at a time. |
Motivation |
Parties self interest motivate them. |
Mutual Interest act as an motivation for the parties involved. |