This article provides a practical explanation of the win-lose negotiation. After reading, you'll have a basic understanding of this powerful management tool.
What is a win-lose negotiation?
Win-lose negotiation is a negotiation model for organisations where only one party experiences the outcome as positive. In addition to the win-lose negotiation model, many other negotiation models have been created, including the win-win negotiation model and the RADPAC model.
Depending on the situation, different models are used. A simple example of a win-lose negotiation is a situation in which a certain quantity of resources must be distributed, resulting in a win-lose situation.
One party wins, whereas the other loses. Unless measures are taken, in a business environment this will often result in a permanently damaged relationship. Although the win-lose negotiation is not the most well-known form of negotiation, it is easily the most common.
With the win-lose negotiation model, individuals will often take on an impossible position in negotiations, such as placing too many demands on the other party, resulting in a bitter dispute.
In this situation, both parties will try to win without taking into account the outcome for the other. Both parties may have entered into negotiations with a desired goal and a certain point at which they will give up in mind.
Win Lose Negotiation: distributive negotiations
The win-lose negotiation model is used in negotiations where something is shared or exchanged. Distributive negotiations often feature a scenario in which two or more parties try to share or exchange a fixed number of resources.
Parties will enter negotiations with either the same or different interests. These negotiations will then end up with a winner and loser. The winner gets whatever he/she claimed or more, and the loser gets less or nothing.
The goal is therefore for one party to win as much as possible. Distributive negotiations or the win-lose negotiation models are also widely used in daily life, especially when selling products that do not have a fixed price.
In the Western world, this is often limited to a local market, but in New Delhi for example a large number of products has no fixed priced, allowing plenty of room for negotiation.
Unlike distributive negotiations, integrative negotiations focus on creating profit for all parties and 'expanding the pie'. Basically, this approach to negotiation is more like the win-win negotiatio...
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