3 outcomes of negotiation

Thursday, July 17, 2014

3 outcomes of negotiation

There are 3 outcomes of negotiation, before going to the outcomes at first we should know what negotiation is. Negotiation occurs when two or more parties come together with different views, to reach an agreement on some issues.

When parties negotiate, they have 3 possible results:

Lose-lose: In this scenario parties cannot achieve their desirable goals. Both parties stick on their position and at the end of the deal they both loose. For example, an employee has accomplished one project successfully after the employee claims for raising his/her salary. But top management refuses to increase because they think it will generate extra cost. As a result the employee become dissatisfied and give up to give effort on tasks and the company starts to face loss on the next projects. It is a bad practice for the long run relationship.

Lose-lose Negotiation

Win-Lose/lose-win: Here one party gains and other cannot. Both parties want to win, without much concern of others. For example, when top management refuses to increase salary of certain employee he or she might passes the upcoming project information to rival company so that the company lose upcoming projects.

Win-win: It happens when each side of an argument feels they have won.it is the best practices for the longer period. For example, company decides to increase the salary so that employee will work more harder and think that he/she is a part of the company as a result company will be able to generate more and more profit.