Negotiation: Definition, Characteristics, Purpose, Types, Benefits, Structure and Examples

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Negotiation: Definition, Characteristics, Purpose, Types, Benefits, Structure and Examples – What is meant by Negotiation? At this opportunity About the knowledge.co.id will discuss what is Negotiation and the things that surround it. Let's look at the discussion together in the article below to better understand it.

Negotiation: Definition, Characteristics, Purpose, Types, Benefits, Structure and Examples


Etymologically, the word negotiation comes from the English language namely "to negotiate" and "to be negotiating" which means to discuss, negotiate, or also offer. The word then has another derivative, namely "negotiation" which means explaining the activity of discussing or also negotiating something with other parties to be able to achieve agreement.

In general, the meaning of Negotiation is a process of bargaining between negotiators from two parties to find a solution that is appropriate and acceptable to the parties involved. Negotiator is the person who conducts the Negotiation.

According to the Oxford dictionary, the meaning of this negotiation is a method that is carried out in an effort to reach an agreement through formal discussion. The negotiation is carried out by two (2) parties or it could be more where each of the parties have different opinions/goals as well as a bargaining process to be able to reach an agreement on a regular basis together.

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Negotiation Features

A negotiation process is stated to exist with the following characteristics:

  • Stakeholder Engagement, Negotiation is a process of reciprocal or two-way communication. Thus, there must be at least two parties to the negotiation. The involvement of two or more parties can be stated as one of the characteristics of a negotiation.
  •  Problem, To bring up a negotiation process, of course there is a theme or problem to be negotiated. For example, a problem that burdens one party. Then the party will try to ask for a middle way that is more mitigating.
  • Objective, Negotiations are created so that both parties get a common result or goal. Thus, there are no parties who object or do not accept the problems they face. Goals are the end result that is needed by all parties.
  • Realization, Negotiations are also formed to make a realization of the existing problems. Problems that are classified as abstract must be realized with this process. The existence of an end goal that becomes a realization in the negotiation process is its characteristic. Thus, the problem is no longer a problem, but a solution has been taken together.
  • Dialog, The existence of a conversation or dialogue that encourages both parties to discuss is also a characteristic of negotiation. If there is no dialogue dialogue, then how will the two sides who are negotiating get the result? So, this point is an important point in the negotiation process.
  • Common interest, Negotiation has one goal, namely to find a solution to a problem. Where this problem involves two or more parties who have to negotiate.

Negotiation Goals

Each negotiating activity or activity must have a goal to be achieved by the negotiating parties. The objectives of this negotiation include the following:

  • To be able to reach an agreement that is considered beneficial to all parties.
  • To be able to solve a problem and also be able to find a solution to the problem being faced by the negotiating parties.
  • To be able to achieve a mutually beneficial condition for the negotiating parties in which all benefit (win-win solution).

Benefits of Negotiation

After understanding the true meaning of negotiations and the purpose of negotiations below, the benefits of negotiations will be explained, including the following:

  • The creation of a partnership between one party and another to achieve their respective goals.
  • There is mutual understanding between each party who is negotiating regarding the agreement to be taken and the impact on all parties.
  • This negotiation is beneficial for the creation of a mutual agreement that is mutually beneficial for all negotiating parties.
  • The creation of a positive interaction between the negotiating parties so that the collaboration will produce a wider impact for many people.
Negotiation: Definition, Characteristics, Purpose, Types, Benefits, Structure and Examples

Types of Negotiation


Based on Situation

If it is divided based on the situation, then this negotiation is divided into 2 types, namely:

  • Formal: as the name implies, this is a process of reaching an agreement using legal channels.
  • Informal: is a type of negotiation that can occur anywhere without the need for approval from legal channels.

Based on Number of Negotiators

As for the types of negotiations which are divided based on the number of negotiators, they are separated into:

  • Using an intermediary: usually, this type of negotiation is carried out by two or more negotiating parties. Thus, the decision and course of this negotiation must use a neutral intermediary.
  • Without an intermediary: This is a negotiation that is carried out without the need for the assistance of an intermediary and usually only two parties are involved.

Based on Profits and Losses

The latter type of negotiation is divided into:

  • Collaboration: This type will make all parties involved in the negotiation convey and express their wishes. So that they can collaborate with each other's interests and wills to find the best solution.
  • Domination: As the name implies, this is a type of negotiation in which only one party benefits and the other party does not benefit too much.
  • Accommodation: almost the same as the type of domination negotiation, where the parties trying to negotiate only get a little advantage. Even the opposing party can get far more benefits.
  • Lose-Lose: This is a type of negotiation that occurs so as not to prolong conflict or create new conflicts. So, all parties involved prefer to solve the problem.

Negotiation Structure

As for the explanation of the negotiation structure can be seen through the details explained below.

  • Orientation, Orientation is an introduction or opening between the two parties. Orientation can be in the form of an opening greeting or a question about the problem to be solved.
  • Submission Submission is an explanation of the problem to be resolved by one of the negotiating parties.
  • Bidding, bidding is a bargaining process which is then agreed upon by both negotiating parties.
  • Agreement, Agreement is the final agreement that occurs between the two parties.

Negotiation Example

For example, business negotiation activities or activities between one company and another company very useful in developing markets where the goal is to increase numbers sale.

Another example, this negotiation process also occurs when producers (sellers) and consumers (buyers) negotiate prices on a product in setting a price that can be agreed upon. With these negotiation activities or activities, the seller and the buyer can determine the price that is considered appropriate and fits the value of a product.

Thus the review from About the knowledge.co.id about negotiation, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.

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