TYPES OF

NEGOTIATIONS

Depending upon the situation and time, the way the negotiations are to be conducted differs. The skills of negotiations depends and differs widely from one situation to the other. Basically the types can be divided into three broad categories. 

Managerial Negotiations

Commercial Negotiations

Legal Negotiations

1. Day-to-day / Managerial Negotiations

Such types of negotiations are done within the organization and are related to the internal problems in the organization.

For conducting the day-to-day business, internally, the superior needs to allot job responsibilities, maintain a flow of information, direct the record keeping and many more activities for smooth functioning

PARTIES INVOLVED Different levels of

Management.In between colleagues.Trade unions.Legal advisers.

EXAMPLES

Negotiation for pay, terms and working conditions.

Description of the job and fixation of responsibility.

Increasing productivity.

2. Commercial Negotiations Such types of negotiations are

conducted with external parties.  They are based on a give-and-take

relationship. Commercial negotiations successfully

end up into contracts.

PARTIES INVOLVED Management. Suppliers. Government. Customers. Trade unions. Legal advisors. Public.

EXAMPLES

Striking a contract with the customer.

Negotiations for the price and quality of goods to be purchased.

Negotiations with financial institutions as regarding the availability of capital. 

3. Legal Negotiations

These negotiations are usually formal and legally binding.

 Disputes over precedents can become as significant as the main issue. 

They are also contractual in nature and relate to gaining legal ground.

PARTIES INVOLVED

Government. Management. Customers

EXAMPLES

Adhereing to the laws of the local and national government.