The employees of a garment factory and its top managers get involved in a negotiation about the wages of the employees. They thoroughly examine each other's claims and come to a mutually beneficial arrangement. As per this arrangement, the employees are given a salary hike of 30 %, while they increase their productivity by 10 % thus benefiting the factory. Identify the type of negotiation in this scenario from the following.
A) Accommodating negotiation
B) Distributive negotiation
C) Principled negotiation
D) Authoritative command negotiation
E) Compromise negotiation

Question

Quizplus · Accepted Answer

The negotiation described in the scenario is an example of principled negotiation, also known as integrative negotiation. In this type of negotiation, the parties involved work together to find a mutually beneficial solution that satisfies both sides' interests. The employees and top management in this scenario examined each other's claims and came up with a solution that benefits both parties. The employees receive a wage hike, while the factory benefits from an increase in productivity. This type of negotiation often involves creating value for both sides, rather than just dividing a fixed pie between them (as in distributive negotiation) or compromising on positions (as in compromise negotiation).

The Employees of a Garment Factory and Its Top Managers