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

This scenario is an example of principled negotiation, also known as integrative negotiation or win-win negotiation. In principled negotiation, both parties work together to find a mutually beneficial solution. This is evident in the arrangement reached between the garment factory employees and managers, where the employees receive a salary hike, but also increase their productivity, benefiting the factory. Both parties are trying to create value and find a solution that satisfies their interests.

The Employees of a Garment Factory and Its Top Managers