Sometimes people get confused between negotiation and compromise. And many people think that both are the same but there is a difference between negotiation compromise.
What is the difference between negotiation and compromise? Which do you think is better in a Business?
Both the question are really confusing and frustrating and do you know the reason why are these question confusing? Because nobody has given answers of these questions in simple words. There is confusion between people because some people say that both are the same terms and some say compromise is the end result of negotiation.
But there is a difference and very obvious difference but before answering my second question I would answer my first question because understanding of the first question will let you toward answer of the second question.
In simple words:-
Negotiation = Win – Win (Objective of any negotiation process is to get win – win result)
Compromise = Win and Lose (In process of compromise one party has to lose some thing whether it is small loss for him or big )
Always remember one important thing that negotiation can be done without compromise but compromise can not be done without negotiation.
After understanding answer of my first question it is obvious that in business negotiation is always better than compromise. When you are in business you have to negotiate many things but negotiation is a broader term and is very different from bargaining.