Scribd
Upload
102 views4 pages

HRM702 - Topic 6

Integrative and distributive negotiations differ in their goals and processes. Integrative negotiation focuses on mutual interests and creating value for both parties through problem-solving, while distributive negotiation is competitive with each party claiming value from a fixed resource. The four key steps of integrative negotiation are identifying problems, surfacing interests, generating alternative solutions, and evaluating options, with the first three aimed at value creation. Distributive negotiations have bargaining zones where parties can compromise, but may end with winners and losers. Integrative negotiations consider common interests and needs over positions to create mutually beneficial agreements.

Uploaded by

Shivani Swastika Lal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
102 views4 pages

HRM702 - Topic 6

Integrative and distributive negotiations differ in their goals and processes. Integrative negotiation focuses on mutual interests and creating value for both parties through problem-solving, while distributive negotiation is competitive with each party claiming value from a fixed resource. The four key steps of integrative negotiation are identifying problems, surfacing interests, generating alternative solutions, and evaluating options, with the first three aimed at value creation. Distributive negotiations have bargaining zones where parties can compromise, but may end with winners and losers. Integrative negotiations consider common interests and needs over positions to create mutually beneficial agreements.

Uploaded by

Shivani Swastika Lal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Topic 6 - STRATEGIES AND TACTICS IN DISTRIBUTIVE AND INTERGRATIVE NEGOTIATION

1. Distinguish between Distributive and Integrative negotiations?


Integrative negotiation, sometimes called principled negotiation, the focus is on the
‘merits’ of the issue. Everyone involved tries to enlarge the available ‘pie’ rather than
stake claims to certain portions of it. For this reason, integrative negotiation is also
sometimes referred to as problem-solving, or interest-based negotiations.
In distributive negotiation, the focus is on ‘positions’ that conflicting parties stake out or
declare. Each party is trying to ‘claim’ certain portions of the available ‘pie’
Distributive negotiation is sometimes referred to as competitive or positional
negotiation
Difference:
 In distributive negotiation every negotiator focuses on meeting his personal
interests, regardless of the loss the others may have to face. In contrast,
integrative negotiation focuses on mutual interests of all the parties and thus,
comes up with constructive solutions that will be beneficial for all.
 Distributive negotiation ends up in a win-lose situation where some parties stand
at an advantage and the others lose out. On the other hand, integrative
negotiation creates a win-win situation for all the parties.
 Distributive negotiation is competitive in nature and requires that every party
views every other party as a competitor, while integrative negotiation is
collaborative in nature and all the parties negotiate on friendly terms, acting as
allies to one another.
 Integrative negotiation works as a conflict management tool, whereas
distributive negotiation intensifies the conflicts further.

2. Critical examine some of the key characteristics and processes in both Distributive and
Integrative negotiations?
There are four (4) major steps in the integrative negotiation process:
 Identify and define the problem;
 Understand the problem and bring interests and needs to surface;
 Generate alternative solutions to the problem; and
 Evaluate those alternatives and select among them.
The first three (3) steps of the integrative process are important for creating value. To
work together to create value, negotiators need to understand the problem, identify the
interests of both parties, and Generate alternative solutions. The fourth step of the
integrative negotiation process, the evaluation and selection of alternatives, involves
claiming value. Claiming value involves many of the distributive bargaining skills that
we have discussed much earlier.
Characteristics of Integrative Negotiations
Integrative negotiation is a process in which the negotiating parties jointly work towards
goals that are not mutually exclusive so that one party does not necessarily gain at the
expense of the other. The approach of the parties is to work together to find out ways
to utilize the resources in the best possible manner for the benefit of both parties. They
engage in problem-solving jointly to arrive at a mutual agreement that maximizes the
benefit to each party.
Integrative negotiation has two aspects to it. One is the substantive part that includes
tangible issues to be discussed and negotiated. The other aspect is the intrinsic value in
the agreement, which may be long-term cordial relationship between the parties or
other benefits to both parties not directly related to the substance of the issues
involved. Thus, it has an important dimension of building relationships.
Characteristics of Distributive Negotiations
A case of distributive negotiation can either be a hard one or a soft one. The hard
distributive negotiation takes place when each party holds out for what it wants without
any compromise. Many times such an attitude leads to an impasse. This happened in the
case of Eastern Airlines, where the union’s demands were considered very high and the
management refused to give in. The result was a strike by the workers and the end
result was that the airline went into bankruptcy and ceased to exist.
In a soft distributive negotiation, both parties follow the give and take the policy, make
concessions, compromise on some issues and reach an agreement that is realistic and
acceptable. In general, one party asks for much higher benefits than it is willing to
accept and the other party offers much less than it is willing to give.
Then by negotiation and compromise, they meet somewhere in the middle and both
parties are happy. This meeting point is somewhere in the bargaining zone.  This
bargaining zone is defined by the following example:
‘A graduate with an MBA degree is negotiating a job offer with a company manager. He
believes that he should get $70,000 per year in salary but would be willing to settle for
$60,000 per year. That is the lowest salary he will accept for the job. The manager
would like to offer $55,000 per year but would be willing to go up to $65,000 per year.
Thus the minimum value of $60,000 for the graduate and maximum offer of the
manager of$65,000 creates a bargaining zone between $60,000 and $65,000.
Negotiation takes place within this zone.’ Similarly, purchasing a car or a house
represents distribute negotiation with a bargaining zone to maneuver the price.

Four Steps in Integrative Negotiation Process is


1.Identify and define the problem
2. Surface interests and needs
3. generate alternative solutions - (1-3) creating value
4. Evaluate and select alternatives - (4) claiming value

3. The goal of creating value is to push the potential negotiation solutions towards the
pareto efficient frontier When this is done to the fullest extent possible, the line is
called the Pareto efficient frontier, and It contains a point where ‘there is no agreement
that would make any party better off without decreasing the outcome to any party’
 The Pareto efficient frontier contains a point where there is no agreement that
would make any party better off without decreasing the outcomes of any other
party. i.e.
 When the four steps of the integrative negotiation process are maximized.
Contains the point where there is no agreement that would make any party
better off without decreasing the outcomes to another party.

4. Examine what makes Integrative Negotiation different and how?


There are elements common to ALL negotiations
However, for a negotiator to be categorized as integrative, negotiators must also:
(a) focus on commonalities;
(b) attempt to address needs and interests, not positions
A successful interest-based negotiator models the following traits:
 Honesty and Integrity – interest-based negotiation requires a certain level of
trust between the parties. Actions that demonstrate interests in all parties’
concerns will help establish a trusting environment.
 Abundance & Mentality - Those with an abundance mentality do not perceive a
concession of monies, prestige, control, and so on as something that makes their
slice of the pie small, but merely as a way to enlarge the pie. A scarcity or zero-
sum mentality says, ‘anything I give to you takes away from me’. A negotiator
with abundance mentality knows that making concession helps build stronger
long-term relationship.
 Maturity - Stephen Covey, refers to maturity as having the courage to stand up
for your issues and values while being able to recognize that others’ issues and
values are just as valid.
 Systems Orientations - system thinkers will look at ways in which the entire
system can be optimized, rather than focusing on sub optimizing components of
the system.
 Superior Listening Skills - Ninety-nine percent of communication is not in one’s
words but in the whole context of communication, including mode of expression,
body language and many other cues.

You might also like