MOI UNIVERSITY

KHADIJAH KWEYU

CONFLICT MANAGEMENT & NEGOTIATION

BHR 107

Discuss the basic theoretical models of bargaining process and explain how they can improve individuals negotiation skills in an organisation.

Introduction:

Bargaining can be defined as an agreement between parties settling what each gives or receives in a transaction between them or what course of action or policy each pursues in respect to the other.

The study of bargaining process involves an analysis of the actors, the stakes and the factors involved. All theories feed into each other, and combining these theories allows for a more complete understanding of the issues involved in bargaining process and therefore helps to improve individuals negotiation skills. There are several different theories analyzing the process and outcome of bargaining process as follows:-

1. Integrative Approach Model 2. Game Theory 3. Behavioral Theory 4. Power Theory 5. Optimal Agent Independence
1. Integrative Approach Model
The integrative approach divides the negotiating process into three phases: • Diagnostic • Formulation • Details
In the practice of negotiation, these phases are not necessarily linear. Rather, they can be repeated and addressed many times throughout the negotiation process. The toughness dilemma in the integrative approach calls for tough diagnosis in order to clearly elucidate the true interests of each party. In the formulation phase, negotiators should be more soft, in order to find a common, mutually acceptable solution. In the detail phase, the negotiators should again take a tough stance to assure their party receives as much benefit from the bargaining process as possible.
Diagnostic Phase
The Integrative Approach focuses heavily on the diagnosis of the underlying issues which have created the conflict,