...What is Integrative or Interest-Based Bargaining? Integrative bargaining (also called "interest-based bargaining," "win-win bargaining") is a negotiation strategy in which parties collaborate to find a "win-win" solution to their dispute. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Interests include the needs, desires, concerns, and fears important to each side. They are the underlying reasons why people become involved in a conflict. "Integrative refers to the potential for the parties' interests to be [combined] in ways that create joint value or enlarge the pie."[1] Potential for integration only exists when there are multiple issues involved in the negotiation. This is because the parties must be able to make trade-offs across issues in order for both sides to be satisfied with the outcome. Why is Integrative Bargaining Important? Integrative bargaining is important because it usually produces more satisfactory outcomes for the parties involved than does positional bargaining. Positional bargaining is based on fixed, opposing viewpoints (positions) and tends to result in compromise or no agreement at all. Oftentimes, compromises do not efficiently satisfy the true interests of the disputants. Instead, compromises simply split the difference between the two positions, giving each side half of what they want. Creative, integrative solutions, on the other hand, can potentially give everyone all of what...
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...Distributive Bargaining and Integrative Negotiation Using the strategies of distributive bargaining and the strategies of integrative negotiation, complete the matrices for the challenge provided. Think of two (2) situations in your professional environment or personal life that you would like to see a change in but know there is a lot of resistance to the change. Pretend you have been given an opportunity to negotiate for the change with the CEO of the company. Complete the table below and answer the proceeding questions. 1. Describe the two (2) scenarios you want to see changed. 2. Complete the tables. Table 2a. Strategy and Tactics of Distributive Bargaining DISTRIBUTIVE BARGAINING TACTICS AND STRATEGIES | | Identify the distributive bargaining strategy you will use for each scenario | Identify the tactical task you will use for each scenario | Identify the positions you think you would take during the negotiation | 1 | | | | 2 | | | | Table 2b. Strategy and Tactics of Integrative Negotiation INTEGRATIVE NEGOTIATION TACTICS AND STRATEGIES | | Identify the integrative negotiation process employed for each issue presented in 2a. | Identify the factors that can facilitate a successful integrative negotiation for scenario identified in 2a. | 1 | | | 2 | | | 1. Select one (1) of the scenarios and discuss why the approaches you have selected can lead to a successful negotiation outcome. Your stuff must follow...
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...1. Negotiation Trap: I must analyze what type of bargainer I am. Identifying my type helps me avoid fall into the negotiation trap. 2. BATNA: I must analyze what my BATNA is. This is my reference for the negotiation. 3. Focus on Interest: I will approach the negotiation with a focus on interest of the other party. Identifying the possible interest of other party involved in negotiation will help me analyze the possible ways of expanding the pie (creating more value). 4. Integrative Bargaining: Focus more on Integrative bargaining. Analyze multiple issues and interest, creating and claiming value and cooperative problem solving. Consider possible trade-offs to avoid conflicts and have a win-win situation. 5. Bargaining Zone: I must analyze my bargaining Zone. The zone where the buyer’s and supplier’s negotiation ranges overlaps. 6. Reservation Price: I have to write down my reservation price. This determines when to expand the pie create more value and when to walk away from negotiation. 7. Identify the power in negotiation: Identify exactly the type power in negotiation and analyze the persuasive skills required to move from perceived power to realized power. 8. After striking with the initial deal, I will have to keep my options open for re-anchoring. Negotiation Trap: * Identifying the type of bargainer helps to identify the potential traps. * Soft bargainers agree on deals worse than the BATNA and they fail to achieve best...
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...Learning Journal Best Books CE The Best Books exercise was consist of two parts. Students formed group of two for this exercise. First portion was to conduct negotiation and the second portion was to calculate points for comparing. We were given two different role information, one for Paige Turner’s Agent and one for Bestbooks. The negotiation between the Agent and Bestbooks was hinged on the 8 points. They included royalties, contract bonus, number of print runs for the book, numer of weeks that Paige has to promote the book, number of books, advance, number of countries where the book will be sold, and the number of bookclubs that will adopt the book. After the negotiation, we calculated points according to the “Confidential Success Table” that was provided. For this exercise, I was Paige Turner’s agent. As we started negotiating, both of us didn’t know where to start. Therefore, we simply decided to negotiate in sequence from royalties to number of bookclubs that will adapt the book. However, we soon realized that it was not going to work that way. Naturally, we started offering deals on several points without telling each other what we were after. I think we both were trying to figure out what each other was focusing on. During this process, we also figured out that we had some common interest on several points. It took us about 25 minutes to complete our negotiation. When we were done with our negotiation, we signed each other’s paper and calculated...
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...Integrative Therapy Djnj1102 Behavioral science research is a large, multifaceted field, encompassing a wide array of disciplines. The field makes use of a variety of mechanical approaches including: surveys and questionnaires, interviews, randomized clinical trials, direct observation, and field experiments. In spite of the techniques used in the research related to behavioral science, it is not restricted to a set of disciplines or mechanical approaches. Instead, the field is defined by substantive areas of research that go beyond disciplinary and practical boundaries. In addition, several key cross-cutting themes characterize behavioral sciences research. These include: an emphasis on theory-driven research; the search for general principles of behavioral and social functioning; the importance ascribed to developmental, lifespan perspective; an emphasis on individual distinction, and distinction across socio-demographic categories such as gender, age, and socio-cultural status; and a focus on both the social and biological contexts of behavior. With the information that is gained from research one can select a therapeutic approach that would seem to be most helpful. While all therapeutic systems have some common goals, they each have differences in the route that is used to achieve them. Some therapies insist on direct and active part of the counselor, while others place value on the client being the one who is active. Some therapies place their attention on what the...
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...Our company’s merged to avoid the bankruptcy, a Pareto Efficient outcome. Given we essentially had a negative bargaining zone (dispute context), as total resources I was owed and needed immediately, were less than Sandy could pay, integrative bargaining provided full disclosure and an optimal solution. Power is evident from the ability to force bankruptcy based on my contract rights, however, in court this power would prove useless if Sandy went bankrupt. Sandy has the power to declare bankruptcy and the right to argue rights due to Fawn’s actions. It was necessary to put aside a heated power and rights debate, to achieve our interests. We agreed bankruptcy was not an option, so became completely honest. A merger allowed us to maximize gains for both parties and even increase the ‘pie’. Together we can make profits from investments and carpeting. Furthermore, with combined resources, I can make all future investments and benefit from any carpeting work. This is a source of competitive advantage. I was also pleased with the level of cooperation from Sandy, who did not complain about Fawn. This developed trust, which clearly did not exist, lending us to a merger. I invited criticism and advice on this to develop the solution and relationship. By doing a merger, trust became implied, thereby disclosing all relevant information (and knowing whether one of us lied prior) to reach the Pareto Efficient equilibrium. With such collaboration, I was pleased with the ability to...
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...10/2/2015 ONLINE MGT 430: NEGOTIATIONS Week 1: Negotiation Concepts and Styles “If you’re bold enough to bargain, you can reap big bucks.” Consumer Reports, August, 2013 • Just 48% of Americans have tried bargaining over everyday goods and services in the past three years (2010 survey) • Down from 61% in 2007 • 89% who tried on furniture saved an average of $300 • Cell phone plans, eye glasses, credit card fees, doctors, lawyers, jewelry, appliances – what else? Why Don’t We Negotiate More? • 35% refuse to bargain, period • 20% of women say it makes them uncomfortable – Men? • Why do we feel uncomfortable? • Ages 18‐29 enjoy it the most, over 60 the least • 43% who earn less than $50K/yr have tried, compared with 58% of higher earners Consumer Reports, August, 2013 1 10/2/2015 What is a Negotiation? “Broadly defined, negotiation is the process of back-and-forth communication aimed at reaching agreement with others when some of your interests are shared and some are opposed.” (Ury, Getting Past No) “A negotiation is an interactive communication process that may take place whenever we want something from someone else of another person wants something from us” (Shell, Bargaining For Advantage) Why Learn to Negotiate Better? • Personal: Improve your ability to create and claim value for yourself • Getting a “good deal” in business transactions (car, house, sales contracts) • Advancing your career (job offers, promotions) ...
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...● Use competition when quick decisive action is needed (in emergencies), when issues are important, when unpopular actions need to be implemented (in cost cutting, enforcement of unpopular rules, discipline), when the issue is vital to the organization’s welfare and you know you’re right, and when others are taking advantage of noncompetitive behavior. ● Use collaboration to find an integrative solution when both sets of concerns are too important to be compromised, when your objective is to learn, when you want to merge insights from people with different perspectives or gain commitment by incorporating concerns into a consensus, and when you need to work through feelings that have interfered with a relationship. ● Use avoidance when an issue is trivial or symptomatic of other issues, when more important issues are pressing, when you perceive no chance of satisfying your concerns, when potential disruption outweighs the benefits of resolution, when people need to cool down and regain perspective, when gathering information supersedes immediate decision, and when others can resolve the conflict more effectively. ● Use accommodation when you find you’re wrong, when you need to learn or show reasonableness, when you should allow a better position to be heard, when issues are more important to others than to yourself, when you want to satisfy others and maintain cooperation, when you can build social credits for later issues, when you are outmatched and losing (to minimize loss)...
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...Bargaining Bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service dispute the price which will be paid and the exact nature of the transaction that will take place, and eventually come to an agreement. Bargaining is an alternative pricing strategy to fixed prices. Optimally, if it costs the retailer nothing to engage and allow bargaining, he can divine the buyer's willingness to spend. It allows for capturing more consumer surplus as it allows price discrimination, a process whereby a seller can charge a higher price to one buyer who is more eager (by being richer or more desperate). Haggling has largely disappeared in parts of the world where the cost to haggle exceeds the gain to retailers for most common retail items. However, for expensive goods sold to uninformed buyers such as automobiles, bargaining can remain commonplace. Dickering refers to the same process, albeit with a slight negative (petty) connotation. Bargaining is also the name chosen for the 3rd stage of the Kübler-Ross model (commonly known as the stages of dying), even though it has nothing to do with price negotiations. Contents * 1 Contexts where bargaining is allowed * 1.1 Regional differences * 2 Theories * 2.1 Behavioral theory * 2.2 Game theory * 2.3 Bargaining and posted prices in retail markets * 2.4 Processual theory * 2.5 Integrative theory * 2.6 Narrative theory * 2.7 Automated bargaining ...
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...Negotiation happens every day in everyone’s life. People often refer negotiation only to major business decisions, lawyers settling legal claims, or trade exchanges among nations etc., but neglect the fact that we also involve in a negotiation process when dealing with relatively minor things. For example, friends negotiate where to dine, husband and wife negotiate who to do the laundry. When we fail to recognize that we are in a negotiation situation, or fail to negotiate effectively, we could only take the options whichever left to us. End up with a passive position could undermine our goals, or even put us in a worse-off situation. Throughout the whole week of intensive study in the negotiation course, I learned a lot both from the professor and course materials, and my course mates. Especially through participating in the different exercises and playing different roles, I learned a lot of useful skills from my counterparts. Their feedback also helped me to understand better the kind of negotiator I am and the areas I need to improve on. I currently work as a Financial Advisor at Sun Life Financial. My job is to provide my clients a holistic financial plan to build their financial security. But essentially, I am selling them financial products. In every client meeting, we are negotiating over price and product features. Clients are trying to pay as less as possible. I am trying to convince them to look at the long term benefits, which would cost them more money, but would...
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...problem…did it effect motivation by breaking a link from expectancy theory or unbalance inputs and outputs. © James Berry 2013 3 Negotiations The Basics Dr. James Berry Lecturer University College London james.berry@ucl.ac.uk © James Berry 2013 4 Negotiation Skills © James Berry 2013 5 Objectives • • • • Briefly review what negotiation is Highlight why it might be important Review your BioPharm/Seltek negotiations Key things to know (BATNA, Reservation Price, ZOPA, Target Price) • Negotiate Case: Recruit © James Berry 2013 6 Negotiation is… • The process where two or more parties decide what each will give and take in the context of their relationship . . . © James Berry 2013 7 Negotiation is… • A bargaining and influence process designed to reach agreement about a decision or outcome • A core leadership and management competency • Most people are not effective negotiators – Over 80% of corporate execs and CEOs leave money on the table – Even effective negotiators have skills that can be sharpened and bad habits that can be broken © James Berry 2013 8 Matters...
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...Negotiation Strategy and Tactics Tutorial Prepare responses to the questions below after viewing the Negotiation Strategy and Tactics Tutorial in this week's lecture. In drafting your answers to the questions, make sure that you apply course concepts in your answers. Part A: What are the objectives of both parties in the exchanges? Marilyn and Len are both looking out for their teams, and protecting their own best interests. Marilyn’s objective is to get Len to turnover five billion dollars worth of viable accounts. Len’s objective is to get Marilyn to accept the accounts he has chosen to give her, so that his team won’t incur a loss of commission. How would you describe the general "tone" of the exchanges? I would describe the general tone as a negative emotional tone in the first exchange. In the second exchange, the tone shifts from a negative to a more positive tone, as the negotiation evolves. In the end it appears that Marilyn changes the tone of the negotiations. Part B: Were Marilyn's objectives achieved in the first exchange? Not really. Marilyn stated her position expecting to maximize her resources and share of value, but failed to make her needs or interests known. Seeking to make the best possible case for his or her preferred perspective, Marilyn should have assembled some facts, or other evidence to persuade Len of the validity for her perspective. Arguments and frames began to shift, as the parties focused on refuting the other’s case. I believe...
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...Define distributive bargaining. Distributive bargaining is the approach to bargaining or negotiation that is used when the parties are trying to divide something up--distribute something. It contrasts with integrative bargaining in which the parties are trying to make more of something. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, integrative bargaining tends to be more cooperative, and distributive bargaining more competitive. Common tactics include trying to gain an advantage by insisting on negotiating on one's own home ground; having more negotiators than the other side, using tricks and deception to try to get the other side to concede more than you concede; making threats or issuing ultimatums; generally trying to force the other side to give in by overpowering them or outsmarting them, not by discussing the problem as an equal (as is done in integrative bargaining). The goal in distributive bargaining is not to assure both sides win, but rather that one side (your side) wins as much as it can, which generally means that the other side will lose, or at least get less than it had wanted. (Distributive bargaining tactics rarely assume the pie will divided in half.) Often these approaches to negotiation are framed...
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...responsive to what his supervisor’s propose to a job candidate. In addition, the HR Director has published salary ranges for new hires that are to be adhered to, unless there are extenuating circumstances such as the candidate having special expertise, the ability to bring in additional clients, or excellent credentials including having the CPA certification. Your Role/Assignment: Your role is to determine whether distributive or integrative negotiations will be preferred in this scenario between the job applicant and the supervisor, and respond to the questions regarding the other parties who have an interest in hiring the job applicant. Use the Worksheet to answer the questions related to this scenario. Questions: 1. What is the appropriate negotiation strategy that would be most advantageous for Sharon and Jim in this scenario, distributive or integrative bargaining? What are the factors that should be considered in making this determination? I feel that the best negotiation strategy would be for Sharon and Jim to use integrative bargaining. It is clear that Jim has a lot to...
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...Distributive bargaining is the approach to bargaining or negotiation that is used when the parties are trying to divide something up--distribute something. It contrasts with integrative bargaining in which the parties are trying to make more of something. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, integrative bargaining tends to be more cooperative, and distributive bargaining more competitive. Common tactics include trying to gain an advantage by insisting on negotiating on one's own home ground; having more negotiators than the other side, using tricks and deception to try to get the other side to concede more than you concede; making threats or issuing ultimatums; generally trying to force the other side to give in by overpowering them or outsmarting them, not by discussing the problem as an equal (as is done in integrative bargaining). The goal in distributive bargaining is not to assure both sides win, but rather that one side (your side) wins as much as it can, which generally means that the other side will lose, or at least get less than it had wanted. (Distributive bargaining tactics rarely assume the pie will divided in half.) Often these approaches to negotiation are framed as incompatible. Fisher, Ury, and Patton, authors of the negotiation...
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