integrative negotation

distributive negotiation goal

how to SPLIT the pie

distributive negotiation conflict type

bargain along single dimension/position

distributive negotiation bargaining type

search for middle ground

integrative negotiation goal

how to ENLARGE the pie

integrative negotiation conflict type

multiple issues; inherently more complex

integrative negotiation bargaining type

search for higher joint benefits

firm-flexibility rule

firm about goal (primary interests & needs); flexible about the method for achieving goal

friends & integrative negotiation goal

try to maximize both party’s outcomes

friends & integrative negotiation characteristics

trust, constructive information exchange, positive attitude

friends & integrative negotiation methods

sometimes yielding instead of problem solving

strangers & integrative negotiation goal

try to maximize their own outcomes

strangers & integrative negotiation characteristics

distrust, persuasive arguments, positional commitments, threats, coercive power

strangers & integrative negotiation methods

firm-flexibility method; sometimes problem solving

how to create integrative agreements

* build trust and share information.
* ask questions.
* make multiple offers simultaneously.
* search for post-settlement settlements.
* use a mediator.

key stages in the integrative negotiation process

1. identify and define the problem.
2. understand the problem fully; identify interests and needs.
3. generate alternative solutions.
4. evaluate and select alternatives.

step 1. identify and define the problem

1. define the problem in a way that is mutually acceptable to both sides.
2. keep the problem statement clean and simple; figure out the primary issue.
3. state the problem as a goal and identify obstacles to attaining this goal.
4. depersonalize the problem to overcome reactive devaluation.
5. separate the problem definition from the search for a solution.

issues – what we want

* analysis of conflict.
* our own experience in similar conflicts.
* gathering information through research.
* consult with experts.

positions & interests – why we want it

* specific value you’re asking for.
* substantive; directly related to focal issue.
* process-based.
* relationship-based.
* principles & standard (informal norms).

substantive interests

related to focal issues that are under negotiation; economic & financial issues; substance of negotiation.

step 2: understand the problem fully

identify and focus on what yours and the other party’s interests are rather than positions.

interests

underlying concerns/needs/desires/fears behind a negotiator’s position that motivate the negotiator to take that position.

types of interests

* substantive.
* process.
* relationship.
* principles.

process interests

how negotiation unfolds; procedural justice.

relationship interests

reluctant to take action that could harm or damage relationship between parties.

principles interests

what is right/fair/acceptable/ethical? what has been done in the past and should be done in the future?

step 3: generate alternative solutions

redefine the problem or problem set.

types of alternative solutions

1. expand the pie.
2. logroll.
3. use nonspecific compensation.
4. cut the costs for compliance.
5. find a bridge solution.
6. superordination.
7. compromise.

expand the pie

add resources so both sides can achieve their goal.

logroll

find more than one issue and trade off on solutions to each.

nonspecific compensation

allow one party to obtain their objective and pay off the other party for an unrelated issue.

cut the costs for compliance

one party achieves own objectives and other’s costs are minimized (satisfy interests).

find a bridge solution

invent new options that meet each side’s needs (satisfy interests).

step 4: evaluation and selection of alternatives

* narrow down solution options.
* evaluate quality and acceptability (fairness) of solutions.
* agree to criteria prior to evaluating options.
* take time out to cool off.
* keep decisions tentative and conditional until all aspects of final proposal are complete.
* minimize formality and record-keeping until final agreements are closed.

possibility of contingency agreements

differences in the assessments of the probabilities of different events.

possibility of insurance-like agreements

differences in risk preferences.

possibility of inter-temporal agreements

differences in time preferences.

inter-temporal agreements

agreements in which time of exchanges are important.

possibility of collaborative agreements

differences in capabilities.

possibility of exchanges on different dimensions

differences in relative valuations.

characteristics of integrative negotiators

* great listening skills.
* personal character and integrity.
* personal maturity.
* “abundance” mentality; “win-win”/creating value.

objective of steps in integrative negotiation

steps 1-3: create value.

step 4: claim value.

intrinsic relationship interests

parties value relationship both for its existence and for the pleasure/fulfillment that sustaining it creates.

instrumental relationship interests

parties derive substantive benefits from the relationship and do not wish to endanger future benefits by souring it.

superordination

when the differences in interest that gave rise to the conflict are superseded/replaced by other interests; negotiation stops and changes accordingly.

compromise

solution that would not further the interests of either party; should only be used when it’s unlikely that a more comprehensive agreement is possible.

quality assessment of agreement

1. objective outcomes.
2. subjective value.

objective outcomes

extent to which both parties’ interests and needs are met by the agreement.

subjective value

negotiators’ personal assessments of agreement; how they feel about the outcome, self, process, and relationship.

factors that facilitate successful integrative negotiation

* presence of a common goal.
* faith in one’s own problem-solving ability.
* belief in validity of other party’s position.
* motivation and commitment to work together.
* trust.
* clear and accurate communication.
* an understanding of the dynamics of integrative negotiation.

common goal

goal that all parties share equally; each benefits in a way that would not be possible without cooperation.

shared goal

goal that both parties work toward; each party benefits differently.

joint goal

goal that involves individuals with different personal goals agreeing to combine them in a collective effort.

developing trust in an integrative negotiation

* share information and encourage reciprocity.
* negotiate multiple issues simultaneously (to identify relative priorities of other negotiator).
* make multiple offers at the same time.

5-step integrative process

1. commitment phase.
2. explanation phase.
3. validation phase.
4. prioritization phase.
5. negotiation phase.

commitment phase

parties commit to participate in a collaborative process; harmonize negotiation philosophy & process and articulate respective interests of the parties.

explanation phase

parties hold first meeting to present their respective proposals to each other, introduce supporting documentation, and set a timetable for remaining meetings.

validation phase

parties gather information from employees and employers about validity of the interests expressed in the opening statements.

prioritization phase

parties work together to develop joint list of priorities based on collected data; often facilitated by mediator.

negotiation phase

parties meet in series of frequent and intensive gatherings to negotiate resolution to prioritized list of interests; often facilitated by mediator.