Saturday, December 1, 2012

N03: Strategy and Tactics of Integrative Negotiation

 
 

When a negotiation is integrative, it means that negotiation is based on interest or otherwise negotiation strategy which lay emphasis on win-win situation. The goal of Integrative Negotiation is to make the parties’ interest compatible, so that both sides can win. That is, reach an agreement that satisfies their need. The goals of the parties are integrative. Negotiations are not mutually exclusive. If one party achieves its goals, the other is not precluded from achieving its goals as well. The fundamental structure of integrative negotiation situation is such that, it allows both sides to achieve their objective.
 
            While Integrative Negotiation Strategies are preferable, they are not always possible. Sometimes parties’ interests really are opposed as when both sides want a larger share of fixed resources.
 
            What makes integrative negotiation different? For a negotiation to be characterized as integrative, negotiators must also:
            · Focus on commonalties rather than differences.
            · Attempt to address needs and interests, not positions.
            · Commit to meeting the needs of all involved parties.
            · Exchange information and ideas.
            · Invent options for mutual gains.
            · Use objective criteria for standards of performance.
 
Past experience, based perceptions and truly distributive aspects of bargaining makes it remarkable that integrative agreements occur at all. But they do, largely because negotiators work hard to overcome inhibiting factors and search assertively for common ground. Those wishing to achieve integrative results find that they must manage both the contest and the process of negotiation in order to gain the cooperation and commitment of all parties. Key contextual factors include:
- Creating a free flow of information
- Attempting to understand the other negotiator’s real need and objective
- Emphasizing the commonalties between the parties and minimizing the differences
- Searching for solutions that meet the needs and objectives of both sides.
 
Key Steps in Integrative Negotiation Process:
a. Identify and define the problem
b. Understand the problem and bring interests and needs to the surface
c. Generate alternative solution to the problems
 
            We have stressed that successful Integrative Negotiation can occur if the parties are predisposed to finding a mutually acceptable joint solution. Many other factors contribute to a predisposition toward problem solving and a willingness to work together to find the best solution.
 
Question
1. How to communicate “firm flexibility” if no guarantee of finding a win-win solution?
- Use contentious tactics to establish firmness about basic interests
- Signal flexibility and concern for their interests
- Indicate willingness to change proposals if it helps bridge the gap in interests
- Demonstrate problem-solving capacity
- Maintain open communications
- Reaffirm what’s important or fundamental
- Reconsider aspects of your interests that are clearly unacceptable to them are they really essential
 
2. Why Integrative Negotiation Is Difficult to Achieve?
• The history of the relationship between the parties
– If contentious in past, it is difficult not to look at negotiations as win-lose
• The belief that an issue can only be resolved distributive
– Negotiators are biased to avoid behaviors necessary for integrative negotiation
• The mixed-motive nature of most negotiating situations
– Purely integrative or purely distributive situations are rare
• The conflict over the distributive issues tends to drive out cooperation, trust needed for finding integrative solutions
 
 
3. What some of the main tactics used in integrative negotiation?
1. Send a message about the intention to cooperate: to send a clear message to the other party of our intention to cooperate, to solve the problem, to be flexible, for example, to let you know that we both face the same problem, by showing concern for their interests, to show willingness to dialogue.
2. Create a climate of problem solving: a climate of problem solving, unlike what happens in a distributive bargaining where it often creates a climate of competition and belligerence.
3. Ensure good communication: to create conditions for good communication, maintain open communication channels.
4. Find differences: it is through the differences (whether in needs, preferences, tastes, values, interests, resources, skills, etc.) That can create value, for example, to identify something that is not as valuable to one but for the other party itself, and exchange it for something that the other party is not so valuable, but for one another.

 

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