1. Integrative Bargaining - Collaborative Moves to Create Value
092SIS19
Jiang Xiaomei

2. Bargaining Strategies – Distributive Bargaining
Both Competitive and cooperative strategies
divide a fixed “pie”
Win-Lose, Zero-sum
Opposed to each other
move through a series of concessions
competitive moves to claim value 2

3. Pitfall of adversarial bargaining strategy
Pyrrhic negotiation outcomes- the winner’s curse
REGRET: PAY TOO MUCH?
Disadvantages of win-lose metaphors
Zero-sum quality
Emphasis on rules rather than relationships
exploit rather than negotiate fairly
Increase tendency to litigate rather than mediate
Induce focus on immediate conflict instead of long term
new game
zero score at the beginning of the next game
exploitive tactics without fear of repercussions
anything given up is perceived as forever lost–intransigence
Try to fractionate other party-weakening coalitions-easier to defeat
No clear leader-difficult to reslove conflict
Winning : has the power and potential to create tunnel vision lead people to visualize conflicts in counterproductive ways

4. Bargaining Strategies – Integrative strategy
a problem-solving approach
by trying to come up with a creative solution to
Reconcile parties’ interests – provides high profits to both
Variable amount of resources to divide
Search for additional items-increase the pie-Expond options
Convergent or congruent with each other
try to create WIN-WIN/positive-sum
Handled through collaboration or compromise
Broad understanding of success
Collaborative Moves to Create Value

5. Negotiation Strategies
An Example…
Competitive
Cooperative
Integrative 5

6. Distributive vs. Integrative Bargaining Distributive Solution
Dividing Fisher and Ury’s Famous Orange
Distributive Solution
Integrative Solution 6 6

7. Reasons to seek integrative agreement rather than compromises
Reconcile parties’ interests to solve conflict
More stable Resolution
Strengthen the relationship
Contribute to the welfare of the broader community

8. Integrative Bargaining
Fisher & Ury’s Principled Negotiation Largely Based on though goes beyound
four principles
Separate the PEOPLE from the problem.
Competitive-change the opponent’s position through sheer willpower
Cooperative –build trust in order to reach a fair agreement
Focus on INTERESTS, not positions.
Invent OPTIONS for mutual gain.
Insist on using objective CRITERIA
Directly conflict interests(not all)
free exchange of information
each party’s motives, goals, values are understood and appreciated
Meet varied and complementary needs
Standard components
Major component
Underlying principle

9. The Structure of Problem Solving
Identifying the parties’ underlying needs and objectives – springboard for potential solution
not all needs are mutually exclusive-meeting varied and complementary needs
Creating solutions
Meet the parties’ needs
Expanding the resources available
zero-sum non-zero-sum/positive –sum
Substantive-no single, optimal solution
shared interests
value differences in needs
third party
Substitute
Long/short term……
Just or fair solutions-no Pareto optimal
Meet the parties’ needs by solving their problem in broadest sense

10. Types of integrative solution
Brainstorm-develop a new option
Logrolling
Cost cutting
Reach a negotiation beneficial to the other party and assure no similar concessions be expected in the future
Heuristic trial and error-facilitating Procedures
Dispute should be considered simultaneously
develop a set of goals and other requirements
incorporate opponent’s suggested solution
alter incrementally
Party A
Party B
Concessions…
Concessions …
Of least important issues for in exchange of the most important!

11. Methods for integrative agreements
Expanding the pie
increasing available resources
Require no analysis of the interests underlying the parties’demands
slim information requirement √ √

12. Methods for integrative agreements
Nonspecific compensation
repaid in unrelated compensation
what is valuable to the other party
How badly the other part is hurting by making comcessions √ √

13. Methods for integrative agreements
Logrolling
Several issues under consideration with different priorities
Concedes on low priority in exchange for concessions on higher priority √ √

14. Methods for integrative agreements
Cost cutting
the other’s cost are reduced-suffers less √

15. Methods for integrative agreements
Bridging
reformulation based on an analysis of the underlying interest
Satisfies the most important interest underlying initial demands
higher priority are served √ √

16. The nature of problem solving
Openess to new alternatives
Firm flexibility
Be firm with one’s ends
Be flexible with the means to these ends

17. Creativity and outcome -Multiple intelligences
Connect the three rows of dots below with four straight lines without moving your pen off the page
thinking out of the box

18. Creativity- problem solving
Take a piece of paper and put your body through the page
You have four cows in a field. How can you arrange those cows so they equidistant from each other
Make a pyramid, three on the base and three on the sides

19. Conclusion
integrative approach is the most productive,interpersonal and outcome
understanding and satisfying interests, firm flexibility
Right attitude: Positive, Openess, Willingness to Win-Win
Sharing each other’s deep interests and needs
Accessing the interests at stake
Communicate, roleplay, third party, past behavior, professional Organizational affiliation,to Whom they defer, Psychology and culture
Accesing trade offs
Creat value from a varity of differences:
Relative cost/revenue structure, priority/interest, forecast/future, risk, time, capabilities,tax
Creativity : Mind-mapping, WWCD, Idea arbitrage
problems in application-criticism
Suspect premise-irreconcilable notions
Weaknesses in each of its core principles
a good negotiator can switch and choose between different types

20. Thank you for your attention !