Negotiation INTEGRATIVE BARGAINING. Ugli Orange Take 5 minutes to read the role information Negotiate with your partner (5-10 minutes) Write down agreement.

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Presentation transcript:

Negotiation INTEGRATIVE BARGAINING

Ugli Orange Take 5 minutes to read the role information Negotiate with your partner (5-10 minutes) Write down agreement (on your own paper, please) Turn sheet back in after class (I’m trying to recycle)

Ugli Orange Who reached an agreement? What was the agreement? What led you to this outcome?

Integrative Bargaining Integrative bargaining is focused on problem solving and achieving a win-win scenario rather than an ‘adversarial’ focus as in distributive bargaining

Integrative: Strategies that do not work False conflict: ◦Illusion that interests are incompatible –negotiators fail to recognize compatible issues half the time Fixed-pie perception ◦Belief in opposition of interest – research shows that fixed pie perceptions lead to suboptimal agreements ◦Fixed-pie perceptions are “bad” because it biased ◦Information search: fail to ask for information about the other’s preferences because they assume they are in opposition ◦Information processing: distort or ignore information about other’s preferences even when its available

Integrative: faults of pie-splitting ABAB

Integrative: What does work Focus on commonalities rather than differences Address needs and interests Commit to meeting the needs of all Exchange information and ideas Invent options for mutual gain Depersonalize the problem – avoid relationship conflict Separate the problem definition from the search for solutions Avoid a reputation for distributive bargaining

Integrative: Signs of win-win potential Does negotiation contain more than one issue? ◦Allows for possibility of trading off to achieve joint gain Can other issues be brought in? ◦Bring in issues that were not previously considered Do parties have different preferences across negotiation issues? ◦By definition this is win-win potential

Takeaways Gain as much information as possible ◦What do you need (RP), what can you live without ◦What does the other party need (RP), what can they live with out ◦Be as specific as possible Recognize the potential for integrative bargaining ◦Avoid the reputation of being a distributive negotiator ◦Are the interests really conflicting? ◦Don’t limit your set of options ◦Don’t get personal Grow the pie

Next Online quiz next Friday 9/12 – Sunday 9/14 on negotiation Read chapters 4-6 for next Monday, 9/8