...process in order to be good at it. This class has provided tools via the review of key concepts and methodology to allow even the not so adept negotiator to be better at negotiating. By informing yourself, preparing, and keeping an objective mind frame we can all use the tools taught in class to become more successful next time a negotiation situation arises. My paper will focus on integrative 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 situation. This strategy focuses on developing mutually beneficial agreements based on the interests of both parties. This negotiation approach is important because it usually results in more of a positive outcome in contrast to distributive bargaining. The first step in integrative bargaining is identifying each side's interests. Although distributive bargaining is frequently seen as the opposite of integrative bargaining, the two are not mutually exclusive. Distributive bargaining plays a role in integrative bargaining. While I had no idea of these methodologies years ago when I went through the home buying process, I can reflect on it now and identify key steps in the process of both approaches and how I not knowingly used these techniques to purchase my first home. While we may not be conscious of it we all...
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...PAN; THE FORCES BEHIND INTEGRATIVE BARGAINING By Joseph Brick 1 ABSTRACT Integrative bargaining is a highly effective means of negotiating an agreement. However, it is also an underutilized method. Although there has been a recent focus on the topic in the past thirty years, the factors which deem it beneficial are still little understood. What this paper attempts to set forth is an explanation of why integrative bargaining is a successful and desirable method of negotiating. With a better understanding of why integrative bargaining is effective, negotiators may be better able to utilize this method to its full potential. This paper culminates with a suggestion on how to best exploit this new understanding. Research up to this point has suggested that integrative bargaining is desirable due to the increasing the pie rationale. The contention set forth in this paper is that there are alternative factors driving integrative bargaining. Exploration of this theory begins with an analysis of whether integrative bargaining is driven by the interjection of equity principals into what was traditionally a law driven enterprise, that of negotiation. It is argued that the stability of contract which results from an earlier application of equitable principals in the negotiating process is just as crucial to integrative bargaining as the desire to increase the pie. With this conclusion, it becomes apparent that solutions which encourage integrative bargaining will result in more stable...
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...Bible sets the parameters in the negotiation process. It shows the intensities of the parties because sheep and wolves are known enemies. Many times when we enter into the negotiation process, we feel as though we are enemies to the other party. What many of us fail to realize is that we reach many decisions through negotiation every single day without as much as a single thought? Our basic definition for this paper is that “Negotiation means to confer with another person so as to arrive at a settlement of some matter; also to arrange for or bring about such conferences” (Merriam-Webster Dictionary). This paper will focus on the attributes that affect the choice of negotiation strategy, including both short and long-term thinking relative to the consequences, how to frame goals and the importance of the continuing relationship with the other parties involved after the negotiation process has ended. It is common knowledge that negotiation occurs in a series of steps or processes that are conclusive of many contractual principles, many of which are commonplace in daily routine. Offer, acceptance, and consideration for the proposal, and counter proposals from the parties redefining goals, and adjusting the tactics and strategy used based on the progress or the lack thereof being made in the process. Hopefully, this paper will shed some light on strategies as a plan predetermined by the negotiator to act as a guide to achieving the goals of the negotiation whether win-win or win-lose...
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...situation, while identifying a negotiator's behavior and decision-making processes. It attempts to design specific strategies and tactics based on the interests, positions, and standards of each party and defends the negotiating tactics used in order to reach a compromise. Definition Negotiation takes place whenever two or more people or groups desire outcomes which are interdependent. Weather a negotiation concerns a family quarrel, or a peace settlement among nations, people routinely engage for it and makes concession to reach the compromise (Fisher, Ury, & Patton, 1991, p. 3) Negotiation Strategies Customer service environment is all about attitude, negotiation and communications. While communicating one has to take consideration of negotiating strategies, and which strategy would be best in a particular scenario. For example if it is to offer service or a product to a potential client, then the Cooperative bargaining is the best strategy to use. Also known as Integrative strategy focuses on developing mutually beneficial agreements based on the interests of the disputants (Brad Spanqler, 2003). Here both parties involved in negotiation sit down and discuss the most profitable options based on the requirement of the client and expenses and profit of the business to provide service and product. Another negotiation strategy is Aggressive bargaining. Here the scenario would be discussing fixed position or idea, for example price of the product or service offering to the client,...
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...of complexity. The couple has been married for 17 years; they have four minor children, two homes, three cars, a boat, and two dogs. They are also co-owners of a Screen printing business. Both John and Mary strongly feel they are best suited to raise the kids. Each feels that their viewpoint is correct and issues are more important than the other. Running Head: I SAID, “IT’S FOR THE KIDS”! 3 According to Wikipedia, (n .d) “Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two people/parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise. Negotiation occurs in business, non-profit...
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...The existing collective bargaining agreement between the National Hockey League and its players expired on September 15, 2004. Each side had failed to negotiate a new collective bargaining agreement. The NHL Commissioner Gary Bettman locked out the players by cancelling the season. The key issues at hand were the league’s demand for a salary cap and linking the salaries to the league’s revenues. The NHL Players did not like these demands. The NHL is a popular past time for both the Americans and the Canadians. Both the NHL & players should have been able to reach an agreement earlier in the year. This lockdown lasted over five months, and then the season was cancelled. Another reason that both sides should have agreed is that NHL is a profit making business. The hockey players make the money for playing a sport that they love and the NHL is providing a service that the Americans and the Canadians love to watch. There were many barriers in reaching a negotiated agreement. These barriers delayed the progress of a negotiation and it negatively affected its chances of any type of success. The personalities of Bettman and Goodenow were adversarial tactical. There was a lack of trust between Bettman and Goodenow. There were even communication barriers as well. Bettman and Goodenow should be the ones to anticipate and overcome any barriers as they represented both sides. Goodenow and Bettman came into their positions in the early 1990’s. Both men had performed well in...
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...Introduction The art of negotiation has evolved throughout the years with the development of theories and practices, which moves beyond competitive negotiations and towards real world problem solving (Cronin-Harris, ¶ 1). Interest based bargaining, known as problem solving, allows the interested parties to review their underlying interests versus an assertion of their positions and demands (Cronin-Harris, ¶ 1). In doing so, both parties will search for solutions which meets those underlying interests, while making concessions consistent with their respective needs and concerns (Cronin-Harris, ¶ 1). In this paper, I will review two negotiation situations that employ different strategies. I will describe the two negotiation processes used, comparing and contrasting them against one another. In addition, I will also discuss how these strategies might apply in the workplace setting. Situations In a situation described by Dr. Bob March (2009), most foreign companies fail in negotiating a business deal in China because they failed to do their research, being unprepared (¶ 1). Preparation requires the negotiator to do research. In doing research the negotiator will have a better understanding of the counter party, in this the Chinese, in hopes of identifying what they really want from the agreement. Additionally, research would allow them to better understand the Chinese culture, understanding the counterpart’s expectations, habits and basic fundamentals in which the Chinese culture...
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...ability. Your payroll budget has recently been reduced significantly as a result of a declining client base and your manager has the final authority in establishing salaries for the new hires but generally is 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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...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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...boundaries while addressing the concerns of the stakeholders will be integrative negotiation strategy which aims at reaching to a win-win situation for all the parties in the negotiation. The word integrative means to join several parts into a whole. Conceptually, this implies some assistance, or a joining of forces to achieve something together; Usually involves a higher degree of trust and a forming of a relationship. Both parties want to walk away feeling they've achieved something which has value by getting what each wants. Ideally, it is a twofold process. 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. In the above mentioned the school board can effectively use integrative bargaining to develop an optimum solution in the best interests of both the parties, school board and parents and come out with a win-win solution. The first step in this regard will be to identify the basic interest of each of the parties. The school board should try to find out the main interest of the parents. The bottom line is you need to figure out why people feel the way they do, why they are demanding what they are demanding. Next you might ask...
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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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...MANAGEMENT & NEGOTIATION BHR 107 Discuss the basic theoretical models of bargaining process and explain how they can improve individuals negotiation skills in an organisation. Introduction: Bargaining can be defined as an agreement between parties settling what each gives or receives in a transaction between them or what course of action or policy each pursues in respect to the other. The study of bargaining process involves an analysis of the actors, the stakes and the factors involved. All theories feed into each other, and combining these theories allows for a more complete understanding of the issues involved in bargaining process and therefore helps to improve individuals negotiation skills. There are several different theories analyzing the process and outcome of bargaining process as follows:- 1. Integrative Approach Model 2. Game Theory 3. Behavioral Theory 4. Power Theory 5. Optimal Agent Independence 1. Integrative Approach Model The integrative approach divides the negotiating process into three phases: • Diagnostic • Formulation • Details In the practice of negotiation, these phases are not necessarily linear. Rather, they can be repeated and addressed many times throughout the negotiation process. The toughness dilemma in the integrative approach calls for tough diagnosis in order to clearly elucidate the true interests of each party. In the formulation phase, negotiators should be more soft, in...
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...approach 2.2.3. Behavioral approach 2.2.4. Processual approach 2.2.5. Integrative approach 2.3. Summary of approaches 3 Types of Negotiation Negotiation Theory and Practice: A Review of the Literature “major public policies are the outcome of a complex round of negotiation between interests, choices between values and competition between resources… there are no single ‘best’ options for any player in this game, for the ‘best’ outcome depends on what others do and what deals are possible.” (Davis et.al., 1993) 1. INTRODUCTION “Pure” conflict defined as the existence of competing interests between parties in absence of interests that are shared, is an anomaly in international relations where the defining feature of the relationship between states is mutual dependence. Such was the observation of Thomas Schelling, noted international economist, during the height of the Cold War. In the decades that have since transpired, globalizing developments in technology, communications, finance and trade have given rise to a world in which citizens, organizations and governments engage in millions of trans-national interactions on a daily basis. In the modern age, the need for developing mechanisms and skills to manage daily exchanges has grown, as has the necessity for smoothly navigating through the impasses that arise when the satisfaction of one nation’s interests, values or goals depend on the actions or intentions of another. At the national...
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...Conflict and Negotiation 1. What is Conflict? Conflict is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. In other words, Conflict is defined as a clash between individuals or group arising out of a difference in thought, process, attitudes, understanding, interests, requirements and even sometimes perceptions. 2. Transitions in Conflict Thought Traditional View of Conflict: The traditional view of conflict was consistent with the attitudes that prevailed about group behavior in the 1930 and 1940s. The early approach to conflict assumed that all conflict was bad. Conflict was negatively viewed for violence, destruction and irrationally to reinforce its negative connotation. The belief that all conflict is harmful and must be avoided. Conflict resulted from Poor communication, Lack of openness and failure to respond to employee needs. Human Relations View of Conflict: The human relation view dominated conflict theory from late 1940s through the mid-1970s. This theory argued that conflict was a natural occurrence in all groups and organization. Because conflict was inevitable, the human relations school advocated acceptance of politics. Interactionist View of Conflict: The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively. The major contribution of the interactionist...
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...Missing obvious chance to apply concepts: “We had ten people all going in different directions” – Goal alignment – Vague or general terms: “We had a problem with communications” how and why was this a 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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