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Types of Negotiations
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Types of Negotiations

- Review the common negotiation terms and expressions. - Understand the differences between distributive and integrative negotiations. - Analyze successful negotiation strategies through case studies.

Objective

trade-offZOPAcounterproposalconcessionBATNA
a) Best Alternative to a Negotiated Agreement b) Zone of Possible Agreement. c) Something given or granted in exchange for something else during negotiations. d) A negotiation strategy where one party gives up something in exchange for gaining something else. e) A response to an initial proposal, usually presenting modifications or alternative terms.

MATCH:

bottom linecultural sensitivitydeadlockagendawin-win
f) A situation in which no agreement can be reached because neither party is willing to make further concessions. g) The minimum acceptable terms or conditions a party is willing to accept in a negotiation. h) A negotiation outcome where both parties benefit and no one loses. i) Being aware and respectful of cultural differences that may impact the negotiation process. j) A list or plan of items to be discussed or accomplished during a negotiation.

MATCH:

closing the dealterms and conditionsgood faith negotiationwalk away pointimpasse
k) The point at which a negotiator is willing to end the negotiation without an agreement. l) Reaching a final agreement and concluding the negotiation process. m) Specific details and requirements that are part of the negotiated agreement. n) Negotiating with honesty, sincerity, and a genuine intent to reach a fair agreement. o) A point in negotiation where progress is halted, and further discussion is difficult.

MATCH:

collaborative 'win-win' situations, emphasizing cooperation to create value and achieve mutual benefits

a competitive 'win-lose' scenario, involving the division of limited resources, where one party's gain comes at the expense of the other

vs

Integrative Negotiation

Distributive Negotiation

Parties often see the available resources as fixed, and any gain by one party is perceived as a loss for the other.

There may be a tendency to withhold information or use selective disclosure to gain a strategic advantage.

Negotiators often take firm positions and bargain based on those positions, leading to a more confrontational style.

The focus is on immediate gains, and the relationship between the parties may be secondary to achieving individual objectives.

Distributive negotiations are competitive, with each party competing for a larger share of the limited resources.

Emphasis on Positional Bargaining

Fixed-Pie Perception

Short-Term Focus

Limited Information Sharing

Distributive Negotiation

Competitive Nature

Rather than seeing resources as fixed, integrative negotiators seek to expand the available resources through creative problem-solving.

There is a higher degree of transparency and information sharing to facilitate joint problem-solving and decision-making.

Negotiators focus on understanding the basic interests and needs of each party, allowing for more flexible and creative solutions.

Building and maintaining a positive relationship is a key consideration, often with an understanding that future collaborations may occur.

Integrative negotiations prioritize collaboration and cooperation between parties to achieve mutual benefits.

Interest-Based Bargaining

Expanding the Pie

Long-Term Relationship Focus

Open Information Sharing

Integrative Negotiation

Collaborative Approach

Understanding these key characteristics helps negotiators choose the most appropriate approach based on the context of the negotiation and the desired outcomes.

vs

Integrative Negotiation

Distributive Negotiation

Which will you choose?

vs

Integrative Negotiation

Distributive Negotiation

Think about negotiating the sale of a used car. What negotiation approach might be more effective in this situation, considering both the buyer's and seller's interests?

Selling a Used Car

vs

Integrative Negotiation

Distributive Negotiation

When negotiating your salary with a potential employer, which negotiation style do you think would lead to a more satisfactory outcome for both parties?

Salary Negotiation

vs

Integrative Negotiation

Distributive Negotiation

Imagine you're part of a team negotiating the allocation of a project budget. Would a distributive or integrative approach be more appropriate to ensure a fair distribution of resources?

Allocating a Project Budget

vs

Integrative Negotiation

Distributive Negotiation

Consider negotiating the terms of a collaborative project with another company. How could an integrative negotiation approach benefit both parties in this scenario?

Collaborative Project with a Partner Company

vs

Integrative Negotiation

Distributive Negotiation

Suppose there's a limited budget for team-building activities. How might you approach negotiating the allocation of these resources among different departments?

Dividing Limited Resources

vs

Integrative Negotiation

Distributive Negotiation

Can you now identify any of the negotiations you took part in as either distributive or integrative, and how did they unfold?

Your own negotiation experience

Which negotiation style do you prefer?

Your own negotiation style

real-life case studies

Alignment: Integrative Negotiation Explanation: Hostage negotiation typically aligns with an integrative approach. Negotiators focus on ensuring the safety of hostages while addressing the concerns of the hostage-taker. This involves creative problem-solving and collaboration to achieve a resolution that benefits both sides.

Hostage Negotiation

Alignment: Distributive Negotiation Explanation: The Apple and Samsung patent dispute primarily aligns with a distributive approach, where each party sought to protect its own interests. The negotiation resulted in a settlement where Samsung agreed to pay Apple for patent infringement, reflecting a competitive strategy.

Apple and Samsung Patent Dispute

Alignment: Integrative Negotiation Explanation: This case aligns with an integrative approach as both parties collaborated to find a solution that allowed both rowing teams to practice on the Thames River. The focus was on creating a schedule that accommodated the needs of both teams, resulting in a win-win solution.

Harvard and Yale Rowing Teams

Alignment: Integrative Negotiation Explanation: The negotiation between the United Auto Workers and General Motors aligns with an integrative approach. Both parties worked collaboratively to reach agreements that addressed the needs of both the workforce and the company, demonstrating a win-win mindset.

United Auto Workers and General Motors

Alignment: Integrative Negotiation Explanation: Nelson Mandela's role in ending apartheid aligns with an integrative approach. His emphasis on reconciliation, forgiveness, and building a new, inclusive society demonstrates a collaborative strategy that aimed for a positive outcome for all parties involved.

Nelson Mandela and the End of Apartheid

Watch the suggested videos to get a better insight into this difference.

Homework

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