It will be the purpose of this essay to clearly demonstrate that integrative bargaining can and should be used as an effective tool for negotiations in situations where unequal bargaining power exist. It has been defined for this essay that integrative bargaining is the process of defining goals that allow both sides to achieve their objectives, and engage in a process that permits both parties to maximize their objectives (Lewicki, 2007). Integrative bargaining can be used as an effective strategy to manoeuvre out from under superior bargaining power being held over you, or as a means to create greater value for all parties involved. Bargaining power, described as the capacity of one party to dominate the other due to its influence, …show more content…
This will lead to forward movement within the negotiation as once the flow of information begins among parties, the give and take of integrative bargaining can commence (Picard, 2004). As illustrated by the ‘Sluggers Come Home’ video, the brothers’ initial distributive anchors did nothing against an entrenched rival negotiating party with superior bargaining power (Kantola-Productions, 1997). It is crucial to mention that the Currie brothers had already established their BATNA prior to first contacting Barbra, the Cubs owner. Knowing their BATNA, the Currie brothers were able to go forward with confidence in their proposal in order to maximize profitability. A precondition for integrative bargaining, this confidence allowed for the Currie brothers to not accepting the first offer on the table, but due to proper analysis of their prior investments, they were able to decide on a value that would at least allow for a break even situation. Only when the Currie brothers began sharing information did an integrative approach then begin to take hold. Once information sharing took place, the party opposite the brothers, Barbra, finally began to not see the Currie brothers as amateurs, but as potential business partners. Sharing such information as necessary attendance rates for
Gina Blair and Daniel Trent cooperate and collaborate to achieve a common objective throughout their negotiation. A cooperative negotiation style is demonstrated as they combine their points of view regarding their clients concerns with outcomes to effectively solve the issues raised. The main focus of the negotiation is to reach an agreement rather than a continuous dispute. Accordingly, the conflicting objectives were resolved by compromises and solutions but forward by both Gina and Daniel. The negotiation style used between Gina and Daniel is described as principled negotiation where both parties jointly attack the problems arising to achieve a compromise.
“Instead of approaching the problem in a competitive as distributive bargaining (claiming value only for one), the integrative negotiation the parties adopt an attitude aimed at solving the problem and seek a favorable outcome for both” (Business Blog Review, 2011).
1. Review text pages 137–139 in Chapter 4. These pages cover step 9 in the planning process, assessing the social context of negotiation.
Power is never linked to price, but always to value.” Power in negotiations can be perceived or real which affects the final negotiation outcome. Generally all disputants have some power to an extent which is used to achieve a favourable outcome. It is unlikely the power balance stays consistent, power shifts throughout the negotiation process. Knowing how the power works and how to use power to achieve desirable outcome is important for successful negotiations. The notion of parity in power is vital in relationships between the disputants. The parity in negotiation is when one party perceives that the other party can oppose any form of power with dissimilar or similar form of power (Lewicki and Saunders et al., 1997). Power parity means there will be a balance in power positioning to some extent. The two different objective powers involving in the bargaining process are power depending on the lack of dependence and role power (Staff, 2013). The first power parallels to a disputants BATNA (Best alternative to a negotiated agreement). Going into a negotiation with strong BATNA means the disputant is less dependent on the other parties in achieving the desired outcome compared to having a weaker alternative. The second power is linked with the positions, titles or roles which grant power simply because of the control or authority they possess. This is often found in hierarchical organisations. Apart from the objective powers there is possibility of
Throughout the lecture and my prior knowledge, I identified that the influence tactics are obviously relevant to negotiation and they can be utilized in a variety of ways in negotiation. Looking back the activity, it enabled me to have a better understanding of these important techniques and skills as certain tactics my opponents and I may use were examined at the negotiating table.
In this course, I have learned that it is possible to dramatically improve my ability to negotiate. I can improve my monetary returns and feel better about myself and the people with whom I deal. I also learned that there are several ways to test my intuition and approach. The course provided me with an opportunity to assess my “instinctive” bargaining style and provides suggestions for how to further develop my bargaining abilities. The negotiation exercises were a good way to cement several of the concepts from the book and lecture and gave me several opportunities to get to know my classmate more and test some new insights with them.
When it came to creating a collective bargaining agreement section for employee safety, the main challenge was the initial confusion on where negotiations were to take place for both the Union and Company sides. From here the friction that existed had to do with what costs should be allotted for boots and gear and whether or not these items should be simply provided by the company or a certain amount allotted for employees to purchase the necessary items themselves. Having been part of the Union side, when it came to the Company side, it appeared as though they were able to create a good draft of what they would like the collective bargaining agreement should look like for this section. They tried to appeal to the Union, while still being able to maintain company interests. This enabled them to come to a group decision in a timely
Consistent with our bargaining strategy, we would also like to work on building a trusting relationship with management in order to get the most out of integrative bargaining. We can do this over the course of the next several months by holding meetings with them to gauge where their interests lay. Through attitudinal bargaining we can lay the ground work for open and transparent dialogue about our objectives. These bonds increase the likelihood that integrative bargaining will succeed and reduce the likelihood of an
In this negotiation exercise, I was assigned as the Seaborne Governor’s negotiator as part of a six member party meeting to negotiate a deal with Harborco to build and operate a deepwater port off the coast of Seaborne. The Governor on the whole was very interested in seeing this deepwater port built in Seaborne as she believes that the size of the project would provide the stimulus for a dramatic recovery in the state.
Consequently, negotiation is a process that can be approached in many ways. No matter what strategy we choose, success lies in how well we prepared. The key to negotiating a beneficial outcome is the negotiators’ ability to consider all the elements of the situation carefully and to identify and think through the options. At the same time, negotiators must be able to keep events in perspective and be as fair and honest as circumstance allows. Because a common ground or interest has brought the parties to the negotiating table, a negotiator can benefit by trying to capitalize on this common
It occurs in profit or non profit organizations, government sectors, dealing among nations and also in our personal situations such as salary package, house purchase, marriage, divorce and etc. The strategy to use can either be distributive or integrative depending on the situations and the outcomes that the party want out from the negotiation.
Getting to YES, Negotiating Agreement Without Giving In is an excellent book that discusses the best methods of negotiation. The book is divided into three sections that include defining the problem, the method to solve it, and possible scenarios that may arise when using these methods. Each section is broken down into a series of chapters that is simple to navigate and outlines each of the ideas in a way that is easy for any reader to comprehend. There are also several real life explanations for each issue that make the concepts easier to apply and understand. These ideas are reflective of a method developed by the Harvard Negotiation Project called “principled negotiation”. This method combines the two ideas of soft and hard negotiation
Whether or not we are aware of it, each of us is faced with an abundance of conflict each and every day. From the division of chores within a household, to asking one's boss for a raise, we've all learned the basic skills of negotiation. A national bestseller, Getting to Yes, introduces the method of principled negotiation, a form of alternative dispute resolutions as opposed to the common method of positional bargaining. Within the book, four basic elements of principled negotiation are stressed; separate the people from the problem, focus on interests instead of positions, invest options for mutual gain, and insist on using objective criteria. Following this section of the book are suggestions for problems that may occur and finally a
Whether it is at work, church or in our private relationships, negotiations are a necessary tool for reaching an agreement. They are made by discussing each parties point of view with the aim being to reach an agreement that is mutually beneficial. For the most part, negotiation is the process by which those people involved successfully adopt or abandon their respective position through the use of positional bargaining. There are different types of approaches for the negotiation process - some hard and others soft in their manner of approach. The desired outcome of
When entering into contract negotiations, the objective of each side is to obtain a contract of greatest benefit to their organization. This desirable outcome never happens by chance; it is always the result of careful planning. A critical part of this planning is understainding the role of power. This includes determining who possesses the power in bargaining, and establishing strrategies to bargain with individiuals who have more power than you. This power is needed to obtain the advantage in negotiating which will increase the liklihood of obtaining the goal (Lewicki, Saunders & Barry, 2011). Once in the heat of negotiation, it can be too late to try to catch-up on planning which failed to occur before the negotiation process began.