Any integrative negotiation example can generally be described as a ‘win-win’ type of negotiation; it typically entails two or more issues to be negotiated and usually involves some kind of agreement process that better integrates the aims and goals of all parties involved using a creative alongside collaborative approach to solving the problems that come with such a negotiation.
Sinnaps, project management software, can be extremely helpful for integrative negotiation as it enables discussion of the issues being negotiation with all relevant parties alongside being able to represent information in an intuitive and easy to understand manner.
There are four major steps in the integrative negotiation process, and these are:
- Identify and define the problem
- Understand the problem and bring interests and needs to the surface
- Generate alternative solutions to the problem
- Evaluate those alternatives and select among them
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Distributive and integrative negotiation
Distributive and integrative negotiation are strategies used for effective negotiation and essentially are the two main approaches to negotiating with another party. They are best used in situations that suit them specifically meaning that distributive and integrative negotiation are will both be best used in different situations to one another; you cannot expect to pick one and receive optimal results each time.
Below I will go onto to properly contrast distributive and integrative bargaining in terms of negotiation, alongside the difference between distributive and integrative bargaining.
Distributive negotiation involves allocating shares of finite resources among negotiators, with limited resources for the taking being the primary focus here. With limited resources however every party sees the others as competitors and this is immediately noticeable once debates and discussion begins over allocation of shares.
Every party tries to do their best to grab larger chunks of the finite pool of resources, it’s important when using this to have a good idea of each party’s position in relative to one another. This helps considerably when the actual debate begins, this strategy in general, will require one to be reserved alongside defensive.
Integrative negotiation is quite contrary to the above strategy as it involves a joint initiative that will have a positive impact on all negotiating parties involved with the resources in question. In this approach, negotiators avoid building up how much they are going to receive, instead everyone focuses their efforts on increasing the total amount of payoff through mutual cooperation.
This negotiation strategy benefits all parties and since it is based upon common interests and joint efforts of all participating parties involved, each of the parties perceive themselves as friends and collaborators.
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Integrative negotiation examples
Specific integrative negotiation examples vary but many come under the following categories:
- Cooperative – This takes a “we can all benefit and win” approach. For example, an electronics company needs 5000 switches over 6 months. A supplier for switches usually charges 2.50 for each switch, but for in order to make things work on both sides, the supplier offers to charge 2.00 for each switch instead. Both companies are now long-term partners and offer each other value in a mutually beneficial relationship.
- Another cooperative example – Following from the previous example, the electronics company requires an additional 500 switches, but cannot afford them right now. The supplier decides to then provide the switches and agrees to be paid at a later date.
Related links…
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Collaborative Work Environment
Integrative bargaining examples
Integrative bargaining examples generally involve situations where two or more parties stand to benefit and they all work towards this common goal with the aim of increasing the revenue all parties receive at the end.
This can take place in many forms, such as working out an agreement that enables both parties to solve their problems while enabling them both gain something from the deal. For example, deciding to outsource certain parts of a project that is currently being worked on while ensuring that the crucial parts are handled by the right people to ensure that the outsourcing of the project does not end up causing problems.
Integrative negotiation strategies
Integrative negotiation strategies involve helping to create value for all parties through variety of ways. The most important part of ensuring that all parties leave the situation satisfied is by asking a variety of well thought-out questions so that a clear picture of each parties’ concerns and what they value is considered thoroughly, examples of this include offering higher rates/prices in order to increase quality and discussing various numbers to go in line with specific levels of quality, which will help to figure out what each parties value and seek out of the agreement.
Sinnaps can be used for this well, as it enables communication and easy discussion of ideas making it simple to ask a number of questions to multiple people and receive good answers and in general, help provide an integrative negotiation process and integrative negotiation approach.
In conclusion, distributive and integrative negotiation strategies have their own pros and cons and applications – using them in the correct situations is crucial to maximising your gain out of the negotiation and in the case of integrative negotiation, other parties as well.
