Negotiation Skill Development

Workshop
Lecture 03

Topic: Integrative Bargaining

Dated: 26.10.2020
What Makes Integrative
Negotiation Different?
• Focus on commonalties rather than differences
• Address needs and interests, not positions
• Commit to meeting the needs of all involved
parties
• Exchange information and ideas
• Invent options for mutual gain
• Use objective criteria to set standards
Overview of the Integrative
Negotiation Process
• Create a free flow of information
• Attempt to understand the other negotiator’s
real needs and objectives
• Emphasize the commonalties between the
parties and minimize the differences
• Search for solutions that meet the goals and
objectives of both sides
Key Steps in the Integrative
Negotiation Process
• Identify and define the problem
• Understand the problem fully
▫ identify interests and needs on both sides
• Generate alternative solutions
• Evaluate and select among alternatives
Claiming and Creating Value
Identify and Define
the Problem
• Define the problem in a way that is mutually
acceptable to both sides
• State the problem with an eye toward
practicality and comprehensiveness
• State the problem as a goal and identify the
obstacles in attaining this goal
• Depersonalize the problem
• Separate the problem definition from the search
for solutions
Understand the Problem Fully –
Identify Interests and Needs
• Interests: the underlying concerns, needs,
desires, or fears that motivate a negotiator
▫ Substantive interests relate to key issues in the
negotiation
▫ Process interests are related to the way the
dispute is settled
▫ Relationship interests indicate that one or both
parties value their relationship
▫ Interests in principle: doing what is fair, right,
acceptable, ethical may be shared by the parties
Generate Alternative Solutions
• Invent options by redefining the problem set:
▫ Expand the pie
▫ Logroll
▫ Use nonspecific compensation
▫ Cut the costs for compliance
▫ Find a bridge solution
• Generate options to the problem as a given:
▫ Brainstorming
▫ Electronic brainstorming
▫ Surveys
Evaluation and Selection
of Alternatives
• Narrow the range of solution options
• Evaluate solutions on:
▫ Quality
▫ Objective standards
▫ Acceptability
• Agree to evaluation criteria in advance
• Be willing to justify personal preferences
• Be alert to the influence of intangibles in
selecting options
• Use subgroups to evaluate complex options
Evaluation and Selection
of Alternatives
• Take time to “cool off”
• Explore different ways to logroll
• Exploit differences in expectations and risk/
time preferences
• Keep decisions tentative and conditional
until a final proposal is complete
• Minimize formality, record keeping until
final agreements are closed
Factors That Facilitate Successful
Integrative Negotiation
• Some common objective or goal
• Faith in one’s own problem-solving ability
• A belief in the validity of one’s own position and
the other’s perspective
• The motivation and commitment to work
together
Factors That Facilitate Successful
Integrative Negotiation
• Trust
• Clear and accurate communication
• An understanding of the dynamics of integrative
negotiation
Why Integrative Negotiation
Is Difficult to Achieve
• The history of the relationship between the
parties
▫ If contentious in past, it is difficult not to look at
negotiations as win-lose
• The belief that an issue can only be resolved
distributively
▫ Negotiators are biased to avoid behaviors
necessary for integrative negotiation
Why Integrative Negotiation
Is Difficult to Achieve
• The mixed-motive nature of most negotiating
situations
▫ Purely integrative or purely distributive situations
are rare
 The conflict over the distributive issues tends to
drive out cooperation, trust needed for finding
integrative solutions
Negotiation Skill Development
Workshop
Lecture 04

Topic: Planning & Strategy of

Negotiation

Dated: 02.11.2020
Goals – The Focus That Drives
Negotiation Strategy
• Determining goals is the first step in the
negotiation process
• Negotiators should specify goals and objectives
clearly
• The goals set have direct and indirect effects on
the negotiator’s strategy
Goals, Strategy and Planning
The Direct and Indirect Effects of
Goals on Strategy
• Direct effects
▫ Wishes are not goals
▫ Goals are often linked to the other party’s goals
▫ There are limits to what goals can be
▫ Effective goals must be concrete/specific
• Indirect effects
▫ Forging an ongoing relationship
Strategy versus Tactics
• Strategy:
▫ The overall plan to achieve one’s goals in a
negotiation
• Tactics:
▫ Short-term, adaptive moves designed to enact or
pursue broad strategies
 Tactics are subordinate to strategy
 Tactics are driven by strategy
• Planning:
▫ The “action” component of the strategy process;
i.e. how will I implement the strategy?
Approaches to Strategy
• Unilateral:
▫ One that is made without active involvement of
the other party
• Bilateral:
▫ One that considers the impact of the other’s
strategy on one’s own
Strategic Options
• Per Dual Concerns Model, choice of strategy is
reflected in the answers to two questions:
▫ How much concern do I have in achieving my
desired outcomes at stake in the negotiation?
▫ How much concern do I have for the current and
future quality of the relationship with the other
party?
The Dual Concerns Model

Avoidance: Don’t negotiate

Competition: I gain, ignore relationship
Collaboration: I gain, you gain, enhance relationship
Accommodation: I let you win, enhance relationship
The Nonengagement Strategy:
Avoidance
• If one is able to meet one’s needs without
negotiating at all, it may make sense to use an
avoidance strategy
• It simply may not be worth the time and effort to
negotiate
• The decision to negotiate is closely related to the
desirability of available alternatives
Active-Engagement Strategies
• Competition – distributive, win-lose bargaining
• Collaboration – integrative, win-win negotiation
• Accommodation – involves an imbalance of
outcomes (“I lose, you win”)
Understanding the Flow of
Negotiations: Stages and Phases
• How does the interaction between parties
change over time?
• How do the interaction structures relate to
inputs and outcomes over time?
• How do the tactics affect the development of the
negotiation?
Understanding the Flow of
Negotiations: Stages and Phases
• Negotiation proceeds through distinct phases or
stages
▫ Beginning phase (initiation)

▫ Middle phase (problem solving)

▫ Ending phase (resolution)

Key Steps to an
Ideal Negotiation Process
• Preparation
▫ What are the goals?
▫ How will I work with the other party?
• Relationship building
▫ Understanding differences and similarities
▫ Building commitment toward a mutually
beneficial set of outcomes
• Information gathering
▫ Learn what you need to know about the issues
Key Steps to an
Ideal Negotiation Process
Key Steps to an
Ideal Negotiation Process
• Information using
▫ Assemble your case
• Bidding
▫ Each party states their “opening offer”
▫ Each party engages in “give and take”
• Closing the deal
▫ Build commitment
• Implementing the agreement
Getting Ready to Implement the
Strategy: The Planning Process
• Define the issues
• Assemble the issues and define the bargaining
mix
▫ The bargaining mix is the combined list of issues
• Define your interests
▫ Why you want what you want
Getting Ready to Implement the
Strategy: The Planning Process
• Know your limits and alternatives
• Set your objectives (targets) and opening bids
(where to start)
▫ Target is the outcome realistically expected
▫ Opening is the best that can be achieved
• Assess constituents and the social context of the
negotiation
The Social Context of Negotiation:
“Field” Analysis
Getting Ready to Implement the
Strategy: The Planning Process
• Analyze the other party
▫ Why do they want what they want?
▫ How can I present my case clearly and refute the
other party’s arguments?
• Present the issues to the other party
Getting Ready to Implement the
Strategy: The Planning Process
• Define the protocol to be followed in the
negotiation
▫ Where and when will the negotiation occur?
▫ Who will be there?
▫ What is the agenda?
Summary on the Planning Process
• “...planning is the most important activity in
negotiation.”
Thank You…!
Please ask questions, if any….