Chapter 3: Strategy and Tactics of Integrative Negotiation

Question 1

What makes integrative negotiation different* (List 7)

(FACIIUD)

Answer 1

1. Focus on commonalities rather than differences
2. Address needs and interests, not positions
3. Commit to meeting needs of all parties involved
4. Involve exchanging information and ideas
5. Invent options for mutual gain
6. Use objective criteria to set standards
7. Distributive bargaining does not encourage sharing of info

Question 2

How does the overview of a integrative negotiation process look like?

(C-A-E-S)

Answer 2

• 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

Question 3

List the 4 steps in the integrative negotiation process

(ISGE)

Answer 3

1. Identify and define the problem
2. Surface interests and needs
3. Generate alternative solutions
4. Evaluate and select alternatives

Question 4

Step 1: What does it mean to identify and define the problem?**

List 5

Answer 4

• 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
   Eg. We need to get from Point A to Point B; vs we should call a taxi, rent a car, walk there, etc.

Question 5

STEP 2: What does it mean to SURFACE INTERESTS AND NEEDS**

Explain what are interests too?

Substantive, Process, Relationship, Interests in Principle

Answer 5

Interests: the underlying concerns, needs, desires, or fears that motivate a negotiator

 Substantive interests : Key issues in the negotiation – price, rate…tangible issues

 Process interests: How the dispute is settled – due to personal styles and views. Intrinsically motivated - face

 Relationship interests: That one or both parties value their relationship

Interests in principle: Doing what is fair, right, acceptable, ethical may be shared by the parties

Question 6

What else do you need to note about interests

Answer 6

• There is almost always more than one interest
• Parties can have different interests at stake
• Often stem from deeply rooted human needs or values * Interests can change
• Numerous ways to surface interests
• Mr Z vs Mr H – SG & Malaysia franchise talks

Question 7

How do you achieve step 3: generating alternative solutions**

ELFUCS

Answer 7

Redefining problem by inventing options:

• Expand or modify the pie – add resources or value
• Logroll - package items – 1st party gets preferred on 1st issue, 2nd party gets preferred on 2nd issue
• Find a bridge solution – invent new options that meet everyone’s needs (eg, window & air circulation)
• Use nonspecific compensation – one party gets what he/she wants, the other party gets compensation (+)
• Cut the costs for compliance – costs reduced/removed for acceding to the other party (-)
• Superordination – Sudden introduction of common issue (enemy) that makes both parties work together
  instead of against one another (possible due to evolving events)

Question 8

How to achieve step 4: evaluate and select alternatives**

NEABBUTEKM

Answer 8

• 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)* – (HK/SG tender awarded due to ivy league uni)
• Use subgroups to evaluate complex options  Eg. Committees, independent groups, etc.
• Take time to “cool off”
• Explore different ways to logroll
  differences in risk preference (aggressive vs timid – offer options)
   differences in expectations (premium vs entry level products)  differences in time preferences (urgent vs flexible deadline)
• Keep decisions tentative and conditional until a final proposal is complete – we can do this, this is possible…
• Minimize formality, record keeping until final
  agreements are closed – parties often change their minds or claim additional items not previously agreed upon

Question 9

Why is integrative negotiation hard to achieve (list 3)

Answer 9

1. Past history of relationship between parties
   - If contentious in past, it is difficult not to look at negotiations as win-lose
2. The belief that an issue can only be resolved distributively

• Negotiators are used to behaviors necessary for distributive negotiation – cultural, upbringing, societal expectation, etc – Obama was perceived as too pacifist
• Pacifist is not Passivism

3. Mixed motive nature of negotiation 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