Integrative Negotiation Flashcards
What is an Integrative Negotiation?
Also known as interest-based bargaining
- mutual benefit
- value creating
- builds long-term solution
What is the main focus of integrative bargaining?
- Highlight commonalities
- Address needs and interests
- commit to meeting the needs of all parties
- exchange of information
- invent alternatives
What is a Negotiator’s Dilemma?
- whether to value claim or create
Value claimers; little to no concessions, biding high, and intimidating
Value creator: pursuing a join negotiation through collective problem solving
Framing and Facilitating
- the wording of the issue matters!
- use more collaborative words to describe the process
- context + process
Context
- create an information flow
- understand the needs and objectives of the other side: kelly’s dilemma of trust and honesty
- emphasize commonalities: meta goals
- search for solutions that are beneficial to both sides
- firm on primary and flexible on others
Process
- fully understand the situation
- generate alternatives
3.MESO - Understand the other side’s constraints
- Demand = Opportunity
- Contingency Contract
- Never stop Negotiating
Define and fully understand the situation
Different types of interests may be in the room
1. Substantive interests: focal issues intrinsic or instrumental
2. Process: what kind of negotiation people want
3. Relationship: Intrinsic (pleasure) vs instrumental (gain)
Ask why they want what they want
Generate Alternative Solutions
- Logrolling: trading issues
- Expanding the resources (alternatives)
- Bridging: Invention of new alternatives, underlying interest
- non-specific compensation: making both parties happy
- cost-cutting: reducing the cost of the opposition
MESO
- Provide multiple simultaneous offers
- shows that you are flexible
- build a package
What are the issues with MESO?
- hard to come up with real-time
- hard to replicate in real life
key: preparation
How to construct MESO?
- Pick a constant variable across all your option
- understand the values of your offer
- create 2-3 offers
Define and understand the other side’s constraints
- mitigate the other side’s constraints
- use outside forces
- our problem rather than your problem
define Interpret demand as an opportunity
Unreasonable demand? ask why
define Contingency contract
- adjust circumstances as they unfold
- exploit differences in risk tolerance (logrolling: package that recognizes different risks)
- exploit differences in time preference (long-term vs short-term rewards)
- exploit differences in expectations (future likelihood of something happening)
define Never quit negotiating (Postsettlements -settlements)
- current agreement becomes BATNA
- reiterate if you are not satisfied
- dispute settlement