Integrative Negotiations Flashcards
Integrative Negotiations
typically involves multiple issues
- generally longer-term and interest in maintaining future relationship
Integrative neg. - variable sum or expandable pie
win-win situation: both parties have opportunities to integrate their goals to create more value
Integrative neg. -Mutual Interest
each party can benefit without necessarily harming the other
negational issues: distributive neg.
zero sum: parties’ interests are directly opposed
negotiable issues- compatible
both parties want the same outcome
negotiable issues: Integrative- variable sum
variable sum: parties’ interests are prioritized differently which creates opportunities for mutual gain
Not Pareto- Efficiency
an agreement is not pareto-efficient if there are deals where
- both parties could have been better off
- one party could have been better off without harming the other party
Pareto- Efficiency Agreement
All of the issues have been allocated in the most efficient manner
- maximized the pie. In a PEA, one part can only achieve a better outcome by hurting the other party
Pareto-Efficient ≠ Pareto-Equity
- creating value is not the same as claiming it
- it still up to negotiator to claim their portion of the pie after maximizing the pie
lemonade stand ex
what is it
PARETO-EFFICIENT FRONTIER
high on y axis (candidate’s outcomes) - outcomes the favor candidates
high on x axis (Recruiter’s outcomes)- outcomes that favor recruiter candidates
(info sharing tips) reveal priorities cautiously
- generally okay to share which issues matter (ranking) but not how much they matter (weight)
- avoid expressing strong preferences for specific options. I have to be in SF
(info sharing tips) maintain Flexibility
okay to be firm on interests but remain open to alternatives that might emerge
- do not dismiss opportunities for trade offs
Package (integrative) approach
- discussing multiple issues together
- often induces more cooperation and willingness to trade-off
- creates a sense of flexibility
MESO: Multiple equivalent simultaneous offer
presenting different packages with equal value to other parties and seeing what they prefer
Benefits of MESO
- requires little cooperation from other side
- allows you to gather information about other party’s interests
- maintains sense of flexibility
Trust and collaborative relationship Internegative strategies
-build trust and collaborative relationships with other party
- initial focus should be on expanding the pie
- identify a potential compatible issue
Provide and Gather Internegative strategies
about interests and priorities
- ask diagnostic question and not a yes or no questions
Mutually beneficial trade offs integrative strategy
- concede low priority issues in exchange for high priority issues
- make multiple equivalent simultaneous offers
Purpose of Negotiation
- create and gain additional value relative to your reservation price
most negotiations
are integrative rather than distributive.
- require creativity: you can always add more issues to the negotiation table
tips
- do not have to win, collaborate
- not a single best style, most prepared wins
- best negotiators are problem solvers, identify tradeoffs
How can each party simultaneously create and claim value
tension
Tension: efforts to create value
are vulnerable to claiming tactics.
ex: oversharing info about preferences can create vulnerability
