BAGAINING

Its is Not a vast term and deals with items only.

Integrative and Distributive Bargaining Strategies

Integrative strategies (win-win attitude)

Distributive strategies (win-lose attitude)

Integrative Bargaining occurs when the two sides look not just for their own outcomes, but for favorable outcomes for both sides. It is sometimes called Win-Win bargaining or Non-Zero-Sum bargaining

Requirements For Integrative Bargaining Strategies

1. An adversarial approach

2. a problem-solving orientation

3. an ability to "bluff" effectively

4. an ability to ignore the other side’s interests and priorities

A distributive bargaining strategy is based on attempt to divide up a fixed pie or amount of resources, resulting in a win-lose situation.

Process of distributive bargaining strategy1. In distributive bargaining, the focus is on

achieving immediate goals, with little or no regard for building future relationships.

2. Little time or energy or energy is expanded in resolving the conflict in a distributive negotiation, resulting in the generation of few if any creative solution.

3. One or two fixed solutions are presented and a decision or choice is expected almost immediately.

BARGAINING Distributive Vs Integrative

Distributive1. One issue (or one at a

time)2. “Win-Lose”3. Maximize share of

“fixed pie”4. One-time relationship5. Keep interests hidden6. One expressed position

for each issue7. Keep information

hidden

Integrative1. Several issues2. “Win-Win”3. “Expand the pie” by

creating and claiming value

4. Continuing long-term relationship

5. Share interests with other party

6. Create many options per issue to maximize mutual gains

7. Share information, explain “why” of issue

Third-party Negotiations

Third party helps to develop a shared agreement between two opposing parties

•A third party offers each party a chance to “VENT” in a nonthreatening environment.

•Chance to disclose your feelings about the situation.

•You and the other party can both benefit from the experience and expertise of third party.

•Third party help the negotiating parties to organize their thoughts and develop options that may be acceptable to both parties.

Types Of Third Party

MEDIATOR

ARBITRATOR

CONCILIATOR

CONSULTANT

•A MEDIATOR is a natural party who has no stake in the outcome of agreement.

•An ARBITRATOR is a natural third party who has the legal power to bind both parties in an agreement determined by arbitrator.

•A CONCILIATOR is a trusted third party whose role is insure to that a steady flow of accurate information exist between the negotiating parties.

•A CONSULTANT is a natural third party who teaches and advises the negotiating parties on skills and techniques of negotiation.