9.8 - Types of Negotiation
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Distributive Negotiation
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Today, we're diving into the first type of negotiation: distributive negotiation, sometimes referred to as win-lose negotiation. Can anyone tell me what they think that means?
I think it means one side wins while the other loses, right?
Exactly, Student_1! In distributive negotiation, the resources are fixed, so when one party gains, the other loses. A classic example is salary negotiation. Can someone give me a specific scenario?
Like when a candidate negotiates their salary, and if they get a raise, the budget available for others is reduced?
Precisely, Student_2! Remember this concept with the acronym 'WIN-LOSE'—where one party always wins at the expense of the other.
So, does that mean that companies should avoid this type of negotiation?
Not necessarily. While it's often used when resources are limited, it's crucial to know when to use it effectively. Let's summarize: distributive negotiation involves fixed resources and is characterized by a win-lose outcome.
Integrative Negotiation
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Now, let’s move on to integrative negotiation, which is often viewed as the opposite of distributive negotiation. Can anyone summarize how integrative negotiation works?
It seems to aim for a win-win outcome where both parties gain something!
That's right, Student_4! Integrative negotiation is focused on collaboration and mutual interests. Can anyone think of an example where this might take place in a tech environment?
What about discussions between teams on software features? They could find a solution that benefits both developers and marketing!
Exactly! By working collaboratively, they ‘expand the pie.’ An easy way to remember this is 'WIN-WIN'. Always look for solutions that can accommodate everyone's needs. Notice how understanding interests rather than just positions can lead to better outcomes.
Does this mean integrative negotiation is always better to use?
Integrative is often preferred, especially in environments where relationships matter, but know your context. Both negotiation types have their place. In wrapping up, integrative negotiation focuses on collaboration for mutually beneficial agreements.
Differentiating Negotiation Types
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Now, let’s summarize the differences between distributive and integrative negotiation. Who wants to share what they’ve learned?
Distributive negotiation is win-lose, while integrative is win-win!
Great job, Student_2! Can anyone also reflect on when they would use each type?
I suppose if resources are fixed and limited, distributive is necessary. But if we can collaborate, we should aim for integrative.
Exactly right! Context is key in choosing your negotiation strategy. Use 'W-I-N' for distributive, and 'W-I-N-W-I-N' for integrative. Now, who can think of a potential conflict scenario that would suit each type?
In a budget meeting, a department fights to get more funds—that sounds like a distributive situation.
Correct! And an example of integrative could be when two teams work together to decide on realistic deadlines that suit both parties. Remember, understanding these types improves your negotiation effectiveness. Let's summarize: use distributive for fixed resources, and integrative for collaborative solutions.
Introduction & Overview
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Quick Overview
Standard
Negotiation is categorized mainly into two types: distributive negotiation, where one party's gain is another's loss, and integrative negotiation, which emphasizes collaboration for mutual benefit. Understanding these types is crucial for effective conflict resolution and achieving desired outcomes.
Detailed
Types of Negotiation
Negotiation is a fundamental process in conflict management, allowing parties to discuss their differences to reach agreements. This section outlines two principal types of negotiation:
1. Distributive Negotiation (Win-Lose)
- Description: In distributive negotiation, the resources available are fixed, meaning that one party’s gain directly results in another party’s loss. This type typically involves conflicts over tangible assets or issues.
- Example: A common example is salary negotiations, where any increase in one party’s salary decreases the available budget for others.
2. Integrative Negotiation (Win-Win)
- Description: In contrast, integrative negotiation is a collaborative approach aimed at expanding the options available (often referred to as "expanding the pie") such that all parties achieve satisfactory outcomes. This type focuses on mutual interests and shared goals.
- Example: Successful collaborative efforts often arise in joint ventures or detailed discussions about software features where both parties can benefit from a crafted agreement.
Understanding these types of negotiation is essential for managers, engineers, and teams operating in today's collaborative and complex environments. It lays the groundwork for recognizing which strategy best addresses specific conflicts and how to navigate them effectively.
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Distributive Negotiation
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Chapter Content
Distributive
Fixed amount of resources; one party’s gain is another’s loss.
Example: Salary negotiation.
Detailed Explanation
Distributive negotiation is when two parties are negotiating over a fixed amount of resources. This means that if one party gets more, the other party must get less. For instance, if two people are negotiating a salary, one person may ask for a higher salary; thus, the other person or the employer can only offer less than what was initially available. This type of negotiation often feels competitive and can be seen as a win-lose situation, where only one side can benefit fully from the outcome.
Examples & Analogies
Imagine you and a friend are trying to split a pizza that has only 8 slices. If your friend wants 6 slices, you can only get 2 slices. The more your friend takes, the less you have, emphasizing the competitive nature of distributive negotiation.
Integrative Negotiation
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Chapter Content
Integrative
Collaborative approach to expand the pie.
Example: Joint ventures, software feature discussions.
Detailed Explanation
Integrative negotiation is a more cooperative approach where both parties work together to find a solution that benefits everyone involved. Instead of viewing the negotiation as a competitive exchange, the focus is on collaboration to 'expand the pie', meaning that the overall value of the agreement can be increased. This often involves brainstorming and exploring mutual interests, resulting in win-win outcomes. Examples include partnerships for joint ventures or discussions between teams to cooperate on software features that cater to both of their needs.
Examples & Analogies
Think of a scenario where a family is deciding on what to do for a weekend outing. Instead of one person insisting on going to the amusement park while another prefers going to the beach, they could brainstorm a fun day that includes both activities: starting at the beach and finishing the day at the amusement park. This way, both desires are met!
Key Concepts
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Distributive Negotiation: Focuses on fixed resources with a win-lose outcome.
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Integrative Negotiation: Aims for mutual benefits with a win-win approach.
Examples & Applications
Negotiating a salary increase is an example of distributive negotiation.
Collaborating with multiple departments to create an integrated product is an example of integrative negotiation.
Memory Aids
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Rhymes
When negotiating with force, see the loss or gain, it’s like a horse at a race, one earns while one is in pain.
Stories
Imagine two kids splitting a cake—one only takes the biggest piece (distributive). Now, if they combine their favorite flavors to make a new cake together, that’s integrative negotiation leading to a treat for both!
Memory Tools
Use 'W-I-N' for Distributive (one wins, one loses) and 'W-I-N-W-I-N' for Integrative (both win) to recall their outcomes.
Acronyms
D.I.V.E
Distributive is for Fixed resources
Integrative is for Value creation
each party works towards mutual Ends.
Flash Cards
Glossary
- Distributive Negotiation
A negotiation strategy focused on dividing a fixed amount of resources, resulting in a win-lose outcome.
- Integrative Negotiation
A collaborative negotiation approach aimed at achieving a win-win outcome by expanding the resources available.
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