Integrative Bargaining Essay Example

points (Lewicki, 2007).The essay will then proceed to conclude by summarizing the main points discussed within this essay. As previously defined, integrative bargaining is a form of negotiation that involves a win/win mentality where cooperation takes priority over competition (Lewicki, 2007).

All potential settlements are considered with the aim of solving problems, not defending positions (Lewicki, 2007). Integrative bargaining does have some preconditions and should be attempted when satisfied to achieve greater results. The formation of common ground is essential to building a dialogue amongst two parties.In addition, having faith in one’s own ability to solve problems, lends to build confidence and achieve credibility as a negotiator (Lewicki, 2007).

Having motivation to work together allows for open disclosure to begin, which in turn facilitates clear, concise communication (Lewicki, 2007). By focusing on creating common ground or shared interests, both parties can begin to create value within the negotiations for their respective positions (Lewicki, 2007). When reversed, in situations where bargaining power exists in one’s own favour, integrative bargaining is still an effective tool at your disposal.Allowing for increased effective communication, improved relationships, and fostering a win/win mentality, integrative bargaining has the potential to affect aspects even outside of the negotiation. Positive negotiations can lead to future dealings where other strategies might not necessarily create such constructive outcomes. Promoting future relations from an integrative perspective creates far more value for both individuals in contrast to distributive bargaining that only focuses on ‘dividing the pie’ in front of them.

The reason integrative bargaining should be used as a means of negotiation where differences between bargaining powers exist, is that it simply creates value for both negotiating parties where distributive bargaining

only caters to one individual. Integrative bargaining creates effective communication. In situations where a stalemate exists between two parties with unequal bargaining power, negotiations rarely progress as each sticks to their own position (Julie Macfarlane, 2003).In these such situations it is far better to implement an integrative framework as without bargaining power, only taking the first step by providing information, will allow for communication to begin (Colleen Hanycz, 2008). This will lead to forward movement within the negotiation as once the flow of information begins among parties, the give and take of integrative bargaining can commence (Picard, 2004). As illustrated by the ‘Sluggers Come Home’ video, the brothers’ initial distributive anchors did nothing against an entrenched rival negotiating party with superior bargaining power (Kantola-Productions, 1997).

It is crucial to mention that the Currie brothers had already established their BATNA prior to first contacting Barbra, the Cubs owner. Knowing their BATNA, the Currie brothers were able to go forward with confidence in their proposal in order to maximize profitability. A precondition for integrative bargaining, this confidence allowed for the Currie brothers to not accepting the first offer on the table, but due to proper analysis of their prior investments, they were able to decide on a value that would at least allow for a break even situation.Only when the Currie brothers began sharing information did an integrative approach then begin to take hold.

Once information sharing took place, the party opposite the brothers, Barbra, finally began to not see the Currie brothers as amateurs, but as potential business partners. Sharing such information as necessary attendance rates for profit, projected attendance, and projected revenues shifted Barbra her from her

distributive position allowing her to think of potential alternatives for mutual gain.As further reinforced by practical application, within our week three exercise of a used car sale, it was found that neither party wanted to set the first anchor establishing their position. After a few minutes of no progress we began to realize that our desired outcomes would not manifest themselves. Instead of holding all of our cards close to our chest we began reciting the needs of both parties leading us to discover overlapping areas. These overlapping areas let us discover that with similar goals and needs an agreement could be made.

Upon testing this information we were then lead to discover our resistance points, creating a workable area to where an agreement was made, enforcing the conclusion that effective communication plays an integral role in negotiations. Integrative bargaining also creates value and improves future relations. In situations regardless of bargaining power, integrative bargaining can still be used to facilitate negotiations (Colleen Hanycz, 2008). Integrative bargaining can create greater value then if otherwise negotiated using distributive ‘fixed pie’ bargaining (Nieuwmeijer, 1992).As illustrated once again by the ‘Sluggers Come Home’ video, integrative bargaining not only began to advance negotiations, but also allowed for new ways for both parties to create value by pooling resources (Kantola-Productions, 1997). Providing half of the parking lot revenues in exchange for security and custodial services, extra value was created for both parties otherwise unattainable.

Reinforcing this point is the salary negotiation exercise from week four. Within this exercise it was clearly demonstrated that alternate choices were a viable option to reach an end agreement.Elements such as parking spaces, profit sharing, and other

alternatives were discussed however never materialized within the final agreement. Within both of my own negotiations, cash took centre stage and reigned supreme. This in my opinion is mainly because within these simulations, to expect students to fully grasp or take seriously such suggestions is beyond the scope the exercise. However, this outside the box thinking in real life application would most likely be far more fruitful.

Leading to actual increased equity for the negotiating parties decisions such as these could have real life impact in everyday lives. In addition, within the three negotiations that took place, future relations between both parties were never strained. From both perspectives relations either stayed the same or increased, reiterating through real experience that integrative bargaining helps to improve future relations One should be careful however when negotiating in an integrative manner against an individual with far superior bargaining power that refuses to move.When in this situation, if too much information is provided during the negotiation process freely without receiving information or concessions in return, this would only further separate your respective bargaining range (Desmond Ellis, 2005). This further separation in power would not only allow for the other individuals to take further advantages of you, but possibly present yourself as an inexperienced negotiator (Julie Macfarlane, 2003).

Both outcomes severely weaken your bargaining position and would most likely achieve you less than if you had chosen to hold on to certain facts.This was the case within our week five exercise “The Power Game” where being within the bottom class no power existed, except for our power in numbers. Although we has power in numbers, it was ultimately our weakness as ineffective

communication played a part in us being unable to secure any sort of deal with either of the other parties. Upon further reflection of this exercise, it becomes apparent that both groups witnessing our struggles being incapable on deciding as a group lead to our demise. Both groups inevitably tried to exploit this weakness isolating individual members inviting them to join their ranks.

In the end the elite succeed, converting one of their targets while the other remained loyal. In conclusion, it has been demonstrated that integrative bargaining can be an effective way to leverage lower bargaining power to even the playing field by being forthright and cooperative. It is however not an impenetrable strategy that guarantees success, but an extremely effective tool one can use in order to maximize the benefits to not only yourself, but all parties involved. Integrative bargaining also helps to promote future relations and it is important to remember that giving is just as important as receiving.In must be understood that one must never expect for everything to play into their hands as concessions on both sides must be made.

In summary, integrative bargaining leads to effective communication and aims to create value by pooling resources in order reach agreements otherwise unattainable by other means. Applied to individuals negotiating with unequal bargaining power integrative bargaining is an excellent way to go about trying to achieve as well as maximizing all of your objectives.?

References:

1. Colleen Hanycz, T. F. (2008). The Theory and Practice of Representative Negotiation.
2. Toronto: Emond Montgomery Publication. Desmond Ellis, E. A. (2005).
3. Conflict Resolution. Toronto: Emond Montgomery Publications. Julie Macfarlane, J. M.
4. (2003). Dispute Resolution. Toronto: Emond Montgomery Publications. Kantola-Productions
   

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