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Similarities between distributive and integrative negotiations
Similarities between distributive and integrative negotiations
Distributive and integrative negotiation
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Joe Tech will be graduating college with an MBA and would like to join Robust Routers (RR). He believes the company is the right fit for his skills. He spent a summer working at the company and grew to respect his supervisor Leigh Bultema a Product Manager and believes she will be an advocate for him to get the position at RR. In this negotiation between prospective employee Joe Tech and Robust Routers (RR) I will play the role of the Human Resource (HR) Director. As the HR Director my goal will be to hire Mr. Tech as an Associate Product Manager at a competitive salary without spending much of the company’s revenue for enticement to bring him onboard. There were several areas to be discussed such as yearly salary, relocation package, …show more content…
Tech informed me early on in our discussion that he had a competing offer and if I could come close to matching he would choose RR. This showed me he was committed to our company. The negotiations continued before I was able to get a salary amount from Joe. This tactic Joe used in our discussion was for me to figure out if I could meet the salary. Once I knew I was in the ballpark I had power to further negotiate the signing bonus amount. With Joe providing this information it showed he was trying to use a collaborative strategy meaning he had a long term focus, trust and openness (Lewicki et al (2011). Going into the negotiation I was sure Joe would counter offer. My opening stance at the outset of this distributive bargaining would be moderate meaning I would make concessions and comprises during the negotiations to hire Mr. Tech (Lewicki et al …show more content…
The salary of $90K was agreed upon but a reduction in the signing bonus to $10K, and I forgo the stock options allowing to stay at 10K and no relocation compensation. My response would not be any different if employment needed to be secured because this was a fair offer for both Mr. Tech and RR. In this negotiation, we both wanted the same thing and through this mutual understanding, an agreement could be made. As part of my job I have to be able to quickly react to the unexpected situations during a hiring negotiation. It is important to focus on the hire’s body language, facial expressions, and voice intonations for a successful negotiation. In closing, the fundamental process of distributive bargaining is to reach a settlement within a positive bargaining range (Lewicki et al (2011) and I was successful. In this negotiation, both parties were received well and the negotiation was a successful concession for both. As the HR Director I was as able to verbally discuss my passion statements for Mr. Tech to see I was committed with ensuring his success with
Deere & Company (Deere) has been experiencing a decrease in its profit margins for one of its aftermarket resale products, specifically the gatherer chain, over the past couple of years. Currently, the cost-price ratio is at 80% compared to last year’s 50%. The purchase cost for the gatherer chain has been steadily increasing, while the aftermarket price has been decreasing. Deere has been budgeting its price to match that of a major competitor, which has been causing the decrease. The company’s main supplier of its gatherer chain is Saunders Manufacturing, with which Deere has established a long term relationship. The owner of Saunders has a reputation of being a tough negotiator, and is someone who is known for not willing to share financial information about the company. However, the U.S. Department of Commerce has provided financial estimates in Saunders’ industry as follows: material spend, 42%; direct labor, 16%; indirect labor, 6%; Overhead, 20%. These percentages are helpful to Deere because they can be used in the negotiation process with Sanders. Since Sanders will not share any specific cost information, Deere is able to use these estimates as a way to justify Sanders reducing its prices. Using these estimates during the negotiations might also incentivize Sanders to provide accurate numbers for its specific manufacturing costs.
The negotiations were successful! An agreement was reached and I got the job! This success was due in large part to the extensive planning prior to the negotiation with Robust Routers. Planning is critical to a successful outcome when negotiating (Lewicki, Saunders & Barry, 2011). This was especially true in negotiating this job offer as the bargaining mix included items as varied as state of residence, salary and even stock options. Also of great benefit was that both sides realized that the while the outcome was important the relationship would be protected and even strengthened as a result of our collaborative negotiation (Lewicki, Saunders & Barry, 2011).
...be the prevailed position under the final offer package. There wont be any permitted compromise by the arbitrator. “Under the package final offer the parties will have an incentive to settle about out of fear that even one issue position perceive to be extreme by the arbitrator will result in rejection of the entire last offer and sudden death.” (Kearney 2009, 278) In the case of the PRCTA and the school board, both sides should offer reasonable position and sensible requirements. The uncertainty of the final offer package creates awareness and fear of losing everything in the favor of the other party and encourages them to avoid unreasonable position during negotiation. For example: the PCRTA can settle offer 5% increase in salary, a reduction in maximum class size from 30 to 27 in elementary grade K-6, and the granting of tenure after the third year of teaching.
Fisher, Roger, William Ury, and Bruce Patton. Getting to yes: negotiating agreement without giving in. 2nd ed. New York, N.Y.: Penguin Books, 1991. Print.
Before I can accept, I would like to discuss my reservations about the offer as they relate to the matter of compensation. I am rather disappointed with the employer matching program. Every other company I have been employed for has matched 100% of 6%. I am also concerned about Melrose’s hostile takeover of GKN and how that will impact the company moving forward. I place a high value on job security, so I worry that Melrose’s cost cutting practices might imperil the plant and thus the longevity of my job. Can any guarantee of job security be made? Will there be a possibility
The dynamic of a win-lose bargaining situation can cause negotiations to be exceedingly tense and volatile because only one side will gain at the end of these type of negotiations. This makes the concept of distributive bargaining controversial. Michael Wheeler, the author of the article, Three cheers for teaching distributive bargaining, discusses how many professors at an academy of management conference disapproved of distributive bargaining negotiation tactics. Wheeler explains, a huge majority of the attendees disapproved of exposing their impressionable pupils to the reality that in some negotiations, more for one party means less for the other” (Wheeler, 2012).
Negotiations are a part of daily life whether we are aware of them occurring or not. In everything that we do there are preferred end results and the end results are likely to affect more than one person. The goal in this however, is to ensure that all parties are equally benefited from the actions and reactions that occur to create that end result. While some dealings are done in a more subtle manner without a great deal of negotiation per say there are other situations that would warrant more vocalized mutually acceptable compromises. The purpose of this paper will be to effectively explain a situation of which required negotiation on the part of both parties that almost all of us have endured and that would be the process of buying a vehicle.
Whether or not we are aware of it, each of us is faced with an abundance of conflict each and every day. From the division of chores within a household, to asking one’s boss for a raise, we’ve all learned the basic skills of negotiation. A national bestseller, Getting to Yes, introduces the method of principled negotiation, a form of alternative dispute resolutions as opposed to the common method of positional bargaining. Within the book, four basic elements of principled negotiation are stressed; separate the people from the problem, focus on interests instead of positions, invest options for mutual gain, and insist on using objective criteria. Following this section of the book are suggestions for problems that may occur and finally a conclusion. In this journal entry I will be taking a closer look at each of the elements, and critically analyse the content; ultimately, I aim to briefly bring forth the pros and cons of Getting to Yes.
In other words, this negotiation turned out to be a good deal because neither of us “lost” the negotiation and we both won. At first, I would of thought I would never get the raise I wanted, but since I offered the interest of getting a raise every quarter until the end of the year, that made my manager wanting to give me the raise.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation: Readings, exercises, and cases. New York: McGraw-Hill Irwin
In the negotiation for the Federated Science Fund I represented the Stockman Company. The meeting started with a caucus between Turbo and I which set the tone for the negotiation. In the five-minute caucus, we understood that we get the highest payoff by working together and decided to only form a deal with United if it benefited us. This was the main turning point in the negotiation as we returned to United with only high-ball offers: we opened with $220,000 each for Stockman and Turbo, and went only as low as $200,000 each, with $80,000 for United. United presented counter offers throughout, but all of them were below our $200,000 reservation point. Even though United continuously demanded a more inclusive deal, we saw no real benefit and made a deal by splitting $440,000 evenly.
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
...s in stone. Rather, I will work towards a beneficial compensation package, if not a pay increase, then perhaps a higher title with concessions. The outcome of this negotiation should leave both sides satisfied. I will also research the department’s policy on compensation as well as reviewing my job description. Both of these are attainable in the Human Resources department. Furthermore, I will check websites that have listing of salaries and job descriptions to make sure my compensation is commensurate with my work. The scholarly article I will use to help plan out my tactics in my negotiation is “Dealcrafting: The Substance of Three-Dimensional Negotiations by David A. Lax, and James K. Sebenius”. This article explains that our understanding of negotiations are one dimensional. However, this new approach for a three dimensional negotiation can work in my favor.
Lewicki, R. J., Barry, B., & Saunders, D. M. (2007). Essentials of Negotiation. New York: McGraw-Hill/ Irwin.
Living in a fancy new development, Chris is concerned that his new business will prevent him from taking care of his lawn, which has strict requirements under neighborhood rules. Not wanted to upset his neighbors, Chris decides to hire Matt to cut his grass. In a distributive bargaining approach, each negotiator’s objective is in direct conflict with the other. Looking at our situation, each party is concerned about the final price and has a limited number of resources.