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Advantages and disadvantages of different negotiation styles
Compare and contrast integrative and distributive negotiation
Compare and contrast integrative and distributive negotiation
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In the simulation involving a negotiation over a job offer at Robust Routers, I played the role of the human resource director; Leigh Bultema, and my partner played the role of Joe Tech; the recent MBA graduate seeking permanent employment with the technology company. Joe is not in agreement with the terms of the original offer and would like to negotiate the terms of certain issues within the bargaining mix. One key issue Joe is negotiating is the relocation to Robust Routers headquarters in Silicon Valley, California. He would rather remain in Nashville, Tennessee and become a telecommuter. Other issues within the bargaining mix include the annual salary, signing bonus, and stock options. In this negotiation, a variety of distributive bargaining and collaborative strategies and tactics were employed to reach an agreement. Distributive Bargaining Distributive bargaining consists of two parties in competition to maximize their share of a limited resource. In distributive bargaining, the goals of one party are in fundamental and direct conflict with the goals of the other party (Lewicki, Barry, & Saunders, 2011). In the negotiation over the job offer at Robust Routers, the resources being distributed were the items in the bargaining mix. As the human resources director, my goal was to gain more by giving less, and Joe’s goal was to gain more by receiving more of the company’s resources. My goal was to give less of the company’s limited resources by attempting to settle on an agreement less than my resistance point. The simulation did not discuss what the company’s resistance point was. However, after researching product management positions in the Silicon Valley area, I discovered the median salary for this pos... ... middle of paper ... ...ob offer was his best chance at pursuing a career in business development. From working under Leigh during his internship, Joe also had a high level of trust for Leigh, which may be the reason why he did not try to pursue telecommuting any further. In the end, both parties are on the right path in pursuing future business objectives, so it was a win-win situation that resulted from distributive and collaborative bargaining strategies. Works Cited Lewicki, J. R., Barry, B., & Saunders, M. D. (2011). Essentials of negotiation (5th ed.). New York, NY: McGraw Hill. Lewicki, J. R., Barry, B., & Saunders, M. D. (2010). Negotiation: Readings, exercises and cases (6th ed.). New York, NY: McGraw Hill. Salary.Com. (2014). Web product manager II salaries in San Diego, CA. Retrieved from http://www1.salary.com/CA/San-Diego/Web-Product-Manager-II-Salary.html
Fisher, R., Ury, W., & Patton, B. (1981). Getting to yes: Negotiating agreement without giving in. New York, NY: Penguin Books.
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
...during the negotiation. Because they did not explicitly articulate their objectives to each other, the union and management did not reach a settlement that was mutually beneficial. I believe both teams prioritized “winning” over fulfilling their initial objectives. Therefore, I better understood how both teams suffered under pressure during the negotiation because they realized they could no longer rely on a zero-sum strategy. Moreover, I realized how important team cohesiveness is to the bargaining process. Both the union and management lacked basic cohesiveness among their team members and consequently exacerbated the contentious and emotional environment that they created during the negotiation. Nevertheless, under these circumstances I believe the union and management ultimately reached an adequate proposal that satisfied both sides of the bargaining table.
...ation to Jane. In providing a fair and competitive offer, Arlan increases his chances at creating a positive hiring experience and setting a favorable tone for the work relationship.
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.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation: Readings, exercises, and cases. New York: McGraw-Hill Irwin
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
Spangler, Brad. "Integrative or Interest-Based Bargaining." Beyond Intractability. Eds. Guy Burgess and Heidi Burgess. Conflict Information Consortium, University of Colorado, Boulder. Posted: June 2003 .
McCarthy, A. (n.d.). 10 rules of negotiation. Negotiation Skills. Retrieved March 31, 2014, from http://www.negotiation-skills.org
...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.
There are two common characteristics of a negotiation or bargaining situation. The first characteristic is that all negotiations have conflict inherently in them. Negotiating parties have separate but conflicting interests. For example, a car salesman wants to sell a car at the highest price possible. All while the buyer wants to pay as little as possible for the car. Also, an employee wants the most money he can get for a raise. The manager will want to give as little as possible in order to keep expenses down. The second common characteristic is that of reason. All negotiations will try to follow some rational procedure (Asherman, Ira and Asherman Sandra (1990).
Thomas, K. W. (1990). Conflict and negotiation process in organizations. In M. D. Dunnette & L. M. Hough (Eds), Handbook of industrial and organizational psychology, (Vol. 3, pp.655-728). Palo Alto, CA: Consulting Psychologists Press, Inc.
Lewicki, R. J., Barry, B., & Saunders, D. M. (2007). Essentials of Negotiation. New York: McGraw-Hill/ Irwin.
Negotiation occurs almost every day in our personal and professional life. Having superior negotiation skills can be critical to the success in our personal and professional life. This essay will illustrate the negotiation style, the planning and the execution of my negotiation skills. I planned on using my negotiation skill on reducing the cost of monthly rent for the apartment. After the reading from Negotiating for Success: Essential Strategies and Skills by George Siedel, one gains success through initiating and stirring the process, and excepting there to be room for change. So, off I set to meet the landlord to negotiate a new price for the monthly rent agreement on the Lease
Negotiation approaches are generally described as either distributive or integrative. At the heart of each strategy is a measurement of conflict between each party’s desired outcomes. Consider the following situation. Chris, an entrepreneur, is starting a new business that will occupy most of his free time for the near future. 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.