Monday, March 17, 2008

EON-3



Summary

In this chapter described the strategy and tactics of integrative negotiation. The fundamental structure of integrative negotiation is one within which the parties are able to define goals that allow both sides to achieve their objectives. Integrative negotiation is a process that permits both parties to maximize their objectives. The chapter began with an overview of the integrative negotiation process. A high level of concern for both sides achieving their own objectives propels a collaborative, problem-solving approach.
Successful integrative negotiation requires several processes. First, the parties must understand each other’s true needs and objectives. Second, they must create a free flow of information and an open exchange of ideas. Third, they must focus on their similarities, emphasizing their commonalities rather than their differences. Finally, they must engage in a search for solutions that meet goals of both sides. This is very different set of process from those in distributive bargaining. The four key steps in the integrative negotiation process are identifying interests and needs, generating alternative solutions, and evaluating and selecting alternatives.
In spite of all of these suggestions, integrative negotiation is not easy, especially for parties who are locked in conflict, defensiveness, and a hard-line position. Only by working to create the necessary conditions for integrative negotiation can be process unfold successfully.

EON-2



Summary
This chapter focused the basic structure of competitive or distributive bargaining situations and some of the strategies and tactics used in distributive bargaining. Distributive bargaining begins with setting opening, target, and resistance points. One soon learns the other party’s starting points and finds out his or her target points directly or through inference. Usually one won’t know the other party’s resistance points , however, the points beyond which she or he will not go, until late in negotiation-they are often carefully concealed. All points are important, but the resistance points are the most critical. The spread between the parties’ resistance points defines the bargaining range. If positive, it defines the area of negotiation within which a settlement is likely to occur, with each party working to obtain as much of the bargaining range as possible. If negative, successful negotiation may be impossible. It is rare that a negotiation includes only one item; mire typically, a set of items, referred to as a bargaining mix, is negotiated. Each item in a bargaining mix can have opening, target, and resistance points. The bargaining mix may provide opportunities for bundling issues together, trading off across issues, or displaying mutually concessionary behavior.
The structure of distributive bargaining reveals many options for a negotiator to achieve a successful resolution, most of which fall within two broad efforts: to influence the other party’s belief about what is possible and to learn as much as possible about their resistance points. The negotiators goal is to reach a final settlement as close to the other party’s resistance point as possible. To achieve this goal, negotiators work to gather information about the opposition and its positions; to convince members of the other party to change their minds about heir ability to achieve their own goals; and to justify their own objectives as desirable, necessary, or even inevitable.
Distributive bargaining is basically a conflict situation, wherein parties seek their own advantage-sometimes through concealing information, attempting to mislead, or using manipulative actions. All these tactics can easily escalate interaction from calm discussion to bitter hostility. Yet negotiation is the attempt to resolve a conflict without force, without fighting. Further, to be successful, both parties to the negotiation must feel at the end the outcome was the best they could achieve and that it is worth accepting and supporting. Hence, effective distributive bargaining is a process that requires careful planning, strong execution, and constant monitoring of the other party’s reactions. Finally, distributive bargaining skills are important at the value claiming stage of any negotiation.