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Types of Negotiation Explained

Negotiation can be categorized into distributive and integrative types, with the former focusing on dividing fixed value and the latter aiming to create value for both parties. Successful integrative negotiation requires understanding underlying interests, fostering trust, and managing any distributive elements that may arise. While distributive negotiation can lead to suboptimal outcomes and damaged relationships, integrative negotiation emphasizes collaboration and long-term relationship building.

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John Paul Layola Rabina
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23 views2 pages

Types of Negotiation Explained

Negotiation can be categorized into distributive and integrative types, with the former focusing on dividing fixed value and the latter aiming to create value for both parties. Successful integrative negotiation requires understanding underlying interests, fostering trust, and managing any distributive elements that may arise. While distributive negotiation can lead to suboptimal outcomes and damaged relationships, integrative negotiation emphasizes collaboration and long-term relationship building.

Uploaded by

John Paul Layola Rabina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Negotiation

Negotiation theorists generally distinguish between two primary types of negotiation: distributive negoti
ation and integrative negotiation.

While distributive negotiation assumes there is a fixed amount of value to be divided between the partie
s, integrative negotiation attempts to create value in the course of the negotiation by either "Compensati
ng" the loss of one item with gains from another, or by constructing or reframing the issues of the conflic
t in such a way that both parties benefit.

Even integrative negotiation is likely to have some distributive elements, especially when the different pa
rties value some items to the same degree or when details are left to be allocated at the end of the nego
tiation.

Productive negotiation focuses on the underlying interests of both parties rather than their starting posi
tions and approaches negotiation as a shared problem-solving exercise rather than an individualized batt
le.

Integrated negotiation is a strategic attempt to maximize value in any single negotiation through the astu
te linking and sequencing of other negotiations and decisions related to one's operating activities.

Calling a higher authority: To mitigate too far-reaching concessions, deescalate, or overcome a deadlock
situation, one party makes the further negotiation process dependent on the decision of a decision mak
er, not present at the negotiation table.

Integrative negotiation is the type predominately found in academic negotiation - where trust and long-
term relationships between personnel are valued.

The potential limitations of distributive negotiation: While distributive negotiation can be


effective in certain situations, it can also lead to suboptimal outcomes due to its focus on
winning at the expense of the other party. This can damage relationships and create future
obstacles.

The importance of understanding interests in integrative negotiation: Successfully reaching a


win-win solution in integrative negotiation requires a deep understanding of the underlying
interests of both parties. This involves active listening, empathy, and a willingness to explore
creative solutions.

The challenges of managing distributive elements within integrative negotiation: As you


mentioned, even integrative negotiation can involve some distributive elements. Managing
these elements effectively requires careful attention to fairness, ensuring that both parties feel
they are receiving value in exchange for any concessions they make.

The role of trust and long-term relationships in integrative negotiation: You're right that trust
and long-term relationships are crucial for successful integrative negotiation. When parties trust
each other and are invested in maintaining a positive relationship, they are more likely to be
open to collaboration and creative problem-solving.

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