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Why Integrative Negotiations - 5 Benefits to CRAVE

Posted by admin VIP     4 Comment(s)    Add a Comment  comment-icon.png
03/12/2013 02:20 PM

To finish the series on Integrative Negotiations, or as I like to call it "Negotiation A' La Mode", this entry will list the 5 benefits that the integrative negotiation process is more likely to create over distributive negotiations.  As you will see, (though there are exceptions), these are benefits all those engaged in a negotiation (business, disputes, etc.) need, or C-R-A-V-E.  They are:

1. Comeptency

2. Relationships

3. Agreements

4. Viability

5. Efficiency

Competency - Integrative negotiation increases the competency of those involved in the negotiation.  As parties work through a problem or negotiation together, they understand other's interests and are better able to deal with disputes or negotiations in the future as well.  Particularly within inter-organization negotiations, the increase in competency is achieved as the different departments are focusing on other departments' interests and bringing in the organization's interest as a whole.  The competency increase even reaches other parts of an organization not involved in the negotiation or a person's support group, as the effectiveness of the process serves as a strong example others can incorporate.

Relationships - Integrative negotiation has shown to preserve and help strengthen relationships.  Distributive negotiations have a competing and argumentative tone, which tends to harm the parties' relationships.  Divorcees with children, business to business, and business to customer are examples of a need for the preservation of relationships.  While some negotiations appear to be between one-time parties, given the small world we live in and longer life spans (of people and businesses), the likelihood of encountering the other party again is much greater.  Further, even in cases that truly are one-time negotiations, that party likely deals with others and they will share their impressions with others you will encounter.

Agreement - Since parties are placing themselves in each others' shoes and are working together in integrative negotiations, they are more likely to make a negotiated agreement and a better agreement at that.  The difficulty of distributive bargaining is that the negotiators tend to lock themselves into reference frames they cannot escape.  For example, if they take a hard position that they are unable to negotiate one aspect of the deal, later in negotiations they can no longer create value in by negotiating that aspect for fear of losing face or appearing dishonest.  Secondly, since parties are focused on positions, the likelihood of meeting their interests is decreased.  By focusing on parties' interests, the negotiators are able to take creative risks and discover solutions often hidden behind argued positions.

Viability - By focusing on interests and having all parties take ownership in the agreement, agreements made through integrative negotiations are not only more likely to be made, they are more viable.  Parties are more likely to honor those agreements and uphold their end of the bargain.  In distributive negotiations, parties may make an agreement based on positions, thinking they got a bigger piece of the pie, but later they discover that the piece does not meet their needs - resulting in incentives to break the deal.

Efficiency - Since distributive bargaining requires parties to choose positions and participate in "the dance", participants tend to take on adversarial roles and make concessions only when necessary.  This process takes more time, as parties are engaged in estimated guess work to find the other's zone of agreement.  Moreover, often the parties engage more in time-wasting posturing and gamesmanship. Further, if a party tries to cut the dance short in distributive negotiations by making larger concessions earlier, the natural rhythm of the negotiation is disrupted as the other party will not see the concessions at the end of the negotiation that they were expecting.  Integrative negotiations, by focusing on interests and creativity, can reduce these timewasters in negotiation.    

So in sum, remember to CRAVE Negotiations A' La Mode!

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4 Comments
Added by WrencymymnPex
March 20th, 2013

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March 27th, 2013

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April 19th, 2013

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