Integrative Bargaining - Coursework Example

Integrative Bargaining al Affiliation) Integrative Bargaining Distributive and integrative negotiation skills are broad categories of negotiation skills. Distributive negotiation/bargaining occurs when the parties involved compete for fixed resources and thus a gain by one party usually results in a loss by the other party, hence the name distributive bargaining, as both parties seek to distribute the resources between them (Carrell & Heavrin, 2008). This type of negotiation has both parties establishing a start point and both gradually making concessions until they reach an agreement (Notini, 2008).

It usually occurs where there is no relationship between the parties and they do not intend to establish one. Integrative bargaining however seeks to improve the outcome of the negotiation by bringing together/integrating the interests of both parties to the negotiation process (Carrell & Heavrin, 2008). Both parties are completely honest and do not just think of their interest. One party may be willing to make a compromise if the solution will benefit both of them. This type of negotiation occurs where the parties have a relationship that they are willing to keep (Notini, 2008).

Negotiation researcher Leigh Thompson came up with a pyramid that describes agreements that could arise from the process of integrated negotiations (Carrell & Heavrin, 2008). There are three levels of the Thompsons Pyramid Model. Level 1 is the lowest in satisfaction to both parties and level three having an outcome that benefits both parties fully. Beyond level 3, one party will lose something while the other gains (Carrell & Heavrin, 2008). Level three, Parietal Optimal derives the best outcomes to both parties.

Level two, Superior Agreement creates a satiation of value addition to both parties in relation to the agreements achieved (Carrell & Heavrin, 2008). In Level 1, Agreement, the results exceed the expectations of both parties in terms of ZOPA, which is the zone of possible agreement (Notini, 2008).ReferencesCarrell, M.R.., & Heavrin, C. (2008). Negotiating essentials: Theory, skills, and practices. Upper Saddle, NJ: Pearson Prentice Hall.Notini, J. (2008). Negotiation Essentials. Retrieved from http://postdocs.stanford.edu/education/Scientific%20Management%20Series/2009_Negotiation_Skills.pdf