Page 54 - eBOOK ORGANISATIONAL BEHAVIOUR FULL REPORT (eISBN)

6.8 Definition of Negotiation

Negotiation is a process by which two or more people (or groups) resolve an issue or arrive

at a better outcome through compromise. Negotiation is a way to avoid arguing and come

to an agreement with which both parties feel satisfied.

6.9 Negotiation Strategies

There are two approaches to negotiation — distributive bargaining and integrative

bargaining. They differ in their goal and motivation, focus, interests, information sharing,
and duration of relationship.

a) Distributive Bargaining

Distributive bargaining is a competitive bargaining strategy in which one party gains only
if the other party loses something.

b) Integrative Bargaining

Integrative bargaining is a type of negotiation in which mutual problem-solving technique
is used to enlarge the assets that are to be divided between parties.

Bargaining
Distributive Bargaining Integrative Bargaining
Characteristics

Get as much of the pie as possible Expand the pie so that both
Goal
parties are satisfied

Motivation Win - lose Win-win

Positions (“I Can’t go beyond this Interests (“Can you explain why
Focus point on this issue.”) the issue is so important to
you?”

Interests Opposed Congruent

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