What is distributive bargaining and integrative bargaining?
Distributive bargaining, according to the University of Colorado Boulder, is the approach to bargaining (or negotiation) that is used when the parties are trying to divide something up or distribute something. It contrasts with integrative bargaining in which the parties are trying to make more of something.
What is the difference between distributive bargaining and integrative bargaining?
Distributive Negotiation is the negotiation strategy in which fixed amount of resources are divided between the parties. Integrative Negotiation is a type of negotiation in which mutual problem solving technique is used to enlarge the assets, that are to be divided between parties.
What is a distributive bargaining?
Distributive bargaining is an adversarial type of negotiation in which it is assumed that any gain of a competitor is a loss to the other party. In game theory, that scenario is known as a zero-sum game. Distributive bargaining is a realistic approach to some situations.
What is an integrative bargaining?
Integrative bargaining (also called “interest-based bargaining,” “win-win bargaining”) is a negotiation strategy in which parties collaborate to find a “win-win” solution to their dispute. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants.
What is integrative bargaining with an example?
In this example, a furniture vendor says the lowest price they will offer a company for five chairs is $3,000, but the customer says the highest they will pay is $2,800. The client convinces the vendor to lower the price to $2,900, and both parties compromise by giving up their original price to make a deal.
Why is Integrative better than distributive?
Distributive bargaining is often filled with conflict, because both parties maintain an intractable position in their attempt to lose less than the other side. Integrative bargaining is typically less fraught with tension, as both sides enter the negotiation with the willingness to compromise to achieve a consensus.
What are the differences between distributive and integrative bargaining quizlet?
distributive bargaining: talking down a price to something manageable. Its identifying feature is that it operates under zero-sum conditions—that is, any gain I make is at your expense, and vice versa. integrative bargaining: Negotiation that seeks one or more settlements that can create a win-win solution.
Why is distributive bargaining important?
Distributive bargaining is important because there are some disputes that cannot be solved in any other way — they are inherently zero-sum. If the stakes are high, such conflicts can be very resistant to resolution.
Are salary negotiations distributive or integrative?
For example, you might use integrative or interest-based bargaining when negotiating several aspects of a job – salary, benefits, time off, or even start date. By contrast, distributive negotiation involves one fixed point, and the assumption that both parties want to divvy up the pie in the best manner possible.
Why is integrative bargaining preferable to distributive bargaining?
In general, integrative negotiation is preferable to distributive because integrative builds long-term relationships and facilitates working together in the future. It allows each negotiator to leave the bargaining table feeling they have achieved a victory.
What are distributive issues?
Distributive issues are also known as fixed-pie issues, because they’re like a pie whose size is fixed (it can’t be made bigger or smaller) that two or more people have to split. These are the ones where there really is one thing that both parties want, and that thing has to be divided.
What is another name for distributive bargaining?
zero-sum negotiations
Description: Distributive bargaining is also known as zero-sum negotiations because the assets or the resources which need to be distributed are fixed. So, all the negotiations will have to happen by taking that into context.
What is meant by positional based negotiation bargaining?
Positional bargaining occurs when people negotiate according to their positions or statements of what they want to get out of the situation. Positional bargaining is a form of distributive bargaining where both parties view the conflict as a win-lose situation.
What are the characteristics of integrative vs distributive bargaining?
Distributive bargaining is often filled with conflict, because both parties maintain an intractable position in their attempt to lose less than the other side. Integrative bargaining is typically less fraught with tension, as both sides enter the negotiation with the willingness to compromise to achieve a consensus.
What is an example of integrative?
In an integrative approach, each might ask the other why he or she wanted the orange, discovering in the process that one wanted to eat the inside while the other wanted the peel to bake a cake. The integrative bargain is obviously better for both.
What are the differences between distributive and integrative bargaining quizlet?
distributive bargaining: talking down a price to something manageable. Its identifying feature is that it operates under zero-sum conditions—that is, any gain I make is at your expense, and vice versa. integrative bargaining: Negotiation that seeks one or more settlements that can create a win-win solution.
What is a distributive bargaining?
Distributive bargaining is an adversarial type of negotiation in which it is assumed that any gain of a competitor is a loss to the other party. In game theory, that scenario is known as a zero-sum game. Distributive bargaining is a realistic approach to some situations.
What do you mean by integrative bargaining?
Integrative bargaining (also called “interest-based bargaining,” “win-win bargaining”) is a negotiation strategy in which parties collaborate to find a “win-win” solution to their dispute. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants.
What are distributive issues?
Distributive issues are also known as fixed-pie issues, because they’re like a pie whose size is fixed (it can’t be made bigger or smaller) that two or more people have to split. These are the ones where there really is one thing that both parties want, and that thing has to be divided.
What’s the best example of a distributive bargaining strategy?
Buying a car is a classic example of distributive bargaining. A car sale involves two disparate parties: a buyer and a seller. In this case, each person has different interests: while the seller wants to make as much money as possible, the buyer seeks to pay the least amount of money possible.
What is meant by positional based negotiation bargaining?
Positional bargaining occurs when people negotiate according to their positions or statements of what they want to get out of the situation. Positional bargaining is a form of distributive bargaining where both parties view the conflict as a win-lose situation.
What is distributive strategy?
Distributive Bargaining. Distributive bargaining is a competitive bargaining strategy in which one party gains only if the other party loses something. It is used as a negotiation strategy to distribute fixed resources such as money, resources, assets, etc. between both the parties.
What is the difference between positions and interests in negotiation?
Positions are surface statements of where a person or organization stands, and rarely provide insight into underlying motivations, values or incentives. Interests are a party’s underlying reasons, values or motivations. Interests explain why someone takes a certain position.
What is an example of positional bargaining?
The classic example of positional bargaining is the haggling that takes place between proprietor and customer over the price of an item. The customer has a maximum amount she will pay and the proprietor will only sell something over a certain minimum amount.
Is positional bargaining good?
Positional bargaining produces unwise agreements. Negotiators who bargain over positions are typically reluctant to back down. Parties become so interested in “saving face” that they lose sight of what else they might gain. Positional bargaining is ineffective.
Why is positional bargaining important?
Positional bargaining can be used in situations where there isn’t time or need to address underlying issues. When negotiating a termination contract, layoff, or even the purchase of a purse at a flea market, the position is what is important, not underlying concerns or other issues.
What is the meaning of bargaining position?
bargaining position in British English
(ˈbɑːɡɪnɪŋ pəˈzɪʃən) noun. the position of a person, group, or organization in a negotiation, with respect to their ability to achieve a deal which is favourable to themselves.
What is the difference between bargaining and non-bargaining unit?
Many positions within the Federal Government afford employees bargaining unit status. A bargaining unit employee is represented by a union. A bargaining unit employee has rights and entitlements that are spelled out in a Collective Bargaining Agreement. A non-bargaining unit employee is not represented by a union.
What is the difference between a bargaining unit and a union?
Bargaining units cover more than half of the jobs in the Federal Government. Labor unions negotiate various conditions of employment for these jobs, however they don’t generally negotiate compensation or other matters that the management team deems to be their sole prerogative.