4 Lecture Integrative Negotiation

Integrative Negotiation
Negotiations Dr Scott Tindal

Senior Lecturer
BUSI-1632 School of Business, Operations, and Strategy
Greenwich Business School
S.R.Tindal@Greenwich.ac.uk
Lecture 4
February 2023
Created by: Dr Scott Tindal, 2023

Lecture objectives
Conceptualise the
Introduce integrative
integrative negotiation
negotiations.
process.
Compare integrative and Glasstonbury Festival

distributive negotiation. negotiation simulation.

Examples of
integrative negotiation
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This image by the Italian Government licensed under CC BY-NC-SA 3.0 IT

Characteristics of integrative negotiations
“The fundamental structure of integrative negotiations is such that it allows both sides to achieve their
objectives. The goals of the parties […] are not mutually-exclusive. If one side achieves it goals, the other
is not precluded from achieving its goals as well” (Lewicki et al, 2021: 58).
Typical in business & government settings:

 Cooperative,
 Win-win
 ‘Expanding the pie’
 Duel concerns
 Mutual-gains
Works when there is:

 Each side’s interests are not necessarily in conflict.
 Part of an ongoing relationship
Created by: Dr Scott Tindal, 2023 This image by unknown author is licensed under CC BY-NC 4.0
This image by http://photoeverywhere.co.uk is licensed under CC BY 2.5
Pruitt et al, 1994.
Duel concerns model
Integrative negotiations
Distributive bargaining

Conceptualising
‘Expanding the pie’
3. Value claiming & value creation
Value claiming is achieved through

“distributive bargaining”
Value creation is achieved through
“integrative negotiation”
This image by unknown author is licensed under CC BY-NC-SA 4.0
This image by unknown author is licensed under CC BY-NC 4.0 Created by: Dr Scott Tindal, 2023
Neale and Bazerman 1991: 21.
A conceptual model for creating and claiming value:
the Pareto Efficient Frontier
But how to find this frontier?

Pareto efficient frontier
The theoretical point where the ‘pie’
cannot be any bigger
This image by unknown author is licensed under CC BY-NC 4.0 Created by: Dr Scott Tindal, 2023
…by listening to, and responding to the
interests of the other party
“Interests” versus
“positions”
Positions versus Interests
Positions refers to the surface offer made to the other party in the negotiation.
Interests refers to the objectives; the underlying concerns, needs, desires, fears,
hopes that motivate a negotiator to take a certain position.
Negotiators must make efforts to understand what the underlying goals (interests)
other party wants to achieve, and why.
To do this, both parties to exchange information about their interests, but not their
positions.

A simple example to make this distinction:
Park Row Land Sale.
What was the first position of the buyer?

What was the first position of the buyer?
What was the underlying interest of the buyer?

What was the underlying interest of the seller?

A simple example to make this distinction:
The Marooned! game.
What were the positions of the survivors?
What was the underlying interest of the survivors?

Conceptualising
Integrative
Negotiations
The integrative negotiation process
Identify and
Surface Generate Evaluate and
define the
interests and solution select from
problem
needs options alternatives
(s)
Value creation process Value claiming process

1. Identify and define the problem.
Identify and Surface Generate Evaluate and

define the interests and solution select from
problem (s) needs options alternatives

Separate problems from solutions:
Depersonalise the problem:

“we have different views of this problem” or “I respect that you have constraints and a way of
looking at this problem is different from mine”
Separate problems from solutions.

Do not jump into solutions until the problem is clearly defined.
Create a joint statement which both parties can agree.

2. Surface interests (& needs)
Identify and
define the
problem
(s)

Separate positions from interests.
 Distinction between ‘positions’ and ‘interests’ – Island and day care examples
(in Fisher et al, 2012).
• In integrative negotiations, the negotiators need to think about their opposite

party’s logic and pressures which drives their goals.
 Requires openness and honesty about what your interests are.

Different types of interests:
 Substantive interests – tangible outcomes, e.g. resources.
 Relational interests – the value that people have on ongoing relationships

between parties. This may be intrinsic (sense of value, worth, legitimised voice).
This is important when such relationships offer future substantive benefits.
 Interests of principle – what is fair, right, acceptable, ethical.
Lax and Sebenius, 1986 Created by: Dr Scott Tindal, 2023

3. Generate solution options
Identify and
define the
problem
(s)

Some integrative solutions
Compromise – Not considered a good integrative outcome.
Logroll – Find more than one issue in conflict and prioritise them (Tamjima and Fraser, 2001).
Parties then agree to trade off among these issues so that one party gets a highly preferred outcome
on one issue, and the other on another issue. Research shows that this technique is effective the
more issues there are (Naquin, 2002).
Expanding the pie – adding more resources into the bundle that everyone gains more than the
sum of their individual contributions.
Nonspecific compensation – To allow one partner to obtain their objectives, and compensate the
other for accommodating those interests.

4. Evaluate and select from alternatives
Identify and
define the
problem
(s)

Evaluation & selection
This is the value claiming dimension to integrative negotiations.
 Alternatives evaluation (weight each option against clear criteria as set out in
previous steps),
 Discussion and debate the merits of each of the negotiator’s preferred option(s),
 Selection.

Recap: Key stages of the integrative negotiation process
1 2 3 4
Identify and
define the
problem
(s)
Difficult
transition
Value creation process Value claiming process

Final reflections
Integrative negotiations are not easy
 Requires some shared common objective / goal.
 Requires a robust & trusting relationship.

 Separating people from problems.
 Separating interests from positions.
 Commitment to work together.
 Clear and accurate communication (free flow of information)

 Belief that negotiations can not only be resolved distributively (no sense of zero-
sum game: Brexit, Trump).
Integrative vs
distributive
Distributive bargaining vs Integrative negotiation
Distributive bargaining Integrative bargaining
When is it appropriate? One-time deal Ongoing relationship
Key aspects of the process Targets, opening offers, Identifying problem, surfacing
counter offers, concession, interests, generating solutions,
resistance points. evaluating alternatives.
Bargaining stance Strong opening positions and Common goals, open
fewer concessions yield better communication, and
distributive results. willingness to problem solve
yield better results.
BATNAs Actively cultivating strong Focus energy on creating ideal
BATNAs. solutions, not cultivating
BATNAs
Tone Varies from pleasant but firm, Hard on the problem, soft on
to hard nosed. the people.

Lecture summary
Focus on similarities
Reviewed the strategy
We examined the high rather than differences,
and tactics of integrative
level of concern for both focus on interests not
negotiations, and its
parties’ objectives. positions, focus on
fundamental process.
communication.
Examined the
Understand why differences between
integrative negotiations distributive bargaining
are difficult. and integrative
negotiations.
Student Union Referendum – Today to Sunday


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Integrative Negotiation

Negotiations Dr Scott Tindal

Created by: Dr Scott Tindal, 2023

Compare integrative and Glasstonbury Festival

Created by: Dr Scott Tindal, 2023

This image by United Nations Climate Change is licensed under CC BY 2.0

Created by: Dr Scott Tindal, 2023

Typical in business & government settings:

Works when there is:

Duel concerns model

Created by: Dr Scott Tindal, 2023

Value claiming is achieved through

But how to find this frontier?

Created by: Dr Scott Tindal, 2023

What was the first position of the buyer?

What was the underlying interest of the buyer?

Created by: Dr Scott Tindal, 2023

What were the positions of the survivors?

What was the underlying interest of the survivors?

Created by: Dr Scott Tindal, 2023

Value creation process Value claiming process

Created by: Dr Scott Tindal, 2023

Identify and Surface Generate Evaluate and

Created by: Dr Scott Tindal, 2023

Depersonalise the problem:

Separate problems from solutions.

Create a joint statement which both parties can agree.

Created by: Dr Scott Tindal, 2023

Created by: Dr Scott Tindal, 2023

• In integrative negotiations, the negotiators need to think about their opposite

 Requires openness and honesty about what your interests are.

Created by: Dr Scott Tindal, 2023

 Substantive interests – tangible outcomes, e.g. resources.

 Relational interests – the value that people have on ongoing relationships

 Interests of principle – what is fair, right, acceptable, ethical.

Lax and Sebenius, 1986 Created by: Dr Scott Tindal, 2023

Created by: Dr Scott Tindal, 2023

Created by: Dr Scott Tindal, 2023

Created by: Dr Scott Tindal, 2023

This is the value claiming dimension to integrative negotiations.

Created by: Dr Scott Tindal, 2023

Value creation process Value claiming process

Created by: Dr Scott Tindal, 2023

 Requires some shared common objective / goal.

 Requires a robust & trusting relationship.

 Separating interests from positions.

 Commitment to work together.

 Clear and accurate communication (free flow of information)

Created by: Dr Scott Tindal, 2023

Created by: Dr Scott Tindal, 2023

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