Interdependence in negotiation
The concept of interdependence is unavoidable in everyday life of both human beings and organizations. Organizations depend on each other in the course of their running either economically, socially or politically and this defines the level of their interdependence. Interdependence is an important approach in negotiation as it makes negotiation effective. In the case of negotiation, two parties are in conflict or there is conflict of interest between them.
They have interlocking goals that they may not be able to achieve independently. The nature of interdependence will determine the type and outcome of negotiations which could either be win-win or win lose. For example in the case of bank customer relationship, a customer may be looking for a loan facility in order to buy a building. The bank depends on the customers to earn interest and the customer on the bank to finance the project.
Integrative negotiation
Integrative negotiation is a strategy where both parties involved in the negotiation strike a bargain to ensure that they achieve their goals in a win-win solution (Anderson, 2010, 1).
Steps in integrative negotiation
Problem identification and definition. While entering into a negotiation both parties should maximize on identifying the hindrances in an open mind by gathering the necessary information without manipulation to avoid any inconveniences (Howard, 1982, 8). The problem should be well defined on neutral grounds.
Maintaining the problem statement. The problem should not be attached to other linkages that may cause interference in solving the problem and therefore clear guidelines on issues at hand should always be maintained without loosing the focus.
Prioritizing the problem as a goal and find any obstacle attached to it. In defining the problem, any hindrances should be identified and dealt with accordingly.
The other step is to come up with an alternative solution and finally select the appropriate solution from the alternatives. The bank customer relationship is a good example.
Planning for negotiation
Planning is very important in negotiation because it will enable the parties involved to be able to organize for meeting and discuss on the issues. Since negotiation is a process, planning on the steps to follow is crucial.
The first step in planning for negotiation strategy is to create a list of wants to address the issue at hand. Then determine the starting point and the conclusion point of your negotiation. The other step is to plan on how to deal with the opposition to every proposal that you make. Then list the benefits you expect from the other party. Finally set the scene where the negotiation is going to take place.
Distributive bargaining
Distributive bargaining is opposite of integrative negotiation and parties tries to divide up the disputed interests instead of making the most of it (Howard, 1982, 8). It involves a win lose situation because one party has to lose for the other one to gain or one get less while the other one gains more.
The tactic used is for one party to have more negotiators that the other party so that the other party gives in to defeat. The problem is not discussed on an equal basis but one party outsmarts the other in negotiation. For instance, the government increases taxes in order to improve the economic performance. The tax payers lose while the government at large wins.
Reference List
Anderson, J., 2010. The accidental negotiator: how to make win-win work for you all the Time. Web.
Howard, R., 1982. The Art and Science of Negotiation. UK: Harvard University Press.