Negotiation Integrative Negotiation free essay sample

As much as you have to figure the person’s personality your own attitude toward him, you also need to consider the negotiation basics, strategies, process. You should know them all by heart you have to be aware of that particular circumstance. It means, you need to comprehend the situation utilize the right strategies. Now, after we talk about negotiation, we are going to move forward to the concept of effective negotiation. Effective negotiation will happen when the outcome is winning for all including separating the people from the problem, focusing on mutual interest, inventing options for mutual gain, and using objective criteria.In order to have much more comprehensive perception toward this term, we are about to define some important terms: 1. Mythical Fixed Pie mind-set: There are two various situations, Win-lose situation win-win situation. On win-lose, as the name stands, one party will win while the other will not while in win-win situation both parties will gain benefits. We will write a custom essay sample on Negotiation Integrative Negotiation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The mythical fixed pie mindset is a situation in which one party will paralyze its host into a rigid mindset, blurring the host’s vision into a fixed stare where the other party can see nothing more than what sits on the negotiation table.It is one of the most destructive assumptions we can bring to negotiations since it is based on the fact that the pie of resources is fixed. The mythical fixed pie mindset leads us to interpret most competitive situations as purely win-lose, for those who recognize opportunities to grow the pie of value through mutually beneficial tradeoffs between issues, situations can become win-win. Many agreements fail to materialize because of this limited vision. 2. Distributive Negotiation:The term â€Å"distributive negotiation† can refer to a deal in, which we are negotiating over a single issue, price, and in conflict over how much the person would pay and how much he would get . In other words, a distributive negotiation type or process th at normally entails a single issue to be negotiated. In distributive negotiations, parties assume a fixed pie of resources negotiate about how to cut up the pie (distribute resources) or claim value. As an instance, I can illustrate an example in Iran‘s market.If you want to buy a good in Tehran, say a pair of jeans, as you are walking through the shopping mall, you have to consider the element of bargaining. While you are deciding on the style color, you have to make up your negotiation plan as well too. The strategy is that as you hear the offer, $40, you should make an offer about $20 try to stick to it. The seller will suggest $35 while you say $25 . Finally; you can purchase it at $30. 3. Integrative Negotiation Integrative negotiation concerns how the negotiators expand the pie of resources or create value in negotiations.They typically do so by identifying more than one single issue, so that issues can be traded off. There are many opportunities for integrative negotiations throughout global negotiations if negotiators are motivated enough and the strategy to transform single issues into multiple issues and make trade-offs. As an instance, back home in Iran, my mother needed to make a dress for my cousin’s wedding ceremony two years ago. We visited various shops with the hopes of finding the suitable material. After we spent huge amount of time on window-shopping, we finally found a store that had the proper cloth. We needed 3 meters of that special cloth to make the right size. The shopkeeper refused to sell us all 3 meters left holding the reason that he will not have any sample left. As we were caught up in a predicament, we made an integrative negotiation. He agreed to sell us all 3 meters if we bring him back some leftover from the tailor, which can be used as a sample in his shop. The result was that we had the dress he had the sample. 4. The impact of framing on Negotiation: In order to investigate the effects of framing on negotiation, it is better to provide a brief definition of framing at the beginning. The use of framing dates back to the time of Aristotle when he used framing very effectively to portray murdering villains. Framing means to process and organize information, which provides a perspective of the problems or issues for a decision maker. It is normally used to understand the importance of facts or issues in relation to each other to determine possible outcomes and consider contingency actions to solve a problem. We often use framing when we develop a rationale why we should do something or acquire a certain product or service. There are some positive points that framing will bring to a negotiation: 1.A frame offers perspective by managing the alignment of the observer in relation to an issue. 2. A frame directs the observer to focus on a feature of an issue within the frame and to disregard other features of the same issue, which fall outside this frame. 3. A frame influences subsequent judgment in that it organizes and tailors information to fit into it. It therefore not only contains, but also constrains. Overall, using a framework can allow you to consider all potential gains and losses and available options for any situation. 5. BATNA: This negation term BATNA is an acronym, which stands for Best Alternative To a Negotiated Agreement. Fisher and Ury coined this term it was recognized as one of the main sources in negotiation. It is basically what you are going to do if you do not reach an agreement. Your BATNA is your best option outside the current negotiation. Imagine that you are negotiating a deal; your BATNA is an alternative buyer or seller. Your BATNA is your source of power because the better your BATNA, the more you can demand from the other party in the negotiation. They are critical to negotiation because you cannot make a wise decision about whether to accept a negotiated agreement unless you know what your alternatives are.The BATNA is the only standard that can protect you both from accepting terms that are too unfavorable and from rejecting terms, it would be in your interest to accept. In the simplest terms, if the proposed agreement is better than your BATNA, then you should accept it. If the agreement is not better than your BATNA, then you should reopen negotiations. If you are not able to improve the agreement, then you should at least consider withdrawing from the negotiations and pursuing your alternative considering the costs as well. It is of crucial importance to improve your BATNA whenever it is possible.Good negotiators know when their opponent is desperate for an agreement. When that takes place, they will demand much more, knowing their opponent will have to give in. If the opponent apparently has many options outside of negotiation, however, they are likely to get many more concessions, in an effort to keep them at the negotiating table. The last but not the least to mention would be the fact that if you make your BATNA as strong as possible before negotiating, you will definitely strengthen your negotiation. 6. ZOPA ZOPA is an acronym, which refers to Zone of Possible Agreement.It is the range or area in which an agreement is satisfactory to both parties involved in the negotiation process. Another term is Contracting Zone†. ZOPA is essentially the range between each parties real base or bottom lines, and is the overlap area in the low and high range that each party is willing to pay or find acceptable in a negotiation. . The process in finding this zone requires a little bit of detective work in order to make it work. It begins with a proposal by a person, commercial entity, or organization known as a Proponent.Essentially, this person puts an offer on the table. The receiving end of a proposal is known as a Prospect. This is the person or entity who considers the merits of the offer or proposal. The prospect will accept the proposal, make a counter proposal, offer, or outright reject it. This is where the game begins to get seriously fun. The proponent is trying to sell us something. This can be a product, a business idea, services, an organizational concept, or a combination of these things. The proponent is more commonly called the seller.The prospect, on the other hand, is  more commonly called the buyer. The seller wants to get the maximum amount possible for their proposal, but generally may also set a limit for the least amount they will accept. The least amount they are willing to accept is known as the sellers Reservation Price. This is the amount where they draw the line;  also know as the walk away from the deal point. The buyer, on the other hand, wants to pay the least amount possible, but may consider a higher amount that they  might be prepared to pay as well.The maximum amount they are prepared to pay is also known as the buyers Reservation Price or walk away from the deal point. The differences between these respective lows and highs of both the seller and buyer are their range of expectations. When you have a common ground or overlap between these two different ranges, this is known as ZOPA or the Zone of Possible Agreement. The ideal piece of information would be  the other partys reservation price. It is believed, that you should never reveal your own reservation price. The real trick is trying to find that sweet range of ZOPA. . Bargaining Range: Before I get to this concept, I will provide you with a brief review of bargaining. The term â€Å"bargaining† can be defined as a means of reaching agreement or settlement through give and take, often synonymous with negotiation. It normally refers to business contexts, usually involving money, and negotiation refers to all other contexts.