2.3 Key Negotiation Concepts

When we think of negotiations, we can categorize them into two main types: distributive and integrative negotiations.

Distributive Negotiations

Distributive negotiations are often referred to as “win-lose” negotiations. These are situations where there is a winner and a loser, and as one party gains, the other party will lose. This is a competitive type of negotiation, as each party is looking to gain more of the “fixed-pie” and it often leads to more conflict and a power struggle between the parties. Focusing on a fixed pie is a common mistake in negotiation because this view limits the creative solutions possible.

Integrative Negotiations

Integrative negotiations, on the other hand, are more of a “win-win” scenario. Rather than focusing on a “fixed-pie”, the parties focus on expanding the pie and coming up with mutually beneficial solutions. The first step of the integrative approach is to enter the negotiation from a cooperative rather than an adversarial stance. The second step is all about listening. Listening develops trust as each party learns what the other wants and everyone involved arrives at a mutual understanding. Then, all parties can explore ways to achieve their individual goals. The general idea is, “If we put our heads together, we can find a solution that addresses everybody’s needs.” Unfortunately, integrative outcomes are not the norm. A summary of 32 experiments on negotiations found that although they could have resulted in integrated outcomes, only 20% did so (Thompson & Hrebec, 1996). One key factor related to finding integrated solutions is the experience of the negotiators who were able to reach them (Thompson, 1990).

Returning to our dance analogy, we can think of distributive and integrative negotiation as whether we are trying to lead the dance or are moving together to create something even more beautiful.

“10.5 Negotiations” from Fundamentals of Leadership by Leah Sheppard by undefined is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.