Integrative negotiation

economic-dictionary

An integrative negotiation is a process by which two or more subjects seek to reach an agreement in which all parties benefit, and are satisfied with the result. It is negotiated for a certain resource, but it is complemented with auxiliary resources so that each party can achieve its objectives.

Integrative negotiation, or cooperative negotiation, is one of the main types of negotiation. It is based on an adequate flow of information between the different participants. This aspect is essential for each negotiator to be aware of the needs of others.

In this negotiation it is essential that there is transparency so that the parties can complement each other and that the relationship is fruitful. It is a more complex negotiation, but at the same time, less aggressive than distributive negotiation. This is because more variables are handled and allows all parties to achieve their goals.

In short, the goal is to create more value through "expanding the pie" so that the distribution is fair and each party meets their needs. At the end of this article we will see an illustrative example. Added to this, the negotiators' objectives will not be exclusive, which will avoid deadlock situations and the need for mediators to intervene.

The relationships that are created through these types of negotiations significantly reduce conflicts. This is because arbitrary positions are established and require a climate of trust between the parties for them to be carried out. Therefore, the fact that the different negotiators are aware and understand the objectives and needs of the other party, will allow the negotiation to conclude with an agreement.

Characteristics of integrative negotiation

Among the characteristics of this type of negotiation, the following should be highlighted:

  • It is a win-win relationship.
  • Solutions to different problems are negotiated through a central resource and one or more auxiliaries, allowing you to be more flexible.
  • There is a positive correlation in the achievement of objectives between the parties.
  • It provides greater stability to the agreement due to the requirements of this type of negotiation.
  • It makes a more efficient allocation of resources and is beneficial for the whole of the parts.
  • It is a relationship focused on the long term.

Integrative negotiation example

Suppose we work in a bakery. Our salary is € 1,000 and our obligation is to make 100 loaves of bread a day. The loaves of bread that we are making love the whole neighborhood and we consider that our salary should be increased, therefore, we ask our boss for a salary increase of up to € 1,200.

Our boss accepts the proposal, but tells us that to collect that new amount, we will have to make 105 loaves of bread and 20 cookies.

In this case, the central reason for the negotiation is a wage increase, but it is completed with an increase in production by the worker. In this sense, allowing both parties to benefit.

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