CHAPTER 3CHAPTER 3

Strategy and Tactics of Integrative NegotiatiStrategy and Tactics of Integrative Negotiation on

一体化（整合型）谈判一体化（整合型）谈判(expanding the pie (expanding the pie 增大蛋糕增大蛋糕 ))

Approach: a comparative view

Learning Objective

1. Understand the relationship btwn Strategy & Tactics

2. Remember and internalize the distinctive features of

Integrative Negotiation, in comparison with those of

Distributive Bargaining

3. Develop the awareness of and capacity to applying t

he fundamentals of Integrative Negotiation for bette

r outcomes of negotiation, including creating value,

developing alternatives and applying objective criter

ia at the value-claiming stage.

Outline

1. Strategy & Tactics

2. Integrative vs Distributive: Case illustrations

3. Q&A exercise: Salary Negotiation

4. Pair Work

5. Case Studies

6. Assignment: Discussion Questions

1 Strategy and Tactics1 Strategy and Tactics

• Strategy (thought): overall guideline, indicating the direction we need to take from our wishes and needs to our objectives.

• Tactics (its formulation): a concrete line of action following after strategy.

• The thought comes before the word.

1 Strategy and Tactics

2 Integrative vs Distributive

Warming-up Questions

1. Do you believe in IN?

2. Can you name some differences btwn IN & DN?

3. Why is the distinction in btwn so important?

Why is the distinction in btwn so important?

If you want to play well, you need to know t

he rules of the game.

The Negotiators’ mental models are central to un

derstanding how the negotiation game is defined.

How parties understand the game is a critical det

erminant of how they play the game.

2 …Case illustrations

• Case illustrations

Case 1

Customer Storekeeper

How much do you want for this brass dish?

This is a beautiful antique, isn’t it? I guess I could let it go for $500.

Oh come on, it’s dented. I’ll give you $175.

Really! I might consider a serious offer, but $175 certainly isn’t serious.

Well, I could go to $200, but I would never pay anything like $500. Quote me a realistic price.

You drive a hard bargain, young lady. $425 cash, right now.

$200.It cost me a great deal more than that. Make me a serious offer.

Distributive negotiation

Case 1 Graphically depicted

Remarks on case 1: Distributive

focus on one single issue (often, money).

Conflict dominated and relationship ignored or sacrificed.

Myth: negotiation as a fixed pie perception.

Possible outcomes: win-lose, lose-lose (compromise), no

agreement

Often common for one-off, low-value deals, e.g. buying it

ems at a flea market where haggling is the accepted “gam

e.”

Inefficient (a battle of will)

AND ……?

Case 2

• Two men were quarrelling in a library. One wants the

window open and the other wants it closed. They argue

back and forth about how much to leave it open: a crack,

halfway, three quarters of the way. No solution

satisfies them both.

• The librarian enters. She asks why he wants the window

open: “To get some fresh air.” She asks the other why he

wants it closed: “To avoid the draft.” After thinking a

minute, she opens wide a window in the next room,

bringing in fresh air without a draft.

Integrative Negotiation

Case 2 Integrative

win-win perception: both can win.

problem-solving, cooperative: focus on mutual interests (e.g. “care about”, “want”), and a potential script: What can I learn from this demand? (vs. How can I avoid accepting this demand?)

Multiple issues and multiple options: A position is just one possible option or a possible solution (e.g. a crack, halfway, three quarters of the way).

positions not identical to interests

Asking questions of “why” and “why not” can help explore interests behind positions (e.g. “To get some fresh air.” “to avoid the draft.”)

Distributive Negotiation

1.   little cooperation

2.   what I gain is what you lose

3.   win-lose

Integrative Negotiation

1.   strong cooperation

2.   mutual gain

3.   win-win

Popularized by the book

Getting to Yes. Negotiating Agreement Without Giving

In by Fisher, Ury, and Patton in the early 1980s. (198

1, 1991, 1995)

The focus shifted from battling over the division of the

pie to the means of expanding it by uncovering and re

conciling underlying interests.

Principled Negotiation: Four key contributions (TBC

ed)

2 …Win-win revolution

Principled NegotiationPrincipled Negotiation

people interests

options criteria

Principled negotiation ： 4Ddig

decidedesign

develop

Options

BATNA

InterestsCriteria

2 …IN as a six-step procedure

1. State what you want.

2. Express how you feel.

3. Give the reasons that underlie your wants and feelings.

4. Communicate your understanding of the other person’s wants, feelings, and reasons.

5. Invent three or more possible solutions that enhance everyone’s outcomes.

6. Agree and shake hands on the solution that maximizes mutual benefits.

Classic Case-Scenario 1

• Two kids are squabbling over the last orange

in the fridge. When Dad hears the ruckus, he

goes into the kitchen and is sure he’s got the

answer. He slices the fruit into equal halves

and gives one to each kid. Surprising, no one

is happy. Why? Because one kid just wanted

the pulp, and the other just wanted the rind.

Classic case---Scenario 2

Recently two of my sons were squabbling over some

apple pie, each insisting that he would have the larger

slice. Neither would agree to an even split. So I

suggested that one boy cut the pie any way he liked,

and the other boy could choose the piece he wanted.

This sounded fair to both of them, and they accepted.

Each felt that he had gotten the square deal.

2. …Learning focus

Integrative negotiation is more appropriate for Busines

s Negotiation and International Negotiation.

YES!

Then, What challenges? What are your concerns?....

Complexity & a myriad of Questions remain to be exp

lored and answered

(TBCed)

Questions to be explored

• Is there a propensity for integrative tactics to be recipro

cated?

• Is the reciprocation of integrative tactics related to the

quality of the negotiated outcome?

• Does the relationship btwn outcomes and the integrativ

e tactics hold, irrespective of the social value orientatio

n of the dyad, or do dyads of different kinds achieve hi

gh-quality outcomes in different ways?

• …..

3 Q&A exercise: Salary Negotiation

• Question and answer?

Distributive or Integrative?

Salary Negotiation

• Recruiter: There are four aspects that actually go together. There is the number of years of contract and the vacation, the removal can be separated out from the package. So if, if we keep the package at six thousand for you and we have 60% removal costs, that would be additional.

• Applicant: No I'd need more than 60% I was thinking 80% actually.

• Recruiter: What if we kept it at 60% and upped it to $8000 for the package?

• Applicant: I just want to get clear in my head about the

vacation. Like I said I'm not prepared to relocate to

Canberra unless I get more than the two weeks.

• Recruiter: Well it depends how many years you're with

us. The shorter the time that you were with us, I would

expect the less time you would get in vacation. If you

were going to be with us for six years say you'd get three

weeks holiday.

• Applicant: I would be prepared to go to Canberra for six

years only for six weeks vacation.

• Applicant: I think it's a good starting point. It obviously needs some work. My contract can be longer than four years; I think that's negotiable. Canberra if it's really important to you.

• Recruiter: The thing with Canberra is that we' ve got three positions there. How open are you to challenge in new areas? Because we recognize that your strategic skills are applicable across any broad range and you have demonstrated very high levels of achievement in the strategic areas. We're not looking at the strategic abilities in HR, we're looking at your strategic abilities as a separate set of skills and you've already demonstrated those abilities in HR to a very high degree, which is why you are sitting here having this conversation with me. We'd like to take those skills and apply them to a new area.

• Recruiter: So if we were to do say three weeks

vacation, how many years contract would you agree

on?

• Applicant: Perhaps if we get back to the package. I'd

be prepared to go to Canberra for 6 years, if that's

important to you. . .

• Recruiter: Well that's related into vacation, and I

know vacation's important to you because of family

commitments. So we could even look at four years and

three weeks vacation each year for that time and

include the airfares in an $8000 package with 60%

removal costs on top of that.

Answer (word file)

4. Pair work: Problem-solving task

Direction: Please jointly work out a solution and report

to the class.

THE CASE

Suppose that you are the seller and your partner is the

purchaser. The seller’s position is stated as selling a

certain number of sewing machines at X dollars per

unit whereas the purchaser’s position is expressed as

receiving a certain number of sewing machines within

a month’s time at X minus $30 dollars per unit.

5. Case Studies: IBM in India

6. Assignment

Case study: Geely&Volvo Merger

e.g. China's lucky man bags Volvo. Economist, 00130613, 8/7/2010, 册 396, 发行 8694

• 数据库 : Business Source Complete• www.sdu.edu.cn • Ebscohost• Geely

may be ready to take a run at Volvo. Automotive News, 00051551, 9/28/2009, 册 84, 发行 6379

• Geely's market share of passenger vehicles in China, 2005-2009

6. ---Discussion Questions

1. What are some conditions that may be conducive to achieving integrative agreements?

2. What can you do to bring about these conditions?

3. What kinds of processes (or communications) are most likely to produce integrative agreements? Are different processes called for under such different circumstances as relatively simple or complex negotiations?

4. How might you encourage an opponent to resist making concessions without risking the possibility of an impasse?

• NOW, the chapter content is coming.

The Titles

1. Introduction.

2. An Overview of the Integrative Negotiation (IN) Process.

3. Key Steps in the IN.

4. Factors that Facilitate Successful IN.

5. Why IN is Difficult to Achieve.

6. Chapter Summary.

1. Introduction (p.71)

• The fundamental structure of an IN situation allows both sides to achieve their objectives.

Then, questions to explore in this chapter:

What is the fundamental structure of IN?

How to go about it (What are the rules of the game)? What are our efforts directed towards?

What tactics are amenable to successful IN? ……

What makes IN Different?

For a negotiation to be characterized as integrative, negotiators must also: (p.71)

Focus on commonalities rather than differencesAttempt to address needs and interests, not

positions.Commit to meeting the needs of all involved

partiesExchange information and ideas Invent options for mutual gain (creativity)Use objective criteria for standards of performance

2. An Overview of the Integrative Negotiation Process (p.72)

• Creating a Free Flow of Information.• Attempting to Understand the Other Negotiator’s

Real Needs and Objectives.• Emphasizing the Commonalities between the

Parties and Minimizing the Differences.• Searching for Solutions That Meet the Needs and

Objectives of Both Sides.

3. Key Steps in the IN process

There are major steps in the IN process (p.75):

1. Identify and Define the Problem.

2. Understand the Problem Fully—Identify Interests and Needs.

3. Generate Alternative Solutions.

4. Evaluate and Select Alternatives.

3. Key Steps in the IN process

• Figure 3.1 Creating and Claiming Value 主张价值 and the Pareto Efficient Frontier （ p.75) 帕累托

IncreasingValue to Buyer

IncreasingValue to Seller

Pareto efficientfrontier

Claiming Value

Creating Value

3.1 Identify and Define the Problem （ pp.75-8)

• Define the problem in a way That is Mutually Acceptable to both sides.

• State the Problem with an Eye toward Practicality and Comprehensiveness.

• State the Problem as a Goal and Identify the Obstacles to Attaining This Goal.

• Depersonalize the Problem.• Separate the Problem Definition from the Search

for Solutions.

Define the problem in a way That is Mutually Acceptable to both sides (p.76)

State the Problem with an Eye toward Practicality and Comprehensiveness

State the Problem as a Goal and Identify the Obstacles to Attaining This Goal

Depersonalize the Problem

Separate the Problem Definition from the Search for Solutions

3.2 Understand the Problem Fully—Identify Interests and Needs (pp.78-82)

• Identifying interests is a critical step in the integrative negotiation process. Interests are the underlying concerns, needs, desires, or fears that motivate a negotiator to take particular position.

• Bringing their interests in principles to the surface will lead the parties to discuss explicitly the principles at stake and to invent solutions consistent with them.

3.2 Understand the Problem Fully—Identify Interests and Needs (pp.78-82)

• Types of Interests

• Some Observations 观察 on Interests

Types of Interests (p.79)

• Substantive interests 实质性利益• Process interests 与谈判过程相关的利益• Relationship interests 双方关系方面的利益• Interests in principle 原则方面的利益

Some Observations on Interests （ p.81)

There is almost always more than one type of interest underlying a negotiation

Parties can have different types of interest at stakeInterests often stem from deeply rooted human needs or

values.Interests can change.Surfacing interests.Surfacing interests is not always easy or to one’s best

advantage.Focusing interests can be harmful.

3.3 Generate Alternative Solutions

Two techniquesInventing Options: Generating Alternative

Solutions by Redefining the Problem or Problem Set

Generate Alternative Solutions to the Problem as Given

3.3 Generate Alternative Solutions-1

Generating Alternative Solutions by Redefining the Problem or Problem Set (p.82)

Expand the Pie 增加资源法Logroll “ 切割法”Use Nonspecific Compensation “ 挂钩战术”Cut the Costs for Compliance “ 奖（罚）战

术”Find a Bridge Solution 搭架桥

Expanding the Pie

How can both parties get what they are demanding?

Is there a resource shortage? How can resources be expanded to meet

the demands of both sides?

Logrolling

What issues are of higher and lower priority to me?What issues are of higher and lower priority to the

other?Are issues of high priority to me low for the other, a

nd vice versa?Can I “unbundled” an issue---i.e. make one larger i

ssue into two or more smaller ones---that can then be logrolled?

What are things that would be inexpensive for me to give and valuable for the other to get that might be used in logrolling?

Nonspecific Compensation

What are the other party’s goals and values?

What could I do for the other side that would make them happy and have them allow me to get my way on the key issue?

What are things that would be inexpensive for me to give and valuable for the other to get that might be used as nonspecific compensation?

Cost Cutting

What risks and costs does my proposal

create for the other?

What can I do to minimize the other’s

risks and costs so that they would be

more willing to go along?

Bridging

What are the other’s real underlying interests and needs?

What are my own real underlying interests and needs?

What are the higher and lower priorities for each of us in our underlying interests and needs?

Can we invent a solution that meets both sides’ relative priorities and their underlying interests and needs?

3.3 Generate Alternative Solutions-2

Generate Alternative Solutions to the Problem as Given

Brainstorming Surveys Electronic Brainstorming Summary

Logrolling 协力使通过

• in US politics 美国政治 the practice of agreeing with somebody to vote to pass a law that they support so that they will later vote to pass a law that you support 互投赞成票（促使议案通过 ）

Brainstorming

The success of brainstorming depends on the amount of intellectual stimulation that occurs as different ideas are generated.

The following rules should be observed:1. Avoiding judging or evaluating solutions.2. Separate people from the problem.3. Be exhaustive in the brainstorming process.4. Ask outsiders.

Summary-1 立场陈述

Firm flexibility recognizes one or two fundamental interests or principles, besides a wide variety of positions, possible solutions, or secondary issues therein. Thus, negotiators need to be able to signal to TOS the positions on which they are firm and the positions on which they are willing to be flexible.

Several (Eight) tactics to communicate firm flexibility to the other negotiator (suggested by Pruitt 1983, Fisher et al 1991): TBCed

Summary-2

Use competitive tactics to establish and defend basic interests. State what you want clearly.

Send signals of flexibility and concern about your willingness to address TOS’ interests.

Indicate a willingness to change your proposals if a way can be found to bridge both negotiators’ interests.

Demonstrate problem solving capacity.

Summary-3

Maintain open communication channels.

Reaffirm what is most important to you thru the use of clear strategies.

Reexamine any aspects of your interests that are clearly unacceptable to TOS and determine if they are still essential to you.

Separate and isolate contentious tactics from problem-solving behavior to manage the contentious behavior.

3.4 Evaluate and Select Alternatives-1

• Narrow the Range of Solution Options

• Evaluate Solutions on the Basis of Quality, Standards, and Acceptability.

• Agree to the Criteria in Advance of Evaluating Options

• Be Willing to Justify Personal Preferences.

• Be Alert to the Influence of Intangibles in Selecting Options.

3.4 Evaluate and Select Alternatives-2 （ p.89)

• Use Subgroup to Evaluate Complex Options

• Take Time Out to Cool Off

• Explore Different Ways to Logroll

• Keep Decisions Tentative and Conditional until All Aspects of the Final Process

• Minimize Formality and Record Keeping until Agreement are Closed

4. Factors that Facilitate Successful Integrative Negotiation (p.92)

• Some Common Objective or Goal• Faith in One’s Problem-Solving Ability (p.93)• A Belief in the Validity 效度 of One’s Own Position

and the Other’s Perceptive (p.93)• The Motivation 动机 and Commitment 诚意 to Work

Together• Trust• Clear and Accurate Communication • An Understanding of the Dynamics of IN

5. Why Integrative Negotiation is Difficult to Achieve ? （ p.97)

• The primary reason negotiators do not pursue integrative agreements is that they fail to perceive a situation as having integrative potential and are primarily motivated to achieve outcomes that satisfy their own needs. Three additional factors:

The history of relationship between the parties

A belief that an issue can only be resolved distributively

The mixed-motive nature of most negotiating situations

6. Chapter Summary

• In this chapter, we have reviewed the strategy and tactics of integrative negotiation. The fundamental structure of integrative negotiation is one within which the parties are able to define goals that allow both sides to achieve their objectives.

• We began with an overview of the process, note that successful negotiation requires several processes. Then we discussed various factors that facilitated successful integrative negotiation.