Distributive and Integrative bargaining are one of the two types of negotiating techniques adopted in order to resolve disputes between parties.
In distributive bargaining the end result is always a win-lose situation and this particular negotiating technique is competitive in nature. When fixed resources like money are involved this type of negotiation strategy is adopted. (Spangler, 2003)
In case of integrative bargaining it creates a case of win-win situation which is favorable for both the parties. It is negotiating technique which is focused on developing mutual agreements which is beneficial to both sides of the parties. This kind of negotiation is suitable when there are multiple issues which are to be resolved. By having multiple
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The important pros is the impact that it has on parties’ relationship. Unlike distributive bargaining which creates a win-lose situation leading to strain between both the parties, integrative bargaining does not strain the relationship between parties instead it takes the party’s interest into account leading to a strong relationship between parties. Since the focus here is on the merits of the issues, it creates a sense of legitimacy and purpose for the negotiator. Since the focus will be on merits, it does not provide any room for manipulation and personal strategies. Integrative bargaining is a problem solver because it focuses on merits unlike distributive bargaining which focuses on victory. During integrative bargaining the proposals from both the parties are recognized and appreciated. This helps in generating a proposal which is favourable for both the parties. (VIACONFLICT, …show more content…
(Business Concepts 101, 2012). Awareness is important because each party must know each other’s interest before the start of the negotiations. Also, each party should have their priorities sorted out. Trust is probably the most important element in order to have a fruitful negotiation. Both parties must be transparent about their requirements and priorities. Cooperation is a key aspect in integrative bargaining because the underlying principle of this type of negotiation is collaboration which ultimately leads to a win-win