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MGT 445 Week 3 DQ 1

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What is integrative bargaining? What are the key differences between integrative bargaining and
distributive bargaining? When might integrative bargaining be counter productive? Explain your
answer.
What is distributive bargaining?
Distributive bargains or distributive negotiations are win-lose, claiming value, or zero-sum negotiations; in
other words a competitive negotiation strategy where one party's gain is the other party's loss. The goal in
distributive bargaining is not to assure both sides win, but rather that one side wins as much as it can,
which generally means that the other side will lose, or at least get less than it had wanted. The parties
assume that there is not enough to go around, and they cannot "expand the pie," so the more one side
gets, the less the other side gets. Distributive bargaining tactics rarely assume the pie will divided in half.
When is distributive bargaining appropriate to use? Explain why.
Distributive bargaining is the approach to bargaining or negotiation that is used when the parties are trying
to divide something up or distribute something. It contrasts with integrative bargaining in which the parties
are trying to make more of something.
Common tactics include trying to gain an advantage by insisting on negotiating on one's own home ground;
having more negotiators than the other side, using tricks and deception to try to get the other side to
concede more than you concede; making threats or issuing ultimatums; generally trying to force the other
side to give in by overpowering them or outsmarting them, not by discussing the problem as an equal (as is
done in integrative bargaining).
What might be the effect of distributive bargaining on long-term relationships?
The effects on a long term relationship would be catastrophic as this type of bargaining may end in the
dissolution of said relationship. If a long-term relationship is the end result then the persons involved
should take an integrative approach to distribution as well as expansion of the pie.
What is integrative bargaining?
Integrative bargaining is a negotiation strategy. It focuses on developing mutually beneficial agreements
based on the interests of the disputants such as the needs, desires, concerns, and fears important to each
side. They are the underlying reasons why people become involved in a conflict.
What are the key differences between integrative bargaining and distributive bargaining?
Key differences between integrative bargaining and distributive bargaining are that they are mutually
exclusive upon one another.
When might integrative bargaining be counterproductive? Explain your answer.
Integrative bargaining is a good way to make the issue at hand as large as possible, but ultimately the
parties must distribute its value through the negotiation process and agree who gets what. Integrative is
actually the last step of distributive bargaining and it may be counterproductive when the parties involved
begin to discuss the outcomes and one party determines how much better the other parties plan is
compared to theirs and they see the facts presented directly in front of them.
Reference:

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Lewicki, R. J., Saunders, D. M., & Barry, B. (2007). Negotiation (5th ed.). Boston, MA: McGraw Hill.

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