{"id":38874,"date":"2020-07-22T15:46:08","date_gmt":"2020-07-22T13:46:08","guid":{"rendered":"https:\/\/www.getsmarter.com\/blog\/?p=38874"},"modified":"2023-08-11T12:38:20","modified_gmt":"2023-08-11T10:38:20","slug":"negotiating-for-success","status":"publish","type":"post","link":"https:\/\/www.getsmarter.com\/blog\/negotiating-for-success\/","title":{"rendered":"Negotiating for Success: The Difference Between Integrative and Distributive Negotiation"},"content":{"rendered":"\n

Negotiation in business<\/a> is essential to achieving organisational goals. The strategies applied can determine whether you achieve success, or fail. Explore the different types of negotiation<\/a> styles and learn to apply the correct techniques to the appropriate situation.<\/p>\n\n\n\n

Distributive negotiation<\/h2>\n\n\n\n

This negotiation strategy<\/a> is often called the \u2018fixed pie strategy\u2019, because its approach is underpinned by the assumption that there are finite resources that need to be split amongst the negotiators.1<\/sup> In other words, one wins and everyone else loses, making each negotiating party view every other participant as an opponent. This highly individualistic approach to negotiation reasons that the smartest and strongest opponent wins, and the less diligent, weaker party deserves their result.2<\/sup> Every party tries to win a bigger portion of the limited resource by asserting themselves as superior, and by playing to their strengths based on the known weaknesses of the other party or parties. Ultimately, this strategy entails negotiating in a defensive and guarded manner, in order to not \u2018lose\u2019 too much of the \u2018fixed pie\u2019.<\/p>\n\n\n\n

Integrative negotiation<\/h2>\n\n\n\n

In contrast to the distributive negotiation strategy, the integrative negotiation strategy involves a mutually beneficial approach to negotiations, looking for results that are agreeable for all the negotiating parties.3<\/sup> This kind of negotiation seeks to create value, rather than claim it.4<\/sup> The negotiators do not emphasise how much they will receive as an individual party; instead all endeavours are focused on increasing the overall outcome through cooperation between all parties. This strategy is built on values that foster the common interests and collaboration of all involved, where each party walks away with potentially more than they would get if they fought against each other. Integrative negotiation strategies only work when fair procedures are applied, leading to fair results.5<\/sup> This often means that those who come to the negotiation table do so with a mindset of the participants being partners and collaborators, as opposed to adversaries.<\/p>\n\n\n\n

Key differences between the types of negotiation<\/h3>\n\n\n\n

Distributive and integrative negotiation strategies differ vastly from each other, and assume different sets of values, purposes, and outcomes. The main differences between distributive and integrative negotiation strategies are summarised below:6<\/sup><\/p>\n\n\n

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When to use the different negotiation techniques<\/h3>\n\n\n\n

Considering the vastly different approaches and outcomes of these two negotiation strategies, knowing when to select the appropriate strategy will stand you in good stead.<\/p>\n\n\n\n