Distributive and Integrative negotiation
Distributive (S&O) - competetive and distribution of scarce resources. (Win-Lose)
Integrative (Q&A) - seeking mutually beneficial solutions by addressing the underlying interests of both sides (Win-Win)
Distributive negotiation strategies
- Take it or leave it - Will be typically rejected by individuals from Europe,
US and East Asia (even when the offer exceeds their BATNA) - Objective/Fair standards - Make claims about the value of the negotiated object based on objective or fair standards
- First offers and bargaining - Anchoring effect of the first offer
Often used by Chinese and Qatari
BATNA meaning
best alternative to a negotiated agreement
Integrative negotiation strategies
- Explicit information sharing - info directly stated or communicated (Used by US)
- Implicit information sharing - info implied or suggested, but not directly stated (Used by Japan)
- Heuristic trial and error - Western negotiators first start by asking questions
and answers about interests and priorities and in the second half put that information together in multi-issue offers
Integrative strategies often used by US
Trust connection to distributive vs integrative negotiation strategies
When there is trust > Integrative
When there is lack of trust > Distributive
Tight and Loose culture
Tight culture - have many strong norms and a low tolerance of deviant behavior (RULE Makers)
Loose culture - Rule breakers
Tightness-Looseness connection to Distributive-Integrative negotiation strategies
Tight culture > Distributive
Loose culture > Integrative
Connection between cognitive style and negotiation style
Holistic > Distributive (High-context)
Analytic > Integrative (Low-context)
HIGH trust , TIGHT culture +
LOW trust, TIGHT culture =
No issue, both take distributive
HIGH trust, LOOSE culture +
LOW trust, LOOSE culture =
low trust negotiator should seek to adopt an integrative strategy to mach high trust
LOW trust, TIGHT culture +
LOW trust, LOOSE culture =
loose culture negotiator should seek to adopt a distributive strategy to mach tight cult.
HIGH trust, TIGHT culture +
HIGH trust, LOOSE culture =
very difficult to find common ground
HIGH trust, TIGHT culture +
LOW trust, LOOSE culture =
adopt distributive strategy
HIGH trust, LOOSE culture +
LOW trust, TIGHT culture =
very difficult to find common ground
Influence of Individualism/Collectivism on negotiation
Individualistic:
-Higher personal goals in negotiation
-More likely to reject acceptable but suboptimal offers even from the same culture
Collectivist:
-for in-groups engages in cooperative behavior
-for out-groups will not engage in cooperative behavior per se but will cooperate if the out-group is cooperative.
Egalitarism meaning
Equality and lack of hierarchy
Influence of Egalitarism/Hierarchy on negotiation
If negotiations occur in hierarchical cultures, individuals seek to understand each other’s status. In egalitarian cultures, the negotiation is about priorities and interests
