Integrative negotiation, on the other hand, is a collaborative model in which the parties seek to expand the range of possible outcomes and thereby maximize their individual benefits by shoring in the collective efforts and results. For example, a union may get better wages and in response may produce more in terms of quantity and quality. In such a situation, both the union as well as the management wins.
Characteristics of Integrative Negotiations
Integrative negotiation is a process in which the negotiating parties jointly work towards goals that are not mutually exclusive so that one party does not necessarily gain at the expense of the other. The approach of the parties is to work together to find out ways to utilize the resources in a best possible manner for the benefit of both parties. They engage in problem solving jointly to arrive at a mutual agreement that maximizes benefit to each party.
Integrative negotiation has two aspects to it. One is the substantive part that includes the tangible issues to be discussed and negotiated. The other aspect is the intrinsic value in the agreement, that may be long-term cordial relationship between the parties or other benefits to both parties not directly related to the substance of the issues involved. Thus, it has an important dimension of building relationships.
The foundations for gaining truly integrative agreements rest on the following elements:
A supportive attitude requires that each party must be willing sincerely to trust the other party. This trust is based upon moral and ethical dimensions. Second, each party must be willing to share all relevant information with the other party, openly and honestly.
It is very important for the parties not to be emotional or personal. They must focus on issues and interests and not on positions and positions should be modified when necessary. The parties should avoid making premature judgements and should be willing to objectively look at the views offered by each party.
These foundations involve each party becoming familiar with the 'best alternative to a negotiated agreement' or BATNA. This means that each party must know and be prepared for any alternative in case a settlement is not reached. It is important for each party to know what any other methods the opposing party will pursue in case the negotiations fail.
Not knowing the other party's values and approach could put one party in a weaker position. If any of the two parties has a better alternative to negotiated settlement, such party would be in a stronger position. Accordingly, it is necessary to have as much information about the other party's plans as possible.
