CHAPTER 3
Strategy and Tactics of Integrative
Negotiation
一体化（整合型）谈判
(expanding the pie 增大蛋糕)
Approach: a comparative view
Learning Objective
1. Understand the relationship btwn Strategy & Tactics
2. Remember and internalize the distinctive features of
Integrative Negotiation, in comparison with those of
Distributive Bargaining
3. Develop the awareness of and capacity to applying
the fundamentals of Integrative Negotiation for
better outcomes of negotiation, including creating
value, developing alternatives and applying
objective criteria at the value-claiming stage.
Outline
1. Strategy & Tactics
2. Integrative vs Distributive: Case illustrations
3. Q&A exercise: Salary Negotiation
4. Pair Work
5. Case Studies
6. Assignment: Discussion Questions
1 Strategy and Tactics
• Strategy (thought): overall guideline,
indicating the direction we need to take
from our wishes and needs to our
objectives.
• Tactics (its formulation): a concrete line of
action following after strategy.
• The thought comes before the word.
1 Strategy and Tactics
2 Integrative vs Distributive
Warming-up Questions
1. Do you believe in IN?
2. Can you name some differences btwn IN & DN?
3. Why is the distinction in btwn so important?
Why is the distinction in btwn so important?
If you want to play well, you need to know
the rules of the game.
The Negotiators’ mental models are central to
understanding how the negotiation game is
defined.
How parties understand the game is a critical
determinant of how they play the game.
2 …Case illustrations
• Case illustrations
Case 1
Customer
Storekeeper
How much do you want for this
brass dish?
This is a beautiful antique, isn’t
it? I guess I could let it go for
$500.
Oh come on, it’s dented. I’ll give
you $175.
Really! I might consider a
serious offer, but $175 certainly
isn’t serious.
Well, I could go to $200, but I
would never pay anything like
$500. Quote me a realistic price.
You drive a hard bargain, young
lady. $425 cash, right now.
$200.
It cost me a great deal more than
that. Make me a serious offer.
Distributive negotiation
A’s goals and
demands
B’s goals and
demands
Case 1 Graphically depicted
Remarks on case 1: Distributive
 focus on one single issue (often, money).
 Conflict dominated and relationship ignored or sacrificed.
 Myth: negotiation as a fixed pie perception.
 Possible outcomes: win-lose, lose-lose (compromise), no
agreement
 Often common for one-off, low-value deals, e.g. buying
items at a flea market where haggling is the accepted
“game.”
 Inefficient (a battle of will)
AND ……?
Case 2
• Two men were quarrelling in a library. One wants the
window open and the other wants it closed. They argue
back and forth about how much to leave it open: a crack,
halfway, three quarters of the way. No solution
satisfies them both.
• The librarian enters. She asks why he wants the window
open: “To get some fresh air.” She asks the other why he
wants it closed: “To avoid the draft.” After thinking a
minute, she opens wide a window in the next room,
bringing in fresh air without a draft.
Integrative Negotiation
Negotiator A’s goals
and strategies
Negotiator B’s goals
and strategies
Case 2 Integrative
 win-win perception: both can win.
 problem-solving, cooperative: focus on mutual interests
(e.g. “care about”, “want”), and a potential script: What
can I learn from this demand? (vs. How can I avoid
accepting this demand?)
 Multiple issues and multiple options: A position is just
one possible option or a possible solution (e.g. a crack,
halfway, three quarters of the way).
 positions not identical to interests
 Asking questions of “why” and “why not” can help
explore interests behind positions (e.g. “To get some fresh
air.” “to avoid the draft.”)
Distributive Negotiation
1. little cooperation
Integrative Negotiation
1. strong cooperation
2. what I gain is what
you lose
2. mutual gain
3. win-lose
3. win-win
2 …Win-win revolution
Popularized by the book
Getting to Yes. Negotiating Agreement Without Giving
In by Fisher, Ury, and Patton in the early 1980s. (1981,
1991, 1995)
The focus shifted from battling over the division of the
pie to the means of expanding it by uncovering and
reconciling underlying interests.
Principled Negotiation: Four key contributions
(TBCed)
Principled Negotiation
people
options
interests
criteria
Principled negotiation： 4D
dig
Options
design
Criteria
Interests
develop
BATNA
decide
2 …IN as a six-step procedure
1. State what you want.
2. Express how you feel.
3. Give the reasons that underlie your wants and
feelings.
4. Communicate your understanding of the other
person’s wants, feelings, and reasons.
5. Invent three or more possible solutions that
enhance everyone’s outcomes.
6. Agree and shake hands on the solution that
maximizes mutual benefits.
Classic Case-Scenario 1
• Two kids are squabbling over the last orange
in the fridge. When Dad hears the ruckus, he
goes into the kitchen and is sure he’s got the
answer. He slices the fruit into equal halves
and gives one to each kid. Surprising, no one
is happy. Why? Because one kid just wanted
the pulp, and the other just wanted the rind.
Classic case---Scenario 2
Recently two of my sons were squabbling over some
apple pie, each insisting that he would have the larger
slice. Neither would agree to an even split. So I
suggested that one boy cut the pie any way he liked,
and the other boy could choose the piece he wanted.
This sounded fair to both of them, and they accepted.
Each felt that he had gotten the square deal.
2. …Learning focus
Integrative negotiation is more appropriate for
Business Negotiation and International Negotiation.
YES!
Then, What challenges? What are your concerns?....
Complexity & a myriad of Questions remain to be
explored and answered
(TBCed)
Questions to be explored
• Is there a propensity for integrative tactics to be
reciprocated?
• Is the reciprocation of integrative tactics related to the
quality of the negotiated outcome?
• Does the relationship btwn outcomes and the
integrative tactics hold, irrespective of the social value
orientation of the dyad, or do dyads of different kinds
achieve high-quality outcomes in different ways?
• …..
3 Q&A exercise: Salary Negotiation
• Question and answer?
Distributive or Integrative?
Salary Negotiation
• Recruiter: There are four aspects that actually go
together. There is the number of years of contract and
the vacation, the removal can be separated out from the
package. So if, if we keep the package at six thousand
for you and we have 60% removal costs, that would be
additional.
• Applicant: No I'd need more than 60% I was thinking
80% actually.
• Recruiter: What if we kept it at 60% and upped
it to $8000 for the package?
• Applicant: I just want to get clear in my head about the
vacation. Like I said I'm not prepared to relocate to
Canberra unless I get more than the two weeks.
• Recruiter: Well it depends how many years you're with
us. The shorter the time that you were with us, I would
expect the less time you would get in vacation. If you
were going to be with us for six years say you'd get three
weeks holiday.
• Applicant: I would be prepared to go to Canberra for six
years only for six weeks vacation.
• Applicant: I think it's a good starting point. It
obviously needs some work. My contract can be longer
than four years; I think that's negotiable. Canberra if it's
really important to you.
• Recruiter: The thing with Canberra is that we' ve got
three positions there. How open are you to challenge in
new areas? Because we recognize that your strategic
skills are applicable across any broad range and you
have demonstrated very high levels of achievement in
the strategic areas. We're not looking at the strategic
abilities in HR, we're looking at your strategic abilities
as a separate set of skills and you've already
demonstrated those abilities in HR to a very high degree,
which is why you are sitting here having this
conversation with me. We'd like to take those skills and
apply them to a new area.
• Recruiter: So if we were to do say three weeks
vacation, how many years contract would you agree on?
• Applicant: Perhaps if we get back to the package. I'd
be prepared to go to Canberra for 6 years, if that's
important to you. . .
• Recruiter: Well that's related into vacation, and I
know vacation's important to you because of family
commitments. So we could even look at four years and
three weeks vacation each year for that time and
include the airfares in an $8000 package with 60%
removal costs on top of that.
Answer
(word file)
4. Pair work: Problem-solving task
Direction: Please jointly work out a solution and report
to the class.
THE CASE
Suppose that you are the seller and your partner is the
purchaser. The seller’s position is stated as selling a
certain number of sewing machines at X dollars per
unit whereas the purchaser’s position is expressed as
receiving a certain number of sewing machines within
a month’s time at X minus $30 dollars per unit.
5. Case Studies: IBM in India
6. Assignment
Case study: Geely&Volvo Merger
e.g. China's lucky man bags Volvo. Economist, 00130613,
8/7/2010, 册 396, 发行 8694
• 数据库: Business Source Complete
• www.sdu.edu.cn
• Ebscohost
• Geely may be ready to take a run at Volvo.
Automotive News, 00051551, 9/28/2009, 册 84, 发行
6379
• Geely's market share of passenger vehicles in China,
2005-2009
6. ---Discussion Questions
1. What are some conditions that may be conducive to
achieving integrative agreements?
2. What can you do to bring about these conditions?
3. What kinds of processes (or communications) are
most likely to produce integrative agreements? Are
different processes called for under such different
circumstances as relatively simple or complex
negotiations?
4. How might you encourage an opponent to resist
making concessions without risking the possibility of
an impasse?
• NOW, the chapter content is coming.
The Titles
1. Introduction.
2. An Overview of the Integrative Negotiation (IN)
Process.
3. Key Steps in the IN.
4. Factors that Facilitate Successful IN.
5. Why IN is Difficult to Achieve.
6. Chapter Summary.
1. Introduction (p.71)
• The fundamental structure of an IN situation
allows both sides to achieve their objectives.
Then, questions to explore in this chapter:
What is the fundamental structure of IN?
How to go about it (What are the rules of the game)?
What are our efforts directed towards?
What tactics are amenable to successful IN? ……
What makes IN Different?
For a negotiation to be characterized as integrative,
negotiators must also: (p.71)
 Focus on commonalities rather than differences
 Attempt to address needs and interests, not
positions.
 Commit to meeting the needs of all involved
parties
 Exchange information and ideas
 Invent options for mutual gain (creativity)
 Use objective criteria for standards of performance
2. An Overview of the Integrative Negotiation
Process (p.72)
• Creating a Free Flow of Information.
• Attempting to Understand the Other Negotiator’s
Real Needs and Objectives.
• Emphasizing the Commonalities between the
Parties and Minimizing the Differences.
• Searching for Solutions That Meet the Needs and
Objectives of Both Sides.
3. Key Steps in the IN process
There are major steps in the IN process (p.75):
1.
Identify and Define the Problem.
2.
Understand the Problem Fully—Identify Interests
and Needs.
3.
Generate Alternative Solutions.
4.
Evaluate and Select Alternatives.
3. Key Steps in the IN process
• Figure 3.1 Creating and Claiming Value主张价值and the
Pareto Efficient Frontier（p.75) 帕累托
Increasing
Value to
Buyer
Claiming
Value
Pareto efficient
frontier
Creating Value
Increasing
Value to
Seller
3.1 Identify and Define the Problem（pp.75-8)
• Define the problem in a way That is Mutually
Acceptable to both sides.
• State the Problem with an Eye toward Practicality
and Comprehensiveness.
• State the Problem as a Goal and Identify the
Obstacles to Attaining This Goal.
• Depersonalize the Problem.
• Separate the Problem Definition from the Search
for Solutions.
Define the problem in a way That is Mutually
Acceptable to both sides (p.76)
State the Problem with an Eye toward Practicality
and Comprehensiveness
State the Problem as a Goal and Identify the
Obstacles to Attaining This Goal
Depersonalize the Problem
Separate the Problem Definition from the Search
for Solutions
3.2 Understand the Problem Fully—Identify Interests and
Needs (pp.78-82)
• Identifying interests is a critical step in the integrative
negotiation process. Interests are the underlying
concerns, needs, desires, or fears that motivate a
negotiator to take particular position.
• Bringing their interests in principles to the surface will
lead the parties to discuss explicitly the principles at
stake and to invent solutions consistent with them.
3.2 Understand the Problem Fully—Identify Interests
and Needs (pp.78-82)
• Types of Interests
• Some Observations观察on Interests
Types of Interests (p.79)
•
•
•
•
Substantive interests 实质性利益
Process interests 与谈判过程相关的利益
Relationship interests 双方关系方面的利益
Interests in principle 原则方面的利益
Some Observations on Interests （p.81)
 There is almost always more than one type of interest
underlying a negotiation
 Parties can have different types of interest at stake
 Interests often stem from deeply rooted human needs or
values.
 Interests can change.
 Surfacing interests.
 Surfacing interests is not always easy or to one’s best
advantage.
 Focusing interests can be harmful.
3.3 Generate Alternative Solutions
Two techniques
 Inventing Options: Generating Alternative
Solutions by Redefining the Problem or Problem
Set
 Generate Alternative Solutions to the Problem as
Given
3.3 Generate Alternative Solutions-1
Generating Alternative Solutions by
Redefining the Problem or Problem Set
(p.82)
Expand the Pie 增加资源法
Logroll “切割法”
Use Nonspecific Compensation “挂钩战术”
Cut the Costs for Compliance “奖（罚）战术”
Find a Bridge Solution 搭架桥
Expanding the Pie
 How can both parties get what they are
demanding?
 Is there a resource shortage?
 How can resources be expanded to meet
the demands of both sides?
Logrolling
 What issues are of higher and lower priority to me?
 What issues are of higher and lower priority to the
other?
 Are issues of high priority to me low for the other,
and vice versa?
 Can I “unbundled” an issue---i.e. make one larger
issue into two or more smaller ones---that can then
be logrolled?
 What are things that would be inexpensive for me
to give and valuable for the other to get that might
be used in logrolling?
Nonspecific Compensation
What are the other party’s goals and values?
What could I do for the other side that would
make them happy and have them allow me
to get my way on the key issue?
What are things that would be inexpensive
for me to give and valuable for the other to
get that might be used as nonspecific
compensation?
Cost Cutting
 What risks and costs does my proposal
create for the other?
 What can I do to minimize the other’s
risks and costs so that they would be
more willing to go along?
Bridging
What are the other’s real underlying
interests and needs?
What are my own real underlying interests
and needs?
What are the higher and lower priorities for
each of us in our underlying interests and
needs?
Can we invent a solution that meets both
sides’ relative priorities and their underlying
interests and needs?
3.3 Generate Alternative Solutions-2
Generate Alternative Solutions to the Problem as
Given

Brainstorming

Surveys

Electronic Brainstorming

Summary
Logrolling 协力使通过
• in US politics 美国政治 the practice of agreeing with
somebody to vote to pass a law that they support so
that they will later vote to pass a law that you support
互投赞成票（促使议案通过 ）
Brainstorming
The success of brainstorming depends on the
amount of intellectual stimulation that occurs as
different ideas are generated.
The following rules should be observed:
1. Avoiding judging or evaluating solutions.
2. Separate people from the problem.
3. Be exhaustive in the brainstorming process.
4. Ask outsiders.
Summary-1 立场陈述
Firm flexibility recognizes one or two
fundamental interests or principles, besides a
wide variety of positions, possible solutions, or
secondary issues therein. Thus, negotiators need
to be able to signal to TOS the positions on which
they are firm and the positions on which they are
willing to be flexible.
Several (Eight) tactics to communicate firm
flexibility to the other negotiator (suggested by
Pruitt 1983, Fisher et al 1991): TBCed
Summary-2
 Use competitive tactics to establish and
defend basic interests. State what you want
clearly.
 Send signals of flexibility and concern about
your willingness to address TOS’ interests.
 Indicate a willingness to change your proposals
if a way can be found to bridge both negotiators’
interests.
 Demonstrate problem solving capacity.
Summary-3
 Maintain open communication channels.
 Reaffirm what is most important to you thru the
use of clear strategies.
 Reexamine any aspects of your interests that are
clearly unacceptable to TOS and determine if
they are still essential to you.
 Separate and isolate contentious tactics from
problem-solving behavior to manage the
contentious behavior.
3.4 Evaluate and Select Alternatives-1
• Narrow the Range of Solution Options
• Evaluate Solutions on the Basis of Quality,
Standards, and Acceptability.
• Agree to the Criteria in Advance of Evaluating
Options
• Be Willing to Justify Personal Preferences.
• Be Alert to the Influence of Intangibles in
Selecting Options.
3.4 Evaluate and Select Alternatives-2 （p.89)
• Use Subgroup to Evaluate Complex Options
• Take Time Out to Cool Off
• Explore Different Ways to Logroll
• Keep Decisions Tentative and Conditional until
All Aspects of the Final Process
• Minimize Formality and Record Keeping until
Agreement are Closed
4. Factors that Facilitate Successful Integrative
Negotiation (p.92)
• Some Common Objective or Goal
• Faith in One’s Problem-Solving Ability (p.93)
• A Belief in the Validity效度 of One’s Own Position
and the Other’s Perceptive (p.93)
• The Motivation 动机and Commitment 诚意to Work
Together
• Trust
• Clear and Accurate Communication
• An Understanding of the Dynamics of IN
5. Why Integrative Negotiation is Difficult to
Achieve ?（p.97)
• The primary reason negotiators do not pursue
integrative agreements is that they fail to perceive a
situation as having integrative potential and are
primarily motivated to achieve outcomes that satisfy
their own needs. Three additional factors:
 The history of relationship between the parties
 A belief that an issue can only be resolved
distributively
 The mixed-motive nature of most negotiating
situations
6. Chapter Summary
• In this chapter, we have reviewed the strategy and
tactics of integrative negotiation. The fundamental
structure of integrative negotiation is one within
which the parties are able to define goals that
allow both sides to achieve their objectives.
• We began with an overview of the process, note
that successful negotiation requires several
processes. Then we discussed various factors
that facilitated successful integrative negotiation.