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Integrative bargaining is a negotiation strategy in which every parties collaborate to develop a win-win solution to their conflict or issue. An alternative to conventional competitive negotiation techniques (also well-known as distributive bargaining), this an approach focuses heavily on producing mutually helpful solutions by combine the needs, desires, and concerns of every parties involved.

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Unlike distributive bargaining, wherein the proverbial pie is distributed in a way that just benefits part parties, integrative bargaining looks for to enlarge the pie so everyone involved in the negotiation proceedings have the right to benefit. Integrative bargaining is, therefore, likewise commonly described as a win-win scenario.

Key actions in the Integrative Bargaining Process

The integrative negotiation process usually consists of four fundamental stages, outlined below:

1. Identify and also define the problem

The an initial and most vital step in integrative negotiation is to identify the problem. Every parties associated in this action collaborate to define the issue in a way that is mutually acceptable come everyone. That is crucial that people look in ~ the problem with the aim of practicality and comprehensiveness fairly than taking a personal approach.

2. Understand the problem and also consider mutual interests

Once the trouble has been identified, every sides then clearly state your optimal or wanted outcome; this help to recognize a clear course to a equipment that satisfies the individual interests of every stakeholders. All parties should have an open mind and seek to genuinely understand the underlying interests the the other parties.

3. Generate alternative solutions come the problem

Everyone associated in the negotiation procedure works together to create as many possible solutions come the difficulty as possible. This brainstorming process requires adaptability from every parties involved.

4. Advice the options and pick the many feasible option

The fourth and also final stage of the integrative negotiation procedure is to compare the feasible solutions generated during the brainstorming procedure against one another. Miscellaneous criteria might be supplied to recognize the feasibility of every option.

Disadvantages the Integrative Bargaining

While integrative negotiation tactics are generally preferred and also recommended by many dispute resolution professionals, there are cases where this technique does not develop the preferred results.

Because integrative bargaining requires the share of information in between all parties, some individuals may view this as an attempt by the various other party to discover sensitive info which have the right to be later on be used versus them during negotiations.

In part unfortunate situations, negotiators may have dishonest intentions and also could look for to exploit the participating spirit of other negotiators in an effort to make use of them. Over there is likewise a hazard of communication malfunction in this bargaining technique, which can lead to the less desirable distributive bargaining process.

Example the Integrative Bargaining

Let"s say, for example, a homeowner wants to sell their residence for $500,000; however, the residence needs a brand-new coat the paint. ~ purchasing negotiations, the prospective house buyer might offer just $490,000 and agree come pay for the painting as soon as the purchasing procedure is complete.

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In this example, the seller benefits from the negotiation together they were able to sell the home at market value without having to spend extr money on painting. The buyer additionally benefits since they purchased the home at a lower price while gift afforded the opportunity to save money by painting the home themselves.