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Unit 14: Conflict and Negotiation

5. Be realistic: Being too greedy or too stingy will likely result in no agreement, so keep it Notes
real.

14.8.3 Integrative Negotiations – Everybody Wins Something (usually)

The word integrative means to join several parts into a whole. Conceptually, this implies some
cooperation, or a joining of forces to achieve something together. Usually involves a higher
degree of trust and a forming of a relationship. Both parties want to walk away feeling they’ve
achieved something which has value by getting what each wants. Ideally, it is a twofold process.
In the real world of business, the results often tilt in favour of one party over the other because,
it’s unlikely that both parties will come to the table at even strength, when they begin the talks.
Nonetheless, there are many advantages to be gained by both parties, when they take a
cooperative approach to mutual problem solving. The process generally involves some form or
combination of making value for value concessions, in conjunction with creative problem solving.
Generally, this form of negotiation is looking down the road, to them forming a long-term
relationship to create mutual gain. It is often described as the win-win scenario.

Integrative Negotiation Basics

1. Multiple Issues: Integrative negotiations usually entails a multitude of issues to be
negotiated, unlike distributive negotiations which generally revolve around the price, or
a single issue. In integrative negotiations, each side wants to get something of value while
trading something which has a lesser value.
2. Sharing: To fully understand each other’s situation, both parties must realistically share as
much information as they can to understand the other’s interests. You can’t solve a problem
without knowing the parameters. Cooperation is essential.
3. Problem Solving: Find solutions to each other’s problems. If you can offer something of
lesser value which gives your counterpart something which they need, and this results in
you realising your objective, then you have integrated your problems into a positive
solution.
4. Bridge Building: More and more businesses are engaging in long term relationships.
Relationships offer greater security.

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Caution The word integrative means to join several parts into a whole. Conceptually, this
implies some cooperation, or a joining of forces to achieve something together.

14.9 Project Review and Administrative Aspects

A Project is monitored during the implementation phase so that time and cost overrun are
minimised. After a project is commissioned its performance is periodically reviewed to see
whether its performance has been in line with expectations. If things turn sour the abandonment
may also have to be examined.

14.9.1 Post Completion Audits

Post Completion Audits (PCA) are used as a guide for future decision-making in the realm of
capital budgeting. In Pinches schema, PCA is conducted as a way to identify mistakes in past
investment decisions and uses the information to create a comprehensive resources allocation

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