Page 251 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes 14.4.1 Basic Concept of Negotiation: Distributive versus Integrative

Basic Concept of Negotiation refers to how each party views the negotiating process. A bipolar
continuum, with distributive bargaining and integrative problem solving as endpoints, is
consistent with R.E. Walton and Robert B. McKersie.
Distributive Perspective: The assumption underlying distributive bargaining strategies is that
one party gains at the expense of the other. Negotiators fitting this profile believe that there will
be one winner and one loser, assume that their interests directly conflict with those of the other
party, seek to meet only their own goals or interests in order to maximize the benefit for their
side, and focus on the need for the other party to concede. The prevailing belief is “what is good
for the other party must be bad for us.”
Integrative Perspective: The assumption underlying integrative bargaining strategies is that
there is opportunity for both parties to gain from a negotiated agreement because they place
different values on the issues being negotiated and can find effective trade- offs by conceding
less important issues to gain on more important ones. Integrative negotiation involves both
cooperation to expand the pie and competition to divide the pie between the two parties.
Negotiators fitting this profile believe that win-win solutions can be generated, employ a
problem-solving approach to develop solutions that expand the size of the rewards available to
everyone, and attempt to understand the underlying issues and their relative importance to
both parties in order to capitalize on the different interests of both parties and to find effective
trade-offs.

14.4.2 Most Significant Type of Issue: Task versus Relationship

The most significant type of issue refers to the types of issues negotiators spend more time
discussing. Although negotiators may be concerned with both task and relationship in a
negotiation, they are likely to emphasize one over the other.

Task: Negotiators with a task frame focus on specific issues having to do with the project at hand
and view these issues as being external to the relationship. Negotiators who believe that task
issues are more important tend to focus the entire negotiation on the deal being discussed and
not so much on the people involved in the discussions.
Relationship: Negotiators with a relationship frame view task-related issues as being inseparable
from the relationship. They devote time to activities that build trust and friendship between the
members, believing that this provides a foundation for addressing task issues! Negotiators who
believe that the relationship is primary tend to focus the entire negotiation on the people
involved in the discussions and not so much on the deal being discussed.

14.4.3 Selection of Negotiators: Abilities versus Status

Selection of Negotiators refers to the criteria used to select members of the negotiating team.
Achievement-based people evaluate and relate to others based on what they have accomplished;
status-based people evaluate and relate to others based on who they are.
Abilities: People with an achievement-based view believe members of a negotiating team should
be selected because they possess certain job-related skills or because they have expertise that
will be useful during the course of the negotiations. Examples of relevant skills or expertise
include education, technical or scientific knowledge, legal training, vocational achievement,
negotiating experience, or language fluency.
Status: People with a status-based view believe members of a negotiating team should be
selected because of who they are and whom they know. Examples of relevant characteristics

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