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The Two Approaches of Negotiation

Outline the role and significance of the negotiation in conflict resolution process.

Negotiation may be defined as a open process to analyze and identify an acceptable solution to a complicated conflict and issue. There are ample of situations where negotiation will attain the highest and best outcomes. There are two parties involved in the conflict; therefore all the parties feel that negotiation will lead to better results and outputs (Canagarajah, 2013). Negotiation plays a vital role in the context of issue and conflict; whether such type of issue or conflict occurs between the management and labor union in the organization. Thus, it is essential to resolve and reduce such type of conflict or issue between the parties. Generally, conflict can be raised due to many reasons such as poor wage system, performance evaluation, schedules, ineffective culture, working conditions, and job assignments (Canagarajah, 2013).The paper explains the significance of the negotiation approach. Here is the discussion about the two approaches such as competitive positional based approach and problem solving interest based approach. A comparison and contrast between these two approaches have been explained in the task. The impacts, characteristics, assumptions and roles of both the approaches also have been detailed in the task. More detail of the task has been discussed below.

The main aim of the negotiation is to reach an agreement to participate in activity and operation that will result in mutual benefits. Each party in negotiation is tried to come to an agreement that serves its own interest (Ting?Toomey, 2015).  

The two approaches of the negotiation include competitive positional based negotiation and problem solving interest based negotiation. It has been found that positional based negotiation is also known as the competitive negotiation, distributive and hard bargaining negotiation (Baarslag et al, 2013).

The positioning bargaining is also considered the negotiation strategy that includes holding to a fixed idea or position in the workplace. It has been find that positioning strategy holds the effective position and it concentrates on the exact needs and requirements of the individual. They are arguing for such needs and requirements instead of outline any interests. It has been analyzed that positioning approach is becoming a first choice of the people while entering into the negotiation (Beyondintractability, 2018). The people adopt this strategy when enter into a negotiation. It is stated that positioning negotiation approach is usually considered a less constructive and less effective approach for the bargaining than integrative bargaining. After the various researchers, it has been highlighted that positioning bargaining is inefficient and ineffective in terms of the number of decisions that should be made (Changiminds, 2018). The characteristics of positioning competitive positional based negotiation have been detailed below.

  • The both the parties in negotiation provides their own solutions and ideas.
  • The positioning negotiation can be hard or soft one. The positioning negotiation is essential way of resolving and handling differences and issues between parties with mutually exclusive objectives and goals.
  • The parties of the negotiation are exchanged and traded.
  • Suitable time is spent by both the parties for the purpose of the discovering what is significant and effective for the other side.

Competitive Positional Based Negotiation

The interest based negotiation is also known as integrative bargaining and win win bargaining. It is a approach in which parties collaborate and communicate to find a “win win” solutions to their conflict and dispute. This approach focuses on developing and enhancing mutually beneficial agreements based on the interests of the disputants. In other words, it is a process in which the negotiating parties jointly work towards goals that are not mutually exclusive so that one party does not gain at the expense of the other party. The interest of the parties includes concerns, fears, requirements and choices of the parties. This strategy is suitable when various types of the issues and conflicts are included in the bargaining process. This approach is help in satisfying and protecting the right of both the parties. The interest based negotiation approach provides satisfactory results and outputs to the parties that are not possible in positioning approach (Medium, 2018). On the other hand, positioning approach is focusing on fixed positions as it does not involve in mutual agreements. In the contrast, competitive positional based negotiation does not provide satisfaction to both the parties. Thus, it affects the performance and effectiveness of the both the parties (Cutcher-Gershenfeld, 2014). The characteristics of the problem solving interest based negotiation have been detailed below.

  • The integrative negotiation or problem solving interest based negotiation has two aspects. First is the substantive part that entails the tangible issues to be negotiated and explained. Another one is the intrinsic value in the agreement that could be long term cordial and reciprocal relationship between the parties. Thus, it provides ample of benefits to both the parties.
  • It has been identified that problem solving interest based bargaining helps the parties to identify and analyze the problems and conflicts that need to be handled. Thus, they offer remarkable solutions for the disputes.

The comparison and contrast between competitive positional based negotiation and problem solving interest based negotiation have been elaborated below (Morgan, 2006).

Positioning negotiation

Problem solving interest based negotiation

In positioning negotiation, the parties related to the dispute and conflict is opponent. 

In this negotiation, the disputants are joint problem and issue solvers.

The goals and outcomes are considered victory.

The goals are considered wise decision.

In this negotiation, both the parties can demand concessions.

In this negotiation, parties work together to determine goals.

The parties insist position.

They insist the objectives.

Pressure can be applied in Positioning bargaining.

Pressure cannot be applied in such negotiation.

Under this negotiation, the parties focus on the position.

The parties focus on the interest instead of positions.

The assumptions related to the competitive positional based negotiation and problem solving interest based negotiation has been detailed below.

There are ample of assumptions related to the competitive positional based bargaining have been discussed below.

  • Under this approach, egocentric self interest of the parties manages and handles the bargaining of two parties (Semeraro and Fregonara, 2013).
  • The basic assumption of competitive positional based negotiation is that it is zero sum game.
  • The result or output of zero sum negotiation is defined in terms of losers and winners.
  • In positioning negotiation, the relationship between the people in unimportant. They do not care about one another.
  • In this negotiation, motivation between the two parties is rivalry in nature.
  • Fewer resources are used by the parties in this approach. Future of the parties cannot be affected by this negotiation.
  • In positioning negotiation, both the parties follow the take and give policy. This approach focuses on the realistic and not on egos about winning and not losing.

The following are the basic assumptions related to the problem solving interest based bargaining:

  • Collaboration and conciliatory is one of the biggest and unique assumptions. People negotiate to attain better outcomes for themselves.
  • The positioning negotiation is a bargaining dialogue in which the dialogue between parties is focused on their negotiation positions.
  • The mutual gain is possible under this approach. The parties are optimistic in the positioning approach.
  • Under this approach, the parties help to become successful and effective. Information can be shared effectively by the parties to eliminate the dispute or conflict (Helfen and Sydow, 2013).

It has been identified that there are ample of risks involved in the positioning and interest based negotiation approach that are detailed below.

It is noted that positional negotiation is known as zero sum because there is a loser or winner. Although this approach provides plenty of benefits but still some risks are also involved in this approach. If the negotiation or bargaining exceed then it creates plenty of issues. Due to lack of attention, strong commitment and collaboration between two parties cannot be maintained. Along with this, there are scenarios in a positional negotiation where one party will refuse to take risk. This approach is less effective and efficient. Apart from this, the positional negotiation is unable to provide win win outputs. The decision making process is also affected due to lack of attention in positional approach. The strong position of the parties takes more and more time to resolve the issue and conflict. Besides this, it is less constructive approach in negotiation. Thus, it affects the interest of both the parties. All these risks are associated in competitive positional based negotiation (Goldberg et al, 2014).

Problem Solving Interest Based Negotiation

The problem solving interest based negotiation is failed to fulfill the needs, demands and requirements of both the parties. It creates various conflicts and issues in the minds of the parties. Both of the parties are unable to attain desired goals and objectives (Maestre  and Negenborn, 2014). Besides this, traditional negotiation process is also used by the parties thus, it has direct impact on the goals adversely. Along with this, it is time consuming negotiation approach. The negotiation approach is failed to handle and control those circumstances that are vital and effective. It has been found that this approach takes ample of time to complete the procedure as compared to the competitive positional negotiation. Data collection is another issue in the interest based negotiation. Along with this, it also requires training and learning therefore parties need to invest huge amount on training and learning. In addition, the approach takes long time for resolving and handling the issues and conflict. All these issues could be faced by both the parties (Blaney, 2018).

Competitive positional negotiation

This approach is significant and essential for both the parties. This approach is initiated when one party arise the conflict and other argues for this issue. Such argument is given by the other party in her or his own favor. This creates conflicts and disputes between two parties as it affects their interest and goals. The counter argument also affects the relationship of both the parties in negotiation. In this approach, both the parties analyze and understand that consideration of the interest is quite impossible (Faircloth, Hoffman and Layne, 2013).

Problem solving interest based negotiation

It has been found that this approach is good for both the parties as compared to the positional approach or negotiation. It helps in maintaining healthy and reciprocal relationship between the parties. It puts favorable impact on the interest of the parties. This is possible just because there is less competition between the parties. Along with this, conflict and issue can be resolved easily with this approach (Mircic?, 2014).

Outcomes

After considering the above mentioned information, it has been analyzed that problem solving interest based approach can be used by the manager of United Beverages Pty.Ltd. This approach helps in providing sufficient results and outcomes to the parties who are involved in the conflict. The company cannot use positional approach because it does not focus on the manual agreements as it is based on the fixed positions.

Conclusion

The above mentioned limelight event shows that how the parties are involved in the conflict or issue. Negotiation helps both the parties to resolve and handle the conflict or issue. There are two approaches can be used to resolve conflict and to maintain effective relationship. These approaches include competitive positional based approach and problem solving interest based approach. It has been analyzed that United beverages Pty Ltd. can use problem solving interest based negotiation approach to handle the issues. The company should focus on the interest based approach to overcome on the conflict and issue.

References

Baarslag, T., Fujita, K., Gerding, E.H., Hindriks, K., Ito, T., Jennings, N.R., Jonker, C., Kraus, S., Lin, R., Robu, V. and Williams, C.R., 2013. Evaluating practical negotiating agents: Results and analysis of the 2011 international competition. Artificial Intelligence, 198, pp.73-103.

Beyondintractability.2018. Positional bargaining [Online], Available from https://www.beyondintractability.org/essay/positional_bargaining, [Accessed as on 7th June 2018].

Blaney.Interest based bargaining. Available at: https://www.blaney.com/files/Interest-Based-Bargaining.pdf. Accessed on 7th June 2018.

Canagarajah, A.S., 2013. Negotiating translingual literacy: An enactment. Research in the Teaching of English, pp.40-67.

Changiminds.2018. Competitive negotiation[Online], Available from https://changingminds.org/disciplines/negotiation/styles/competitive_negotiation.htm, [Accessed as on 7th June 2018].

Cutcher-Gershenfeld, J., 2014. Interest-Based Bargaining. The Oxford Handbook of Conflict Management in Organizations, p.150.

Faircloth, C., Hoffman, D.M. and Layne, L.L. eds., 2013. Parenting in global perspective: Negotiating ideologies of kinship, self and politics. Routledge.

Goldberg, S.B., Sander, F.E., Rogers, N.H. and Cole, S.R., 2014. Dispute resolution: Negotiation, mediation and other processes. Wolters Kluwer Law & Business.

Helfen, M. and Sydow, J., 2013. Negotiating as institutional work: The case of labour standards and international framework agreements. Organization Studies, 34(8), pp.1073-1098.

Maestre, J.M. and Negenborn, R.R. eds., 2014. Distributed model predictive control made easy (Vol. 69). Dordrecht, Netherlands: Springer.

Medium.2018. The art of negotiation, positional vs interest based bargaining[Online], Available from https://medium.com/swarm-nyc/the-art-of-negotiation-positional-vs-interest-based-bargaining-c1931ce9ab4b, [Accessed as on 7th June 2018].

Mircic?, N., 2014. Constructive communication in effective negotiation. Analysis and Metaphysics, 13, pp.64-72.

Morgan, N. (2006). Implementing mutual gains (interest-based)collective bargaining. Available at: https://www.morganbrown.com/docs/the%20general%20concepts%20surrounding%20interest%20based%20bargaining.pdf. Accessed on 7th June 2018.

Semeraro, P. and Fregonara, E., 2013. The impact of house characteristics on the bargaining outcome. Journal of European Real Estate Research, 6(3), pp.262-278.

Spangler, B. (2003).Integrative or Interest-Based Bargaining. Available at: https://www.beyondintractability.org/essay/interest-based_bargaining. Accessed on 5th June 2018.

Ting?Toomey, S., 2015. Identity negotiation theory. The international encyclopedia of interpersonal communication.

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