The relationship between the original offer and the proposed offer is usually called integrative bargaining.
<h2>Further explanation
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Negotiation is a process when several parties exchange goods and services and have the goal to agree on the exchange rate
Bargaining Strategy - Bid
There are two types of negotiation approaches namely distributive bargaining and integrative bargaining.
1. Distributive Bargaining
The most obvious characteristic is that this strategy runs under zero-sum. That means, whatever gains I get are at your expense, and vice versa. So the nature of distributive bargaining is negotiating who gets what part of a cake of the same size and fixed (fixed pie). By that cake, what we mean is that each party who bargains believes that there are only several goods or services to share. Therefore, a cake is a zero-sum game in the sense that every dollar in one party's pocket is one dollar out of their bargaining opponent's pocket. When the parties believe the cake is fixed, there is a tendency for distributive bids. An example that can be taken is labor-management negotiations regarding wages.
2. Integrative Bargaining
In contrast to distributive bargaining, integrative bargaining is carried out on the assumption that there is one solution or more, which can create a "win-win solution" or mutual benefit.
In an intra-organizational environment, integrative bargaining is preferred over distributive negotiation. This happens because integrative negotiations maintain long-term relationships. Integrative bargaining binds negotiators together while allowing them to leave the negotiating table with a feeling of victory. Distributive bargaining tends to build hatred and deepen divisions when people have to work together again in the future.
Integrative bargaining is rarely seen in an organization because it lies in the conditions needed for such negotiations to take place. These conditions include:
- The parties are open to information
- Honest with their interests
- The sensitivity of both parties to the needs of other parties
- The ability to trust each other,
- The willingness of both parties to maintain flexibility
Learn more
Negotiate brainly.com/question/9312091, brainly.com/question/902450
Details
Class: High School
Subject: Business
Keyword: type of negotiation.
