Question

In: Accounting

a). What is the difference between “distributive negotiation” and integrative negotiation”? (10 marks) (b). Compare and...

a). What is the difference between “distributive negotiation” and integrative negotiation”?
(b). Compare and contrast the differences between “sharing” and “problem-solving” in instances of negotiation processes.

Solutions

Expert Solution

Answer a)

What is negotiation?

Negotiation is a process between two or more parties to reach an outcome over an issue, optimising their individual utilities.

Difference between two Distributive negotiation & Integrative Negotiation

Particulars

Distributive Negotiation

Integrative Negotiation

Definition

It is a bargaining strategy in which one party gains only if the other party loses something.

It is a negotiation strategy in which involved parties work together to find optimum solution, so that it satisfy needs & concern of each.

Approach

Competitive approach is followed.

Collaborative approach is followed.

Orientation

Based on win-lose.

Based on win-win.

Relationship

Here negotiation is carried out more as an one time transaction, not keeping in mind any kind of long term relationship.

These are future focused with long term relationship in mind.

Resources

Resources are limited.

Resources are in abundance.

Issue

At a time, only one issue is discussed.

Multiple issues are discussed at a time.

Motivation

Parties self interest motivate them.

Mutual Interest act as an motivation for the parties involved.


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