Question

Entrepreneurs and innovators need to persuade other people to become involved, create effective teams, make new network connections and negotiate the terms of the resulting relationships.   

I. Discuss the concept of positional negotiation/ bargaining (10 Marks, 150 words)

II. Discuss the different types of positional negotiation/ bargaining (10 Marks, 150 words)

III. Discuss the different flaws and limitations of positional negotiation/ bargaining (10 Marks, 150 words)

Answer 1

Answer I :

Concept of positional negotiations

Positional negotiation is a bargaining strategy that involves holding on to a specific idea or position, that one wants and make arguments about it irrespective of any potential interests. For example, positional bargaining is the haggling that takes place between the seller and the customer over the price of an item. When the customer has a maximum amount to pay and the seller will only sell over a certain minimum amount. This is considered as a problematic situation because when the negotiation advances, the negotiators become more committed to their positions, restating and defending them constantly.

As per Positional Bargaining, the more you defend your position, the more your ego becomes attached to it. It means that now you don't want to yield for a second reason i.e to fulfill your need and to save face. It involves extra inflexibility.

Answer II :

Different types of positional negotiations

- Distributive Negotiations: In this negotiation type, there is a limited amount of resources or specific positions that being distributed or divided. Hence, this type of negotiation is referred to as “The Fixed Pie.” The proportion that is going to be distributed is limited and variable. A distributive negotiation usually involves starting conversations with no prior relationship and it is not likely to develop a long-term relationship. For example, buying or selling a car or a house.

- Integrative Negotiations: Integrative negotiations require a developed set of business negotiation skills. For this, one typically starts the negotiation skills training with simple role-plays. After role-plays, more complex team-based integrative negotiation role-plays are developed. It includes problem-solving, multiple issues, and sharing.

Answer III :

Limitations and Different flaws :

• In positional bargaining, negotiators become so self-centered and centralized for their demands that they forget to explain the reason for why they want a particular position or something like that. They get so focused that they Move beyond positions to interests.
• In positional bargaining, negotiators think that whatever they achieve comes at someone else's expense, and vice versa. The fixed-pie mindset comes in the way of value creation that begins with the exploration of interests.
• The Principled Negotiation model opposes positional bargaining because it
• It is inefficient and prevents focus on creativity.
• It has higher transactional costs, emotional costs.
• It can damage relationships and produce less stable agreements.
• It focuses singularly on result not relationship.
• It uses fixed bottom lines instead of relational creativity.

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