A type of negotiation in which the parties compete over the distribution of a fixed pool of value. Here, any gain by one party represents a loss to the other. Also known as a zero-sum negotiation or win-lose negotiation. (Richard Luecke, Harvard Business Essentials: Negotiation [Harvard Business Press, 2003], 2-3)
The following items are tagged distributive negotiation.
Don’t settle for uninspired compromises.
Find ways to modify and expand resources to achieve more value.
Typically, when parties are negotiating over a resource they both desire – whether fees, budgets, salaries, schedules, or staff – the process results in an uninspired compromise somewhere between their positions. Is it possible to avoid a compromise when negotiating tough distributive issues.
When considering a potential mediator, ask the following questions of those who have worked with him in the past.
Imagine that you’re the CEO of a sports clothing manufacturer based in Chicago. You recently traveled to Amsterdam, the Netherlands, to meet with a distributor who has a rich and diverse network in the European sports market.
During the business trip, you both express enthusiasm about the possibility of a joint venture and agree to give the potential alliance more thought.
Back home, you learn that one of your competitors has discussed similar plans with the same distributor.
Simmons College believes that it is important for people in a leadership position, in almost any profession, to have a basic understanding of, and competency in, the negotiation process. Therefore, negotiation is a required course for the Simmons School of Management Master in Business Administration (MBA) and Master in Health Administration (MHA) degrees. The author designed and teaches the negotiation course for the Simmons online MHA program. In this program, the negotiation course is the lead course in the curriculum, and serves as a foundation course. The students are mid-career, health-systems professionals, many of whom have terminal degrees in their clinical areas of expertise. The author also teaches negotiation in the MBA program, where she designed the course as a “blended” experience, with some lessons taught online between face-to-face class sessions.
In negotiation, different types of reputations serve different purposes. When you’re haggling over just one issue, such as the price of a used car or a computer installation, one party’s win is typically the other’s party’s loss. In such distributive negotiations, where each party is trying to claim the biggest piece of a fixed pie, having a reputation as a tough bargainer can be an effective means of undermining a competitor’s confidence and power.
Negotiations for a new collective bargaining agreement (CBA) between the National Hockey League Player’s Association (NHLPA) and the NHL’s team owners took a tumultuous turn in mid-August, a month before the current agreement’s looming expiration date of September 15.
An inter-personal bargaining tendency for resolving a group-action problem in distributive negotiation whereby the final agreement is roughly the average amount of the initial offer and any subsequent counteroffers. (Howard Raiffa, The Art and Science of Negotiation [Harvard University Press, 1982], 300-01)
— Download the Negotiation Analysis Supplement
— Order Negotiation Analysis from the Harvard University Press
This masterly book substantially extends Howard Raiffa’s earlier classic, The Art and Science of Negotiation. It does so by incorporating three additional supporting strands of inquiry:
Individual decision analysis
Judgmental decision making
Each strand is introduced and used in analyzing negotiations.
Negotiation Analysis starts by