Negotiation Process

(C)- Negotiation Process-
In case of disagreement, individuals intentionally aim to
maximise the outcome in their favour to the extent
possible. Negotiation is the process using which parties
in disagreement settle down disputes. Negotiations are
the method to avoid any kind of dispute or loss due to
disagreement generated. It leads to a level of
compromise and avoid further arguments.
Preparation, discussion, discussions of goals,
determination of mutually beneficial outcomes is some
of the basic steps to be undertaken in any negotiation
process. Negotiations are originally divided into two
types.
1) Distributive negotiations.
2) Integrative negotiations
In case there is a fixed sum that is to be divided into
parties in dispute, the adequacy of Distributive
negotiation or bargaining can be proving legitimate. In
other context if the parties in dispute integrate for
mutually accepted outcome and to integrate the
interests of all the parties while still dividing the value
requires Integrative negotiation approach. Aim of the
integrative bargaining is to protect the interests of
every negotiating party. It is also sometimes referred to
as win-win situation. Integrative bargaining seems
more relevant when the negotiating parties intend to
engage with each other in future. In the case given, DK
construction and SK management are client of each
other with good family relation. They both are special
client for each other. However there is breach of
agreement from DK construction dur to some
negligence over the colour of flooring tile. As they both
wish to continue their relation intact, so their must be
legitimate integrative negotiation practice to find out
win-win solution for both if them that will not cause
harm to anyone and if cause, there must be mutually

agreed cost.Integrative negotiation can also be termed
as live negotiation as it values emotional impact on
agreements also. We will apply the steps of integrative
bargaining on present case in order to reach a win-win
solution for both the parties.
There are four major steps which are needed to
perform while negotiating to generate high joint
outcome using Integrative bargaining.
I. Problem identification –In the case given, there
is a dispute between a contractor and his client
over the finish/colouring of newly installed tile
flooring. Here there is client displeasure over the
tile flooring and agreement of said work of the
installation.There is another problem that if DK
construction start again the whole process of floor
making it will cost them $77,000 along with loss of
time. As both DK construction and SK management
are in close family and business relationship, then
SK management have to find out best rout that
suits both of them.
II. Interests and needs- For DK construction there
is conflict of interest between his own interst and
interst of his close acquaintance. DK construction
wants to save his relationship with SK
management but also don’t want to et into
rebuilding of as it will cost them extra time and
monetary loss which can cause them delay in other
projects. For SK management also don’t want to
loose their client and family friend but also there is
a conflict between floor and friend as it will cause
them extra $77,000 for making that floor.
III. Alternative solutions-.Both the contractor and
his client are engaged in good business and family
relationship. Also they are client for each other.
However, Dk construction due to some negligence
breached the agreement by varying the color of
tile floorings. So while negotiating using integrative