Negotiation and Conflict Resolution - Distributive Negotiation
Ashish Agarwal
Agile Coach, Scrum Master, Technology Evangelist, Blogger and Lifetime Learner
Distributive negotiation, often referred to as “win-lose” negotiation, focuses on dividing a fixed number of resources or value between two or more parties. It is common in situations where one party’s gain directly correlates with the other party’s loss, creating a competitive dynamic. The essence of distributive negotiation is to claim as much value as possible from the available pool, making it a zero-sum game. Understanding the principles, language, and tactics of distributive negotiation is key to mastering this approach.
In this article, we’ll explore:
What Is Distributive Negotiation?
Distributive negotiation is centered around the allocation of a fixed resource or pie. This could be anything from money, time, or assets to more abstract resources like control or authority. Unlike integrative negotiations, where parties collaborate to expand the value available, distributive negotiation is about maximizing your share of the pre-existing value.
Characteristics of Distributive Negotiation:
Example:
In a real estate transaction, a buyer and a seller negotiate over the price of a house. The more the buyer saves, the less the seller makes, and vice versa. This is a clear example of distributive negotiation as both parties are focused on dividing a set value.
The Language of Distributive Negotiation
The language used in distributive negotiation is crucial as it sets the tone and strategy for the negotiation process. Effective negotiators often use anchoring, framing, and assertive positioning to claim value. Here are some key terms and concepts:
ZOPA: Zone of Possible Agreement
The Zone of Possible Agreement (ZOPA) is one of the most critical concepts in distributive negotiation. It represents the range between the reservation prices of both parties, where a deal can potentially be struck.
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If there is an overlap between these two values, there exists a ZOPA where both parties can find an acceptable agreement.
Example:
In a salary negotiation, if the employer is willing to offer between $70,000 and $80,000, and the employee is willing to accept anything above $75,000, the ZOPA lies between $75,000 and $80,000. This zone is where both parties can negotiate to reach a satisfactory agreement.
No ZOPA:
In some cases, the buyer’s maximum and the seller’s minimum do not overlap, resulting in no ZOPA. In these situations, reaching an agreement is not possible without one party significantly shifting its position.
The Process of Distributive Negotiation
Distributive negotiation follows a structured process, with the primary focus on claiming value. Here’s a step-by-step breakdown:
Tactics for Distributive Negotiation
Distributive negotiation is often seen as a battlefield where every concession counts. To maximize value, seasoned negotiators rely on a range of tactics:
Conclusion
Distributive negotiation is about securing the largest possible share of a finite resource, requiring a competitive mindset and the use of strategic tactics. By understanding the language of distributive negotiation, identifying the ZOPA, and following a structured process, negotiators can position themselves for success. Employing effective tactics like anchoring, bracketing, and making incremental concessions can help maximize the value claimed.
While distributive negotiation often centers on short-term gains, its success lies in outmaneuvering the opposition and securing favorable terms. In today’s competitive world, mastering distributive negotiation is essential for anyone looking to excel in high-stakes negotiations.