Integrative negotiation involves a negotiated agreement that aims to achieve the mutual benefit of both parties by formulating and solving the problems. The initial step into integrative negotiation is defining the problem in which both parties will mutually agree and a practical and comprehensive problem. The stated problem is reformulated into a goal and both parties in the negotiation work together to solve the mutual problem. The problem is segregated from personal biasness and is distinct from the proposed methods to solving the problem.
The interest and needs of both parties are surfaced to identify the differing expectations of parties to the negotiation. The interest is usually rooted in human nature and as such, it can be altered to suit the demanding situations. The interests are not singular and many needs may arise in the negotiation, necessitating the need to generate alternatives. Generating alternatives is a key step in filtering needs and ensuring flexibility in the negotiation process. In this step, the alternatives are generated through the redefinition of the problems formulated at the initial stage. The redefine problem will offer multiple options and the parties involved will generate the alternatives to the problem as much as they can.
The generated alternatives may not be possible to be applied in all and therefore, the parties in the negotiation need to select the best alternatives to solve the formulated problem. This involves mutual agreement on the criteria to be applied in filtering the available options while justifying the personal preferences to the negotiation.
Formulating and selecting alternatives is driven by intrapersonal and interpersonal factors. These factors, at times, are influenced by the environment and it includes trust between the parties. Effective communication plays an important role in ensuring the accuracy and timely exchange of information towards solving the mutual problem. It is important to understand the dynamics in the negotiation as it enhances success in mutual agreement.