Lecture 9 Flashcards
Defining Negotiation:
The art of influencing and communicating with members of culture other than your own.
A successful negotiator is the one who has the skills to
influence the other side to change his or her decision/position.
Elements of a Negotiation Process
Style and process
Arguments and counterarguments in conflicts
Making concessions
Response to opponent’s concession
Perceived relationship
Authority
Initial position
Deadline
Traditional American/W. European Negotiation Style
Win or Lose
Emotionally sensitive partner not highly valued.
Lack of individual negotiator’s commitment to bosses
Team input is good only after the boss‘s approval.
Results are more important than face saving in decision making.
Special interest groups influence in decision making is important in negotiation.
Verbal expression is an indictor of the negotiation process (yes means yes)
Written documents are legally binding.
Profit is the main objective of in the negotiation
Negotiator avoids personal involvement
Three Models of Negotiating in Multicultural Situation
Negotiation (win-win situation) Bargain (give and take) Take it or leave it (win-lose)
Adler’s view on how to effectively negotiate in multicultural situations (3 Steps)
Step one: problem definition (identify the problem)
Step two: synergistic (think that both should be heard and are seeking benefit)
Step three: win-win result is possible when the above two steps are followed
Negotiation Factors
Individual characteristics
Situation (cultural background)
Strategic and tactical process followed
Individual characteristics:
Reputation (proven) in Western cultures
Charisma in Latin America
Connection in Middle-East and in China (guanxi)
Party position in ex-Soviet Bloc Countries
Social Status in Feudal-Capitalist Countries
Guanxi
Jiaren (within the closest extended family members)
Shuren (could be among distance family members or from the same village or town.
Shengren (with non-family members)
Situation (cultural background)
Control expected in the Western countries
Subjugation or accepting uneven distribution of power in less developing and countries is expected.
Harmony (win-win situation practiced in Asian countries.
Negotiation in different cultures can be impacted by the balance of power. Knowing the power of the negotiators helps to determine how
the negotiation process is going to run.
There are at least three buyer-seller power relationship models:
The seller in Japan takes care of the buyer, thus the outcome of the negotiation is in favor of the buyer
In the US both (buyer and seller ) are equal
In less developing countries, the buyer takes care of the seller; hence the outcome of the negotiation is in favor of the seller, distributor or producer.
Physical arrangement: from competitive to facing the problem settings
COMPETITIVE EFFECT (Facing each other)
COOPERATIVE EFFECT(Round table setting)
FACING THE WALL (Facing the problem, not the people)
When to Negotiate? (Tactical Negotiation)
Time Factors
Authority Factors
Time Factors
Americans tend to look for an instant solution
Others need more time
More concessions are made when the deadline approaches (checking the deadline is an important strategy)
Wait until the last hours of a negotiator’s departure
Check the negotiators’ flight time
Authority Factors
Make sure that the person you are negotiating with has the authority to make decisions. This case is important, when dealing with traditional countries, South-East Asia, Latin America, African and Middle-East countries.
The more the number of participants, the better the
understanding (team responsibility)
Democratic systems encourage more
participation, especially in the beginning of the concession building process
In traditional and totalitarian systems few participation is practiced due to
anticipated corrupt practices related to bribery, connections and nepotism .
Synergistic Approach to Negotiation
Separating the people from the problem.
Focusing on the central issue, not on the position of the negotiators.
Emphasis on the objectives by inventing options for mutual agreement.
The Traits of a Good Negotiator
A skilled negotiator uses:
time properly
uses wider range of options
spends more on common grounds than on differences
sets negotiation ranges
e.g. On setting price of x product: instead of $100 per unit may prefer to set price with flexibility in the range of $98-105
Prefers non-linear solutions to linear approach
can take any issue independently without being bias.
Tips For Effective Negotiation
Read the mind of the negotiator during the negotiation process:
Verbal communication tone provides enough signals on the intent of the negotiators.
Facial expression
Tone of the voice
Tips For Effective Negotiation(cont.)
b) Start with a high expectation/profile
Demonstrate high expectation
Start from a high offer/request
Pose many questions
Refrain from many commitments
Tips For Effective Negotiation(cont)
c) Develop the skill of interpreting verbal expressions:
Promise, reward, commitment, recommendation
Threat, warning, question, punishment, Normative appeal, self-disclosure
Tips For Effective Negotiation
d)Learn the non-verbal tricks:
Silence in the Asian culture indicates that the negotiator is thinking about it (the offer)
Conversation overlaps (a tradition not a disrespect to the listener). More practiced in southern European countries, Middle-East and Northern African countries.
Facial gazing
Eye contact is trust (northern American interpretation)
Not appreciated in traditional cultures
