,Cross-Cultural Negotiation,Week 12,Contents,Negotiation - Definition - Variables Cross-cultural Negotiation - Definition - Process - Variables - Stages,Negotiation,Negotiation A process in which explicit proposals are put forward ostensibly for the purpose of reaching an agreement on an exchange or the realization of common interest where conflicting interests are present.,Negotiation,Negotiation The process of discussion between TWO or MORE parties aimed at reaching a MUTUALLY acceptable agreement. - Long term positive relationship - Win-Win situation - Too many differences involved,Negotiation- Variables,Basic conception of negotiation process Negotiator selection criteria Significance of type of issue Concern with protocol Complexity of communicative context Nature of persuasive arguments,Negotiation- Variables,Role of individuals aspirations Bases of trust Risk-taking propensity Value of time Decision-making system Form of satisfactory agreement,Negotiation Process,Concession (Reaching an agreement or disagreement),Persuasion (Skills & Strategies),Non-task sounding (Relationship Building),Preparation,Task-oriented Exchange Exchange of Tasks Related Information,The Negotiation Process,Negotiation Process,STAGE I- Preparation - Understand your own style - Determine to what extent, our style will influence others - Comparison profile a) value system b) attitudes c) behaviors,STAGE II- Building Relationships It is regarded more significant in most parts of the world than it is in America - American negotiators: Objective about the specific matter at hand; Do Not want to waste time in getting down to making progress - Most of others Take enough time to build TRUST/ RESPECT, which will be the basis of negotiation,Negotiation Process,STAGE II- Building Relationships It is recommended to use an intermediary- someone who already has the trust and respect of the foreign managers and who therefore act as relationship bridge” - e.g. Negotiation in Middle East,Negotiation Process,STAGE III- Exchanged Tasks Exchanging the task-related information and stating its position. It is commonly conducted by: - Presentation - Question-and- answer session - Discussion,Negotiation Process,American Negotiators Successful American negotiator acts as follows: - Knows when to compromise - Takes a firm stand at the beginning of the negotiation - Refuses to make concessions beforehand - Set up the general principles and delegates the detail work to associates - Operates in good faith - Respects the “opponents”,Negotiation Process,A Comparison- 3rd Stage,American Straightforward Objective Efficient Understandable,Chinese Asking questions Delve specifically & repeatedly Contain vague and ambiguous material,STAGE IV- Persuasion The HARD bargaining stage. - People try to persuade others to accept different opinions; to give up some of their own - Difficulties lie in: different uses and interpretations of verbal & nonverbal behavior,Negotiation Process,STAGE V- Reach the Agreement - Concession strategies e.g. Chinese/ Russia vs. Swedes - Start with Extreme Positions a) Involve timing of the disclosure information b) Involve the consideration of concessions,Negotiation Process,Difficulties for Negotiation,All the people will assume (take for granted) that others thoughts, perceptions, judgments, and reasons to make decision are in the same way. Art of War: Knowing others then understanding ourselves,Intercultural Negotiation,It involves discussions of common and conflicting interests between persons of different cultural backgrounds who work to reach an agreement of mutual benefit. Moran & Stripp (1991),Sources of Differences,Investors, Contractors Alliance Partners All citizens Special interest groups,HQ Employees Suppliers Home Government,Host Government Distributors Expatriates,4Cs for Negotiation,The Intercultural Negotiation takes place in the context of the 4 Cs: Common interests Conflicting interests Compromise Criteria,