Negotiating Globally Chapter 7

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Negotiating GloballyChapter 7

• Negotiating Successfully
• The Negotiation Process
• Negotiation Tactics

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Negotiation

• Process in which at least one individual or party
  tries to persuade another individual or party to
  change his/her ideas or behavior
• Parties have different needs and viewpoints
  trying to reach agreement on matters of mutual
  interest
• Cross-cultural negotiation

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Negotiating Successfully

• Qualities of a good negotiator
• Contingencies
• Location
• Physical arrangements
• Participants
• Time limits
• Status differences

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Cultural Differences in Key Negotiating Processes

• Negotiation goal signing contract or forming
  the relationship
• Personal style formal or informal
• Communication stylesdirect or indirect
• Sensitivity to timelow or high
• Forms of agreementspecific or general
• Team organizationa team or one leader

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Steps in the International Negotiation Process
STEP 1 PREPARATION
STEP 2 BUILDING THE
RELATIONSHIP
STEP 3 EXCHANGING
INFORMATION/FIRST OFFER
STEP 4 PERSUASION
STEP 5 CONCESSIONS
STEP 6 AGREEMENT
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Step 1 Preparation

• Is the negotiation possible?
• Know the other side
• Send the proper team
• Agenda
• Prepare for a long negotiation
• Environment

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Step 2 Building the Relationship

• No focus on business
• Partners get to know each other
• Social and interpersonal matters
• Duration and importance vary by culture

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Step 3 Exchanging Information and the First Offer

• Task-related information is exchanged
• First offer

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Step 4 Persuasion

• Heart of the negotiation process
• Attempting to get other side to agree to a
  position
• Numerous tactics can be used

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Verbal Negotiation Tactics

• Initial Offers
• Promise
• Threat
• Warning
• Reward
• Punishment
• Normative appeal
• Recommendation

• Commitment
• Self disclosure
• Question
• Command
• No
• Silence
• Interrupting
• Facial Gazing
• Touching

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Frequencies of Verbal Negotiation Behaviors
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Dirty Tricks in International Negotiations

• Dirty tricks are negotiation tactics that
  pressure opponents to accept unfair or
  undesirable agreements or concessions

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Ploys/Dirty Tricks - Possible Responses

• Deliberate deception - point out what is
  happening
• Stalling - do not reveal when you plan to leave
• Escalating authority - clarify decision making
  authority

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• Good guy, bad buy routine - do not make any
  concessions
• You are wealthy and we are poor - ignore the ploy
  
• Old friends - keep a psychological distance

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Steps 5 and 6 Concessions and Agreement

• Concession making requires that each side relax
  some of its demands
• Final agreement The signed contract, agreeable
  to all sides

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Styles of Concession

• Sequential approach
• - consider each issue as a separate point
• - Each side reciprocates concessions
• Holistic approach
• - more common in Asia
• - Concession making begins after all issues are
  discussed

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Basic Negotiation Strategies

• Competitive
• The negotiation as a win-lose game
• Problem solving/Collaborative
• Search for possible win-win situations

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Whose Style to Use?
High
Own Approach
Improvise an Approach
Counterparts Familiarity With Negotiators
Culture
Adapt to Counterparts Approach
Embrace Counterparts Approach
Employ Agent or Advisor
High
Negotiators Familiarity with Counterparts
Culture
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Conclusions

• Successful negotiators
• Understand the negotiation steps
• Build cross-cultural communication skills
• Understand nonverbal communication