Flashcards
Ch. 4 - Cross-Cutting Issues in Negotiation
Cards in this deck (31)
- 1KEY CULTURAL VARIABLES THAT INFLUENCE NEGOTIATIONS-Indirect/direct dealing cultures
-high/low context cultures
-relationship/task oriented cultures
-Holistic/contractually oriented cultures
(Seen on Ch 2) - 2BASIC APPROACHES TO NEGOTIATION1. positional bargaining
2. interest-based bargaining
3. relationship or
conciliatory negotiations. - 3Four factors influence how individuals or teams of negotiators approach negotiations and related strategies, tactics, and behaviors• Specific personality and personality traits of an individual negotiator or
members of a negotiation team
• The general context of negotiations and issues under discussion, such as
whether parties are involved in a transaction or resolving a dispute; are
engaged in diplomatic, commercial, or other kinds of talks; or are resolving
substantive, procedural, or relationship or psychological issues
• Structural factors, such as the broader political-economic position of the
negotiator or entities he or she represents and those of the counterpart,
the political or economic systems in which negotiations are occurring,
organizational structures, leadership, and decision-making structures and
procedures
• The culture or cultures of the people involved, including gender, age,
race/ethnic group, profession, education, rank or status, region, or
national origin - 41. Positional Negotiation or Bargainingoften called hard bargaining (Fisher
and Ury, 1981) or distributive bargaining (Walton and McKersie, 1991), gets
its name from both the procedure used to reach agreements and the kinds of
outcomes that commonly result - 5Used when...counterparts
believe that a division of goods, resources, or benefits will be required to reach a
settlement and that the end result will most likely be some form of compromise
between their two views on a desirable allocation (distribution). A positional
approach is common when the outcome of negotiations is seen by one or more
parties as having a potential winner or loser. - 6Positional bargaining is generally characterized byAn offer and counteroffer
or a position and counterposition dynamic, in which one party makes
an offer and the other party rejects the proposal and counters with another
offer, which the first party may reject. - 7Why Use Positional Bargaining• The stakes for winning are perceived to be high, and the negotiator cannot
afford to lose
• Resources (time, money, psychological benefits, or something else) are
perceived to be limited, and the only possible outcome will result in a
distribution of gains and losses.
• Both parties want exactly the same thing for the same purpose, and it
appears that a win for one side automatically means a loss for the other. - 8Variations of the Positional Bargaining Process1. Present
an initial position early in negotiations as a way to educate their counterpart
about their interests. The initial presentation is followed by discussion in which
more may be revealed about the interests of both parties, and the Japanese
negotiator responds with a new position grounded in the new information - 9Another variation...2. Positional bargainer
A presents an initial position and explains the interests that the proposal
satisfies. However, counterpart B, who is also a positional bargainer, rejects
the initial position outright (often without providing much of an explanation
as to why) and immediately proposes a counterposition that better satisfies his
interests. In response, bargainer A may ask counterpart B why his alternative
position is preferable to the first proposal. Bargainer A may also inquire about
the merits of her proposal and problems inherent in the initial offer. Finally,
A may ask explicitly about the interests satisfied by the counterposition from
B. - 102. Interest-Based NegotiationsRepresent alternative procedures for reaching agreements. In an interest-based process, negotiators focus first on identifying the concerns, needs, or interests of all parties, and only then do they individually or jointly develop integrative options to address them.
- 11Three types of interestsa) Substantive interests (tangible)
b) Procedural interests (preferences on doing things)
c)Relationship or psychological interests (how individuals are treated) - 12How is the interest-based agreement reached?the parties have engaged
either informally or formally in educating each other about their interests,
jointly searched for options that address them, and found a balance among
various interests that each party may value differently - 13Attitudes of Interest-Based Negotiators• Zero-sum negotiations, in which one party will win and the other will lose,
are not as common as most people believe. Rather, the goal for bargaining
is to strive for benefits to both or all parties.
• Resources being bargained over are not necessarily limited, and there may
be a way to maximize gains for all concerned parties
• Resources may be expanded through concerted action; each party has the
potential to gain more benefits from cooperation than from adversarial initiatives
• Any negotiation includes substantive, procedural, and psychological interests
and needs that may be met in a variety of ways to reach joint gains (NAFTA)
• Interests that have been expressed in numerical form (such as money,
time, number of units produced, number of actions, and so forth) may be
broken down into subtopics and associated interests that can be traded
or addressed in a number of ways.
• Parties may want different outcomes or benefits, value the items being discussed
differently, or want benefits at different times or in different forms,
providing the potential for trade-off - 14The Interest-Based Negotiation Process• Define the issue or problem (Identify)
• Educate each other about interests and needs
• Clarify interests and needs, and identify criteria for acceptable agreements
• Generate options
• Engage in bargaining and persuasion (Parties may persuade each other)
• Evaluate options (Compare options)
• Implement and monitor the agreement - 153. Relationship or Conciliatory NegotiationsIt seeks to address the type and quality of the desired relationship between or among the parties. Conciliatory negotiations
seek to improve the parties’ relationship as a means to address substantive
issues more effectively at a later time or as an end in itself - 16Strategies for Coordinating Approaches to Negotiation1. Coordination Among Positional Bargainers
2. Coordination Among Interest-Based Negotiators
3. Coordination Between Interest-Based and Positional Negotiators
4. Coordination Between Relational and Positional or Interest-Based Negotiation
Approaches - 17Strategies 1. Coordination Among Positional Bargainers-Continue advocating
-Try to switch to an interest-based approach
-Modify proposals or make a counterproposal that better meets the needs or demands of the other side
- Identify a compromise position or solution in which gains and losses are
shared
-Break off negotiations - 182. Coordination Among Interest-Based NegotiatorsThey may need to jointly define issues so that each party
understands the problem or dispute to be addressed and associated subissues.
In addition, they must clearly identify the interests (substantive, procedural,
and relationship or psychological) that must be addressed and coordinate
procedures for generating and evaluating options - 193. Coordination Between Interest-Based and Positional NegotiatorsDirect strategies require an explicit explanation and discussion of the
interest-based approach with the counterpart and reaching a mutual agreement to try it.
Indirect strategies include ignoring any proposed positions, keep talking, reframe issue. - 204. Coordination Between Relational and Positional or Interest-Based Negotiation Approaches-Accept that negotiations will probably take longer with these counterparts
-Take the initiative to demonstrate that you are a trustworthy and appropriate
counterpart by reciprocating hospitality, identifying commonalities,
affirming the relationship, and following through on promises or agreements,
no matter how small
-Spend more time doing informal sounding or making informal suggestions
about the process and timing for discussion of substantive discussion - 21FRAMING AND REFRAMING What do frames refer to?To the specific way that parties see or describe the situation in which they are involved.
A frame includes how you see the problem or situation and your perspective on it. - 22A negotiator’s frames lie behind....The presenting problem or purpose of negotiations.
- 23Coordinating Purposes and General Frames (Strategies)• Avoid explicit presentation of your general frame until your counterpart
presents his
• Advocate a purpose and underlying general frame and reject that of your
counterpart, thus forcing him to accept your purpose - 24Framing Issues or Problems for Negotiation What are the four ways to frame an issue?1. neutral topic statement
2. statement of a position
3. statement about a party’s interests
4. joint problem to be addressed - 251. Neutral topic statementNeutral statement can define an issue and set parameters for its discussion—what may and may not be discussed—for example: ‘‘We will discuss the issues of territory and
security.’’ - 262. Statement of a positionMany statements of
position include a proposed solution that then becomes an issue for discussion:
‘‘We demand return of our land.’’ And, ‘‘We refuse
to leave, as occupation ensures our security.’’ - 273. Statement about a party’s interestsA statement framed in terms of interests identifies an individual or group’s desires, wants, or concerns, but does not imply
a specific solution to meet them. ‘‘We must regain control over our sovereign territory
and want to be treated with respect.’’ And, ‘‘Any agreement must include
provisions that guarantee our security from attacks through the Sinai.’’ - 284. Joint problem to be addressedThis approach frames a
joint problem statement in which more than one party’s interests are identified
along with a common or joint goal. ‘‘How can we enable Egypt to regain control over its territory, while at the same time guaranteeing Israel’s security from attack?’’ - 29WHO ENGAGES IN NEGOTIATIONS, AND HOW?Another cross-cutting issue in global and intercultural negotiations concerns
the people who are involved and the roles they play - 30Team Organization, Composition, Size, and Symmetry-Team Organization and Decision Making
-Team Composition (involves cultural and strategic considerations)
-Gender, age, expertise, Symmetry Between the Position and Status of Negotiators, Size of Negotiation Teams - 31What does power+ and influence* mean?+ is the capacity to get what you want or get something done
*involves acts performed to change another’s views or actions to achieve desired ends
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- He thought he was ready for his first meeting with Mr. Moto, the representative for Shansu, the local company with which he was to make a deal.
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