Lecture 9

Question 1

Defining Negotiation:

Answer 1

The art of influencing and communicating with members of culture other than your own.

Question 2

A successful negotiator is the one who has the skills to

Answer 2

influence the other side to change his or her decision/position.

Question 3

Elements of a Negotiation Process

Answer 3

Style and process

Arguments and counterarguments in conflicts

Making concessions

Response to opponent’s concession

Perceived relationship

Authority

Initial position

Deadline

Question 4

Traditional American/W. European Negotiation Style

Answer 4

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

Question 5

Three Models of Negotiating in Multicultural Situation

Answer 5

Negotiation (win-win situation)

Bargain (give and take) 

Take it or leave it (win-lose)

Question 6

Adler’s view on how to effectively negotiate in multicultural situations (3 Steps)

Answer 6

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

Question 7

Negotiation Factors

Answer 7

Individual characteristics

Situation (cultural background)

Strategic and tactical process followed

Question 8

Individual characteristics:

Answer 8

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

Question 9

Guanxi

Answer 9

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)

Question 10

Situation (cultural background)

Answer 10

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.

Question 11

Negotiation in different cultures can be impacted by the balance of power. Knowing the power of the negotiators helps to determine how

Answer 11

the negotiation process is going to run.

Question 12

There are at least three buyer-seller power relationship models:

Answer 12

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.

Question 13

Physical arrangement: from competitive to facing the problem settings

Answer 13

COMPETITIVE EFFECT (Facing each other)

COOPERATIVE EFFECT(Round table setting)

FACING THE WALL (Facing the problem, not the people)

Question 14

When to Negotiate? (Tactical Negotiation)

Answer 14

Time Factors

Authority Factors

Question 15

Time Factors

Answer 15

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

Question 16

Authority Factors

Answer 16

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.

Question 17

The more the number of participants, the better the

Answer 17

understanding (team responsibility)

Question 18

Democratic systems encourage more

Answer 18

participation, especially in the beginning of the concession building process

Question 19

In traditional and totalitarian systems few participation is practiced due to

Answer 19

anticipated corrupt practices related to bribery, connections and nepotism .

Question 20

Synergistic Approach to Negotiation

Answer 20

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.

Question 21

The Traits of a Good Negotiator

A skilled negotiator uses:

Answer 21

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.

Question 22

Tips For Effective Negotiation

Read the mind of the negotiator during the negotiation process:

Answer 22

Verbal communication tone provides enough signals on the intent of the negotiators.

Facial expression

Tone of the voice

Question 23

Tips For Effective Negotiation(cont.)

b) Start with a high expectation/profile

Answer 23

Demonstrate high expectation

Start from a high offer/request

Pose many questions

Refrain from many commitments

Question 24

Tips For Effective Negotiation(cont)

c) Develop the skill of interpreting verbal expressions:

Answer 24

Promise, reward, commitment, recommendation

Threat, warning, question, punishment, Normative appeal, self-disclosure

Question 25

Tips For Effective Negotiation

d)Learn the non-verbal tricks:

Answer 25

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