Chapter 16: NEGOTIATIONS – Flashcards

Although knowledge of the other party's culture may provide an initial clue about what to expect at the bargaining table, negotiators need to be open to adjusting their view very quickly as new information is gathered Keep in mind there is a wide variety of behavioral differences within cultures

We use the term interteam negotiation to describe situations between two or more negotiators, acting as representatives of the interests of two or more organized groups or teams, sharing interests and priorities with two or more representatives from other groups or teams who have their own interests and priorities.

1.Intergroup negotiations produce better outcomes than negotiations between individuals 2.At the same time, team on team negotiations are sometimes more competitive and better at claiming valuing dynamics 3.Accountability pressures are different for negotiators representing teams compared to individuals 4.When negotiating as a team, negotiators must also manage within team dynamics 5. The relationship and attitude among team members affects negotiation process and outcomes

What makes international negotiations different? -Two overall contexts have an influence on international negotiations: 1. the environmental context and 2. the immediate context. *ENVIRONMENTAL CONTEXT: includes environmental forces that neither negotiator controls that influence the negotiation -->Includes these factors that make international negotiations more challenging than domestic negotiations: 1) Political and Legal Pluralism 2) International Economics 3) Foreign Government and Bureaucracies 4) Instability 5) Ideology 6) Culture *THE IMMEDIATE CONTEXT: includes factors over which negotiators appear to have some control. -->Has five factors 1) Relative Bargaining Power 2) Levels of Conflict 3) Relationship between Negotiators 4) Desired Outcomes 5) Immediate Stakeholders

Pluralism - working with different legal and political systems... have legal counsel that's aware of the law

Economics - exchange rates and values fluctuate naturally and you have to decide in what currency to receive or pay

Government - difference in government regulations and interests

Instability - could include lack of resources, shortages of other goods and services, and political instability -->You should include clauses in contracts that allow for easy concalleation, arbitration or recouperation if something happens like this

Ideology - this is a fundamental level of how you think, what you value, and even your identity to a degree

Culture - interpreting fundamental processes of negotiation differently

External Stakeholders - people and organizations that have an interest or stake in the outcome of the negotiation -->Business associations, labor unions, embassies, industry associations, etc.

Relative Bargaining Power - presumption that parties who invest more equity have more power and influence process and outcomes more

Levels of Conflict - high conflict situations are based on issues of ethnicity, identity, or geography are more difficult to resolve because they are fundamental to us -->How you frame or conceptualize what the negotiation concerns can cause or calm conflict

Relationship between Negotiators - relationships developed before the actual negotiation will have an effect; and negotiations are part of the larger relationship between 2 parties

Desired Outcome - tangible and intangible factors play a large role in determining the outcomes of international negotiations -->Also depends if you objectives are short term or long term

Immediate Stakeholders - the negotiators themselves as well as the people they directly represent (managers, employers, board of directors, etc.) -->"cultural intelligence" can have a large impact on the process and outcome of international negotiations

Culture is a group - level phenomenon We will talk about 2 conceptualizations here: culture in context and culture as dialectic

Culture as Learned Behavior - common elements of culture like cultural beliefs, values, and behavioral expectations are learned and passed on to new members of the group This approach creates a catalogue of behaviors that foreign negotiators should expect when entering a host culture **Culture as Shared Values - understand common values and norms can guide **Individualism/Collectivism - extent to which a society is organized around individuals or the group -Collectivist - long term relationship based -Individualist - parties are interchangeable, substantive outcome is most important Power Distance - extent to which the less powerful members of organizations and institutions accept and expect that power is distributed inequality Career Success/Quality of Life - career success were characterized by the acquisition of money and things, and not caring for others, the quality of life or people. Cultures promoting quality of life characterized by concern for relationships and nurturing Uncertainty Avoidance - extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations -->High uncertainty avoidance cultures are less comfortable with ambiguous situations and seek stable rules -->Low uncertainty avoidance cultures are likely to adapt to quickly changing situations and will be less comfortable when rules are ambiguous

Dialectic - tension (struggle between too much and too little, a balancing act) Doesn't necessarily provide you with prescriptive of what to do/what to expect Focuses on richness of the cultures in which you will be operating in

-Weiss's culturally responsive strategies -Observes that negotiators may choose from among eight different culturally responsive strategies when negotiating with someone from a different culture -Split up between LOW FAMILIARITY, MODERATE FAMILIARITY, and HIGH FAMILIARITY

Low Familiarity with culture Employ Agents - hire an agent who is familiar with the party (having them conduct under supervision or providing advice) Mediator - interpreters can do this at times; they can encourage other to adapt Induce - persuade the other party to use your approach Admit your low familiarity politely and try to get them to help you

Moderate Familiarity Adapt - make conscious choices to make your approach more like the others; can helps relations Adjustment - mutual adjustment to find a common process or a third party process that works -->Negotiating the process of negotation (How would you like to proceed?)

High Familiarity Embrace - adopt the approach of the other, but you have to be completely bilingual or bicultural Improvise - specifically tailored to the negotiation situation, other negotiator, and circumstances; need to have high familiarity Symphony - create a new approach that may include aspects of either home culture or adopt practices from a third culture. -->Works best when the parties are familiar with each other and with both home cultures and have a common structure for the negotiations.