Negotiation and Conflict Resolution Chapter 4 5-1 Comparative Management, Dr. Yang

Comparative Management, Dr. Yang Learning Objectives Define negotiation and understand the basic negotiation process Explain how culture influences the negotiation process Consider the impact of situational factors and negotiating tactics on negotiation outcomes 5-2 Comparative Management, Dr. Yang

Learning Objectives (cont.) Analyze the differences between intra-cultural and cross-cultural negotiations Discuss the role of culture in the conflict resolution process Appreciate how approaches to conflict influence negotiation Identify ways to become a better cross-cultural negotiator 5-3 Comparative Management, Dr. Yang

Comparative Management, Dr. Yang Negotiation The process of bargaining between two or more parties to reach a solution that is mutually acceptable 5-4 Comparative Management, Dr. Yang

The Negotiation Process Preparation Relationship-Building Information Exchange Persuasion Agreement 5-5 Comparative Management, Dr. Yang

How Culture Influence the Negotiation Process? Degree of Consensus Bargaining ranges Concept of winning Perception of negotiation process Comparative Management, Dr. Yang

Comparative Management, Dr. Yang Situational Factors Geographical Location Room Arrangements Selection of Negotiators Time Limits 5-6 Comparative Management, Dr. Yang

Comparative Management, Dr. Yang Verbal Tactics Initial Offer Verbal Negotiating Behaviors: Promises Threats Recommendations Warnings Rewards Punishments Normative appeals Commitments Self-disclosure Questions Commands 5-7 Comparative Management, Dr. Yang

Comparative Management, Dr. Yang Cross-Cultural Negotiation at the Climate Change Conference of Industrial Countries, Kyoto, 1997 U.S. delegation called the White House to report the impasse U.S. Vice President Al Gore called Japan’s Prime Minister Ryutaro Hashimoto at 2 a.m. Al Gore’s cross-cultural communication worked! Issues of concern: Global warming Goal: To reduce emission by assigned percentage points by 2012: Japan – To cut 6% below the 1996 level U.S. - 7% EU - 8% Japan’s limit: 5% Comparative Management, Dr. Yang

Comparative Management, Dr. Yang Nonverbal Tactics Silence Conversational Overlaps Facial Gazing Touching 5-8 Comparative Management, Dr. Yang

Conflict Characteristics of Low- and High-Context Cultures Key Questions Low-Context Conflict High-Context Conflict Analytic, linear logic; instrumental oriented; dichotomy between conflict and conflict parties Individualistic oriented; low collective normative expectations; violations of individual expectations create conflict potentials Synthetic, spiral logic; expressive oriented; integration of conflict and conflict parties Group oriented; high collective normative expectations; violations of collective expectations create conflict potentials Why: e.g., Why do we need a contract or need to reach an agreement? When: e.g., When do conflicts occur? 5-10 Comparative Management, Dr. Yang

Comparative Management, Dr. Yang Conflict Characteristics of Low and High-Context Cultures Key Questions Low-Context Conflict High-Context Conflict Revealment; direct, confrontational attitude; action and solution oriented Explicit communication codes; line-logic style; rational-factual rhetoric; open, direct strategies Concealment; indirect, non-confrontational attitude; “face” and relationship oriented Implicit communication codes, point-logic style: intuitive-affective rhetoric; ambiguous, indirect strategies What: e.g., What to say or not to say? How: e.g., How to express yourself or make a proposal? 5-10 Comparative Management, Dr. Yang

Becoming a Better Cross-Cultural Negotiator Understand your negotiating partner Consider situational specifics Decide how to handle actual negotiations 5-11 Comparative Management, Dr. Yang

Convergence or Divergence? Greater knowledge and understanding of culture If moderate adaptation proves effective Ingrained cultural patterns of behavior Perception that own culture helps to negotiate effectively 5-12 Comparative Management, Dr. Yang

Implications for Managers Cross-cultural negotiations constitute an important part of international manager’s job Understanding dynamics of negotiation process and the influence of culture can help improve negotiating outcomes Moderate adaptation may be most effective 5-13 Comparative Management, Dr. Yang