Negotiation and Conflict Resolution Chapter 4 5-1 Comparative Management, Dr. Yang 2003

Comparative Management, Dr. Yang 2003 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 2003

Learning Objectives (cont.) Analyze the differences between intracultural 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 2003

Comparative Management, Dr. Yang 2003 Negotiation The process of bargaining between two or more parties to reach a solution that is mutually acceptable 5-4 Comparative Management, Dr. Yang 2003

The Negotiation Process Preparation Relationship-Building Information Exchange Persuasion Agreement 5-5 Comparative Management, Dr. Yang 2003

Comparative Management, Dr. Yang 2003 Situational Factors Geographical Location Room Arrangements Selection of Negotiators Time Limits 5-6 Comparative Management, Dr. Yang 2003

Comparative Management, Dr. Yang 2003 Verbal Tactics Initial Offer Other Verbal Negotiating Behaviors: Promises, Threats, Recommendations, Warnings, Rewards, Punishments, Normative Appeals, Commitments, Self-Disclosure, Questions, Commands 5-7 Comparative Management, Dr. Yang 2003

Comparative Management, Dr. Yang 2003 Nonverbal Tactics Silence Conversational Overlaps Facial Gazing Touching 5-8 Comparative Management, Dr. Yang 2003

Intracultural Vs. Cross-Cultural Negotiations 5-9 Comparative Management, Dr. Yang 2003

Conflict Characteristics of Low and High-Context Cultures Key Questions Low-Context Conflict High-Context Conflict Why When 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 5-10 Comparative Management, Dr. Yang 2003

Becoming a Better Cross-Cultural Negotiator Understand your negotiating partner Consider situational specifics Decide how to handle actual negotiation 5-11 Comparative Management, Dr. Yang 2003

Convergence or Divergence? Greater knowledge and understanding of culture If moderate adaptation proves effective Ingrained cultural patterns of behavior Perception that own culture negotiates effectively 5-12 Comparative Management, Dr. Yang 2003

Implications for Managers Cross-cultural negotiations important part of international manager’s job Improve negotiating outcomes by understanding dynamics of negotiation process and influence of culture Moderate adaptation may be most effective 5-13 Comparative Management, Dr. Yang 2003