1. Chapter 10 International Negotiation Managing Organizations in a Global Economy: An Intercultural Perspective First Edition John Saee Copyright  by South-Western, a division of Thomson Learning. All rights reserved.

2. Negotiation Defined FNegotiation is the process in which at least two partners with different needs and viewpoints need to reach an agreement on matters of mutual interest.

3. FA negotiation becomes cross-cultural when the parties involved belong to different cultures and therefore do not share the same ways of thinking, feeling, and behaving.

4. International Negotiation  All global negotiations are cross- cultural.  Global managers spend more than 50% of their time negotiating.

5. FNegotiation is not always the best approach to doing business. FManagers should negotiate when the value of the exchange and of the relationship is important.

6. Consider negotiating when: FYour power position is low relative to your counterparts. FThe trust level is high. FThe available time is sufficient to explore each party's multiple needs, resources, and options. FThere is commitment to ensure that the agreement is carried out.

7. FResearch has shown that each of the three areas on which the success of a negotiation is based - individual characteristics, situational contingencies, and strategic and tactical processes - vary considerably across cultures.

8. What are the qualities of a good negotiator? What role do individual qualities play?

9. The most important individual characteristics are: FGood listening skills. FAn orientation toward people. FA willingness to use team assistance. FHigh self-esteem. FHigh aspirations. FAn attractive personality, along with credibility and influence within the home organization.

10. Negotiation Contingencies: Characteristics of the Situation FSituational contingencies influence success just as individual characteristics do, but they are rarely as critical to success as the strategy and tactics used.

11. Negotiation Contingencies: Characteristics of the Situation FLocation FPhysical Arrangements FParticipants FTime Limits FStatus Differences

12. Negotiation Process FProcess is the single most important factor predicting the success or failure of a negotiation. FAn effective process includes managing the negotiation's overall strategy or approach, its stages, and the specific tactics used.

13. Negotiation Strategy FCulturally synergistic approach (Fisher & Ury): Separating the people from the problem. Focusing on interests, not on positions. Insisting on objective criteria (and never yielding to pressure). Inventing options for mutual gain.

14. FAs with other aspects of negotiating, process varies markedly across cultures. Negotiation Strategy

15. Stages of a Negotiation: Preparation and Planning FAnalyze the situation in terms of your and the counterparts' needs, goals, and underlying cultural values. FDetermine the limits to your authority, assess power positions and relationships.

16. Stages of a Negotiation: Preparation and Planning FEstablish overall and alternative concession strategies. FMake team assignments. FDetermine the best alternative to the negotiated solution.

17. FIdentify facts to be confirmed. F Set an agenda. Stages of a Negotiation: Preparation and Planning

18. What do skilled negotiators do? FExplore options. FEstablish common ground. FFocus on long-term issues. FSet range objectives for more bargaining flexibility. FUse issue planning.

19. Interpersonal Relationship Building FDuring relationship building, parties develop respect and trust for members of the other team. FIn every negotiation, there is the relationship (you and them) and the substance (what you and they want).

20. Many areas of the world have neither strong nor consistently dependable legal systems to enforce contracts. Enforcement mechanisms are personal.

21. Exchanging Task–Related Information FThe substance of a negotiation is interests. FNegotiators should therefore focus on presenting their situation and needs, and on understanding their counterparts' situation and needs.

22. In negotiating, cross–cultural miscommunication, misperception, misinterpretation, and misevaluation cause numerous problems.

23. Persuading FEmphasize creating mutually beneficial options. FRecognize each party's interests and needs and satisfy them and all parties win. FIdentify interests more highly valued by one party than the other and use those differences as a resource.

24. Making Concessions and Reaching Agreement FUse objective criteria in deciding how to make concessions and to reach agreement. FConcessions, large or small, can be made at any time during a negotiation. It appears that negotiators who make early concessions disadvantage themselves.

25. Negotiation Tactics  Negotiation includes both verbal and nonverbal tactics.  Both verbal and nonverbal behavior can cause problems cross-culturally.

26. Verbal Tactics FInitial offers, promises, threats, recommendations, warnings, rewards, punishments, normative appeals, commitments, self-disclosure, questions, and commands. FThe British Huthwaite study, documenting successful negotiators' behavior, analyzed the verbal behavior of skilled and average negotiators.

27. Nonverbal Tactics FNonverbal behavior includes tone of voice, facial expressions, body distance, dress, gestures, timing, silences, and symbols. FNonverbal behavior is complex and multifaceted--it sends multiple messages, many of which are responded to subconsciously.

28. FNegotiators frequently respond more emotionally and powerfully to the nonverbal than the verbal message. FSilence FConversational Overlaps FFacial Gazing FTouching Nonverbal Tactics

29. Summary F Negotiating styles vary across cultures. In preparing to negotiate globally, learn as much as possible about the other cultures and then approach the actual bargaining sessions with as wide a range of options and alternatives in behavior and substance as possible.

30. Summary F Effective negotiators have high expectations and make high initial offers (or requests), proceed by asking a lot of questions, and refrain from making many commitments until the final stage of the negotiation.

31. FThe most effective negotiators approach bargaining sessions searching for synergistic solutions - solutions in which both sides win. Summary