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Negotiation across cultures - Coggle Diagram
Negotiation across cultures
Negotiation
--> The process of bargaining with one or more parties to arrive at a solution that is acceptable to all
Two types
of negotiation
Distributive
when two parties with opposing goals
compete over set value
(Win-lose situation)
Integrative
when two groups integrate interests, create
value, invest in the agreement
(win-win scenario)
Steps
of The Negotiation Process
Planning
Identify the objectives negotiators would like to attain and explore the possible options for reaching these objectives
Set limits on single-point objectives
Divide issues into short - and long-term considerations and decide how to handle each
Determine the sequence in which to discuss the various issues
Interpersonal
Relationship Building
Get to know the people on the other side
“Feeling out” period is characterized by the desire to identify those who are reasonable and those who are not
Exchanging Task Related Information
Each group sets forth its position on the critical issues
These positions often change later in the negotiations
Participants try to find out what the other party wants to attain and what it is willing to give up
Persuasion
Success of the persuasion step depends on
• How well the parties understand each other’s position
• The ability of each to identify areas of similarity and differences
• The ability to create new options
• The willingness to work toward a mutually acceptable solution
Agreement
• Grant concessions and hammer out a final agreement
• This phase may be carried out piecemeal, and concessions and agreements may be made on issues one at a time.
Cultural Effects
on Negotiation
Universalism vs. Particularism
Individualism vs. communitarianism
Neutral vs. Emotional
Diffuse vs. Specific
Achievement vs. Ascription
Time
Negotiation Tactics
Location
Time limits
Buyer-seller relations
Bargaining behaviors
– Use of extreme behaviors
– Promises, threats and other behaviors
– Nonverbal behaviors
Dealing with
Cultural Differences
Learn about the other culture
Be clear and precise in meanings
Get to know the other side carefully
Cross-cultural negotiation shouldn’t be rushed