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Negotiation across cultures - Coggle Diagram
Negotiation across cultures
Negotiation
Distributive
Win-lose situation
when two parties with opposing goals
compete over set value
Integrative
when two groups integrate interests, create
value, invest in the agreement
win-win scenario
The process of bargaining with one or more
parties to arrive at a solution that is acceptable to all
Comparison
Focus
Distributive: Positions ("I can't go beyond this point
on this issue.")
Integrative: Interests ("Can you explain why this issue is so important to you?")
Interests
Distributive: Opposed
Integrative: Congruent
Motivation
Distributive: Win-lose
Integrative: Win-win
Information sharing
Distributive: Low (Sharing information will only allow
other party to take advantage)
Integrative: High (Sharing information will allow each party to find ways to satisfy interests of each party)
Goal
Distributive: Get as much of the pie as possible
Integrative: Expand the pie so that both parties are satisfied
Duration of relationship
Distributive: Short term
Integrative: Long term
Distributive Bargaining
Operates under zero-sum condition.
Negotiates over who gets what share of fixed pie.
Integrative Bargaining
To achieve more integrative outcomes
Put more issues on the table
Compromise may be your worst enemy in negotiating a
win-win agreement
Bargain in teams will reach more integrative agreements
than bargain individually.
Operates under the assumption that there exists one or more settlements that can create a win-win solution
Steps of The Negotiation Process
Planning
Set limits on single-point objectives
Divide issues into short- and long-term
considerations and decide how to handle each
Identify the objectives negotiators would like
to attain and explore the possible options
for reaching these objectives
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
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
Each group sets forth its position on
the critical issues
Persuasion: Success of the persuasion step
depends on
The ability of each to identify areas of
similarity and differences
The ability to create new options
How well the parties understand each
other’s position
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
Neutral vs. Emotional
Diffuse vs. Specific
Individualism vs. communitarianism
Achievement vs. Ascription
Universalism vs. Particularism
Time
Dealing with Cultural Differences
Be clear and precise in meanings: Don’t assume they understand and don’t leave concerns unspoken.
Get to know the other side carefully: Is this the right fit? Best to find out if you can work together
before you have committed yourself
Learn about the other culture: A local expert
will start you on the right foot
Cross-cultural negotiation shouldn’t be rushed: Don’t let the other side force you into making unwise
agreements or include terms that you don’t understand
Do not identify the counterpart’s home culture too quickly.
Common cues may be unreliable
Beware of the Western bias toward “doing.” Ways of being feeling, thinking, and talking can
shape relationships more powerfully than doing
Counteract the tendency to formulate simple,
consistent, stable images
Do not assume that all aspects of the culture
are equally significant
Recognize that norms for interactions involving outsiders may differ from those for interactions between compatriots
Do not overestimate your familiarity
with your counterpart’s culture
Negotiation Tactics
Time limits
Buyer-seller relations
Location
Bargaining behaviors
Promises, threats and other behaviors
Nonverbal behaviors
Use of extreme behaviors