5. Negotiation 13- The process of verbal and non-verbal exchanges between two or more parties with the goal of reaching a mutually satisfactory agreement
6. Bargaining 13- The process of arguing and haggling over prices and other details involved in transactions of goods and services, common in flea markets, bazaars, and fairs all over the world
10. Ex. 13-2: Differences in Negotiator Strategies and Tactics in Three Countries 13- Individual Tactics as a Percentage of Total Tactics Japanese N = 6 American N = 6 Brazilian N = 6 Promise Threat Recommendation Warning Reward Punishment Positive normative appeal Negative normative appeal Commitment Self-disclosure Question Command 7 4 7 2 1 1 1 3 15 34 20 8 8 4 4 1 2 3 1 1 13 36 20 6 3 2 5 1 2 3 0 1 8 39 22 14
11. Ex. 13-2 (contd.) 13- Occurrences in a 30-Minute Bargaining session Japanese N = 6 American N = 6 Brazilian N = 6 Number of times word “No” used Silent periods of 10 seconds or more Conversation overlaps (interruptions) Gazing (minutes per random 10 minute period) Touching 5.7 5.5 12.6 1.3 min. 0 9.0 3.5 10.3 3.3 min. 0 83.4 0 28.6 5.2 min. 4.7
12. Ex. 13-3: Comparison of Cultural Approaches to Negotiation 13- American Negotiator Indian Negotiator Arab Negotiator Accepts compromise when deadlock occurs Has firm initial and final stands Sets up principles but lets subordinates do detail work Has a maximum of options Respects other parties Is fully briefed Keeps position hidden as long as possible Relies on truth Trusts instincts Seeks compromises Is ready to alter position at any point Trusts opponent Respects other parties Learns from opponent Avoids use of secrets Protects “face” of other parties Avoids confrontation Uses a referent person to try to change others, e.g. “Do it for your father” Seeks creative alternatives to satisfy all parties Mediates through conferences Can keep secrets
13. Ex. 13-3 (contd.) 13- Swedish Negotiator Italian Negotiator Gets straight to the point of the discussion Avoids confrontation Time conscious Overly cautious Informal Flexible Reacts slowly to new propositions Quiet and thoughtful Dramatic Emotional Able to read context well Suspicious Intrigues Uses flattery Concerned about creating a good impression Indefinite
14. Ex. 13-4: Differences Between American and Chinese Culture and Approach to the Negotiation Process 13- Contrast of Basic Cultural Values American Task and information oriented Egalitarian Analytical Sequential, monochronic Seeks the complete truth Individualist Confrontative, argumentative Chinese Relationship oriented Hierarchical Holistic Circular, polychronic Seeks the harmonious way Collectivist Haggling, bargaining
15. Ex. 13-4 (contd.) 13- Approach to the Negotiation Process American Quick meetings Informal Make cold calls Full authority Direct Proposals first Aggressive Impatient A “good deal” Chinese Long courting process Formal Draw on intermediaries Limited authority Indirect Explanations first Questioning Patient A long-term relationship nontask sounding information exchange means of persuasion terms of agreement
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17. Conflict 13- Conflict can be understood as a state of disagreement or opposition between two parties, where if party accomplishes their objectives, the other party is unable to achieve its desired outcomes
18. Ex. 13-5: Nature of Conflict Between Members of Low and High Context Culture 13- Key Questions Low-Context Conflict High-Context Conflict Why Analytic, linear logic; instrumental oriented; dichotomy between conflict and conflict parties Synthetic, spiral logic; expressive oriented; integration of conflict and conflict parties When Individualistic oriented; low collective normative expectations; violations of individual expectations create conflict potentials Group oriented; high collective normative expectations; violations of collective expectations create conflict potentials What Revealment; direct, confrontational attitude; action and solution oriented Concealment; indirect, nonconfrontational attitude; “face” and relationship oriented How Explicit communication codes; line-logic style: rational-factual rhetoric; open, direct strategies Implicit communication codes; point-logic style: intuitive-effective rhetoric; ambiguous, indirect strategies
19. Decision-Making 13- The conscious process of moving toward objectives after considering various alternatives. It is concerned with making an appropriate choice among a multitude of possible scenarios.
20. Ex. 13-6: Steps in the Decision-Making Process 13- 1. DEFINE THE PROBLEM 2. ANALYZE THE PROBLEM 3. IDENTIFY DECISION CRITERIA AND THEIR IMPORTANCE 4. DEVELOP AND EVALUATE ALTERNATIVE SOLUTIONS 5. CHOOSE THE BEST SOLUTION 6. IMPLEMENT THE SOLUTION 7. EVALUATE THE OUTCOMES
21. Ex. 13-7: Deductive Versus Inductive Style of Decision-Making 13- DEDUCTIVE DECISION-MAKING INDUCTIVE DECISION-MAKING DECISION General facts and objective observations Specific information and details Specific information and details General facts and objective observations
