Negotiation 4
1. Laura is a real estate broker who is helping Cliff sell his house. Based on our in-class discussion, Laura can best be described as which of the following?
Agent.
2. Dialogue changing from a one-on-one to a small group discussion is an example of which of the following differences between two-party and multiparty negotiations?
Social complexity.
3. The formal negotiation stage of multiparty negotiations
is when the chair is appointed.
4. An effective group in a multiparty negotiation does all but which of the following?
Focus on positions, not interests.
5. Based on our discussion of procedural complexity in multiparty negotiations, we know that parties who approach issues one at a time:
Achieve lower quality agreements.
B. Exchange less information.
C. Have less insight into the preferences and priorities of the other parties at the table.
D. All of the Above.
B. Exchange less information.
C. Have less insight into the preferences and priorities of the other parties at the table.
D. All of the Above.
6. When negotiating with a party from another country that utilizes a different currency the issue of “In which currency will the agreement be made? ” is sure to arise. This example represents which of the following factors that makes international negotiations more challenging than domestic negotiations?
International economics.
7. Hofstede’s Model of Cultural Dimensions includes which of the following?
Individualism/collectivism.
B. Power distance.
C. Uncertainty Avoidance.
D. Career success/quality of life.
E. All of the Above.
B. Power distance.
C. Uncertainty Avoidance.
D. Career success/quality of life.
E. All of the Above.
8. A negotiator who has a high level of familiarity with the other party’s culture should do which of the following?
Effect symphony.
9. In many cultures failing to use proper titles (e.g. Dr., Lord, etc.) is considered insulting. This example represents which of the following managerial perspectives on culture and negotiation?
Protocol.
10. Immediate context factors in international negotiations include all but which of the following?
Political and legal pluralism.
11. The primary goal of most negotiations is achieving ________ ________ ________. Strong negotiators remember this and are willing to walk away when no agreement is better than a poor agreement or when the process is so offensive the deal isn’t worth the work.
a valued outcome.
12. Determining whether a situation is distributive or integrative is an important aspect of which of the following best practices for negotiations?
Be prepared.
B. Be willing to walk away.
C. Remember the intangibles.
D. Savor and protect your reputation.
E. None of the Above.****
B. Be willing to walk away.
C. Remember the intangibles.
D. Savor and protect your reputation.
E. None of the Above.****
13. Keeping a personal diary on your strengths and weaknesses and developing a plan to work on those weaknesses is an important aspect of which of the following best practices for negotiations?
Continue to learn from your experience.
14. The best practice that should be at the top of every negotiator’s list is which of the following?
Be prepared.
15. Which of the following is not identified as a best practice for negotiations?
Remember the tangibles.
A. Difference between two-party negotiations and multiparty
a. Multiparty negotiations have more negotiators at the table.
b. Informational and computational complexity
c. With multiparty negotiations there are more issues, more perspectives on issues and more total information are introduced.
b. Informational and computational complexity
c. With multiparty negotiations there are more issues, more perspectives on issues and more total information are introduced.
Procedural complexity
a. More complex than two-party negotiations in that the process they have to follow is more complicated.
Strategic complexity
a. In a group negotiation, complexity increases significantly. The negotiator must consider the strategies of all the other parties at the table and decide whether to deal with each of them separately or as a group.
Informational Complexity
More Issues, more perspectives on issues, and more total information
a. The Delphi technique
a moderator structures an initial questionnaire and sends it out to all parties, asking for input.
b. Brainstorming
parties are instructed to define a problem and then to generate as many solutions as possible without criticizing any of them.
c. Nominal group technique
typically follows brainstorming.
Three Stages of Multiparty Negotiations
A. The prenegotiation stage. This state is characterized by a lot of informal contact among the parties.
B. The formal negotiation stage – managing the group process and outcome.
C. The agreement phase- parties select among the alternatives on the table
B. The formal negotiation stage – managing the group process and outcome.
C. The agreement phase- parties select among the alternatives on the table
A. Environmental Context
forces that influence the negotiation but which neither negotiator controls
Immediate context
forces that influence the negotiation but which negotiators do appear to have some control
Immediate context
forces that influence the negotiation but which negotiators do appear to have some control
Immediate context
forces that influence the negotiation but which negotiators do appear to have some control
Forces that influence the negotiation but which
neither negotiator controls:
neither negotiator controls:
Political and legal pluralism
International economics
Foreign governments and bureaucracies
Instability
Ideology
Culture
External stakeholders
International economics
Foreign governments and bureaucracies
Instability
Ideology
Culture
External stakeholders
Forces that influence the negotiation but which
negotiators do appear to have some control:
negotiators do appear to have some control:
Relative bargaining power
Levels of conflict
Relationship between negotiators
Desired outcomes
Immediate stakeholders
Levels of conflict
Relationship between negotiators
Desired outcomes
Immediate stakeholders
Conceptualizing Culture and Negotiation
Culture as learned behavior
involves documenting the systematic negotiation behavior of people in different cultures
Culture as dialectic
all cultures contain tensions that are called dialectics
Culture in context
no human behavior is determined by a single cause
Culture as shared values
Hofstede’s Model of Cultural Dimensions
involves documenting the systematic negotiation behavior of people in different cultures
Culture as dialectic
all cultures contain tensions that are called dialectics
Culture in context
no human behavior is determined by a single cause
Culture as shared values
Hofstede’s Model of Cultural Dimensions
Hofstede’s Model of Cultural Dimensions
Individualism/collectivism
Power distance
the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally
Career success/quality of life
extent to which they cultures hold values that promote career success or quality of life
Uncertainty avoidance
extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
Power distance
the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally
Career success/quality of life
extent to which they cultures hold values that promote career success or quality of life
Uncertainty avoidance
extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
Managerial Perspectives
A. Definition of negotiation
B. Negotiation opportunity
C. Selection of negotiators
D. Protocol
E. Communication
F. Time Sensitivity
G. Risk propensity
H. Groups versus individuals
I. Nature of agreements
J. Emotionalism
B. Negotiation opportunity
C. Selection of negotiators
D. Protocol
E. Communication
F. Time Sensitivity
G. Risk propensity
H. Groups versus individuals
I. Nature of agreements
J. Emotionalism
Culturally Responsive Negotiation Strategies
when choosing a strategy, negotiators should:
be aware of their own and the other party’s culture in general
understand the specific factors in the current relationship
predict or try to influence the other party’s approach
be aware of their own and the other party’s culture in general
understand the specific factors in the current relationship
predict or try to influence the other party’s approach
Culturally Responsive- Low Familiarity
Employ agents or advisors (unilateral strategy)
Bring in a mediator (joint strategy)
Induce the other party to use your approach (joint strategy)
Bring in a mediator (joint strategy)
Induce the other party to use your approach (joint strategy)
Culturally Responsive- Moderate Familiarity
Adapt to the other party’s approach (unilateral strategy)
Coordinate adjustment (joint strategy)
Coordinate adjustment (joint strategy)
Culturally Responsive- High Familiarity
Embrace the other negotiator’s approach (unilateral strategy)
Improvise an approach (joint strategy)
Effect symphony (joint strategy)
Improvise an approach (joint strategy)
Effect symphony (joint strategy)
10 Best Practices for Negotiation
Be prepared.
Diagnose the fundamental structure of the negotiation.
Work the BATNA.
Be willing to walk away.
Master paradoxes.
Remember the intangibles.
Actively manage coalitions.
Savor and protect your reputation.
Remember that rationality and fairness are relative.
Continue to learn from the experience.
Diagnose the fundamental structure of the negotiation.
Work the BATNA.
Be willing to walk away.
Master paradoxes.
Remember the intangibles.
Actively manage coalitions.
Savor and protect your reputation.
Remember that rationality and fairness are relative.
Continue to learn from the experience.
Be prepared.
identify and articulate your goals
determine strategy through the dual concerns model
determine strategy through the dual concerns model
Diagnose the fundamental structure of the negotiation
make conscious remember that avoidance may be an appropriate strategy
decisions about the nature of the negotiation
decisions about the nature of the negotiation
Identify and work the BATNA.
recognize your BATNA is relative to a possible agreement and work to improve the BATNA so as to improve the deal
Be willing to walk away.
strong negotiators are willing to walk away when no agreement is better than a poor agreement
Master the key paradoxes of negotiation.
claiming value versus creating value
sticking by your principles versus being resilient to the flow
sticking with the strategy versus opportunistic pursuit of new options
sticking by your principles versus being resilient to the flow
sticking with the strategy versus opportunistic pursuit of new options
Remember the intangibles.
the underlying psychological motivations such as winning, losing, or saving face
ask questions and “See what is not there”
take an observer or listener with you to the negotiation
ask questions and “See what is not there”
take an observer or listener with you to the negotiation
Actively manage coalitions.
negotiators should recognize three types of coalitions and their potential effects
Savor and protect your reputation.
start your negotiation with a positive reputation
shape your reputation by acting in a fair and consistent manner
shape your reputation by acting in a fair and consistent manner
Remember that rationality and fairness are relative.
question your perceptions of fairness and ground them in clear principles
find external benchmarks of outcomes
find external benchmarks of outcomes
Continue to learn from your experience.
practice the art and science of negotiation
analyze each negotiation
analyze each negotiation
The Agreement Stage
Select the best solution
Develop an action plan
Implement the action plan
Evaluate outcomes and the process
Group chair or facilitator steps in moving toward a
successful completion:
move the group toward selecting one or more of the options
shape and draft the tentative agreement
discuss whatever implementation and follow-up needs to occur
thank the group for their participation, hard work and efforts
organize and facilitate the postmortem
Develop an action plan
Implement the action plan
Evaluate outcomes and the process
Group chair or facilitator steps in moving toward a
successful completion:
move the group toward selecting one or more of the options
shape and draft the tentative agreement
discuss whatever implementation and follow-up needs to occur
thank the group for their participation, hard work and efforts
organize and facilitate the postmortem
The Prenegotiation Stage
Establish participants
Form coalitions
Define group member roles
Understand the costs and consequences of no agreement
Learn the issues and construct an agenda
Form coalitions
Define group member roles
Understand the costs and consequences of no agreement
Learn the issues and construct an agenda
The Formal Negotiation Stage
Appoint an appropriate chair
Use and restructure the agenda
Ensure diversity of information and perspectives
Ensure consideration of all available information
Brainstorming
Nominal group technique
Manage conflict effectively
Review and manage the decision rules
Use and restructure the agenda
Ensure diversity of information and perspectives
Ensure consideration of all available information
Brainstorming
Nominal group technique
Manage conflict effectively
Review and manage the decision rules
Strive for a first agreement
Manage problem team members