FUNDAMENTAL NEGOTIATION DISPUTE RESOLUTION (3 approach) (1) Interest based sometimes parties dont care abt other parties interest so they dont use this approach (2) Right based Rights are not cle. Identifying your BATNA 1.List all alternatives to the current negotiation – what could you do if negotiations fall through? 2.Evaluate the value of each alternative – how much is each alternative worth to me? 3. Select the alternative that would provide the highest value to you (this is your best alternative to a negotiated agreement). 4. After determining your BATNA, calculate the lowestvalued deal that you’re willing to accept (bottom line)
FUNDAMENTAL NEGOTIATION DISPUTE RESOLUTION (3 approach) (1) Interest based sometimes parties don't care abt other parties interest so they dont use this approach (2) Right based Rights are not clear and sometime contradictory - Use 3rd party adjudication - Public court - Private arbitrations (3) Power based - Power-based negotiation (exchange of threats) Power contests (parties take actions to determine who will prevai) INTERRELATIONSHIP AMONG INTEREST, RIGHTS, POWER ❗ Power = The reason why some parties have to bring the case to court or 3rd party just to make the other party negotiate ❗ Best negotiating - Understand what u want Understand what other wants Never give up INTERNATIONAL AND INTERCULTURAL NEGOTIATIONS ❓ Why negotiating in business - To obtain a better price - Get the best deal - Maximize the return - Establish a long-term business rela - Mitigate a risk - etc The foreign companies have to adapt themselves to the cultural characteristics of the host country, when: - Negotiating with local authorities - Negotiating with local managers - Negotiating with local employees - Negotiating with local customers Foreign companies, represented by their foreign managers, have to be aware of the different values and norms of managers, consumers, authorities and employees in the host country Important to master skills for conducting international (intercultural) negotiations 💡 Indian shaking head (lắc đầu) quick/slow -> agree/disagree 💡 In Silicon Valley, employees have to attend workshop abt how to work with Indian 💡 Walmart failed in Japan bcoz they didn’t take Japanese culture and consuming behaviors into consideration Course structure I Introduction II Stages of negotiations III Conflict resolution IV Cultural patterns CHAPTER INTRODUCTION CULTURE ~ the cumulative result of exp, beliefs, values, knowledge, social org,… acquired or created by groups of ppl over the course of generations (UNESCO) socially contructed through individual and group effort and interactions - - Culture provides models and norms for: acceptable day-to-day communication social interaction achievement of desired goals Culture: National cultures Cultural groups: men and women for example Subcultures: Organizational culture Religious beliefs Ideological persuation Professions Professional training Types of education Familiy culture: ~ combination of the cultures of their adult members and/or their extended families ~ culture as an iceberg ❗ Culture: - Not right or wrong -> relative - Not abt individual behavior -> abt groups; collective phenomenon - Not inherited -> derives from the social environment The iceberg concept of culture 9/10th of culture is below the surface - Surface Culture: most easily seen (emotional level – low) - Shallow Culture: unspoken rules (emotional level – high) - Deep Culture: unconscious rules (emotional level – intense) - Culture clusters: ppl with fairly common attitudinal and behavioral patterns - Outliers ❗ Perception gap (khoảng cách nhận thức): we shouldn’t expect other ppl behave like we > it’s normal they behave like that ❗ don’t make assumption -> just ask NEGOTIATION ~ joint decision-making process in which parties, with initially opposing positions and conflicting interests, arrive at a mutually beneficial and satisfactory agreement Ex: ~ rela-establishing and building process ~ a goal and outcome oriented process ~ a communication proces ~ a joint education process ~ a problem-solving and option-generation or proposal process ~ interest based negotiation ~ influence and persuation and exchange process ~ action-oriented process that requires implementation All those aspects may vary from ppl to ppl, culture to culture INTERCULTURAL NEGOTIATIONS ~ a process initiated by individuals, groups or orgs from different culture that enable them to - Jointly define the form of their rela - Clarify individually and together the goals and outcomes to be achieved - Communicate abt issues of individual or common concerns - Educate each other abt shared and different issues, interest, needs - Develop options that adress their interests, needs, issues, problems or conflicts - Influence and persuade each other - Reach mutually acceptable decisions and agreements - Implement agreements reached Things to take into consideration - Culture can make a difference - Ppl are difference - Become familiar with other cultures - No culture is superior to other stages of development, for a negotiator (1) Acceptance - Setting aside denial of differences - Limiting or suspending judgements abt merit, value, or appropriateness of different cultures - Accepting that differences exist - It’s alright for ppl to think and act in diverse ways (2) Adaptation - Become more skilled at seeing shared realities through different lenses - Making adjustments to our understanding of an action, phenomenon,… different from our own (3) Integration - Significant acceptance and understanding of cultural differences in thought and behavior - Comfort interacting within a cultural environment that is different from one’s own - Adapting culturally to another culture - Responiding appropriately depending on the ppl, setting, issues or tasks THE WHEEL OF CULTURE ~ an analytical tool that can be used as a guide for identifying and understanding cultural factors that influence individual and group interactions during negotiations ~ Provide a conceptual framework and guidelines for negotiators: - To analyze possible cultural factors - Indentify cultural norms of their counterparts - Develop appropriate and acceptable responses - Implement them to achieve coordination Ex: 💡 Japan - The isolation of the country in the past influenced the development of a more homogeneous, closed and collectivist culture, and suspicion of foreigners - Negotiations: based on collaboration, mutual reciprocity 💡 Egypt - Dependence on the Nile River -> ppl developed a strong, centralized and hierarchial authority, to manage natural resources - Today, fewer negotiations and more command decisions in the govt area The outer rim (1) Natural environment - Your counterpart is from: Large/small country? Desert/fertile country? Tropical/temperate/frigid climate country? Island country? All these affect the belief, attitudes, behaviors, social org (2) History - The exp and events that took place over time influence ppl, their worldview, attitudes, behavior - Conflicts, collaborations, positive exp, negaative exp, shared history 💡 Iconic events: - The Holocaust - The Six-Day War (humiliating defeat for Palestinians and Arab nations, a victory for Israel) - The defeat of Japan at the end of WW2 (3) Social structures ~ external factors, institutional arrangements, ideas and concepts which are often beyond the direct influence or control Ex: - Structures of institutions and internal rela - Social norms (laws, religious belief) - Economic system, legel system, political system,… The inner rim (1) Needs and interests ~ elements that idv and groups require, expect or desire ~ needs: critical for human survival, identity needs ~ interests: a party’s preferred way of getting needs met ❗ When preparing a negotiation, it’s very important: - To develop a preliminary theory abt the needs and interests of the other party - To be very clear abt your own needs and interests 💡 types of interests (1) Psychological/relational interests - How individuals or groups are treated, in the negotiation process and outside of it - How participants feel or want to feel abt themselves and their counterparts - How relationships are valued and shaped through negotiations - Desire for trust, respect (2) Substantive interests - Tangible outcomes or benefits a party wants as a result of negotiations - Financial benefits, political benefits, remuneration of past losses, division of property in a divorce settlement,… (3) Procedural interests (2) Situations, problems and issues - Transaction context (or conflict context) - Emotional context (3) Sources and forms of power - Power ~ the ability to act, influence an outcome, to get sth to happen (or not to happen), or to overcome resistance Power (in negotiations) could be based on: + Physical threats (guns, police) + Moral authority (the pope) + Rightness and fairness (labor union) + Special knowledge (experts) + Public support (politicians) Legitimacy of power (in different cultures) + religious leaders: in Iran, or in Northern Europe + In Asia or Africa, a negotiator could consult a reader of signs and stars + In America, a negotiator could consult his financial advisor - Influence during negotiations: Direct and coercive (threats) Body language Holding an info (financial, technical, scientific info) Psychological info: personal impact of harm and cost imposed on negotiators or on their counterparts The spokes of the wheel (1) Roles and participation - Who will participate (age, gender, status) Who’s the leader, the spokeperson, who take notes, observe, the calcaluation, ❗ Usually the leader doesn’t directly negotiate -> the spokeperson does (but in Vietnam cases only) ❗ - In Individualist culture, raise your voice before asking for anyone opinion - In Collectivist culture, ask ppl opinion before saying yours (2) View of relationships - Focus on intrumental task or relationship? North America: instrumental task + business accomplished + work well done + agreement on contract + personal rela enough to get the job done and no more Other cultures (Asia): relationship + meeting ppl + establishing close personal connections + social activities + personal connection: necessary + doing business: secondary activity - Tensions or harmony in the relationship? Some cultures: ppl are at ease with disagreements and conflicts, place less importance on smooth relations Other cultures: ppl are very uncomfortable with direct expression of disagreement or engagement in disputes, and strive for harmony 💡 Harmony: China, Philippines, Africa - - Privacy Eating and drinking together Attending local entertainment Visits ino private homes Boudaries Personal life Vs business life: seperated or not? Conflict of interest: nepotism, favoritism Give a contract to a relative or a close firend? (3) Cooperation, competition and conflict - Cooperation: convergence of interests of the involved parties - Conflict: divergence of interests of the involved parties 💡 attitudes toward conflict - Negative -> should be avoided (Arab countries, China) - Positive -> should be encouraged (USA, Australia, Western Europe) - Neutral -> differences are not bad ... talk First recognize and understand emotions (theirs and yours) Allow the other side to let off steam + Communication: Negotiation is a process of communicating back and forth Note how often partner... treated, in the negotiation process and outside of it - How participants feel or want to feel abt themselves and their counterparts - How relationships are valued and shaped through negotiations... as a guide for identifying and understanding cultural factors that influence individual and group interactions during negotiations ~ Provide a conceptual framework and guidelines for negotiators: