Unit4 International Negotiation

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Unit 4 International Negotiation - Unit4 International Negotiation

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Unit4 International Negotiation

  1. 1. International negotiation<br />Unit 4<br />
  2. 2. Objetives<br />Understand the concept of negotiation and its key elements.<br />Examine how to use negotiation to manage situations of interdependence.<br />Consider how negotiations may be practical in management conflict.<br />Understand the importance of goal setting in negotiations.<br />Analyze the major elements of negotiation strategy and the process of selecting a strategy.<br />Understand how most negotiations evolve through stages and phases.<br />
  3. 3. Negotiations<br />Negotiations occur for several reasons: <br /><ul><li>To agree on how to share or divide a limited resource
  4. 4. To create something new that neither party could attain on his or her own
  5. 5. To resolve a problem or dispute between the parties</li></ul>Approach to the Subject<br /><ul><li>Bargaining.
  6. 6. Negotiation.</li></ul>Three Important Themes <br />Negotiation.<br />Interdependence.<br />Understanding.<br />
  7. 7. Characteristics of a Negotiation Situation<br /><ul><li>There are two or more parties
  8. 8. There is a conflict of needs and desires between two or more parties
  9. 9. Parties negotiate because they think they can get a better deal than by simply accepting what the other side offers them
  10. 10. Parties expect a “give-and-take” process</li></ul>Interdependence<br /><ul><li>This mutual dependency is called interdependence
  11. 11. Interdependent goals are an important aspect of negotiation
  12. 12. Interdependent parties are characterized by interlocking goals
  13. 13. Having interdependent goals does not mean that everyone wants or needs exactly the same thing
  14. 14. A mix of convergent and conflicting goals characterizes many interdependent relationships</li></li></ul><li>Types of Interdependence<br />Affect Outcomes<br /><ul><li>Interdependence and the structure of the situation shape processes and outcomes.</li></ul>Alternatives Shape Interdependence<br /><ul><li>Evaluating interdependence depends heavily on the alternatives to working together
  15. 15. The desirability to work together is better for outcomes
  16. 16. Best available alternative: BATNA (acronym for Best Alternative to a Negotiated Agreement)</li></ul>Mutual Adjustment<br /><ul><li>Continues throughout the negotiation as both parties act to influence the other
  17. 17. One of the key causes of the changes that occur during a negotiation
  18. 18. The effective negotiator needs to understand how people will adjust and readjust and how the negotiations might twist and turn</li></li></ul><li>Mutual Adjustment and<br />Concession Making<br /><ul><li>When one party agrees to make a change in his/her position, a concession has been made
  19. 19. Concessions restrict the range of options
  20. 20. When a concession is made, the bargaining range is further constrained</li></ul>Mutual Adjustment and Concession Making<br /><ul><li>When one party agrees to make a change in his/her position, a concession has been made
  21. 21. Concessions restrict the range of options
  22. 22. When a concession is made, the bargaining range is further constrained</li></li></ul><li>Two Dilemmas in Mutual Adjustment<br /><ul><li>Dilemma of honesty.
  23. 23. Dilemma of trust.</li></ul>Value Claiming and Value Creation<br /><ul><li>Opportunities to “win” or share resources.
  24. 24. Most actual negotiations are a combination of claiming and creating value processes.</li></ul>Value differences that exist between negotiators include:<br /><ul><li>Differences in interest
  25. 25. Differences in judgments about the future
  26. 26. Differences in risk tolerance
  27. 27. Differences in time preferences</li></li></ul><li>Conflict<br />Conflict may be defined as a: <br />“Sharp disagreement or opposition" and includes "the perceived divergence of interest, or a belief that the parties' current aspirations cannot be achieved simultaneously“.<br />Levels of Conflict<br /><ul><li>Intrapersonal or intrapsychicconflict.
  28. 28. Interpersonal conflict.
  29. 29. Intragroup / Intergroup conflict.</li></ul>Dysfunctions of Conflict<br />Competitive, win-lose goals.<br />Misperception and bias.<br />Emotionality.<br />Decreased communication.<br />
  30. 30. Blurred issues.<br />Rigid commitments.<br />Magnified differences, minimized similarities.<br />Escalation of conflict.<br />Functions and Benefits of Conflict<br />Makes organizational members more aware and able to cope with problems through discussion.<br />Promises organizational change and adaptation.<br />Strengthens relationships and heightens morale.<br />Promotes awareness of self and others.<br />Enhances personal development.<br />Encourages psychological development—it helps people become more accurate and realistic in their self-appraisals.<br />Can be stimulating and fun.<br />
  31. 31. Styles of Conflict Management<br />Contending. <br />Yielding.<br />Inaction.<br />Problem solving.<br />Compromising.<br />Goals – The Focus That Drives Negotiation Strategy<br /><ul><li>Determining goals is the first step in the negotiation process.
  32. 32. Negotiators should specify goals and objectives clearly.
  33. 33. The goals set have direct and indirect effects on the negotiator’s strategy.</li></ul>The Direct and Indirect Effects of Goals on Strategy<br /><ul><li>Direct effects.
  34. 34. Indirect effects.</li></li></ul><li>Strategy versus Tactics<br /><ul><li>Strategy.
  35. 35. Tactics.
  36. 36. Planning.</li></ul>Approaches to Strategy<br /><ul><li>Unilateral.
  37. 37. Bilateral.</li></ul>The Dual Concerns Model<br />Avoidance.<br />Competition.<br />Collaboration.<br />Accommodation.<br />
  38. 38. Strategic Options<br /><ul><li>Per the Dual Concerns Model, choice of strategy is reflected in the answers to two questions:
  39. 39. How much concern do I have in achieving my desired outcomes at stake in the negotiation?
  40. 40. How much concern do I have for the current and future quality of the relationship with the other party?</li></ul>The Nonengagement Strategy: Avoidance<br /><ul><li>If one is able to meet one’s needs without negotiating at all, it may make sense to use an avoidance strategy
  41. 41. It simply may not be worth the time and effort to negotiate
  42. 42. The decision to negotiate is closely related to the desirability of available alternatives</li></li></ul><li>Active-Engagement Strategies<br /><ul><li>Competition.
  43. 43. Collaboration.
  44. 44. Accommodation.</li></ul>Key Steps to an Ideal Negotiation Process<br /><ul><li>Preparation.
  45. 45. Relationship building.
  46. 46. Information gathering.
  47. 47. Information using.
  48. 48. Bidding.
  49. 49. Closing the deal.
  50. 50. Implementing the agreement</li></li></ul><li>Getting Ready to Implement the Strategy: The Planning Process<br /><ul><li>Define the issues.
  51. 51. Assemble the issues and define the bargaining mix.
  52. 52. Define your interests.
  53. 53. Know your limits and alternatives.
  54. 54. Set your objectives (targets) and opening bids (where to start).
  55. 55. Assess constituents and the social context of the negotiation.
  56. 56. Analyze the other party.
  57. 57. Present the issues to the other party.</li></ul>Information Needed to Prepare Effectively for Engaging the Other Party<br /><ul><li>Resources, issues, and bargaining mix.
  58. 58. Interests and needs.
  59. 59. Walkaway point and alternative(s).
  60. 60. Targets and opening bids.</li></li></ul><li><ul><li>Constituents, social structure, and authority to make an agreement.
  61. 61. Reputation and negotiation style.
  62. 62. Likely strategy and tactics.</li></li></ul><li>
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