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Copyright © 2005 by Harvard Business School Publishing
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A C R O S S T H E T A B L E
Lessons from Abroad:
When Culture Affects Negotiating Style
Cultural context can mean the difference between successful
negotiation and humiliation. Tailor your approach to fit.
B Y J E A N N E M . B R E T T A N D M I C H E L E J . G
E L F A N D
RE YOU A TYPICAL AMERICAN NEGOTIATOR?
How savvy are you
about the negotiating styles of other cultures? Imagine
how you would react in the following situations:
Example 1:
You have contracted with a manufacturer to
produce a shipment of bicycles. After signing the contract,
you receive credible information that this manufacturer
has had quality problems and, in particular, that the bikes
being produced for your shipment rattle. Your bicycles are
supposed to be shipped next week. Which of the following
options better describes how you would react?
A.
You immediately go to the plant to check on the
quality problem. You tell the plant manager that the
rattling must be fixed before the bikes are shipped.
B.
You go to the plant and test a few of the bikes.
Then you take the plant manager for a bike ride in
the countryside. After the ride, you ask: “Do all the
bikes rattle? Will the rattling be a problem for the
buyer?” And then you leave.
Example 2:
Your raw-materials costs have skyrocketed due
to circumstances beyond your control. You need to reopen
a contract with your biggest customer and negotiate a
higher price to cover these costs. Which of the following
options better describes how you would act?
A.
You meet with the customer and calmly explain
the unavoidable circumstances that have affected
your raw-materials costs, focusing on facts. Then
you ask to renegotiate the price.
B.
You meet with the customer and express your ap-
preciation as well as your company’s gratitude for the
relationship. You also express sorrow for the potential
impact of the skyrocketing raw-materials costs on the
relationship, then plead: “We need your help!”
Example 3:
You have identified a great opportunity to ex-
pand your business by negotiating a joint venture with an-
other company. You need to get information about this
company’s needs and priorities. Which of the following
options would you prefer?
A.
Ask the other side about their priorities and give
them only a little information about your own.
B.
Do not ask direct questions; instead, be indirect
and try to deduce what the other side’s priorities are
by listening to their reactions to your proposals.
Now consider whether your choices would change if, in
the first situation, you were an American working in Hong
Kong and the bicycle manufacturer was in mainland
China; in the second situation, your customer was a major
Japanese retailer; and, in the third situation, your potential
partner was a highly respected Korean company.
Your intuitive choices provide a good litmus test of your
approach to negotiation. If you initially chose
A
in each
situation and if further information did not sway your
choices, you have a mainstream American approach to ne-
gotiations. If you initially chose
B
in each situation, you
may not be from the United States, and you certainly do
not subscribe to the typical American approach to negoti-
ation. If you switched from
A
to
B
when you learned you
were negotiating with an Asian company, you no doubt
have had some significant global negotiating experience.
Our research has identified vast cultural differences be-
tween the way Americans negotiate and the way negotia-
tions are carried out in other cultures, particularly in Asia.
Though your intuitive approach may be functional at
home, it could backfire abroad. Learning a wider reper-
toire of strategies from other cultures should minimize the
risks of negotiating cross-culturally and might even im-
prove your domestic negotiations. In this article, we dis-
cuss three negotiation strategies widely used in Asia that
are likely to be unfamiliar to American negotiators yet ex-
tremely useful: indirect confrontation, status-based per-
suasion, and the use of proposals to gain information.
Try the indirect approach
The tale of the rattling bicycles is true, and it had a happy
ending. The American who brokered the deal went to the
Chinese plant, tested a few bikes, rode in the countryside
with the plant manager, and asked gently about the rat-
A
Negotiation and Culture
(continued)
4
Negotiation
January 2005
tling. The buyer received the bikes on time, rattle-free.
Pleased with their quality, the buyer placed another order.
The standard American approach to conflict is direct
confrontation: “Let’s talk about it.” Our individualistic
culture encourages us to place our self-interest first and to
intervene in situations that threaten our desired outcomes.
The problem with direct confronta-
tion is that it often implies blame,
which can make a problem become
personal—to go from being an issue
of rattling bikes to a concern about
the people who made them rattle.
By contrast, indirect confronta-
tion is normative in collective cultures, including most
Asian cultures, which emphasize social harmony and the
need to consider other parties’ interests. So that parties in
conflict do not have to confront each other directly, nego-
tiators in Asian cultures often rely on intermediaries.
When an intermediary is not available, verbal confron-
tation typically occurs indirectly, leaving the recipient of
the message to draw his own inferences: “What do you
think the buyer will think about that rattling?” for exam-
ple, rather than “The buyer is going to reject this shipment
if we don’t fix these bikes.” Indirect confrontation has the
benefit of keeping personalities out of the equation, leav-
ing one fewer problem to solve. In cultures where saving
face is critical, indirect confrontation gets the message
across and avoids disrespect.
One might assume that indirect confrontation would
be always appropriate in non-Western cultures and direct
confrontation always appropriate in Western cultures. But
recent research challenges the effectiveness of “in your
face” talk in conflict resolution, even in Western cultures.
After all, Americans don’t want to lose face any more than
Asians do. Once disrespect has been conveyed, the rela-
tionship is damaged, trust is threatened, and the potential
for retaliation increases.
The message from collective cultures to American ne-
gotiators: if you want to fix the problem and preserve the
relationship, try the indirect approach.
Gain concessions through status-based persuasion
The second negotiation problem comes from an Octo-
ber 2000
New York Times
article by Leslie Kaufman
about retail giant Wal-Mart and one of its suppliers,
Rubbermaid. Wal-Mart is known for negotiating low-
margin, high-volume contracts with its suppliers.
When prices for the main component in Rubbermaid’s
products began to skyrocket, the tight margins in the
company’s contract with Wal-Mart became almost in-
visible. Rubbermaid asked Wal-Mart to reopen the con-
tract. We do not know the exact nature of Rubbermaid’s
appeal to Wal-Mart, nor Wal-Mart’s response. But it’s
not difficult to imagine that Rubbermaid made a ratio-
nal appeal to Wal-Mart similar to choice
A
: “When we
negotiated our contract, our raw-materials costs had
been stable for years. The increase in oil prices was un-
expected and beyond our control.
We need to renegotiate.”
A negotiator relying on rational-
ity provides the other party with the
facts of the situation as she sees
them, with the goal of convincing
the other side to make concessions.
Often this Aristotelian-based factual, linear, and logical ar-
gument consists of threats (such as, “If you don’t, then I
will”) and promises (such as, “If you will, then I will”),
which are based on perceptions of power associated with
each party’s alternatives.
Rubbermaid and Wal-Mart’s negotiation likely re-
flected this rational approach. Ultimately, Wal-Mart did
agree to increase the retail prices of Rubbermaid products;
however, Rubbermaid did not have the power to keep Wal-
Mart from moving Rubbermaid products from their dom-
inant position in the store and replacing them with a com-
petitor’s products.
Choice
B
in this problem is a highly emotional ap-
proach to persuasion more typical of Asian cultures. In
this approach, persuasion is based on relationships and
obligations rather than on rational argument invoking
one’s alternatives. The persuasiveness of emotional ap-
peals in Asian cultures can be explained by the prevalence
there of collective and hierarchical values. In Asia, individ-
uals are embedded in a context of social relationships that
are often hierarchically structured. Emotional appeals are
made to remind the other party of the existence of the rela-
tionship, of the other party’s relatively higher status in the
relationship, and of the social responsibility of high-status
parties to help low-status parties.
In negotiations with non-Western partners, status can
be a more important source of power than alternatives. Al-
though alternatives change over time, status is based on a
long-term perspective. Rubbermaid’s assumed rational
appeal to Wal-Mart was culturally correct because the par-
ties were Westerners but would not have been appropriate
if Wal-Mart had been a Japanese retailer.
The message from Asian cultures: with status comes the
responsibility to help your partners through lean eco-
nomic times. When your alternatives are good, the West-
ern approach to negotiation problems seems preferable.
When they are poor, there is a great deal to be said for
using status to prompt concessions.
The problem with direct
confrontation is that it
often implies blame.
Negotiation and Culture
(continued)
Negotiation
January 2005
5
Use proposals to gain information
Around the world, negotiators understand the need to
find wise tradeoffs that improve outcomes for all. But how
do you get the other party to reveal the information you
need about preferences and priorities?
Research shows that Western negotiators typically share
information by asking questions about each other’s prefer-
ences and priorities—assuming the other party is trustwor-
thy and answering truthfully—and giving information to
reinforce the exchange. This direct approach can be used to
identify tradeoffs that can be accumulated into a final,
multi-issue proposal. It reflects the Amer-
ican preference for explicit, context-free
communications.
Now consider how managers in Ja-
pan, China, Hong Kong, Thailand, and
Russia glean information about one an-
other’s preferences and priorities. Re-
search conducted by Wendi Adair of Cornell University’s
Johnson School of Management, Tetsushi Okumura of
Shiga University in Japan, and one of the coauthors of this
article, Jeanne M. Brett, found that Japanese managers
made many more proposals than did U.S. managers.
Subsequent research by Adair and Brett indicates that,
beginning in the first quarter of their negotiation, non-
Western negotiators were using proposals significantly
more frequently than were Western negotiators. This dif-
ference was sustained until the last quarter of the negotia-
tion, when Westerners’ proposal rate rose to match that of
non-Westerners.
Gathering information about relative preferences and
priorities from proposals requires highly developed infer-
ential skills and a “big picture” approach. Doing so is com-
mon in collective cultures, where context matters and
indirect communication is the norm. When proposals in-
clude all the issues in a negotiation, Western negotiators
should be able to work effectively in this environment. But
consider that Asian negotiators do not limit themselves to
multi-issue proposals; they also make more single-issue
proposals than Western negotiators. Drawing inferences
from a pattern of single-issue proposals requires a heavy
focus on context.
Imagine a two-issue negotiation over price and deliv-
ery. I offer a delivery date that you don’t explicitly reject;
you then offer a price. Now it’s my turn to build toward a
settlement based on my delivery date and your price. Sup-
pose I make an alternative offer on price, keeping in mind
my prior offer on delivery. If I track your reaction to these
alternative proposals, I can start deducing what your pri-
orities are. Westerners can do this cognitive work, of
course—it is just a matter of preference
regarding how to exchange information
during negotiation.
The message from Asian cultures:
there is more than one way to get infor-
mation in a negotiation. When negotia-
tors are reluctant to share information
directly, try proposals and look for the pattern of prefer-
ences revealed by changes in the proposals over time.
The stories in this article illustrate the marked differ-
ences that exist in people’s approach to negotiations across
cultures. Culture can feel invisible until we find ourselves
negotiating using ineffective strategies in a foreign land.
Understanding how cultural context affects negotiations
will not only help you reach agreement abroad, but it also
will allow you to expand your repertoire of negotiation
strategies within your own culture.
✧
Jeanne M. Brett
is the DeWitt W. Buchanan Jr. Distinguished Professor
of Dispute Resolution and Organizations at Northwestern
University’s
Kellogg Graduate School of Management. She is the author of
the
award-winning book
Negotiating Globally: How to Negotiate Deals
Resolve Disputes, and Make Decisions Across Cultural
Boundaries
(Jossey-Bass, 2001).
Michele J. Gelfand
is an associate professor of
psychology at the University of Maryland. Together they
coedited
The Handbook of Negotiation and Culture
(Stanford University Press,
2004). They can be reached at [email protected]
There is more than one
way to get information
in a negotiation.
NEGOTIATION STRATEGY 4
Dealing with a Spoiler?
Negotiate Around
the Problem
Sometimes the best way to deal with
obstinate negotiators is to bypass them
completely. Here’s how to execute an
effective workaround.
BY ROBERT C. BORDONE
NEGOTIATION DYNAMICS 7
Taking BATNA
to the Next Level
By enhancing your best alternative
to a negotiated agreement, you can
gain a critical advantage at the table.
BY GUHAN SUBRAMANIAN
ACROSS THE TABLE 9
When Dividing the Pie,
Smart Negotiators
Get Creative
Don’t settle for uninspired compromises.
Find ways to modify and expand
resources to achieve more value.
BY DEBORAH M. KOLB AND
PETER J. CARNEVALE
RESEARCH SUMMARIES 12
The Heat of the Moment
Do Attitudes Influence
Results?
C O M M U N I C A T I O N
Negotiating
Differences: How
Contrasting Styles
Affect Outcomes
Not everyone bargains the same way. By becoming
attuned to various social motives, you can adapt
your own approach for the better.
B Y L A U R I E R . W E I N G A R T
H
O W W O U L D Y O U D E S C R I B E your negotiating
style? Are you a cooperative negotiator who
focuses on crafting agreements that benefit
everyone, or do you actively compete to get a better
deal than your counterpart? Perhaps you follow a
third route, concentrating only on maximizing
your own outcomes with little concern for how the
other side performs.
In any given negotiation, your style has a stable compo-
nent that comes from your disposition and personality;
continued on page 2
some people are naturally more cooperative than others,
for instance. Yet your style will also fluctuate depending on
the situation and the person across the table. For example,
you’re more likely to focus on maximizing joint gain when
you’re negotiating a joint venture with a trusted colleague,
than when you’re battling with other department heads
over the annual budget.
What happens when negotiators with different styles—
or those with similar styles, for that matter—meet at the
bargaining table? Are certain style combinations more
desirable than others? Should you try to adapt your style to
each negotiation? This article addresses these and other
commonly asked questions about negotiation style and, in
particular, illuminates the consequences of using coopera-
tive versus more self-interested strategies.
“What type of negotiator am I?”
Differences in social motives, or one’s preference for certain
types of outcomes in interactions with others, affect how
individuals approach negotiation. Psychologists have iden-
tified four basic types of social motives that drive human
behavior in competitive situations such as negotiation:
1. Individualists are motivated to maximize their
own outcomes without concern for the out-
comes of others. About half of U.S. negotiators
studied (typically students and businesspeople)
have an individualistic orientation, making this
the most common group.
2. Cooperators, comprising approximately 25% to
35% of U.S. study participants, are motivated to
I N S I D E
Negotiation and Decision-Making Strategies That Deliver
Results
A Newsletter Published by
the Program on Negotiation
at Harvard Law School
Volume 10
Number 1
January 2007
maximize both their own and other parties’
outcomes and to ensure that gains are fairly
distributed.
3. Competitives, comprising about 5% to 10% of
U.S. study participants, prefer outcomes that
maximize the difference between their own and
others’ outcomes. They want to win—and by a
wide margin. As a result, their behavior tends to
be the most self-serving, and their lack of trust
makes joint problem solving difficult.
4. Altruists seek to maximize the other party’s out-
come without concern for their own. Altruists
are difficult to find in today’s business world, so
little research has been done on this motive in
negotiation contexts.
Because relatively few people fall into the latter two cate-
gories, most of the negotiation literature has focused on indi-
vidualists and cooperators; this article will as well. Carsten De
Dreu of the University of Amsterdam, Seungwoo Kwon of
Korea University, and I have found that individualists engage
in more value-claiming behavior than do cooperators;
specifically, they are more likely than cooperators to make
threats (within limits), to argue and substantiate their posi-
tions, and to make single-issue offers. Cooperators are more
likely than individualists to engage in value-creating strate-
gies such as providing information, asking questions, gaining
insight into the other party, and making multi-issue offers
and tradeoffs. However, cooperators sometimes act competi-
tively, just as individualists sometimes cooperate. As I will
explain, your counterpart’s approach can influence your own
choice of strategy significantly.
“What type of negotiator should I be?”
Should a negotiator focus on maximizing her own out-
comes, or should she take a more cooperative approach?
Cooperative negotiators are more likely than hard bar-
gainers to discover creative solutions that expand the pie of
resources for both sides, as Catherine H. Tinsley and Kath-
leen O’Connor concluded in their December 2006 Negoti-
ation article, “Want the Best Deal Possible? Cultivate a
Cooperative Reputation.” Furthermore, those who engage
in cooperative strategies report higher satisfaction with the
negotiation process and its outcomes than do more self-
interested or competitive negotiators—and they build
strong business relationships as a result.
Cooperators are also more effective than individualists
at using value-creating strategies to improve their own
outcomes, my research with Mary Kern of Baruch College
and Jeanne Brett of Northwestern University has shown.
Why might this be true? It could be that cooperators
appear more sincere than individualists when working to
create value.
Despite the proven benefits of cooperative behavior, many
negotiators fail to engage fully in the process of maximizing
joint gain. Some don’t gravitate naturally toward strategies
aimed at meeting both sides’ interests. Others worry that
cooperation leaves them vulnerable to exploitation.
It’s tempting to draw conclusions about the relative
advantages and disadvantages of particular social motives.
Yet even if you were to change your approach, style differ-
ences would continue to crop up in your negotiations.
Your overarching social motive influences not only what
strategies you use but also how you use them—and the
same goes for your counterpart.
Negotiating Differences (continued)
2 Negotiation
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Negotiation
About this publication
Negotiation offers subscribers practical advice and guidance for
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looming deadline. Some begin working to create value. This
shift may help them reach an agreement, but they may not
actually achieve high outcomes for themselves.
Yet individualistic negotiating pairs can reach high-
quality agreements, my colleagues and I have found. (See
the sidebar “Individualists: Cooperate to Claim Value.”)
“What if we have different social motives?”
When a cooperator and an individualist bargain, the situa-
tion grows more complex. In addition to engaging your
own strategy, you must react and adjust to a style that may
strike you as foreign or inappropriate.
Notably, though, people in negotiation tend to converge
in their approaches, which allows their interactions to
become more predictable, Kathleen McGinn of Harvard
Business School and Angela Keros of Goldman Sachs have
found. Negotiators get in sync by purposefully reciprocat-
ing each other’s approaches and subconsciously mimick-
ing behaviors, my research with Michael Prietula of Emory
University and Elaine Hyder and Chris Genovese of
Carnegie Mellon University has shown.
Whose social motive will dominate the “hybrid” style?
Individualists will not dominate and outperform coopera-
tors for the simple reason that a cooperator is not necessarily
January 2007 3
“What if we have the same social motive?”
When two people share the same motive, they fall prey to
the same flaws and reinforce each other’s failings. Consider
a labor negotiation in which the chief management nego-
tiator withholds information about revenue projections,
while the labor leader holds back details about workforce
sentiment. Impasse is the predicable result. When you’re
negotiating with a fellow individualist or a fellow coopera-
tor, your goal should be to overcome the inherent flaws of
your orientation.
The case of two cooperators.
Two cooperators who meet at the negotiating table risk
concentrating so closely on each other’s interests that they
lose sight of their own—and settle for outcomes that split
the difference rather than truly satisfy both parties’ inter-
ests. Imagine that a newly hired research analyst fails to ask
his manager for a cutting-edge workstation for fear of
appearing greedy. The manager, who has already been
quite responsive to his requests, would happily provide the
workstation were she aware of the potential upside. Unfor-
tunately, this joint benefit goes undiscovered.
My research with Mara Olekalns of the University of
Melbourne and Jeanne Brett suggests strategies that can
improve the outcomes of such negotiations. When you’re
negotiating with a fellow cooperator, include value-claiming
behaviors in your repertoire: make offers that focus on a sin-
gle issue, communicate your own preferences and positions,
and clarify your limits. When you claim value in a context of
cooperation and trust, you focus the negotiation on explor-
ing value-maximizing agreements—but be careful not to
shift talks from problem solving into contentiousness.
The case of two individualists.
When two individualists negotiate, their natural ten-
dency to use value-claiming strategies, such as making
demands and threats, can escalate into conflict and
impasse, Olekalns and Philip Smith of the University of
Melbourne have found. As Katie A. Liljenquist and Adam
D. Galinsky noted in their September 2006 Negotiation
article, “How to Defuse Threats at the Bargaining Table,”
people tend to reciprocate negative behaviors more than
positive ones.
As conflict increases, the odds of maximizing mutual
gain decrease, as do your chances of maximizing individual
gain. Suppose two individualists negotiate a joint venture.
Although both parties may feel they got the best outcome
possible, the resulting agreement will likely overlook syner-
gies across the two organizations. An exception to this ten-
dency sometimes emerges when individualists face a
INDIVIDUALISTS: COOPERATE TO CLAIM VALUE
What happens in negotiations between two individu-
alists who care little about each other’s outcomes? Sup-
pose an engineer and an industrial designer are
arguing over the design of a car bumper. The designer
cares only about whether the bumper matches the style
of the vehicle; the engineer is concerned only about
how the bumper connects to the front. After describ-
ing the trouble he’s having with the existing design, the
engineer presents a solution that the designer deems
“ugly.” The designer threatens to involve her boss if the
engineer doesn’t revert to a prior design
You’re the engineer—what do you do? First, balance
your value-claiming strategies by working to create
value. Ask the designer to explain where she thinks the
new design went wrong, and identify possible solu-
tions and low-priority issues on which you can offer
tradeoffs. Second, remind her that there’s hope for a
solution if you both let down your guard and work
together. Third, listen openly to the designer’s propos-
als and try to build on them. Above all, ensure that
your cooperative moves are reciprocated, or you’ll be
vulnerable to exploitation.
4 Negotiation
an individualist, you should avoid revealing too much
information if none is forthcoming. Instead, reciprocate
contentious behavior while signaling your desire to switch
to cooperation. Merely identifying a tactic as unacceptable
can neutralize it, assuming you provide a more effective
course.
If you’re an individualist, don’t lose sight of your ability
to protect yourself from difficult opponents. Even when a
solution is not immediately obvious, you’re likely to keep
forging ahead. At the same time, pick up the signals your
counterpart is sending. Reciprocate cooperative behavior,
and don’t be overly wary until you are absolutely sure the
other side can’t be trusted. �
Laurie R. Weingart is a professor of organizational behavior at
the
Tepper School of Business at Carnegie Mellon University,
where she
has researched and taught negotiation skills for more than 15
years.
She can be reached at [email protected]
To order a reprint of this article, call 800-391-8629.
a naïve negotiator. Brett, Olekalns, Smith, and I have found
that cooperators are more sensitive than individualists to
the approaches of others and more likely to adjust in response.
They claim more value when negotiating with individualists.
Much less sensitive to the negotiating environment,
individualists tend to focus on claiming value regardless of
their counterparts’ social motive. Individualists may not
even realize they are negotiating with cooperative oppo-
nents, who quickly switch tactics in response to competi-
tive behavior.
“How can I capitalize on my natural tendencies?”
Rather than trying to overhaul your social motive completely,
it makes more sense to work on strengthening your natural
talents and practicing the best elements of other styles.
If you’re a cooperator, this means capitalizing on your
ability to detect others’ social motives and adapting your
own approach accordingly. Although you shouldn’t
immediately abandon problem solving when faced with
Negotiating Differences (continued)
N E G O T I A T I O N S T R A T E G Y
Dealing with a Spoiler?
Negotiate Around the Problem
Sometimes the best way to deal with obstinate negotiators is to
bypass them completely.
Here’s how to execute an effective workaround.
B Y R O B E R T C . B O R D O N E
A
T ONE TIME OR ANOTHER, most of us have confronted a fel-
low negotiator who seemed intent on blocking even
our most reasonable requests and actions. This was the sit-
uation faced by Alexis, the CIO at a midsize publishing
company. Phil, the company’s CEO, hired Alexis to create
an online information system tailored to the needs of their
largest customers. Phil promised to support Alexis as she
implemented the new system and restructured the IT
department. The two met on many occasions to negotiate
issues related to cost, increased staff needs, impact on cus-
tomers, and coordination challenges.
Despite his promises of cooperation, in almost every
meeting with Alexis, Phil proved to be a barrier to her
problem-solving efforts. He repeatedly denied her request
to increase the size of her staff, limited her authority, and
delayed making important decisions. To her frustration
and embarrassment, Alexis faced huge project delays, ris-
ing costs, and low credibility throughout the organization.
She felt stuck between two unhappy choices: accepting the
status quo or starting another job search.
In past issues of Negotiation, we’ve shown you ways to
transform a difficult counterpart’s no into a hearty yes. But
what happens when you’ve followed all this good advice
and still find yourself faced with a perpetual naysayer?
When interpersonal and tactical strategies fail to win
over someone whose approval is essential to your goals, the
negotiation may seem hopeless. Fortunately, there is an
option of last resort. Consider crafting what I call a
workaround—a strategic approach to getting what you
need without the involvement or support of your adversary.
What type of spoiler are you facing?
When your best efforts fail to budge the other party in the
right direction, you may be facing one of the three types of
“spoilers” identified by Stanford University professor
Stephen John Stedman.
WATCH THE VEDIO : https://youtu.be/G__UzADcz3o
Compare and contrast each of the negotiating styles from the
article. Which do you think is most effective? When, how and
why would you use that style?
Name and describe each of the 5 negotiating tips from the
video. Which do you believe is most beneficial and why?
In order to score points you need to complete the assigned
reading and answer the question from the reading
assignment. Please feel free to do additional research on the
topic. But, in all circumstances, make certain you document
your source(s) of information.
You may certainly disagree with what is in the assigned
reading/video, but you must reference where you obtained your
information, your opinion on the topic, and why you
disagree. Just writing your opinion on a topic without doing the
reading assignment will score you zero (0) points.

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3Copyright © 2005 by Harvard Business School Publishin.docx

  • 1. 3 Copyright © 2005 by Harvard Business School Publishing Corporation. All rights reserved. A C R O S S T H E T A B L E Lessons from Abroad: When Culture Affects Negotiating Style Cultural context can mean the difference between successful negotiation and humiliation. Tailor your approach to fit. B Y J E A N N E M . B R E T T A N D M I C H E L E J . G E L F A N D RE YOU A TYPICAL AMERICAN NEGOTIATOR? How savvy are you about the negotiating styles of other cultures? Imagine how you would react in the following situations:
  • 2. Example 1: You have contracted with a manufacturer to produce a shipment of bicycles. After signing the contract, you receive credible information that this manufacturer has had quality problems and, in particular, that the bikes being produced for your shipment rattle. Your bicycles are supposed to be shipped next week. Which of the following options better describes how you would react? A. You immediately go to the plant to check on the quality problem. You tell the plant manager that the rattling must be fixed before the bikes are shipped. B. You go to the plant and test a few of the bikes. Then you take the plant manager for a bike ride in the countryside. After the ride, you ask: “Do all the bikes rattle? Will the rattling be a problem for the buyer?” And then you leave. Example 2: Your raw-materials costs have skyrocketed due to circumstances beyond your control. You need to reopen a contract with your biggest customer and negotiate a
  • 3. higher price to cover these costs. Which of the following options better describes how you would act? A. You meet with the customer and calmly explain the unavoidable circumstances that have affected your raw-materials costs, focusing on facts. Then you ask to renegotiate the price. B. You meet with the customer and express your ap- preciation as well as your company’s gratitude for the relationship. You also express sorrow for the potential impact of the skyrocketing raw-materials costs on the relationship, then plead: “We need your help!” Example 3: You have identified a great opportunity to ex- pand your business by negotiating a joint venture with an- other company. You need to get information about this company’s needs and priorities. Which of the following options would you prefer? A.
  • 4. Ask the other side about their priorities and give them only a little information about your own. B. Do not ask direct questions; instead, be indirect and try to deduce what the other side’s priorities are by listening to their reactions to your proposals. Now consider whether your choices would change if, in the first situation, you were an American working in Hong Kong and the bicycle manufacturer was in mainland China; in the second situation, your customer was a major Japanese retailer; and, in the third situation, your potential partner was a highly respected Korean company. Your intuitive choices provide a good litmus test of your approach to negotiation. If you initially chose A in each situation and if further information did not sway your choices, you have a mainstream American approach to ne- gotiations. If you initially chose B in each situation, you may not be from the United States, and you certainly do
  • 5. not subscribe to the typical American approach to negoti- ation. If you switched from A to B when you learned you were negotiating with an Asian company, you no doubt have had some significant global negotiating experience. Our research has identified vast cultural differences be- tween the way Americans negotiate and the way negotia- tions are carried out in other cultures, particularly in Asia. Though your intuitive approach may be functional at home, it could backfire abroad. Learning a wider reper- toire of strategies from other cultures should minimize the risks of negotiating cross-culturally and might even im- prove your domestic negotiations. In this article, we dis- cuss three negotiation strategies widely used in Asia that are likely to be unfamiliar to American negotiators yet ex- tremely useful: indirect confrontation, status-based per- suasion, and the use of proposals to gain information. Try the indirect approach The tale of the rattling bicycles is true, and it had a happy ending. The American who brokered the deal went to the
  • 6. Chinese plant, tested a few bikes, rode in the countryside with the plant manager, and asked gently about the rat- A Negotiation and Culture (continued) 4 Negotiation January 2005 tling. The buyer received the bikes on time, rattle-free. Pleased with their quality, the buyer placed another order. The standard American approach to conflict is direct confrontation: “Let’s talk about it.” Our individualistic culture encourages us to place our self-interest first and to intervene in situations that threaten our desired outcomes. The problem with direct confronta- tion is that it often implies blame, which can make a problem become personal—to go from being an issue of rattling bikes to a concern about the people who made them rattle.
  • 7. By contrast, indirect confronta- tion is normative in collective cultures, including most Asian cultures, which emphasize social harmony and the need to consider other parties’ interests. So that parties in conflict do not have to confront each other directly, nego- tiators in Asian cultures often rely on intermediaries. When an intermediary is not available, verbal confron- tation typically occurs indirectly, leaving the recipient of the message to draw his own inferences: “What do you think the buyer will think about that rattling?” for exam- ple, rather than “The buyer is going to reject this shipment if we don’t fix these bikes.” Indirect confrontation has the benefit of keeping personalities out of the equation, leav- ing one fewer problem to solve. In cultures where saving face is critical, indirect confrontation gets the message across and avoids disrespect. One might assume that indirect confrontation would be always appropriate in non-Western cultures and direct confrontation always appropriate in Western cultures. But recent research challenges the effectiveness of “in your face” talk in conflict resolution, even in Western cultures. After all, Americans don’t want to lose face any more than Asians do. Once disrespect has been conveyed, the rela- tionship is damaged, trust is threatened, and the potential for retaliation increases. The message from collective cultures to American ne- gotiators: if you want to fix the problem and preserve the relationship, try the indirect approach. Gain concessions through status-based persuasion
  • 8. The second negotiation problem comes from an Octo- ber 2000 New York Times article by Leslie Kaufman about retail giant Wal-Mart and one of its suppliers, Rubbermaid. Wal-Mart is known for negotiating low- margin, high-volume contracts with its suppliers. When prices for the main component in Rubbermaid’s products began to skyrocket, the tight margins in the company’s contract with Wal-Mart became almost in- visible. Rubbermaid asked Wal-Mart to reopen the con- tract. We do not know the exact nature of Rubbermaid’s appeal to Wal-Mart, nor Wal-Mart’s response. But it’s not difficult to imagine that Rubbermaid made a ratio- nal appeal to Wal-Mart similar to choice A : “When we negotiated our contract, our raw-materials costs had been stable for years. The increase in oil prices was un- expected and beyond our control. We need to renegotiate.” A negotiator relying on rational- ity provides the other party with the facts of the situation as she sees
  • 9. them, with the goal of convincing the other side to make concessions. Often this Aristotelian-based factual, linear, and logical ar- gument consists of threats (such as, “If you don’t, then I will”) and promises (such as, “If you will, then I will”), which are based on perceptions of power associated with each party’s alternatives. Rubbermaid and Wal-Mart’s negotiation likely re- flected this rational approach. Ultimately, Wal-Mart did agree to increase the retail prices of Rubbermaid products; however, Rubbermaid did not have the power to keep Wal- Mart from moving Rubbermaid products from their dom- inant position in the store and replacing them with a com- petitor’s products. Choice B in this problem is a highly emotional ap- proach to persuasion more typical of Asian cultures. In this approach, persuasion is based on relationships and obligations rather than on rational argument invoking one’s alternatives. The persuasiveness of emotional ap- peals in Asian cultures can be explained by the prevalence there of collective and hierarchical values. In Asia, individ- uals are embedded in a context of social relationships that are often hierarchically structured. Emotional appeals are made to remind the other party of the existence of the rela- tionship, of the other party’s relatively higher status in the relationship, and of the social responsibility of high-status parties to help low-status parties.
  • 10. In negotiations with non-Western partners, status can be a more important source of power than alternatives. Al- though alternatives change over time, status is based on a long-term perspective. Rubbermaid’s assumed rational appeal to Wal-Mart was culturally correct because the par- ties were Westerners but would not have been appropriate if Wal-Mart had been a Japanese retailer. The message from Asian cultures: with status comes the responsibility to help your partners through lean eco- nomic times. When your alternatives are good, the West- ern approach to negotiation problems seems preferable. When they are poor, there is a great deal to be said for using status to prompt concessions. The problem with direct confrontation is that it often implies blame. Negotiation and Culture (continued) Negotiation January 2005
  • 11. 5 Use proposals to gain information Around the world, negotiators understand the need to find wise tradeoffs that improve outcomes for all. But how do you get the other party to reveal the information you need about preferences and priorities? Research shows that Western negotiators typically share information by asking questions about each other’s prefer- ences and priorities—assuming the other party is trustwor- thy and answering truthfully—and giving information to reinforce the exchange. This direct approach can be used to identify tradeoffs that can be accumulated into a final, multi-issue proposal. It reflects the Amer- ican preference for explicit, context-free communications. Now consider how managers in Ja- pan, China, Hong Kong, Thailand, and Russia glean information about one an- other’s preferences and priorities. Re- search conducted by Wendi Adair of Cornell University’s Johnson School of Management, Tetsushi Okumura of Shiga University in Japan, and one of the coauthors of this article, Jeanne M. Brett, found that Japanese managers made many more proposals than did U.S. managers. Subsequent research by Adair and Brett indicates that, beginning in the first quarter of their negotiation, non- Western negotiators were using proposals significantly more frequently than were Western negotiators. This dif- ference was sustained until the last quarter of the negotia-
  • 12. tion, when Westerners’ proposal rate rose to match that of non-Westerners. Gathering information about relative preferences and priorities from proposals requires highly developed infer- ential skills and a “big picture” approach. Doing so is com- mon in collective cultures, where context matters and indirect communication is the norm. When proposals in- clude all the issues in a negotiation, Western negotiators should be able to work effectively in this environment. But consider that Asian negotiators do not limit themselves to multi-issue proposals; they also make more single-issue proposals than Western negotiators. Drawing inferences from a pattern of single-issue proposals requires a heavy focus on context. Imagine a two-issue negotiation over price and deliv- ery. I offer a delivery date that you don’t explicitly reject; you then offer a price. Now it’s my turn to build toward a settlement based on my delivery date and your price. Sup- pose I make an alternative offer on price, keeping in mind my prior offer on delivery. If I track your reaction to these alternative proposals, I can start deducing what your pri- orities are. Westerners can do this cognitive work, of course—it is just a matter of preference regarding how to exchange information during negotiation. The message from Asian cultures: there is more than one way to get infor- mation in a negotiation. When negotia- tors are reluctant to share information directly, try proposals and look for the pattern of prefer-
  • 13. ences revealed by changes in the proposals over time. The stories in this article illustrate the marked differ- ences that exist in people’s approach to negotiations across cultures. Culture can feel invisible until we find ourselves negotiating using ineffective strategies in a foreign land. Understanding how cultural context affects negotiations will not only help you reach agreement abroad, but it also will allow you to expand your repertoire of negotiation strategies within your own culture. ✧ Jeanne M. Brett is the DeWitt W. Buchanan Jr. Distinguished Professor of Dispute Resolution and Organizations at Northwestern University’s Kellogg Graduate School of Management. She is the author of the award-winning book Negotiating Globally: How to Negotiate Deals Resolve Disputes, and Make Decisions Across Cultural Boundaries
  • 14. (Jossey-Bass, 2001). Michele J. Gelfand is an associate professor of psychology at the University of Maryland. Together they coedited The Handbook of Negotiation and Culture (Stanford University Press, 2004). They can be reached at [email protected] There is more than one way to get information in a negotiation. NEGOTIATION STRATEGY 4 Dealing with a Spoiler? Negotiate Around the Problem
  • 15. Sometimes the best way to deal with obstinate negotiators is to bypass them completely. Here’s how to execute an effective workaround. BY ROBERT C. BORDONE NEGOTIATION DYNAMICS 7 Taking BATNA to the Next Level By enhancing your best alternative to a negotiated agreement, you can gain a critical advantage at the table. BY GUHAN SUBRAMANIAN ACROSS THE TABLE 9 When Dividing the Pie, Smart Negotiators Get Creative Don’t settle for uninspired compromises. Find ways to modify and expand resources to achieve more value. BY DEBORAH M. KOLB AND PETER J. CARNEVALE RESEARCH SUMMARIES 12 The Heat of the Moment Do Attitudes Influence
  • 16. Results? C O M M U N I C A T I O N Negotiating Differences: How Contrasting Styles Affect Outcomes Not everyone bargains the same way. By becoming attuned to various social motives, you can adapt your own approach for the better. B Y L A U R I E R . W E I N G A R T H O W W O U L D Y O U D E S C R I B E your negotiating style? Are you a cooperative negotiator who focuses on crafting agreements that benefit everyone, or do you actively compete to get a better deal than your counterpart? Perhaps you follow a third route, concentrating only on maximizing your own outcomes with little concern for how the other side performs. In any given negotiation, your style has a stable compo-
  • 17. nent that comes from your disposition and personality; continued on page 2 some people are naturally more cooperative than others, for instance. Yet your style will also fluctuate depending on the situation and the person across the table. For example, you’re more likely to focus on maximizing joint gain when you’re negotiating a joint venture with a trusted colleague, than when you’re battling with other department heads over the annual budget. What happens when negotiators with different styles— or those with similar styles, for that matter—meet at the bargaining table? Are certain style combinations more desirable than others? Should you try to adapt your style to each negotiation? This article addresses these and other commonly asked questions about negotiation style and, in particular, illuminates the consequences of using coopera- tive versus more self-interested strategies. “What type of negotiator am I?” Differences in social motives, or one’s preference for certain
  • 18. types of outcomes in interactions with others, affect how individuals approach negotiation. Psychologists have iden- tified four basic types of social motives that drive human behavior in competitive situations such as negotiation: 1. Individualists are motivated to maximize their own outcomes without concern for the out- comes of others. About half of U.S. negotiators studied (typically students and businesspeople) have an individualistic orientation, making this the most common group. 2. Cooperators, comprising approximately 25% to 35% of U.S. study participants, are motivated to I N S I D E Negotiation and Decision-Making Strategies That Deliver Results A Newsletter Published by the Program on Negotiation at Harvard Law School
  • 19. Volume 10 Number 1 January 2007 maximize both their own and other parties’ outcomes and to ensure that gains are fairly distributed. 3. Competitives, comprising about 5% to 10% of U.S. study participants, prefer outcomes that maximize the difference between their own and others’ outcomes. They want to win—and by a wide margin. As a result, their behavior tends to be the most self-serving, and their lack of trust makes joint problem solving difficult. 4. Altruists seek to maximize the other party’s out- come without concern for their own. Altruists are difficult to find in today’s business world, so little research has been done on this motive in
  • 20. negotiation contexts. Because relatively few people fall into the latter two cate- gories, most of the negotiation literature has focused on indi- vidualists and cooperators; this article will as well. Carsten De Dreu of the University of Amsterdam, Seungwoo Kwon of Korea University, and I have found that individualists engage in more value-claiming behavior than do cooperators; specifically, they are more likely than cooperators to make threats (within limits), to argue and substantiate their posi- tions, and to make single-issue offers. Cooperators are more likely than individualists to engage in value-creating strate- gies such as providing information, asking questions, gaining insight into the other party, and making multi-issue offers and tradeoffs. However, cooperators sometimes act competi- tively, just as individualists sometimes cooperate. As I will explain, your counterpart’s approach can influence your own choice of strategy significantly. “What type of negotiator should I be?” Should a negotiator focus on maximizing her own out-
  • 21. comes, or should she take a more cooperative approach? Cooperative negotiators are more likely than hard bar- gainers to discover creative solutions that expand the pie of resources for both sides, as Catherine H. Tinsley and Kath- leen O’Connor concluded in their December 2006 Negoti- ation article, “Want the Best Deal Possible? Cultivate a Cooperative Reputation.” Furthermore, those who engage in cooperative strategies report higher satisfaction with the negotiation process and its outcomes than do more self- interested or competitive negotiators—and they build strong business relationships as a result. Cooperators are also more effective than individualists at using value-creating strategies to improve their own outcomes, my research with Mary Kern of Baruch College and Jeanne Brett of Northwestern University has shown. Why might this be true? It could be that cooperators appear more sincere than individualists when working to create value.
  • 22. Despite the proven benefits of cooperative behavior, many negotiators fail to engage fully in the process of maximizing joint gain. Some don’t gravitate naturally toward strategies aimed at meeting both sides’ interests. Others worry that cooperation leaves them vulnerable to exploitation. It’s tempting to draw conclusions about the relative advantages and disadvantages of particular social motives. Yet even if you were to change your approach, style differ- ences would continue to crop up in your negotiations. Your overarching social motive influences not only what strategies you use but also how you use them—and the same goes for your counterpart. Negotiating Differences (continued) 2 Negotiation Production and Marketing Circulation and Fulfillment pnmsi Production Manager Beverly Freeman Design Flanders + Associates Editorial Publisher Susan Hackley
  • 23. Managing Director Program on Negotiation Assistant Director James Kerwin Academic Editor Guhan Subramanian Managing Editor Margaret Bucholt Editor Katie Shonk Letters and editorial submissions: Send questions, comments, and proposals to Editor, Negotiation, Program on Negotiation, Harvard Law School, 1563 Massachusetts Avenue, 513 Pound Hall, Cambridge, MA 02138- 2903 or to [email protected] Subscription rates: To subscribe to Negotiation, visit www.pon.harvard.edu. $149/year in the United States; $169/year in Canada, Mexico, and all other coun- tries. Single newsletter issue, PDF only: $20; article, PDF only: $10. For discounts on group subscriptions (two or more copies to same location), call 800-391-8629 or e-mail [email protected] Service and permissions: Negotiation (ISSN 1546-9522) is published monthly by the Program on Negotiation, Harvard Law School, 1563
  • 24. Massachusetts Avenue, 513 Pound Hall, Cambridge, MA 02138-2903. POSTMASTER: Send address changes to Negotiation, Program on Negotiation, P.O. Box 230, Boyds, MD 20841-0230. To resolve subscription service problems, please call 800-391-8629 or 301- 528-2676. Copyright © 2007 by President and Fellows of Harvard College. Quotation of up to 50 words per article is permitted with attribution to Negotiation. Otherwise, material may not be republished, quoted, or reproduced in any form without permission of the Program on Negotiation. To request permission to copy, republish, or quote materials, please call 800-391-8629 or 301- 528-2676, or e-mail [email protected] Articles in this newsletter draw on a variety of sources, including published reports, interviews with practicing managers and consultants, and research by scholars, some but not all of whom are affiliated with Harvard University. Articles reflect the
  • 25. views of the author. Negotiation About this publication Negotiation offers subscribers practical advice and guidance for developing and honing skills in the art of negotiation. Published monthly, Negotiation’s editorial content is provided by academics from Harvard Law School, Harvard Business School, and other centers around the world. Negotiation is one of an array of teaching, training, and learning tools and services offered by the Program on Negotiation (PON) at Harvard Law School. About the Program on Negotiation The Program on Negotiation at Harvard Law School is a world- renowned inter- disciplinary center focused on negotiation and conflict resolution. Founded in 1983, PON is a consortium of faculty, students, and associates at Harvard University, the Massachusetts Institute of Technology, Tufts University, and other Boston-area
  • 26. schools. Drawing from numerous fields of study, including law, business, govern- ment, psychology, economics, anthropology, and education, PON connects rigorous research and scholarship with a deep understanding of practice. looming deadline. Some begin working to create value. This shift may help them reach an agreement, but they may not actually achieve high outcomes for themselves. Yet individualistic negotiating pairs can reach high- quality agreements, my colleagues and I have found. (See the sidebar “Individualists: Cooperate to Claim Value.”) “What if we have different social motives?” When a cooperator and an individualist bargain, the situa- tion grows more complex. In addition to engaging your own strategy, you must react and adjust to a style that may strike you as foreign or inappropriate. Notably, though, people in negotiation tend to converge in their approaches, which allows their interactions to become more predictable, Kathleen McGinn of Harvard
  • 27. Business School and Angela Keros of Goldman Sachs have found. Negotiators get in sync by purposefully reciprocat- ing each other’s approaches and subconsciously mimick- ing behaviors, my research with Michael Prietula of Emory University and Elaine Hyder and Chris Genovese of Carnegie Mellon University has shown. Whose social motive will dominate the “hybrid” style? Individualists will not dominate and outperform coopera- tors for the simple reason that a cooperator is not necessarily January 2007 3 “What if we have the same social motive?” When two people share the same motive, they fall prey to the same flaws and reinforce each other’s failings. Consider a labor negotiation in which the chief management nego- tiator withholds information about revenue projections, while the labor leader holds back details about workforce sentiment. Impasse is the predicable result. When you’re negotiating with a fellow individualist or a fellow coopera-
  • 28. tor, your goal should be to overcome the inherent flaws of your orientation. The case of two cooperators. Two cooperators who meet at the negotiating table risk concentrating so closely on each other’s interests that they lose sight of their own—and settle for outcomes that split the difference rather than truly satisfy both parties’ inter- ests. Imagine that a newly hired research analyst fails to ask his manager for a cutting-edge workstation for fear of appearing greedy. The manager, who has already been quite responsive to his requests, would happily provide the workstation were she aware of the potential upside. Unfor- tunately, this joint benefit goes undiscovered. My research with Mara Olekalns of the University of Melbourne and Jeanne Brett suggests strategies that can improve the outcomes of such negotiations. When you’re negotiating with a fellow cooperator, include value-claiming behaviors in your repertoire: make offers that focus on a sin- gle issue, communicate your own preferences and positions,
  • 29. and clarify your limits. When you claim value in a context of cooperation and trust, you focus the negotiation on explor- ing value-maximizing agreements—but be careful not to shift talks from problem solving into contentiousness. The case of two individualists. When two individualists negotiate, their natural ten- dency to use value-claiming strategies, such as making demands and threats, can escalate into conflict and impasse, Olekalns and Philip Smith of the University of Melbourne have found. As Katie A. Liljenquist and Adam D. Galinsky noted in their September 2006 Negotiation article, “How to Defuse Threats at the Bargaining Table,” people tend to reciprocate negative behaviors more than positive ones. As conflict increases, the odds of maximizing mutual gain decrease, as do your chances of maximizing individual gain. Suppose two individualists negotiate a joint venture. Although both parties may feel they got the best outcome
  • 30. possible, the resulting agreement will likely overlook syner- gies across the two organizations. An exception to this ten- dency sometimes emerges when individualists face a INDIVIDUALISTS: COOPERATE TO CLAIM VALUE What happens in negotiations between two individu- alists who care little about each other’s outcomes? Sup- pose an engineer and an industrial designer are arguing over the design of a car bumper. The designer cares only about whether the bumper matches the style of the vehicle; the engineer is concerned only about how the bumper connects to the front. After describ- ing the trouble he’s having with the existing design, the engineer presents a solution that the designer deems “ugly.” The designer threatens to involve her boss if the engineer doesn’t revert to a prior design You’re the engineer—what do you do? First, balance your value-claiming strategies by working to create value. Ask the designer to explain where she thinks the
  • 31. new design went wrong, and identify possible solu- tions and low-priority issues on which you can offer tradeoffs. Second, remind her that there’s hope for a solution if you both let down your guard and work together. Third, listen openly to the designer’s propos- als and try to build on them. Above all, ensure that your cooperative moves are reciprocated, or you’ll be vulnerable to exploitation. 4 Negotiation an individualist, you should avoid revealing too much information if none is forthcoming. Instead, reciprocate contentious behavior while signaling your desire to switch to cooperation. Merely identifying a tactic as unacceptable can neutralize it, assuming you provide a more effective course. If you’re an individualist, don’t lose sight of your ability to protect yourself from difficult opponents. Even when a
  • 32. solution is not immediately obvious, you’re likely to keep forging ahead. At the same time, pick up the signals your counterpart is sending. Reciprocate cooperative behavior, and don’t be overly wary until you are absolutely sure the other side can’t be trusted. � Laurie R. Weingart is a professor of organizational behavior at the Tepper School of Business at Carnegie Mellon University, where she has researched and taught negotiation skills for more than 15 years. She can be reached at [email protected] To order a reprint of this article, call 800-391-8629. a naïve negotiator. Brett, Olekalns, Smith, and I have found that cooperators are more sensitive than individualists to the approaches of others and more likely to adjust in response. They claim more value when negotiating with individualists. Much less sensitive to the negotiating environment, individualists tend to focus on claiming value regardless of their counterparts’ social motive. Individualists may not
  • 33. even realize they are negotiating with cooperative oppo- nents, who quickly switch tactics in response to competi- tive behavior. “How can I capitalize on my natural tendencies?” Rather than trying to overhaul your social motive completely, it makes more sense to work on strengthening your natural talents and practicing the best elements of other styles. If you’re a cooperator, this means capitalizing on your ability to detect others’ social motives and adapting your own approach accordingly. Although you shouldn’t immediately abandon problem solving when faced with Negotiating Differences (continued) N E G O T I A T I O N S T R A T E G Y Dealing with a Spoiler? Negotiate Around the Problem Sometimes the best way to deal with obstinate negotiators is to bypass them completely. Here’s how to execute an effective workaround. B Y R O B E R T C . B O R D O N E A
  • 34. T ONE TIME OR ANOTHER, most of us have confronted a fel- low negotiator who seemed intent on blocking even our most reasonable requests and actions. This was the sit- uation faced by Alexis, the CIO at a midsize publishing company. Phil, the company’s CEO, hired Alexis to create an online information system tailored to the needs of their largest customers. Phil promised to support Alexis as she implemented the new system and restructured the IT department. The two met on many occasions to negotiate issues related to cost, increased staff needs, impact on cus- tomers, and coordination challenges. Despite his promises of cooperation, in almost every meeting with Alexis, Phil proved to be a barrier to her problem-solving efforts. He repeatedly denied her request to increase the size of her staff, limited her authority, and delayed making important decisions. To her frustration and embarrassment, Alexis faced huge project delays, ris- ing costs, and low credibility throughout the organization. She felt stuck between two unhappy choices: accepting the
  • 35. status quo or starting another job search. In past issues of Negotiation, we’ve shown you ways to transform a difficult counterpart’s no into a hearty yes. But what happens when you’ve followed all this good advice and still find yourself faced with a perpetual naysayer? When interpersonal and tactical strategies fail to win over someone whose approval is essential to your goals, the negotiation may seem hopeless. Fortunately, there is an option of last resort. Consider crafting what I call a workaround—a strategic approach to getting what you need without the involvement or support of your adversary. What type of spoiler are you facing? When your best efforts fail to budge the other party in the right direction, you may be facing one of the three types of “spoilers” identified by Stanford University professor Stephen John Stedman. WATCH THE VEDIO : https://youtu.be/G__UzADcz3o
  • 36. Compare and contrast each of the negotiating styles from the article. Which do you think is most effective? When, how and why would you use that style? Name and describe each of the 5 negotiating tips from the video. Which do you believe is most beneficial and why? In order to score points you need to complete the assigned reading and answer the question from the reading assignment. Please feel free to do additional research on the topic. But, in all circumstances, make certain you document your source(s) of information. You may certainly disagree with what is in the assigned reading/video, but you must reference where you obtained your information, your opinion on the topic, and why you disagree. Just writing your opinion on a topic without doing the reading assignment will score you zero (0) points.