International Business Negotiations Conducting Negotiations and Managing Conflict.
-
Upload
joseph-adams -
Category
Documents
-
view
272 -
download
4
Transcript of International Business Negotiations Conducting Negotiations and Managing Conflict.
![Page 1: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/1.jpg)
International Business Negotiations
Conducting Negotiations and
Managing Conflict
![Page 2: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/2.jpg)
Learning Objectives
• Appreciate that miscommunication can create conflict across cultures
• Diagnose and explain causes of cross-cultural conflict
• Understand the positive role of negotiations as well as ways to manage cross-cultural conflict and the
• Explain the main stages of international negotiations and the impact of cultural values on negotiations
![Page 3: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/3.jpg)
Overview
• Cultural causes of conflict
• Managing conflict
• Understanding international negotiations
• Process of international negotiations
![Page 4: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/4.jpg)
Conflict
• When disagreements and friction arise in the course of interaction because of opposing interests or cultural differences
![Page 5: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/5.jpg)
Conflict is Common
• Many chances for distorted, confused, or missed messages
• Negotiation and diplomatic skills increasingly important
• American managers spend 20% of time on conflict issues• Higher for international environment
![Page 6: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/6.jpg)
Common Tasks That Produce Conflict
• Foreign labor strikes
• Negotiate with overseas vendors, clients, & partners
• Lobby governments
• Mediate relations with outside pressure groups
• Managing diverse employees
![Page 7: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/7.jpg)
Conflict and Business
• Not always bad
• Can be productive exchange
• Key is to understand role of culture
![Page 8: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/8.jpg)
Causes of Conflict
• Language• Poor translation or limited skills
• Lack of understanding cultural norms• Inappropriate behavior
• Decision-making• Centralized or Decentralized
• Culture’s propensity for conflict• Avoid or accept
![Page 9: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/9.jpg)
Types of Conflict Resolution
• Avoidance—ignore altogether
• Accommodation
• Compromise
• Collaboration
• Competition—face head-on
![Page 10: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/10.jpg)
A Typology of Conflict Styles
![Page 11: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/11.jpg)
Conflict Preferences
• Culture influences styles • Collectivists & high uncertainty cultures prefer
avoidance • Individualistic culture prefers competitive
• Cultural tendencies vary with WHO• Peers vs.. subordinates
• Individuals tend to stick with a style
![Page 12: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/12.jpg)
Conflict Preferences (Cont’d)
• Equity norm• To each according to what they deserve
• Equality norm• Each group member gets about the same
share
![Page 13: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/13.jpg)
Response to Conflict
• After negative action or conflict occurs, generally there is a direct or indirect request for repair
• Account giving is an explanation for the conflict
• Consideration for saving face
![Page 14: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/14.jpg)
International Conflict Management: Linking Culture and Face to the
Account-giving Process
![Page 15: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/15.jpg)
Account Giving
Mitigating—lower tensions
• Concessions—acknowledge & take responsibility
• Justification—acknowledge but unavoidable
• Ideological—acknowledge but necessary
• Refusal—resist acknowledgment
Aggravating—increase tensions
![Page 16: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/16.jpg)
The Use of and Reactions to Accounts in International Conflict: The Impact of Culture and Face
![Page 17: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/17.jpg)
International Negotiation
Process of communicating with another
person or group to make a joint decision or
reach an agreement
![Page 18: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/18.jpg)
Key Elements of Negotiations
• Multiple parties
• Mixed motives • Disagreements & common interests
• Movement of parties• Shifting of positions over time
• Reaching agreement as a goal
![Page 19: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/19.jpg)
Approaches to International Negotiation
• Macrostrategic• Focus on relative bargaining power of parties• Power can shift throughout process
• Comparative
• Focus on interactions during negotiations• Consideration of cultural factors
![Page 20: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/20.jpg)
Setting Up Shop in Developing Countries: How Negotiating Strength May Shift over Time
![Page 21: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/21.jpg)
Preparing for Negotiations
1.Never underestimate complexity
2.Gain in-depth cultural understanding
3.Seek outside help where needed
4.Ensure inside negotiator(s) have language skills
5.Consider team approach
6.Spend time necessary to prepare
![Page 22: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/22.jpg)
Framework for International Negotiations
I. Basic model used by negotiators
II. Perspectives on individual negotiators
III. Dispositions affecting interactions
IV. Views about the interaction process
V. Outcomes
![Page 23: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/23.jpg)
I. Basic Model Used by Negotiators
• How the negotiation process might be conceived
• A bargaining effort
• Joint problem solving or exploration
• A debate
![Page 24: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/24.jpg)
II. Perspectives on Individual Negotiators
• How negotiators are chosen
• Knowledge/experience
• Personal characteristics/status
• Aspirations of individuals
• Individual vs. Community goals
• Group decision making
• Authoritarian vs. Consensual
![Page 25: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/25.jpg)
III. Dispositions Affecting Interactions
• Time orientation• Monochronic vs. polychronic
• Risk-taking orientation• High vs. low
• How trust is determined• Intuition• Common experience• Reputation• Threat of sanctions• Basic model used by negotiators
![Page 26: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/26.jpg)
IV. Views About the Interaction Process
• Important of protocol• Formal vs. informal
• Complexity of communication• High vs. low
• Tactics for persuasion• Logic/facts/experience
• Dogma/tradition
• Emotion/intuition
![Page 27: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/27.jpg)
V. Outcomes
• Agreement preferences
• Contractual vs. implicit
![Page 28: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/28.jpg)
Successful Negotiations
• Preparation does not ensure success
• Negotiation style still plays significant role
• Training and preparation still best method
![Page 29: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/29.jpg)
Stages in the International Negotiation Process
![Page 30: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/30.jpg)
International Negotiation Process
1) Nontask sounding—establish rapport
2) Task-related exchange—exchange of background, needs and preferences
3) Persuasion—negotiation, attempts to modify positions
4) Agreement—conclusion and accord is reached
![Page 31: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/31.jpg)
Stage 1: Nontask Sounding
• Time needed to establish relationships
• Entertaining
• Establishing trust
• Status of negotiators
• Variations in importance across cultures
![Page 32: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/32.jpg)
Stage 2: Task-Related Exchange of Information
• Most important in some cultures
• Explanations of initial bargaining positions
• Differences in bargaining room across cultures
![Page 33: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/33.jpg)
Stage 3: Persuasion
• Attempts to modify other party’s position
• Most important step for U.S. negotiators
• Tactics used to persuade• Direct/honest – Threats• Bluffing – Misrepresentations
• Timing of concessions• Throughout or at end
![Page 34: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/34.jpg)
Stage 4: Agreement
• Concessions and persuasion culminating in agreement
• Importance of follow-through
• Final outcome• Use of formal written • Informal handshake
• Differences in notion of contracts
![Page 35: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/35.jpg)
Types of Behavior During Negotiation Process
• Substantive behavior—facilitates the negotiation process such as initiation, acceptance, rejection, accommodation, and retraction.
• Strategic behavior—influences the expectation and the actions of the other side such as commitment, exchange, demands, treat, ingratiation.
• Persuasive behavior—supports arguments and presents evidence in support of claims a negotiator makes such as the use of statistical information or expressive language.
![Page 36: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/36.jpg)
Types of Behavior During Negotiation Process
• Task behavior—promotes focus on the issue such as providing and requesting information, or clarification.
• Affective behavior—shows expression of feelings such as humor, irritability, or social correctness.
• Procedural behavior—moves the discussion along such as references to procedure or time.
![Page 37: International Business Negotiations Conducting Negotiations and Managing Conflict.](https://reader033.fdocuments.in/reader033/viewer/2022061605/56649e595503460f94b530a5/html5/thumbnails/37.jpg)
Behavior in the Stages of Negotiation: Differences Across Low- and High-Context Cultures