Monday, December 04, 2006

Negotiation Chapter 8:Global Negotiation

Chapter 8: Global Negotiation

The number of global negotiations is increasing rapidly. People today travel more frequently and farther, and business is more international in scope and extent than ever before. For many people and organizations, global negotiations have become the norm rather than an exortic activity that occurs only occasionally.

The American negotiating style Lebel tend to constrain our thinking and expectations such that we may perceive more consistency in the other person than actually exists, and labels may lock us into perceiving the other party’s behavior in a historically dated manner.
- How Non-Americans describe the American style. Tomy Koh, the former ambassador from singapore to the United States, noted The strengths of the American negotiators: 1) good preparations, 2) clear and plain speaking, 3) a focus on pragmatism over doctrine, 4) strong ability to recognize the other party’s perspective, 5) good understanding of the concession-making process, and 6) candid and straightforward communication.
- How American perspective on the American negotiating style. McDonald noted the weaknesses of American negotiators : 1) impatience, 2) arrogance, 3) poor listening skill, 4) insolarity, 5) legalism, and 6) naivete. On the other hand, he perceive the strengths of American negotiators: 1) friendliness, 2) fairness and honesty, 3) flexibility, 4) innovativeness, 5) pragmatism, 6) preparedness, and 7) cooperativeness.

What makes cross-border negotiations different?

There are two overall contexts that have an influence on cross-border negotiations:
1. Environmental context – includes “forces in the environment that are beyond the control of either party” that influence the negotiation. There are six factors that make global negotiations more challenging than domestic negotiations: Political and legal pluralism, international economics, foreign governments and bureaucracies, instability, ideology, culture, and external stakeholders.
2. Immediate context
· Relative bargaining power – one factor in cross-border negotiations that has received considerable research attention is the relative bargaqining power of the two parties in the negotiation.
· Levels of conflict – influence the negotiation process and outcome.
· Relationship between negotiators – the history of relations between the parties will influence the current negotiation.
· Immediate stakeholders

Hofstede’s dimensions of culture Hofstede’s research defines culture as the shared values and beliefs held hy members of a group, and is consideres the most comprehensive and extensive program of research on cultural dimensions in international business. He concludeed that foyr dimensions could summarize cultural differences: 1) individualism or colectivism , 2) power distance, 3) masculinity/femininity, and 4) ubcertainty avoidance.

How do cultural differences influence negotiations? Foster, drawing work by Weiss and Stripp, suggest that culture can influence negotiations across borders in eight different ways: 1) definition of negotiation, 2) selection of negotiators, 3) Protocol, 4) communication, 5) time, 6)risk propensity, 7)groups versus individuals, and 8) nature of agreements.

Culturally responsive negotiation strategies Several factors indicate that cross-border negotiators should not make large modifications to their approach:
1. Negotiators may not be able to modify their approach effectively.
2. Even if negotiators can modify their approach effectively, it does not mean that this will translate automatically into better negotiation outcome for their side.
3. Research suggests that negotiators may naturally negotiate differently when they are with people from their own culture than they are with people from other cultures.
4. Research gy Francis suggest that moderate adaptation may be more effective than “acting as the Romams do”

According to Weiss, when choosing a strategy, negotiators should be aware of their own and the other’s party’s culture in general, understand the specific factors in the current relationship, and predict or try to influence the other party’s approach. Weiss’s culturally responsive strategies may be arranged into three groups, based on the level of familiarity( low, moderate, high) that negotiator has with the other ‘s culture.
- Low familiarity : Employ agents or advisers, Bring in mediator(joint strategy), and induce the other party to use your approach.
- Moderate familiarity : Adapt to other party’s approach(unilateral strategy), and coordinate adjustment(joint strategy).
- High familiarity : Embrace the other party’s approach, improvise an approach, and effect symphony.

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