Transcript Slide 1

Negotiating Behaviors
12 Dimensions of Negotiations in
Cross-National Situations
©2003 Bird & Metcalf
Negotiating Behaviors Framework
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Twelve dimensions pertaining to
negotiating behavior
Six categories
General model: Perceptions of negotiations of
issue type preferences
Team Dynamic: Characteristics of the
negotiating team and its members
Risk-Taking: Orientations toward risk in the
venture and mediating relationship risk
Procedure: Qualities that influence the style of
interaction between negotiators
Communication: Qualities that influence
communication among negotiators
©2003 Bird & Metcalf
Outcomes: The type of agreement preferred by
negotiators
Negotiating Behaviors Framework
General Model
Basic Concept of Negotiation
Most Significant Type of Issue
Risk-Taking
Team
Dynamic
Selection of
Negotiators
Influence of
Individual
Aspirations
Internal
Decision-Making
Process
Risk-Taking Propensity
Basis of Trust
Team
Dynamic
Procedure
Selection of
Negotiators
Orientation Toward Time
Concern with Protocol
Communication
Style of Communication
Nature of Persuasion
Outcome
©2003 Bird & Metcalf
Form of Agreement
Influence of
Individual
Aspirations
Internal
Decision-Making
Process
Negotiating Behaviors Framework
Dimensions
Negotiator’s Profile
Basic Concept of Negotiation
Distributive
Integrative
Most Significant Type of Issue
Task-based
Relationship-based
Selection of Negotiators
Abilities
Influence of Individual Aspirations
Individualist
Collectivist
Internal Decision-Making Process
Independent
Consensus
Orientation Toward Time
Monochronic
Polychronic
Risk-Taking Propensity
Risk Averse
Basis of Trust
External to the Parties
Concern with Protocol
Formal
Style of Communication
Low-context
Nature of Persuasion
Factual-Inductive
Form of Agreement
Explicit
©2003 Bird & Metcalf
Status
Risk Tolerant
Internal to the Relationship
Informal
High-context
Affective
Implicit
Basic Concept of Negotiation
Distributive
The distributive negotiator’s
goal: to establish dominance
Distributive negotiators believe
that
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One party gains at the
expense of the other – the pie
is fixed
There will be one winner and
one loser
Integrative
The integrative negotiator’s goal:
identify the underlying issues
and interests of both sides
Integrative negotiators believe that
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Tactics include:
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Take a hard-line approach
Seek to meet only one’s own
goals or interests
Maximize the benefit for one’s
side
©2003 Bird & Metcalf
Parties place different values on
the issues being negotiated
Parties can find effective tradeoffs by conceding less
important issues to gain on
more important ones – the pie is
not fixed
Tactics include:
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Adopt a creative, problemsolving orientation
Seeking solutions and outcomes
that benefit both parties
Most Significant Type of Issue
Task-based
Task-based negotiators:
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Spend most of their time
discussing specific
operational details
Tend to avoid discussions
involving the general
principles of a relationship
and broad objectives
Prefer to negotiate a contract
in an item-by-item way
Feel it is important to come
away with a clear
understanding regarding the
control, use, and division of
resources (ownership,
management, profits, etc.)
©2003 Bird & Metcalf
Relationship-based
Relationship-based negotiators:
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Spend most of their time
building trust & friendship
between members of each
team
Prefer to agree on the general
principles of a relationship
and broad objectives before
addressing specific details
Believe that a good
relationship must be
established before specific
details can be discussed
Will blend task issues into the
discussion, as the social
relationship develops
Selection of Negotiators
Abilities
Members are selected because:
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They have skills or expertise
that is relevant to a particular
negotiation
Examples of relevant skills:
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Education
Technical or scientific
knowledge
Legal training
Negotiating experience
Language fluency
The team comprises people who
are knowledgeable about the
project at hand and technical
advisers
©2003 Bird & Metcalf
Status
Members are selected because of:
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Who they are
Who they know
Examples of relevant
characteristics:
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Family background
Influential connections
Seniority
Age
Gender
The negotiating team comprises
senior high-ranking officials,
who have considerable
influence in their organizations
and/or communities
Influence of Individual Aspirations
Individualist
Individualist negotiators
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Are emotionally independent
from the organization
Are motivated primarily by
their own preferences, needs
& rights
Give priority to personal goals
May strive to achieve
outcomes that are in their own
best interests
May keep the organization’s
interests and goals in mind,
but will do so because they
expect personal reward &
recognition for their decisions
©2003 Bird & Metcalf
Collectivist
Collectivist negotiators
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Have a strong sense of identity
with and loyalty to the
organization
Are motivated primarily by the
norms & duties imposed by the
organization
Give priority to the goals of the
organization
Strive to achieve outcomes that
are in the organization’s best
interests; will do so with no
expectation of personal reward
or gain
Will assume joint responsibility
and/or receive joint recognition
for actions taken or decisions
made during negotiations
Internal Decision-Making Process
Independent
Decision-making power is
delegated to leaders or
other influential members
of the negotiating team
Leaders & influential
members of the team
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Have the authority to make
decisions independently
Do not have to take the
viewpoints of others into
account
©2003 Bird & Metcalf
Consensus
Decision-making power is
delegated to the entire
negotiating team
The team leader must
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Obtain support from team
members
Listen to their advice
Orientation Toward Time
Monochronic
Monochronic negotiators set
agendas for meetings
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They believe that outstanding
or contentious issues should
be resolved within an allotted
time frame
Adhere to preset schedules
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They schedule how long they
will stay in another country for
a series of meetings, which
creates psychological
pressure of having to arrive at
a decision by a certain date
Believe that time is money
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They tend not to mix business
with pleasure
©2003 Bird & Metcalf
Polychronic
Polychronic negotiators place
minor importance on the actual
clock time spent discussing and
resolving issues
Tend not to adhere to preset
schedules
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They feel that taking the time to
get to know their counterparts
and building a relationship is
more important
Believe that time is never wasted
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They tend to integrate taskoriented activity with
relationship-building activities
Concern with Protocol
Informal
Informal negotiators will adhere to a
much smaller, loosely defined set of
rules
Team members may
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Believe there are multiple ways to
respond appropriately to a situation
Have conflicting ideas about what is
appropriate
Team members
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Are not required to pay compulsive
attention to observing rules
Who deviate from protocol are not
necessarily criticized
Formal
Formal negotiators will adhere to
strict & detailed rules that govern
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Some examples of rules that govern
acceptable behavior:
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Dress codes
Use of titles
Seating arrangements
There is strong agreement on the
team about what constitutes
correct action
Team members
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©2003 Bird & Metcalf
Personal & professional conduct
Negotiating procedures
Hospitality extended to
negotiators from the other side
Must behave exactly according to
protocol
Are severely criticized for even
slight deviations
Risk-Taking Propensity
Risk Tolerant
Risk-tolerant negotiators are
interested in reducing risk
rather than avoiding it
altogether
Show greater willingness to
run the risk of failing to
come to an agreement
May be less likely to make
concessions
 May demand more
 May choose a strategy that
offers higher rewards but has
a lower probability of
success
©2003 Bird & Metcalf
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Risk Averse
Risk-averse negotiators
take steps to avoid the
risk of failing to come to
an agreement
In order to seal the deal
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May make concessions
May accept lower rewards
Basis of Trust
External to the
Parties
Trust that the other party will fulfill its
obligations because
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There is a signed contract
There is the sanction of law to
back it up
The written word is binding
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A deal is a deal
A trustworthy partner is one who
complies with the terms of the
contract, as originally written
Internal to the
Relationship
Trust that the other party will fulfill its
obligations because
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The contract is simply a symbol of the
bond between the parties who
drafted it
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©2003 Bird & Metcalf
They have invested in a relationship
that has been built up over time
They believe the other party is
committed to it
Less emphasis is placed on
detailed, written contracts
Negotiators expect that the other
party will consider unique &
changing circumstances over the
life of the relationship
A trustworthy partner is one who
strives to maintain the relationship,
possibly by modifying an existing
contract to reflect new
developments
Style of Communication
Low-Context
High-context negotiators
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Are tuned into & reliant on nonverbal cues
Tend to use language that is
indirect, ambiguous & understated
Expect others to notice & to
understand
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Unarticulated intentions & feelings
Subtle gestures
Other non-verbal or environmental
cues
Take it personally when others offer
direct criticism of
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Their company and/or its products
The proposal they have put on the
table
Will not conclude agreements with
business partners they do not like
©2003 Bird & Metcalf
High-Context
Low-context negotiators
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Are direct & to the point
Are literal
Tend to use language that is precise,
open & frank
Less likely to notice and to understand
non-verbal cues
Possible for them to conclude
agreements with people whom they
do not like personally
Nature of Persuasion
Factual-Inductive
Factual-inductive negotiators
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Base their arguments on empirical
facts
Use linear logic (if-then
statements)
Proof used to support persuasive
arguments includes
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Scientific evidence
Professional standards
Expert opinion
Costs
Market value
Other hard data
Believe the strongest case is made
by presenting one’s best
arguments first
©2003 Bird & Metcalf
Affective
Affective negotiators may base their
arguments on
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Abstract theory
Ideals
References to status & relationships
Appeals to sympathy
Develop their arguments indirectly
Evidence used to support persuasive
arguments includes
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Moral standards
Equal treatment
Tradition
Reciprocity
May start with peripheral arguments &
present their best arguments last,
after the other party has reacted
Form of Agreement
Explicit Contract
Favor & expect written, legally
binding contracts
A written contract
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Records the agreement
Definitively specifies what each
party has agreed to do
Believe that written agreements
provide the stability that allows
their organization to
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Make investments
Minimize the risk of business loss
©2003 Bird & Metcalf
Implicit Agreement
Favor broad or vague language in a
contract because they feel that
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Definitive contract terms are too
rigid to allow a good working
relationship to evolve
Definitive contract terms inhibit the
parties from exploring unexpected
or unusual opportunities for
improvement & success
It is impossible to anticipate &
document every conceivable
contingency, particularly with new
relationships
View the contract as a rough guideline,
not because they want to evade
responsibility but because the
relationship, not the contract is
primary
In some cases, an oral contract may be
sufficient
Negotiating Behaviors Framework
Dimensions
Negotiator’s Profile
Basic Concept of Negotiation
Distributive
Integrative
Most Significant Type of Issue
Task-based
Relationship-based
Selection of Negotiators
Abilities
Influence of Individual Aspirations
Individualist
Collectivist
Internal Decision-Making Process
Independent
Consensus
Orientation Toward Time
Monochronic
Polychronic
Risk-Taking Propensity
Risk Averse
Basis of Trust
External to the Parties
Concern with Protocol
Formal
Style of Communication
Low-context
Nature of Persuasion
Factual-Inductive
Form of Agreement
Explicit
©2003 Bird & Metcalf
Status
Risk Tolerant
Internal to the Relationship
Informal
High-context
Affective
Implicit
Universally Accepted Positive
Negotiation Style
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©2003 Bird & Metcalf
Build relationships; don’t do deals
Focus on interests, not positions
Listen for underlying intent
Create and claim value
Know yourself and the other negotiators
Learn how to communicate your
intentions
Maintain regular contact between face-toface meetings