Negotiation

12 Key excerpts on "Negotiation"

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  Patterns of Internationalization for Developing Country Enterprises (Alliances and Joint Ventures)

  • (Author)
  • 2012(Publication Date)
  • United Nations Industrial Development Organization (UNIDO)

    (Publisher)

  157 International business Negotiations 4 159 4.1 International business Negotiations 4.1.1 Introduction; principles of Negotiation Negotiation is a process by which the parties involved aim at reaching agreement on matters of common interest. The need for negotiating is present in much diversified circumstances, from current situations that happen in day-to-day private life to events that unfold in the international political arena. Every agreement is an expression of the mutuality of interests of the contracting parties; however, the same agreement is also an expression of their conflicting interests, which call for concessions and compromise. Furthermore, there might be criteria and constraints imposed on the negotiating par- ties as a result of the legal and institutional environment where the agreement is to be implemented; and, when negotiating, each of the parties has to keep in mind the possi- ble existence of competitors for a deal with the other party, as there might be substitutes for what is aimed at in the Negotiation. All these elements define the Negotiation context, as illustrated in figure 4.1. Figure 4.1 Elements that shape the Negotiation outcome On the basis of the agreement they make, the parties gain rights and obligations. The measure of these rights and obligations depends to a great extent on the parties, on their knowledge of the subject and on how they set about and implement the Negotiation process. Parties who approach Negotiations with a belief that their mutuality of interests will automatically lead to a balanced and satisfactory outcome may sooner or later become deeply and bitterly disappointed. In business Negotiations parties position themselves to influence the power balance in their future relationship, and those not skilled enough will get less than they expect and even deserve.

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  Strategic Corporate Negotiations

  A Framework for Win-Win Agreements

  • Andrea Caputo(Author)
  • 2019(Publication Date)
  • Palgrave Pivot

    (Publisher)

  That is Negotiation. Negotiations are essential and fundamental for businesses. Improving Negotiation skills, as well as increasing the ability to negotiate effectively, is crucial in the managerial, political, and business contexts. It is commonly acknowledged within the literature that Negotiation is a process through which two or more parties could reach a needed joint decision while having different preferences (e.g., Fisher et al. 1981 ; Lax and Sebenius 1986 ; Lewicki et al. 2014 ; Pruitt 1981 ; Raiffa et al. 2002 ; Rubin and Brown 1975 ; Zartman 1977). Due to the interdependence, which reigns over and inside multi-actor decision processes (J. D. Thompson 1967), Negotiation outcomes are affected by all the decisions made by all the parties involved. It is quite straightforward how, whatever approach we take, the strategy-making process is permeated with a series of Negotiations that surround the decisions taken. A Negotiation process underlies board meetings where C-level managers take corporate strategic decisions. At the same time, the information brought to the board are the result of a negotiated process where managers strategically decide how to approach the board meetings. Similarly, if we look at any strategy textbook, almost any preparatory activity of analysis to support the strategy-making process can be associated with a Negotiation. The same happens when we move the level of analysis to the implementation of strategy. Managers negotiate with each other on how the strategic implementation takes place; they also negotiate at the external of the organization to put the strategy in action, for example, with suppliers, customers, lobbying organizations, and all the stakeholders one can imagine. Given those almost obvious thoughts, everyone with managerial experience would agree that Negotiation seems to be left quite aside from strategy literature

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  The Guide to Entrepreneurship

  How to Create Wealth for Your Company and Stakeholders

  • Ph.D Szycher(Author)
  • 2018(Publication Date)
  • Productivity Press

    (Publisher)

  153 Chapter 8 Power Negotiations “He who pays the piper calls the tunes.” The word Negotiation is derived from the Latin “ negotiatus ,” which is past participle of “ negotiare ,” meaning “to carry on business.” It is also related to “ negotium ” or “ necotium ” literally meaning “without leisure.” A Negotiation is a dialogue between parties, intended to reach an understanding, resolve a point of difference, or gain an advantage, to produce an agreement upon courses of action, or to satisfy various interests of parties involved in the process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation aims at a suitable compromise, in which parties can resolve their opposing interests. Unlike litigation, business Negotiation requires the consent of both par-ties. For this reason, negotiating involves the management of expectations. Both parties need to undertake Negotiations with realistic expectations—not outcomes, but expectations. In mathematical terms, we can express this Negotiation principle thusly: Negotiation Expectations = Satisfaction = Δ (anticipation – reality) 8.1 Business Negotiations 101 “You can get much further with a kind word and a gun than you can with a kind word alone.” —Al Capone The term “negotiating in good faith” is more of a legal principle than a fac-tual case. Negotiations occur primarily for three main reasons: (1) the need 154 ◾ The Guide to Entrepreneurship: How to Create Wealth for Your Company to agree on how to share or divide a limited resource, (2) to create some-thing new that neither party could attain on their own, and (3) to resolve a problem or dispute between the parties. Negotiation should be contrasted with mediation , where a neutral third party evaluates each side’s arguments and attempts to reach a “suitable” or “fair” agreement between the parties.

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  Political and Civic Leadership

  A Reference Handbook

  • Richard A. Couto(Author)
  • 2010(Publication Date)
  • SAGE Publications, Inc

    (Publisher)

  81 N EGOTIATING K IMBERLY A. H UDSON Air University N egotiations are a pervasive activity in human relations, including family and social life as well as legal, business, political, military, and diplo-matic affairs. Scholars from all of these fields and others, including psychology and communication, have developed unique approaches to analyzing and teaching Negotiation. The systematic study of Negotiation has expanded and flourished across several disciplines, most notably since the early 1970s. Some reasons for the increased interdisciplinary interest in Negotiation include overburdened courts (Kriesberg, 2007, p. 35), interdependence, competition, the information age, and globalization (Thompson, 2005, p. 3). Additionally, the study of Negotiation as a process has grown out of an emerging consensus around the “idea that conflicts often could be restructured and reframed so that partisans would regard conflict as a shared problem that had mutually acceptable solutions” (Kriesberg, 2007, p. 35). Although there is voluminous and varied literature on the history, significance, and theory of Negotiation from different disciplinary perspectives, a common core of concepts has been identified as foundational across the canon of Negotiation. An introductory, undergraduate course on Negotiation in law, business, political science/public policy, psychology, or communication would address at least the following topics (Schneider & Honeyman, 2006, p. 726): 1. Differences between distributive and integrative Negotiation 2. Varieties of Negotiation strategies 3. The process of cooperative Negotiation, including brainstorming and option creation 4. Technical concepts relevant to the Negotiation process, including the best alternative to a negotiated agreement (BATNA), aspiration and reservation points, and bargaining zones 5. The importance of preparation This chapter focuses on this common core of concepts and suggests resources for additional study.

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  International Negotiation

  Process and Strategies

  • Ho-Won Jeong(Author)
  • 2016(Publication Date)
  • Cambridge University Press

    (Publisher)

  In Chapters 10 and 11 , we will look at how the increased number of disputants and issues, as well as the presence of interveners, has a direct bearing on the behavior and strategies of all participants. In this chapter, Negotiation functions are examined in light of the way they are instru-mental in reaching a joint decision by overcoming substantial differences. A negotia-tion process is, in part, presented as segmented into a trend or a series of uninterrupted 108 Negotiation process, behavior and context events, ranging from decisions on coming to talks, putting a serious offer on the table or reaching a closure rather than continuing to haggle. Such activities as information exchange, debate and bartering are involved in developing agreement packages. How-ever, these activities are embedded in an overall mechanism of interactive dynamics of negotiating parties. Noncooperative nature of Negotiation In the relatively simplified world of game theory, players reason their way toward “settle-ment” (e.g., the equal division of surplus value) predicated on common knowledge and beliefs (Aumann 1987). In a real-world Negotiation, such a premise may not be work-able, requiring a refinement. Unfortunately, cooperative game theories do not explain how parties obtain understanding about each other’s alternatives and, in particular, how they overcome a stalemate when differences arise. 1 A bargaining theory’s axiomatic foundation is shown to be insufficient for dealing even theoretically with situations where impasses set up tensions. Thus good communication needs to be incorporated as an integral part of bargaining (Rapoport 1974 ). Below is an example of difficulties in honest communication at a critical juncture in Negotiations, the failure of which could have blown up the entire world.

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  Contemporary Corporate Strategy

  Global Perspectives

  • John Saee(Author)
  • 2007(Publication Date)
  • Taylor & Francis

    (Publisher)

  a process in which at least one individual tries to persuade another individual to change his or her ideas or behavior and it often involves one person attempting to get another to sign a particular contract or make a particular decision. Thus Negotiation is the process in which at least two partners with different needs and viewpoints need to reach an agreement on matters of mutual interest.

  (5:152)

  Meanwhile, Acuff has defined Negotiation as the process of communicating back and forth for the purpose of reaching a joint agreement about differing needs or ideas. Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them (1).

  Arising from the foregoing definitions is the question whether the same applies to cross-cultural Negotiation, an important issue that this chapter is dedicated to exploring in some detail.

  Cross-cultural Negotiation defined

  A Negotiation becomes cross-cultural when the parties involved belong to different cultures and therefore do not share the same ways of thinking, feeling and behaving (5). Thus, the meaning of the term Negotiation and what it connotates can significantly vary from one culture to another. For example, Americans view Negotiations as an opportunity to resolve contentious issues; Japanese, Chinese, and Mexican cultures view Negotiations as a vehicle to establish a relationship resolving problematic issues is never the first goal (25).

  All global Negotiations are cross-cultural. Some domestic Negotiations, in spanning across two or more ethnic groups, are also cross-cultural. Global Negotiations contain all of the complexity of domestic Negotiations, with the added dimension of cultural diversity (2).

  Cross-cultural Negotiations can be very intricate, as each culture, whether it is a high or low context culture, has its own distinctive approach relating not only to the negotiating process but also to their individual and religious practices, idiosyncrasies and expectations, with each culture cohering to their own norms, values, laws and beliefs, impacting on the outcome of the agreement. Members of different cultures focus on diverse aspects of an agreement, for example, one may focus on the legal side and the other on the personal aspects. In some cultures, documenting the agreement is significant while in others the process and actual implementation is the focal point (13). For example, Americans negotiate a contract, while the Japanese negotiate a personal relationship. This is all due to the differences in cultural values and norms which stems from the dissimilarity in individualistic cultures, such as the USA, and collectivist cultures, namely Japan (23).

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  Communication Skills for Effective Management

  • Owen Hargie, David Dickson, Dennis Tourish(Authors)
  • 2017(Publication Date)
  • Red Globe Press

    (Publisher)

  The more reasons given to justify an argument, the more likely it is that the other side will find (and exploit) weaknesses in one of them. Skilled negotiators have been found to advance a single reason insistently and only if they begin to lose ground do they introduce a subsidiary argument. 105 Overview Conflict in some form seems to be part of organisational life. The process of management invariably involves keeping this disharmony at a level where it does not intrude in dysfunctional ways into the smooth running of the operation. Negotiating is one approach to accomplishing this task and managers are unlikely to be successful if they are weak in this area. Negotiating is typically seen in classic pose as an essentially antagonistic activity in which those engaged play the roles of opponents or enemies, each out to defeat the other. But it does not have to be this way. In most negotiating situations there is scope for co-operation to secure a win–win outcome for the benefit of all. Negotiating and bargaining 207 In any event, the strategy adopted has implications for the shape of the Negotiation and the characteristic stages that it passes through. Generally the process should begin with planning and preparing and move through phases of opening, exploring issues, bargaining and finally reaching settlement. The ultimate success of this outcome is dependent on the level of skill of the participants. Skilled negotiators tend to be able to control emotion, build trust, gather and share infor-mation effectively, introduce clarity into the proceedings, and operate through rationality and the weight of logical argument. In so doing, they engage in labelling behaviour, testing understanding, summaris-ing, seeking information and disclosing their feelings and intentions (real or otherwise). They avoid the use of irritators, defend/attack spirals and immediate counter-proposals.

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  Negotiation in Groups

  • Jennifer Overbeck, Elizabeth A. Mannix, Margaret Ann Neale, Elizabeth A. Mannix, Margaret Ann Neale(Authors)
  • 2011(Publication Date)
  • Emerald Group Publishing Limited

    (Publisher)

  Negotiation is a task in which people make interdependent decisions in a mixed-motive environ-ment. A common feature of Negotiation is that there is generally some information that is shared, but other information that is unshared. In particular, information about parties’ alternatives and reservations prices (i.e., their ‘‘bottom line’’) is generally private ( White & Neale, 1991 ). Moreover, many (but not all) Negotiations involve multiple issues and information about each party’s priorities and relative weighting of issues are likely to be hidden from their counterpart. Negotiation differs in two important ways from the tasks that have been used to study group versus individual task performance. First, the correct answer is not demonstrably correct. Because there is private information, it is not usually clear to negotiators whether the deals they reach are optimal with respect to pareto-efficiency. Second, unlike decision-making tasks in which the primary goal is to get the ‘‘right’’ answer, negotiators may have Negotiating Teams 7 other goals, such as beating the other party, maximizing their own individual gains, or for that matter, maximizing joint gains (cf. Kelley & Thibaut, 1978 ; Messick & McClintock, 1968 ; Van Lange, 1999 ). Most of the research comparing team and solo negotiators has used the induced preference paradigm introduced by Hal Kelley (1966) . In this paradigm, two parties negotiate two or more issues. The two negotiators have opposing interests, which creates the basis for task conflict and the necessity for Negotiation given that both parties must agree for a solution to be binding. Unbeknownst to the players, however, there exists an elegant opportunity to trade or ‘‘logroll’’ some of the issues in a way that increa-ses negotiators’ individual profit as well as the overall, joint profit.

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  The International Manager

  A Guide for Communicating, Cooperating, and Negotiating with Worldwide Colleagues

  • Frank Garten(Author)
  • 2015(Publication Date)
  • Productivity Press

    (Publisher)

  We were prepared to outsmart the other side of the table with our tactics. Over the years, a pattern of win-lose Negotiations had been established with this client, and our assump-tion was that we had to win the Negotiations by using tactics that were smarter than our opponent’s. Alas, the client proved to be smarter again: this mistake had just cost us about $1 million. 11.1 TWO TYPES OF NegotiationS Negotiation is about conflicting interests between two or more parties for which a solution acceptable to both parties has to be found. These negotia-tions can be about anything where two parties have different interests: the price of a new bicycle, delivery of a few tons of steel to a construction com-pany, or solving border conflicts between two countries. Also, temporar-ily making available a few of your engineers for a different business unit within your company is done through Negotiation: there are conflicting interests everywhere, and the toughest Negotiations are often internal. A lot of the commercial Negotiation approaches, strategies, and tactics apply to internal Negotiation with stakeholders as well. More details about this are presented in Section 11.9. To determine the best Negotiation strategy you need to understand the aims of both parties: What are they after and when will they be satisfied with the result? We distinguish between two kinds of Negotiations: distributive and integrative Negotiations. These have already been introduced in Chapter 4. In this chapter we discuss these two extremes in more detail, and give guidance to the cultural aspects of using both forms of Negotiation. 11.1.1 Distributive Negotiations The characteristic feature of distributive Negotiations (also referred to as positional bargaining (Fisher and Ury 1999)) is that a fixed amount of 318 • The International Manager goods or services is to be divided between two parties (Figure 11.1).

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  Rethinking Organizational and Managerial Communication from Feminist Perspectives

  • Patrice M. Buzzanell(Author)
  • 2000(Publication Date)
  • SAGE Publications, Inc

    (Publisher)

  4 Rethinking Negotiation Feminist Views of Communication and Exchange Linda L. Putnam Deborah M. Kolb One type of social interaction that has become an essential skill for all walks of life is Negotiation. At one time, Negotiation was viewed as a sordid affair associated with haggling, bartering, and back-room deal making (Kolb & Putnam, 1997). It is now a ubiquitous activity used in solving problems, shar-ing resources, and making decisions in multiple settings, including family and work environments. In the work setting, Negotiation is often the primary form of interaction for hiring, making work assignments, deliberating on budgets, and enacting group decisions. It is not only central to labor-management rela-tionships but is also the mechanism for developing organizational contracts and trade agreements. In an era characterized by corporate mergers and new organizational forms (McPhee & Poole, in press), Negotiation is clearly an essential and complex communication skill. Negotiation is also a special type of social interaction, one that differs from group decision making (Putnam & Roloff, 1992). These differences stem from the characteristics of perceived incompatibility, interdependence be-AUTHORS' NOTE: We would like to thank Steve Wilson for his comments on this chapter. 76 Feminist Views of Communication 11 tween parties, and simultaneous cooperative and competitive relationships. Social interactions in traditional Negotiations, then, rely on e x c h a n g e s of pro-posals and counterproposals, making arguments for preferred o u t c o m e s , and developing strategies and tactics to obtain desired ends. These assumptions and characteristics contribute to the conception of bar-gaining as a scripted activity ( O ' C o n n o r & A d a m s , 1996). That is, individu-als enter a Negotiation with a prototype of standard actions.

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  Effective Negotiation

  From Research to Results

  • Ray Fells(Author)
  • 2016(Publication Date)
  • Cambridge University Press

    (Publisher)

  One important lesson is that good preparation contributes to both dimensions of satisfaction. For both workplace Negotiation and business Negotiation more gen- erally, it is important to keep the Negotiation in context. If negotiators get to the point where reaching agreement is all that matters, then they risk poor outcomes. It is necessary to prepare strategically for the Negotiation, fully understanding where this particular Negotiation will contribute to the overall goals of the organi- sation or the people you are representing. This strategic intent must be maintained throughout the Negotiation. Finally, as with any Negotiation, it is important to review it – perhaps through an audit process – so that the process can be improved and the negotiators will become more skilled and effective. ■ ■ Discussion questions 1 Think about a time when you have negotiated with your employer – perhaps to get a job, or to sort out what shifts you will work, or to try to change your job responsibilities. How well did it go? What effect do you think the workplace context had on how the Negotiations went? If they went well, what can be learned for next time? 2 What are the differing pressures on management and union negotiators when they sit down to negotiate the pay and conditions of employees? What qualities and skills do you think an employee representative needs? 3 Explore a possible relationship between negotiator motivations (to maintain demand and to reach agreement) and the notions of deal prospecting and deal- making. (Perhaps have another look at Chapter 4 as you seek to answer this question.) Preparation Information exchange Solution seeking Concession management Satisfaction with the process Satisfaction with the settlement FIGURE 12.6 Practitioner negotiators’ satisfaction

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  Communication Yearbook 21

  • Michael Roloff(Author)
  • 2012(Publication Date)
  • Taylor & Francis

    (Publisher)

  Though relatively few in number, studies in Group B point to the heuristic potential of the investigation of the contextual intricacies of intercultural business Negotiation. As we begin to understand the contingencies affecting culture-based Negotiation behaviors, we progress toward a fully inclusive theory of intercultural business Negotiation. For example, other contextual features should be investigated, such as team size and makeup, power relationships within and across Negotiation parties, constituency relationships (Roloff & Campion, 1987), prior knowledge, preparation and training of the parties (Eliashberg, Gauvin, Lilien, & Rangaswamy, 1992), number and importance of the issues to be negotiated, time constraints, language abilities (Bell, 1988; Marriott, 1995), type of preNegotiation agreements (Klein & Bachechi, 1994), translation, interpretation, use of computer or other technologies, levels of trust (Graham et al., 1994), and negotiator age (Davis & Triandis, 1965).

  Studies in Group B, however, also highlight a potential pitfall of this line of research—generalizability. The phenomena in this category are studied in laboratory settings using student subjects who are typically inexperienced in business Negotiations. Adler and Graham (1989) cite support for significant differences between the Negotiation behavior of students and that of businesspeople. Thus, although these studies may have adequately assessed cultural influences, the representativeness of negotiating strategies is called into question. Nevertheless, the tradition continues as researchers have great difficulty obtaining naturalistic data due to unavailability and issues of confidentiality (Bangert & Pirzada, 1992; Kale & Barnes, 1992), as well as the high monetary and time investments involved in gaining access (Limaye & Victor, 1991; Pruitt & Carnevale, 1993). An initial and obvious challenge for future research is to pursue naturalistic data, and thus gain insight into the development and emergence of issues rather than reactions to researchergenerated scenarios.

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