Power and Negotiation Wrap - Up

Global Negotiations/Neg. Challenge Power and Negotiation Agenda •Due Next Week-Last Assignment •Global Negotiations/ILM • Break • Synertek-Dosagen Double Challenge Negotiation Take Aways Assignment, 1-2 pages Negotiation as a Corporate Capability 1. Select an industry, firm, or job of interest 2. Describe one (1) typical negotiation situation in that industry/firm/job. 3. Develop a set of recommendations for a one or two-day negotiation-training curriculum in that industry, firm, or job See Ertel Article-Turning Negotiation… Global Negotiations Differences -Players and Process (corporate governance) -Protocol and Deportment (greeting, punctuality) - Deeper Values and Norms (style, preferences) -Players and Process In a U.S. transaction, merely owning enough equity often allows the acquirer to control the target. German corporate governance provides a structure in which other key players can block even a majority of Shareholders. -a supervisory board -labor -management board can prevent any single shareholder from voting with more than 5% of total company shares -Players and Process -Companies traded on the New York Stock exchange cannot increase their share base by a significant amount without shareholder approval. -French LVHM acquired 35% of Gucci -Gucci is based outside of the US -Gucci issues 20% new shares to employees -42% toFrench rival of LVHM Cultural Orientations Cultures shape people’s values and values influence the predictions that can be made about people’s negotiation preferences, interests, and behavior. • professional/functional area cultures • organizational culture • national culture • religious culture • ethnic cultures • gender expectations Cultural Iceberg Behavior Values, Beliefs, Norms Assumptions Eco-tourism Genuine Eco-tourism is environmentally sustainable and conservation supporting travel which supports conservation and benefits the local community. Eco-tourism is the practice of touring natural habitats in a manner meant to minimize ecological impact. It is tourism that benefits rather than exploits the natural and human environments in areas visited. It is active rather than passive, emphasizing cultural exchange rather than mere sightseeing. It is value-driven, as opposed to ordinary tourism, which is profit-driven. Multiple Cultural Frameworks • The Kluckhohn-Strodtbeck Framework • Hofstede’s Framework • Brett culture and negitioation Framwork The Kluckhohn-Strodtbeck Framework • Relationship to the Environment • Time orientation • Nature of People • Activity Orientation • Focus of Responsibility • Concept of Space Hofstede’s Framework • Individualism vs. Collective Orientation • Power Distance [equalitarianism vs. hierarchy] • Uncertainty Avoidance • Achievement vs. Relationship orientation [Assertiveness vs. Empathy] Cultural Values and Negotiation Norms • Individualism vs. Collective Orientation • Equalitarianism vs. Hierarchy •Communication: Direct vs. Indirect Individualism vs. Collective Orientation 1. Self- interested and completive tactics like bluffing more acceptable in individualistic culture 2. In-group favoritism is likely to be stronger in a collectively oriented cultures Individualism vs. Collective Orientation 3. people from individualistic cultures are more likely to make the fundamental attribution error (over estimate role personal characteristics have in behavior relative to situational influences) 4. people from collectively-oriented culture are traditionally more likely to cooperate in mixed motive situations than those from individualistically oriented cultures Equalitarianism vs. Hierarchy Chinese students in Hong Kong and American students were asked how they would respond to a conflict scenario. •Hong Kong students preferred relational bargaining (asking a superior, third party or a social group) •American students preferred an individual interests approach (offering information, asking the other person for more information, suggesting that the other party make a proposal) Communication: Direct vs. Indirect (a) [e.g., Asking direct questions vs. making a lot of proposals] • U.S. negotiators were more likely to reciprocate direct information. •Japanese negotiators were more like to reciprocate indirect information exchange. Communication: Direct vs. Indirect (b) •Asking direct questions is critical for efficient integrative solutions •Negotiators from Russia and Hong Kong (indirect communication countries) generated the lowest joint gain •Japanese negotiators (also from an indirect communication country) had high joint gains. They engaged in more direct information exchange (asking questions) than negotiators from Hong Kong or Russia. (Intracultural studies) Communication and Power US negotiators exchanged information directly and avoided influence intra- and interculturally Japanese negotiators exchanged information indirectly and used influence intrarculturally but adapted their behavior when negotiating interculturally . (more direct and less indirect information) Lower joint gains interculturally. Take aways 1. Key recognize difference in perceptions may exist a. Individualism vs. Collective Orientation b. Equalitarianism vs. Hierarchy c. Communication: Direct vs. Indirect 2. Observe, analyze, test your understanding of the situation, and be flexible • Your behavior may be interpreted in ways that you never intended. • You may interpret another’s behavior in a way it was never intended. Synertech-Dosagen Challenge You have •15 minutes to prepare •20 minutes to negotiate •15 minutes to Turn in forms and prepare •20 to try again with a new counterpart