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NEGOTIATION PROCESS. Negotiation and Communication. Communication has no determinate beginning or end Human communication travels through a variety of signals, not just words, and depends on the CONTEXT for its meaning - PowerPoint PPT Presentation
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NEGOTIATION PROCESS
Negotiation and CommunicationCommunication has no determinate
beginning or endHuman communication travels through a
variety of signals, not just words, and depends on the CONTEXT for its meaning
Context means the degree to which the communicator and listener share a common background of knowledge and experience
Communication depends on the competence of the communicators
Negotiation and CommunicationThe dimension of communication assume particular
importance in the cross cultural contextTo communicate with someone from a different
culture, one must learn not only the language but also the rules regarding how the language is used in different context and situations
Culture influences hand gestures, tones of speech, clothing and so on
A negotiator must understand the barriers so that effective communication can take place with some one from a different culture
Negotiation and CommunicationThe more we consider our views and
experiences to be absolute and universal, the less prepared we are to deal with people who have different background
Faulty attributions to others’ action or behavior and stereotyping can also cause barriers to cross cultural communications
Stereotyping can be a powerful barrier in cross cultural communication globally
Negotiation and CommunicationMexican PerceptionAmericans are:
ReservedRush/Time ConsciousRealistic/HardheadedTeam workerQuality-consciousUnemotionalSerious/Business LikeSelf-controlled
Taiwanese PerceptionAmericans are:
Friendly/OutgoingRelaxed/EasygoingOptimisticIndependentOutput-OrientedEmotionalFun-loving/JokingSelf-indulgent
CROSS CULTURAL
NEGOTIATIONS
RELATIONSHIP
BUILDING
EXCHANGE OF TASK
REALATED INFN
PERSUASION
CONCESSION
AG
MT
US-Japanese Negotiation
US-Japanese NegotiationHIGH
LOW
IMP
OR
TA
NC
E
1
2
34
12
34
TIME
1 Building Relationship
2 Information Exchange
3 Influence Bidding
4 Conclusion and Contract
Americans Japanese
ZONE OF ACCEPTANCE
A’s Zone of Acceptance
B’s Zone of Acceptance
AG
RE
EM
EN
T
MANAGING NEGOTIATIONS – Unequal Powers
MANAGING NEGOTIATIONS
Foreign Investor
Host Country
Time
Bargaining Power
Managing Negotiations- Equal Powers
Managing Negotiation – Equal Powers
Time
Bargaining Power
Host Country
Foreign Investor
Steps in Negotiation
PREPARE
DISCUSS
SIGNAL
PROPOSE
OFFER
BARGAIN
CLOSE
PREPARINGHave you decided
your objectives?Have you prioritized
them?Are they realistic?What are your
opponents objectives?Do you have any
information regarding your opponents attitudes, personality, assumptions etc?
Is your strategy simple and flexible?
In a group negotiation, have each members tasks been clearly defined?
Always try to avoid interrupting, talking too much, using sarcasm and threats.
Practice listening, summarizing
II - DISCUSSION
III- SIGNALLING IV - PROPOSING
Is your signal generating some movement?
What signals have you made?
If your signals have been ignored, have you tried rewording them?
Are you listening attentively for your opponents’ signals?
What is the language you are using to convey your proposal?
Have you itemized your proposal?
While receiving a proposal ensure that you do not interrupt it.
V- OFFER VI- BARGAINING
Before making an offer review your opponents and your own objectives
How can your offer meet all/some of your opponents inhibitions/objectives?
Have you considered all the possible variables in your offer?
Everything must be conditional
Decide what you require in exchange for your concessions?
Keep all unsettled issues linked?
VII- CLOSING & AGREEING
Decide where you intend to stop trading
What type of close are you going to use?
Always list the agreement in detail.
If the agreement is oral, always send a written note to your opponent, as soon as possible after the meeting.
Principles of NegotiationNegotiation is about bargaining to reach a
mutually agreeable outcome. Thus your endeavor should be a win-win outcome for both the parties.
Never neglect your preparation and you must have a clear plan. It is also advisable that you select the right starting point.
All the participants of the negotiation must regard each other as equals as mutual respect is essential to both the conduct and the outcome of negotiation.
Always keep in mind that negotiation is not a debate but a discussion. Therefore, each person must ‘fight his corner’ without trying to over-dominate or show one-upmanship.
Principles of NegotiationPatience is a key characteristics of a good
negotiation, thus take your time and do not rush into decision making. Delay is much better than poor outcome.
Empathy is another vital characteristics, therefore see things from other’s point of view objectively.
State clearly your objectives and take a feedback as to whether the other person has clearly understood your objectives or not.
Avoid confrontation and avoid getting into a corner you cannot get out of. When you have to disagree, do it carefully. When you have to make concessions, make them one at a time, unwillingly.
Principles of NegotiationAim high, and settle as high as possible.
Know when to drop the whole thing rather than agree to a totally inappropriate deal.
Maintain you stamina.Never underestimate people.End positively. Neither party will get exactly
what they want, but the deal should be agreeable.
Communications in negotiationNegotiation requires you to be a very good
communicator.If the objective of communication is Win-Win
Situation, then you should show empathy with the other person.
If we consider empathy and overall projections (ie how you come over to others by your tone, language etc), we can have four kinds of communications in negotiation.
HIGH PROJECTION
LOW PROJECTION
HIGH EMPATH
Y
LOW EMPATH
Y
IDEAL/
ASSERTIVE
WEAK/NON
PERSUASION
HIGH
PRESSURE
LITTLE IN
TEREST