International Management: Chapter 5

process of discussion by which two or more parties aim for mutually acceptable agreement
For long term positive relationships what should the goal be?
win-win situation
negotiation process
relationship building
exchange of task related information
concessions and agreement
– need to understand differences in negotiating behaviors and reasons for what behaviors?
use of emotion or subjective feelings in negotiations
use of factual and non-personal information in negotiations
when managing negotiations what must someone do?
– Understand other parties goals (guided by principle or specific details, composition and power of opposing team)
– Avoid person related conflicts
– Gain specific knowledge of other parties and cultures
– Practice active listening
– Be innovative (skillful negotiators make twice as many concession regarding long term issues, consider internet resources)
Negotiation Support Systems (NSS)
-provide support for negotiation process by:
• Increasing likelihood of that agreement is reached when parties agree
• Decrease direct and indirect costs of negotiation
• Maximize chance of optimal outcome
• Advantages include speed, less travel, ability to express more objective info over time
• Disadvantages include lack of trust and relationships over time, loss of nonverbal nuances, opening offers seem too aggressive in email form, risky behavior, no social context cues
Conflict resolution: Low context
conflict handled directly, conflict seen as separate from negotiators, negotiate based on facts and logic
• Instrumental-oriented conflict – negotiation based on fcts and logic
• Instrumental-oriented conflict
– negotiation based on fcts and logic
Conflict Resolution: high context
direct handling of conflict is considered insulting, use emotional appeals
• Expressive-oriented conflict – situation handled indirectly and implicitly, without clear distinction between the situation and the person handling it.
stages in decision making
• Defining the problem
• Gathering and analyzing relevant data
• Considering alternative solutions
• Deciding on the best solution
• Implementing the decision
Cultural factors that affect decision making
• Approach –
• Risk tolerance
• Locus of Control over outcomes
• Traditional solutions vs. innovative solutions
objective (rational) vs. subjective (emotional)
risk tolerance
– high or low
Locus of control over outcomes
– internal or external – does the manager think they have control over future events or is determined by fate