MGMT 4070 Chapter 5 Study Guide

MGMT 4070 Chapter 5 Study Guide - NOTES 23 Feb 2008...

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NOTES 23 Feb 2008 International Operations: Cultural Context A. Negotiation Negotiation is a process of discussion between two or more parties aimed at reaching a mutually acceptable agreement. For long-term positive relations, the goal of negotiating should be to set up a “win-win” situation, bringing about results that are beneficial to all parties. Note: It is critical that negotiators avoid projective cognitive similarity assumptions that others perceive, judge, think, and reason in the same way despite cultural differences. Win-Win: Negotiating with you and your counterpart’s objectives in mind. The goal should not be to produce a winner and a loser but rather a decision that benefits both parties. B. The Negotiation Process (non-linear) Stage One : Preparation 1. A distinct advantage can be gained if negotiators familiarize themselves with the entire context and background of their counterpart negotiators, in addition to the specific subjects to be negotiated. 2. Managers first need to understand their own styles and then determine how their style differs from the norm in other countries. 3. Managers should find out as much as possible before hand about 1) the demands that might be made, 2) the composition of the opposing team, and 3) the relative authority the members possess. One strategy for dealing with obfuscated relative authority by your counterpart is to ask open-ended “business strategy” questions and interpret the response you receive – watch for body language and deference by others to a possible leader. C. Stage Two : Relationship Building 1. The process of relationship building is regarded with much more significance in most parts of the world than it is in America. In many countries, such as Mexico and China, it is personal commitments to
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individuals that form the basis for enforcement of contracts, rather than the legal system, as used in America. 2. It is usually recommended that those new to negotiating should use an intermediary—someone who already has the trust and respect of the foreign managers involved. D. Stage Three : Exchanging Task-related Information 1. In the next stage, exchanging task-related information, each side typically makes a presentation and states its position; a question-and- answer session usually ensues, and alternatives are discussed. 2. Negotiators should prepare for meetings by practicing role reversal. E. Stage Four : Persuasion 1. In the next phase of negotiations, persuasion , the hard bargaining starts. Typically, both parties try to persuade the other to accept more of their position and to give up some of their own. Often, some persuasion has already taken place beforehand in social settings and through mutual contacts. 2. Dirty tricks may be used in the persuasion stage of negotiation, including rough tactics designed to put negotiators in a stressful situation physically or psychologically.
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