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Learning Objectives. Appreciate that miscommunication can create conflict across culturesDiagnose and explain causes of cross-cultural conflictUnderstand the positive role of negotiations as well as ways to manage cross-cultural conflict and theExplain the main stages of international negotiations and the impact of cultural values on negotiations.
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1. International Business Negotiations Conducting Negotiations and Managing Conflict
2. Learning Objectives Appreciate that miscommunication can create conflict across cultures
Diagnose and explain causes of cross-cultural conflict
Understand the positive role of negotiations as well as ways to manage cross-cultural conflict and the
Explain the main stages of international negotiations and the impact of cultural values on negotiations
3. Overview Cultural causes of conflict
Managing conflict
Understanding international negotiations
Process of international negotiations
4. Conflict When disagreements and friction arise in the course of interaction because of opposing interests or cultural differences
5. Conflict is Common Many chances for distorted, confused, or missed messages
Negotiation and diplomatic skills increasingly important
American managers spend 20% of time on conflict issues
Higher for international environment
6. Common Tasks That Produce Conflict Foreign labor strikes
Negotiate with overseas vendors, clients, & partners
Lobby governments
Mediate relations with outside pressure groups
Managing diverse employees
7. Conflict and Business Not always bad
Can be productive exchange
Key is to understand role of culture
8. Causes of Conflict Language
Poor translation or limited skills
Lack of understanding cultural norms
Inappropriate behavior
Decision-making
Centralized or Decentralized
Culture�s propensity for conflict
Avoid or accept
9. Types of Conflict Resolution Avoidance�ignore altogether
Accommodation
Compromise
Collaboration
Competition�face head-on
10. A Typology of Conflict Styles
11. Conflict Preferences Culture influences styles
Collectivists & high uncertainty cultures prefer avoidance
Individualistic culture prefers competitive
Cultural tendencies vary with WHO
Peers vs.. subordinates
Individuals tend to stick with a style
12. Conflict Preferences (Cont�d) Equity norm
To each according to what they deserve
Equality norm
Each group member gets about the same share
13. Response to Conflict After negative action or conflict occurs, generally there is a direct or indirect request for repair
Account giving is an explanation for the conflict
Consideration for saving face
14. International Conflict Management: Linking Culture and Face to the Account-giving Process
15. Account Giving Mitigating�lower tensions
Concessions�acknowledge & take responsibility
Justification�acknowledge but unavoidable
Ideological�acknowledge but necessary
Refusal�resist acknowledgment
Aggravating�increase tensions
16. The Use of and Reactions to Accounts in International Conflict: The Impact of Culture and Face
17. International Negotiation Process of communicating with another person or group to make a joint decision or reach an agreement
18. Key Elements of Negotiations Multiple parties
Mixed motives
Disagreements & common interests
Movement of parties
Shifting of positions over time
Reaching agreement as a goal
19. Approaches to International Negotiation Macrostrategic
Focus on relative bargaining power of parties
Power can shift throughout process
Comparative
Focus on interactions during negotiations
Consideration of cultural factors
20. Setting Up Shop in Developing Countries: How Negotiating Strength May Shift over Time
21. Preparing for Negotiations Never underestimate complexity
Gain in-depth cultural understanding
Seek outside help where needed
Ensure inside negotiator(s) have language skills
Consider team approach
Spend time necessary to prepare
22. Framework for International Negotiations Basic model used by negotiators
Perspectives on individual negotiators
Dispositions affecting interactions
Views about the interaction process
Outcomes
23. I. Basic Model Used by Negotiators How the negotiation process might be conceived
A bargaining effort
Joint problem solving or exploration
A debate
24. II. Perspectives on Individual Negotiators How negotiators are chosen
Knowledge/experience
Personal characteristics/status
Aspirations of individuals
Individual vs. Community goals
Group decision making
Authoritarian vs. Consensual
25. III. Dispositions Affecting Interactions Time orientation
Monochronic vs. polychronic
Risk-taking orientation
High vs. low
How trust is determined
Intuition
Common experience
Reputation
Threat of sanctions
Basic model used by negotiators
26. IV. Views About the Interaction Process Important of protocol
Formal vs. informal
Complexity of communication
High vs. low
Tactics for persuasion
Logic/facts/experience
Dogma/tradition
Emotion/intuition
27. V. Outcomes Agreement preferences
Contractual vs. implicit
28. Successful Negotiations Preparation does not ensure success
Negotiation style still plays significant role
Training and preparation still best method
29. Stages in the International Negotiation Process
30. International Negotiation Process Nontask sounding�establish rapport
Task-related exchange�exchange of background, needs and preferences
Persuasion�negotiation, attempts to modify positions
Agreement�conclusion and accord is reached
31. Stage 1: Nontask Sounding Time needed to establish relationships
Entertaining
Establishing trust
Status of negotiators
Variations in importance across cultures
32. Stage 2: Task-Related Exchange of Information Most important in some cultures
Explanations of initial bargaining positions
Differences in bargaining room across cultures
33. Stage 3: Persuasion Attempts to modify other party�s position
Most important step for U.S. negotiators
Tactics used to persuade
Direct/honest � Threats
Bluffing � Misrepresentations
Timing of concessions
Throughout or at end
34. Stage 4: Agreement Concessions and persuasion culminating in agreement
Importance of follow-through
Final outcome
Use of formal written
Informal handshake
Differences in notion of contracts
35. Types of Behavior During Negotiation Process Substantive behavior�facilitates the negotiation process such as initiation, acceptance, rejection, accommodation, and retraction.
Strategic behavior�influences the expectation and the actions of the other side such as commitment, exchange, demands, treat, ingratiation.
Persuasive behavior�supports arguments and presents evidence in support of claims a negotiator makes such as the use of statistical information or expressive language.
36. Types of Behavior During Negotiation Process Task behavior�promotes focus on the issue such as providing and requesting information, or clarification.
Affective behavior�shows expression of feelings such as humor, irritability, or social correctness.
Procedural behavior�moves the discussion along such as references to procedure or time.
37. Behavior in the Stages of Negotiation: Differences Across Low- and High-Context Cultures