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Negotiation:
• Bargaining process between two or more parties (each with its own
aims, needs, and viewpoints) seeking to discover a common ground
and reach an agreement to settle a matter of mutual concern or resolve
a conflict.
Individual Negotiation Styles:
1. Accommodating:
• Individuals who enjoy solving the other’s problems and preserving personal
relationships; sensitive to the emotional states, body language, and verbal signals
of the other parties. They can, however, feel taken advantage of in situations when
the other party places little emphasis on the relationship.
2. Avoiding:
• Individuals who do not like to negotiate and don’t do it unless they must; they tend
to defer and dodge confrontation; however, they may be perceived as tactful and
diplomatic.
Continued…
3. Collaborating:
• Individuals who enjoy negotiations that involve solving tough problems in
creative ways. Collaborators are good at using negotiations to understand the
concerns and interests of the other parties. They can, however, create problems by
transforming simple situations into more complex ones.
4. Competing:
• Individuals who enjoy negotiations because they present an opportunity to win
something. Competitive negotiators have strong instincts for all aspects of
negotiating and are often strategic. Because their style can dominate the
bargaining process, competitive negotiators often neglect the importance of
relationships.
Continued…
5. Compromising:
• Individuals who are eager to close the deal by doing what is fair and equal for all
parties involved in the negotiation. Compromisers can be useful when there is
limited time to complete the deal; however, compromisers often unnecessarily
rush the negotiation process and make concessions too quickly.
Hofstede Model:
The Hofstede culture matrix:
• The extent to which the less powerful members of organizations and institutions
(like the family) accept and expect that power is distributed unequally.
• Cultures with stronger power distance will be more likely to have decision-
making concentrated at the top of the culture. i.e. US
2. Individualism/Collectivism:
• The extent to which the society is organized around individuals or the group
• Individualism/collectivism orientation influences a broad range of negotiation
processes, outcomes, and preferences.
• Individualistic societies may be more likely to swap negotiators, using whatever
short-term criteria seem appropriate.
• Collectivistic societies focus on relationships and will stay with the same
negotiator for years.
3. Masculinity/Femininity:
• The extent cultures hold values that are traditionally perceived as masculine or
feminine.
• Masculine: Represents a preference in society for achievement, heroism,
assertiveness, and material rewards for success. Society at large is more
competitive.
• Femininity: stands for a preference for cooperation, modesty, caring for the weak
and quality of life. Society at large is more consensus-oriented.
4. Uncertainty Avoidance:
• Negotiators from different cultures may tend to view the purpose of a negotiation
differently.
• Relationship goal: requires investment in getting to know each other and
building trust.
• Contract goal: efforts are focus on developing the contract terms.
2. Negotiating attitude: Win-Lose or Win-Win
• Personal style concerns the way a negotiator talks to others, uses titles, dresses,
speaks, and interacts with other persons. Culture strongly influences the personal
style of negotiators.
• Formal style insists on addressing counterparts by their titles, avoids personal
anecdotes, and refrains from questions touching on the private or family life of
members of the other negotiating team.
• Informal style tries to start the discussion on a first-name basis, quickly seeks to
develop a personal, friendly relationship with the other team, and may take off his
jacket and roll up his sleeves when deal making begins in earnest.
4. Communication: Direct or indirect
• High: Try to reduce formalities to a minimum and get down to business quickly.
• Low: Need to invest time in the negotiating process so that the parties can get to
know one another well and determine whether they wish to embark on a long-term
relationship.
6. Emotionalism: High or low
• High:
• Show their emotions at the negotiating table. i.e.Latin American
• Low:
• Hide their feelings. i.e.japanese
7. Form of agreement: General or specific
• General: The essence of the deal is the relationship between the parties. If
unexpected circumstances arise, the parties should look primarily to their
relationship, not the contract, to solve the problem.
• Specific: Unequal bargaining. The stronger party always seeks a detailed
agreement to “lock up the deal” in all its possible dimensions.
8. Building an agreement: Bottom up or top down