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 Definition of Negotiation
± It is a Latin word negotiari derived from the root
words µneg¶(not) and ³otium´ (leisure), means mot
leisure.

± Negotiation is a process in which two or more

parties of conflicting interests try to come to a
consensus or have a goal of reaching a common
agreement for mutual benefit through a constant
process of interaction and communication.
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Kwo overall contexts have an influence on
international negotiations:
Œ £nvironmental context
± Includes environmental forces that neither negotiator
controls that influence the negotiation
ΠImmediate context
± Includes factors over which negotiators appear to have
some control
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ºactors that make international
negotiations more challenging than
domestic negotiations include:
Œ Ñolitical and legal pluralism
ΠInternational economics
Œ ºoreign governments and bureaucracies
ΠInstability
ΠIdeology
ΠCulture
Œ £xternal stakeholders
 
 
³ºactors over which the negotiators have
influence and some measure of control´:
Œ èelative bargaining power
ΠLevels of conflict
Œ èelationship between negotiators
ΠDesired outcomes
ΠImmediate stakeholders
 Cross cultural Negotiation
ΠKhe process of Negotiation is more complex in
international negotiations because of differences in cultural
values, lifestyle, expectations, verbal and non verbal
language, approaches to formal procedures, and problem-
solving techniques.

ΠKhe complexity increases with the involvement of more

number of stake holders.
-takeholders in Cross-Cultural Negotiations
D    
 Host government
 
  


 
 Distributors
D
   


 £xpatriate employees

Home (HQ) ºirm Host country

Country Negotiators

D 
 All citizens Host local employees
-pecial interest groups Host consumers
Khe Negotiation Ñrocess
 -tage One ± Ñreparation
ΠNegotiator must familiarize themselves
with
± Khe entire context and background of their
counterparts
± Ko the specific subjects to be negotiated
± Differences in culture, language, and
environment
ΠManagers must have an understanding of
their own negotiating style
 -tage One - Ñreparation
ΠManagers should find out as much as
possible about
± Khe kinds of demands that might be made
± Khe composition of the opposing team
± Khe relative authority that the members
possess
ΠDevelop a profile of their counterparts
ΠKhey consider different variables during
this process as well
 Îariables to be considered
ΠBasic conception of negotiation process

ΠNegotiator selection process

Π-ignificance of type of issues

ΠConcern with protocol

ΠComplexity of communicative context

ΠNature of persuasive arguments

Œ èole of individuals aspirations

ΠBased of trust

Œ èisk-taking propensity

Œ Îalue of time

ΠDecision making system

Œ ºorm of satisfactory agreement

 -tage Kwo: èelationship
Building
Œ Khe relationship building ± taking time to build
mutual trust before starting business discussions.

ΠKhe process of relationship building is regarded

with more significance in most parts of the world
than it is in the United -tates.
ΠIn many countries, such as Mexico and China,
personnel commitments to individuals, rather
than the legal system, form the basis for the
enforcement of contracts.
 -tep Khree: £xchanging Kask
èelated Information
Œ £xchanging task related information ±
during this stage each side makes a
presentation and states its position,
normally followed by a question-and-
answer session usually ensues and
alternatives are discussed.
 -tep ºour: Ñarsuasion

ΠIn the next persuasion ,hard bargaining starts.

Often, some persuasion has already taken place
beforehand in social settings and through mutual
contacts. Khe majority of the persuasion takes
place over one or more negotiating sessions.

Œ Îariations in behaviors plays a very important

role in this stage of the negotiation process,
especially if they are not anticipated.
 -everal Kactics of Ñersuaion
Ñ
: a statement in which the source indicated
his or her intention to provide the target with a
reinforcing consequence that sources anticipates
target will evaluate as pleasant, positive, or
rewarding.

  :same as promise, except that the reinforcing

consequences are thought to be noxious,
unpleasant, or punishing
Œ è

 
: A statement in which the
source predicts that a pleasant environmental
consequences are thought to be noxious,
unpleasant or punishing.
Œ þ

  :A statement in which consequences
thought to be unpleasant.

Œ è

: A statement by the source that is
thought to create pleasant consequences for the
target.

Œ Ñ   : Khe consequences are thought to be

unpleasant.
 Ñ
  
  : A statement in which
the sources indicates that the target past, present,
or future behavior was or will be in conformity
with social norms.
  
  : Khe target¶s behavior
is in violation of social norms.
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Π
: A statement in which the
sources suggest the target perform a certain
behaviour.
 -tage 5: Concessions and
Agreement.
ΠIn the last phase of negotiation , concession
and agreement, tactics vary greatly across
cultures.
Œ èussians and Chinese generally open their
bargaining with extreme positions, asking
for more than they hope to gain whereas
-wedes usually start with what they are
prepared to accept.
MANAGING N£GOKIAKION

Π-uccessful management of intercultural

negotiations requires the manager
± Ko gain specific knowledge of the parties in
the upcoming meeting
± Ko prepare accordingly to adjust to and control
the situation
± Ko be innovative
ΠKhe software of negotiation

Khat is, the nature and the appearance

of the relationship between the people
pursuing common goals-needs to be
carefully addressed in the negotiation
process.
 KH裣 CONC£ÑK- KO B£
CON-ID£è£D B£ºOè£
N£GOKIAKING
ΠKhe basis of the relationship

ΠInformation at negotiation

ΠNegotiation styles
 K Ñ£- Oº N£GOKIAKION
1.Deal-making negotiations

2.Decision-making negotiations

3.Dispute- resolution negotiations

 N£GOKIAKION -KèAK£G

1. Kailor the negotiation team to the acquisition situation-

ΠUse the smallest team practical to efficiently and
effectively formulate and attain Government negotiation
objectives.
ΠIdentify potential team members for responsibilities
Π-elect a team leader
Π-elect a lead negotiator
ΠIdentify other team members only when necessary to
improve team efficiency and effectiveness.
2. Identify negotiation issues and objectives ±
ΠKhe negotiation objective should be a final proposal revision that
provides the best value.
Œ £ach objective must be fully supported based on facts and market
knowledge. Khey may include pricing issues, technical issues,
management issues, and/or trade-offs between different issues.

3. Identify the offeror¶s probable approach to negotiation.

Œ Understanding each offeror¶s probable approach will provide the
road map that the offeror's negotiator will likely follow to attain the
offeror¶s objectives.

4. Assess bargaining strengths and weaknesses of the two

parties-
Œ èecognizing the relative strengths and weaknesses of the
parties involved in any negotiation will help you achieve
a win/win result.
5. £stablish negotiation priorities and potential tradeoffs or
concessions-
When establishing negotiation priorities and
potential tradeoffs or concessions:
Œ èank potential negotiation issues in relative order of
importance to the Government.
ΠIdentify tradeoff positions that might be acceptable.

6. Determine an overall negotiation approach-

Π-elect the strategy and tactics that are likely to be most

effective in accomplishing the Government¶s priorities
and objectives for the negotiation.
Œ Ñlan the order in which issues will be addressed during
negotiations.
Œ Ñlan bargaining tactics suited to the Government
negotiator¶s personality and the tactics that will probably
be used by the offeror's negotiator.
ΠIdentify potential concessions

7. Ñrepare a negotiation plan-

In collaboration with other negotiation team
members:
ΠDraft a negotiation plan. Contents may vary based on
agency and activity requirements.
Œ èeview the negotiation plan with key negotiation team
members.
ΠAssure that team members have individual plans designed
to support the overall negotiation plan.
Œ -tress the Government¶s need to be flexible and
receptive to change during negotiations.

8. Brief management on the plan-

A management briefing:
Œ ҏCan take many forms
1. An informal oral presentation;
2. A formal oral presentation; or
3. A written document
ΠMust provide for management feedback. In particular
management should have the opportunity to:
1. Approve or reject the negotiation plan.
2. Identify any management limits on negotiation
flexibility.
3. Approve or reject changes to the plan that will permit the
team to exceed any previously established management
limit.

9.Ñrepare a negotiation agenda

 



 
 
 
 
 



 
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National character includes culture of decision
making. National institutional culture produces a unique
pattern on decision making and protocol.

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Interpreters and translators facilitate the cross-
cultural communication necessary in today's society by
converting one language into another.