Negotiationsinbusiness

1、negotiations in businessnegotiations in businesssome theoretical aspectsmaterials for ib studentsprof. ug dr hab. dorota s.plliterature- basicroger fisher, william ury, getting to yes: negotiating an agreement without giving in, random house 2003richard r. gesteland, cross-culture

2、 business behaviour, handelshojskolens forlag, copenhagen 1997roger fisher, daniel shapiro, building agreement: using emotions as you negotiate, random house 2007supplementary literatureg. richard shell, bargaining for advantage: negotiation strategies for reasonable people, 2nd ed. penguin 2006jim

3、thomas, negotiate to win: the 21 rules for successful negotiating, harperbusiness, 2005g. richard shell, the morality of bargaining: identity versus interests in negotiations with evil, negotiations journal, vol. 26, no 4, p. 453-481robert m. march, su-hua wu: the chinese negotiator: how to succeed

4、in the worlds largest market, kodansha international ltd., 2007program1. introduction the essence of negotiationsdefinitionsthe essence of negotiationsreasons for negotiationsprogram 2. phases of negotiationspreparations - acquisition of information, selecting members of the negotiating team, choice

5、 of the venue, batnaopening of negotiationsproposals concessions and bidsconclusions of the negotiations and signing the contractprogram 3. characteristics of the negotiation teamselection of team membersroles in the negotiation team:leaderminutes secretary listenercriticcontrollerprogram4. differen

6、t styles of negotiations - rivalry or cooperationwin - win lose losewin - lose program5. difficult situations in negotiationsdifficult partnertricks and manipulationspsychological and positional warmachiavellianism program6. conflicts in negotiationsdeterminants of conflictcourse of conflictsconflic

7、t resolutionprogram 7. negotiations in international business - students homeworkcultural differences and their impact on the negotiation processgestelands and hofstedes models1. introduction the essence of negotiationsdefinitionsreasons for negotiationsnegotiations can be described as a two-way com

8、munication process which aims to reach agreement when one of the parties disagree with the opinion or solution proposed by the other party.definitionsnegotiations are about cooperative problem solving rather than confrontation between adversariesdefinitions negotiation is a way of mutual communicati

9、on in order to solve the problem/conflict and come to an agreement by the partiesdefinitions it is the process of submitting bids (offers) and / or concessions by the parties concerned to work out a common position in a situation of divergent interestsdefinitions negotiations are a way of agreement,

10、 containing elements of cooperation and competitiondefinitions negotiations are the process of exchanging offers until the agreement will be reached the purpose is to set a common point of 6><#00aa00'>view and adjust activity to itboth parties have to be actively involved to reach the a

11、greementdefinitions negotiations are about mutual searching the solution satisfying involved parties the essence of negotiationsalthough both parties have common interests they start negotiations from different positionsthe essence of negotiationsparties have different views on goals and methods for

12、 their implementationit is the main barrier to get an agreement by negotiating partiesthe essence of negotiationsusually the purpose of business negotiations is to exchange resourcesevery party should be ready to accept compromise solutionsevery party should have a certain margin of independence in

13、relation to the negotiation partnerreasons for negotiationsgaining benefits by both partiesunilateral benefits mean violence, blackmail, persuasion rather than negotiationsthe negotiations processpreparationsopening consessions closingprocess of negotiations consists of phases, events and activities

14、 it is not face-to face conversationsit requires a certain amount of hard work2. phases of negotiationspreparation collecting informationopening of negotiationsproposal - concessions and offersclosing - conclusions of the negotiations and signing the contractpreparation acquisition of information, s

15、electing members of the negotiating team, choice of the venueidentifying issues and fields of negotiationscollecting informationpreparationneeds analysis both us and our partnersidentifying goals of parties involved in the negotiation processdetrmining zopa zone of possible agreementdetermining batn

16、a best alternative to a negotiated agreementpreparationpreparation is the heart of negotiationsthe situation is dynamicwe and our business partners are changing needs, wants and interestspreparation must always be taken and done with a special carezopa zone of possible agreementit is the range in wh

17、ich the agreement satisfies both partiesit is impossible to determine zopa accurately if we do not know other partys zopathe basic thing is to understend they have it and predict its levelzopa ?blue sky and bottom line” ?blue sky” your ideal situationyou ask and you get itblue sky should be realisti

18、c if it is too high our business partners can find a more realistic party batnaif it is too low we can loose zopa?bottom line” your party cannot go below it the least amount possible for the proposal of our business partnersbatnabest alternative to a negotiated agreementit is the alternative action

19、when the final proposal of our partners is not acceptable below our bottom linesearching new business partnerlooking for substitute productsexercise 1: determine zopayour company wants to buy a house for its representativeyour blue sky is 550 000 plnyour bottom line is 600 000 plnsellers blue sky is

20、 620 000 plnsellers bottom line 570 000 plnfind zopafive ?ws” of preparationwhatwhowhywherewhen what is the situation?assessment the situationassessent how much research has to be undertakenthe greater risk the more research has to be undertakenyou have to find out your business partners culture, de

21、cision-making process etc.who is involved?who are your business partners directly involved in the netotiation processtheir communication and social stylethe decision-making style of the individuals and the teamwho is the core decison-maker who informally influences individuals or/and groupwhy are yo

22、u negotiating?what are you going to achieve for your company?what are you going achieve for your department and your manager?what are you going to achieve on both business and personal level? where to negotiate?you can negotiate virtually web conferences), on the telephone or face-to-facelocation an

23、d the means of communication are key elements to be considered during the process of preparationwhen to negotiate?it depends on whether you are the core decision-maker or a team participanttry to avoid improvised negotiationsimpropmtu negotiation can be a tactical play to force a quick and early dec

24、ision without enough informationinternational negotiations demand checking religious and national holidayswho - recruiting a negotiation teamnegotiators profile:negotiating abilities and skillspersonality traitsknowledge of negatiating issues law, commercial, technological, etc.ability to work in a

25、team inner balance, trust, flexibilityroles in the negotiating teamleaderrecorder listener criticcontroller characteristics of a leader can make decisionscompetent in terms of:negotiating issuesintellectual (precise thinking in stressful situations, selection of optimal solutions, etc.)emotional (ca

26、lmness, tact, trust, understanding)recorder recording all findings during negotiationsrecording data presented by both partiescooperation with the leader on the main issues and data arising in the course of negotiations, etc.listenerhe/she does not participate actively in the negotiationshe/she obse

27、rves negotiators behaiours, in particular the other party registration the most important and significant statements and opinionsregistrations methods of expressioncritic observing the progress of negotiationsobservation of individual team members in terms of carrying out their reviewing the various

28、 stages of negotiation assistance in improving the assigned taskscontroller a person of a high standing and a high positionevaluate the activities and progress of the negotiating teamsometimes deliberately introduce tension to the negotiating teamexercise 2buying the house for the rep. of the compan

29、y in poland consider the 5 ?ws”:what is the situation?who is invlved?why are you buying it?where will the negotiations take place?when will the negotiations take place?opening of negotiationsestablishing contacts:via traditional mailvia e-mailvia telephonedirect meetingcollecting informationduring t

30、he preparation processduring indirect and direct contactsnon-verbal communication gestures, behaviour, way of moving, facial expression, appearance (clothing, hearstyle) the first impression kindness, smilecollecting informationpresentation of the team memberscommunication process sender of the mess

31、age message and the way of communication recipient collecting informationidentification of the competences of the opposite teamidentification of the most important person in the oposite teamasking questions open and closed questionsactive listeningparaphrase proposals, concessions and offersopening

32、positionsnegotiations strategies - avoidance, concessions, rivalry, cooperation, compromiseargumentscoping with difficult situationsnegotiations stylesproposals, concessions and offersthe impact of cultural factors in international business negotiations - time orientation - relationship orientation

33、versus task orientation offers offers are the most important part of any negotiationspresenting offers means controlling the progress of negotiationsoffers are proposed in a conditional form (we can reduce the prices by 5% if you purchase x pieces more)arguments play only a supportive role offerssub

34、ject of negotiations is not only price and quantity but also:method of paymentcurrency of the contractdelivery timemode of transporttransport managementoffers insurance managementdistributionpackagepenalty for delayloan guaranteescooperating banks, etc.closingconclusions of the negotiations summary

35、of the topics of negotiationssummary of the mutual obligationssigning the contractclosingdetermination of the next stepsbuilding and maintaining long-term contacts if the netotiations were successful4. negotiating styleswin win cooperative stylewin lose rivalry style (hard negotiations)lose lose - r

36、ivalry style (hard negotiations)5. difficult situations in negotiationsdifficult partner psychological warpositional warmachiavellianism conflict conditions, course, solutiondifficult partnercomplainingaggressiveunfriendly coping with a complaining partnermaintaining peacenot yielding to provocation

37、smaintaining a friendly tone of voicelisten carefully and save all allegationspatiently listen to claimscoping with a complaining partnerchecking the significance of allegationspresenting an understanding of the emotional state of the other party caution in making promisesan aggressive partneraggres

38、sion is usually a manifestation of anxiety, frustration and uncertaintyself-confident partner is calman aggressive partner do not controll of his/her nagative emotions such as anger, raising the voice, etc.coping with an aggressive partnerkeep the calmness and hushed voicecontrolli emotions not to b

39、e provokedask about the facts, specific numbers, etc. coping with an aggressive partnerbe ready to provide assistance when the other party wants itkeep him/her shouting - the longer he/she shouts the more he/she calms downcoping with an difficult partnercalmly and tactfully point out the consequence

40、s of extending this type of behaviour and dragging out negotiationssuggest a break in negotiation if the aggressive behaviour cannot be stoppedan unfriendly partnerpeople who do not like contacts with others, introvertscool and unfriendly behaviour can result from the personality or from the convict

41、ion that in the business world this is appropriatedo not take it personallycoping with an unfriendly partnersignal kindnesskeep friendly tone of voicedemonstrate calm and certaintydo not make personal remarkscoping with an unfriendly partnerconcentrate on factsdo not worry about the behaviour of the

42、 other partysolve emerging problems quickly and finalize negotiationsmanipulation - psychological warcreating stressful situation personal attackscyclic tacticmaking threatscreating stressful situationintroduction of new peopleleaving the room by the people you were negotiating withconditions in the

43、 room light, temperature, noise, etc.personal attackspointing incompetence and intellectual weaknessviolation of personal dignityusing of irony and mockeryallusions to moralitypointing out the origin cyclic tacticarranging good and bad situationsappointing two persons to play roles of a ?good guy” a

44、nd a ?bad guy” starting from the negative phase with ?mr bad guy” and moving to the positive phase with mr ?good guy”making threatsas some research and practice shows this technique gives poor results in negotiations, however it is relatively often usedthe stronger the threats the more unfavorable s

45、ituation for negotiationspositional warrefusal to negotiateescalation of demands?rigid partner”refusal to negotiaterefusal to change the first offerpurpose - to force unilateral concessions on the other side escalation of demandsforcing more and more concessionsmultiplication of additional condition

46、sdefense construct a list of discussing and negotiating problems and following themrigid partneran absent person who does not want to make any consessions and accept the dealnegotiators refer to the his/her opiniondefense try to arrange the meeting with the person ho do not want to agreeusually it i

47、s a mythical figuremachiavellianism use any situation to get advantagecontroll others behaviourfollow the common sense and cool calculation if you want to be effective and powerfulreject romanticism and sentimentality machiavellianism own goals are placed over the objectives of otherthe goal (end) j

48、ustifies the meansnegotiations with such negotiators should be carried out very carefullyevery appearing offer should be examined and checked in detailmachiavellian negotiatorcool observernot emotional, even in stressful situationsusually is perfectly well prepared and knows the goals of the other p

49、artyhe/she is motiveted by material and social successmakes a request where others have scruples 6. conflicts in negotiationsconflict of interestsconflict of goalsmutual negative impact kinds of conflicts negative antagonistic, destructive, causing hostility, hatred, frustration, fear, personality d

50、isorder the symptoms: violence, fisticuffs, harassment, boycotts, blackmail, sabotage kinds of conflictsconstructive - nonantagonsitc, activating, integrating, teaching compromise and tolerancetypes of conflictconcerning the relationshipsconcerning the interests concerning tyhe roles concerning cult

51、ural differencescourse of the conflicthidden conflictopen conflictconflict escalationbreaking contacts in the peak phase of the conflictstabilization of the hostile relationship inability to change negative attitudesresolving conflictsavoidancesuccumbingrivalrycompromisecooperation avoidance resigna

52、tion from cooperation with a person who cause conflitcsbreaking personal contactsdismissal, etc.avoidance characteristic for people who are affected by emotional tension and frustration and prefer to give up negotiations instead of searching for solutionsthey are convince the conflict is unnecessary

53、 and can result from negative experiences from the pastsuccumbing the proceedings in accordance with the wishes and interests of the opposing partyconviction about the negative role of conflictit is relatively often used method of solving conflicts the stronger party uses its positionthe weaker part

54、y causes a conflict at the earliest possible opportunityrivalryone party forces the other party to resignuses manipulation and all possible methods to wintreat other people instrumentallycompromise the solution which partly satisfies both partiesevery party has to resign from something to get someth

55、ingthis solution is used when the goals of both parties are less important than maintaining good relationshipscondition the position of the both parties has to be equal cooperation seeking for the solution which can satisfy both partiesthe most effective method of solving conflictsused in situations

56、 of lack or disrupted communication both parties jointly remove the cause of the conflict7. negotiations in international businesshofstedes website (/geert-hofstede4>>)students choose countries and prepare presentations in groups two iron rules of international businessthere are two iron rules in international business:in international business the seller is expected to adapt to the buyerin international business the visitor is expected to observe and adjust to local customs be yourself but be aware of c