MBA商务英语学习

1International

BusinessNegotiations

Prof.Guo-pingGui

WuhanUniversityMBAProgramofEconomics&ManagementSchoolNovember-10,2011Mymotto:Weareblessedwiththeopportunitytoshareknowledgeunderthesameroof.2ExploringWhatYouBelieveAboutNegotiationsI.Considerthefollowingquestionsbeforethelecture

1.Whatisanegotiation?2.Nameonekindofnegotiationyouknowbetweentwopersonsororganizations.3.Whenshouldyounegotiate(versusdosomethingelse)?4.Whatdogoodnegotiatorsdothatmakesthemeffective?5.Whatdopoornegotiatorsdothatmakesthemineffective?II.WhataremeasurementsforasuccessfulNegotiation?1.Obtainwhatyouareentitledtodecently;2.Beefficientwithoutwastingtoomanyresources;3.Maintainpositiverelationshipwiththeotherside.3AnExampleofWhyItHelpstoKnowconventionalnegotiating…4

PhilosophyandPractice

of

Distributive(Conventional)NegotiatingI.Philosophy:Assume“zero-sum”game(afixedpie)WhateverIwiniswhatyoulose;whateveryouwiniswhatIlose(aWin-loseGame)II.Practice

A.Setreservationpoint“IfIcan’tgetatleastthisamount,Iwillnotmakeadeal”(Takeit,orleaveit.)B.Settargetpoint“ThisiswhatIhopetogetinthefinaldeal”C.BargainingzonedetermineswhetherwecanmakeadealIstherepositiveornegativeoverlapinthereservationpointsforbothsides?5CoreofConventionalNegotiating____

PositiveBargainingZoneBuyer’sOpeningOffer$500Seller’sReservationPoint$525Buyer’sTargetPoint$550$575Seller’sTargetPointBuyer’sReservationPoint$600$650Seller’sOpeningOffer*****-----Thelowestamounttheselleriswillingtoaccept(seller’sreservationpoint)islessthanthehighestamountthebuyeriswillingtopay(buyer’sreservationpoint).6CoreofConventionalNegotiating____NegativeBargainingZoneBuyer’sOpeningOffer$500Seller’sReservationPoint$575Buyer’sTargetPoint$525$600Seller’sTargetPointBuyer’sReservationPoint$550$650Seller’sOpeningOffer*****----Thelowestamounttheselleriswillingtoaccept(seller’sreservationpoint)ismorethanthehighestamountthebuyeriswillingtopay(buyer’sreservationpoint).7WhatCognitiveBiasesCanHurtDistributiveNegotiations?EndowmenteffectSellerstypicallybelievethattheirpossessionshavemoreintrinsicvaluethanbuyersdoFramingeffectsPeoplebecomeriskavoidingwhenthereissomethingtogain(theyprefera“surething”)Peoplebecomeriskseekingwhenthereissomethingtolose(theyprefertotakeachanceofnoloss)SunkcostsExpectedfuturecosts&benefitsshouldinfluencedecisions,butpeoplehavedifficultyforgettingaboutpastcosts8ProcessesofConventionalNegotiating

AdoptedbyMostChineseNegotiators

AbbreviationoftheprocessesPRAM:P.Preparation:R.relationshipA.agreementM:maintenancerelationships.Questions:1.WhatarethetroubleswiththeChineseconventionalnegotiatingapproaches.2.Whatcouldbetheinevitableoutcomeifoneadoptssuchapproach?9TheEssenceofNegotiatingand

Alternatives

toConventionalNegotiating

I.Inessence,Whatisanegotiation?Itisback-and-forthcommunicationdesignedtoreachanagreementwhenyouandtheothersidehavesomeintereststhataresharedandothersthatareopposedtoeachother.II.Whatarealternativesaretheretonegotiatingajointagreement?1.Acceptwhatevertermsofferedbytheotherside2.Walkawayfromanyagreement(findadifferentwaytomeetyourneeds)3.Haveathirdparty(e.g.,mediator,government)decidewhattheagreementwillbe4.UseforceorphysicalthreatstogetwhatyouwantQuestions:Giveexamplesofeachkindofnegotiating;10ConflictManagementStylesConcern

forYourOwnOutcomesConcernforOtherParty’sOutcomesCompetitionAvoidanceAccommodationCollaborationCompromiseLowHighLowHigh11InnovativeNegotiating:

AnAlternativetoDistributive

NegotiatingI.Distributive(orpositional)approachPhilosophy:

Take

negotiation

foradividingofafixedpie,awin-losegame.Thenegotiatorsassumethattheothersidemustloseforustowin.Negotiatingisanartofmakingconcessionsorplayingtricks;Practice:Applypsychologicalpressureorso-calledstrategiestoresolvesingle-issuedisputesII.Innovative(orPrincipled)approachPhilosophy:

A.

People-centeredgame.Holdsthatnegotiatingisexpanding

thepieforbothsidestowin,awin-wingame.

Practices:Separatepeoplefromproblemsandinterestsfrompositions,Makeprincipledconcessions,espinventcreativeoptionstoreachamutuallysatisfactoryagreementbyexternalcriteria,Resolvemultiple-issuedisputes12DistinguishingGood&BadNegotiatorsGoodnegotiatorsFlexiblewithinlimitsManageemotionssothattheydon’tinterferewithreasoningPreparebythinkingthroughalternativesListen&askquestionsConsidercreativewaystostructureagreementsWatchfor&interprettheotherparties’reactionsMakesureothersideishappywiththedealBadnegotiatorsTooaccommodatingORtoostubbornLetemotionsinterferewithreasoningFailtoprepare—don’tunderstandownalternativesFailtolistenortoaskquestionsNotcreative—limitideasaboutpossibleagreementsNotconcernedwithhowtheotherpartyfeelsaboutthedeal13ConflictManagement:thekindofNegotiatingwearetopursueConventionalNegotiatingalsotermedas:*distributivenegotiation;*positionalnegotiation/win-losegame;Competitivenegotiation;offensivenegotiation;

Nature:Awin-losegamefordividingafixedpie,acontestofwill;Philosophy:Treatopponentasenemy,divisionofcake,Takeitorleaveit.PrincipledNegotiatingAlsotermedas*CreativeNegotiating*InnovativeNegotiating*negotiationonmerits;*collaborativenegotiating;*integrativenegotiation*defensivenegotiation;Nature:Awin-wingameonexpandingthepiewithcreativity;Philosophy:Treatopponentasequalhumanbeing,expandthecakebyPIOC,“GettingtoYeswithoutgivingin

14PrincipledNegotiating:anAlternative

tobothHardandSoft

negotiation;******_____TheProcesses:P:Separatepeoplefromproblem(attackproblemnotpeople,yieldtoprinciplesnotpressure,People-centeredphilosophy)I:Focuson

interestsnotonpositions;O:

invent/generateavarietyofoptionsbeforedecidingwhattodo;C:reacharesult/agreementbasedonexternalcriteriaindependentofwill(reasonandbeopentoreason,),*****--------Philosophy&Practice:Principlednegotiatingisa

processwherebytwoormorepartiesmeetand,through

artfuldiscussion

andcreativity(creativity),

confront

aproblemandarriveataninnovative

solutionthatbestmeetsthe

needsofallpartiesandsecurestheir

commitmenttofulfillingtheagreementreached.

*****---Identifytheimpliedmeaningoftheunderlined

15AbouttheFoundersofPrincipledNegotiating&TheirinternationallyUnmatchedInfluence1.TheoriginaltextbooksfirstadvancedbyRogerFisherandWilliamUry,theco-foundersof“HarvardNegotiationProject”ofHarvardUniversity,LawSchoolwhichhavebeenextensivelyadoptedbyHarvard,MITandmanyworldtopuniversities.2.In“CreativeNegotiating”1991ByMorganShear;3.intheessayson“Forbes”onnegotiationin2004,“Turnnegotiationintoacorporatecompetency”or“SixProblemstoavoidinnegotiation”,FisherandUryarementioned,esp.theirphilosophy,BATNAthatwerefirstdevelopedbythem.4.ThelatestmentioningofRogerFisherandWilliamUryisfoundonP.92ofSUCCESSWITHBEC,STUDENT’SBOOKHIGHER,3’ded,BYPaulDUMMETT,anEnglishwriterinthemostinfluentialtextbookofbusinessEnglishinChina.16DifferencesbetweenChineseConventionalNegotiatingandPrincipledNegotiating

PRAM------processesofChineseconventional

negotiating:P.Preparation:R.relationshipA.agreementM:maintenancerelationships.Question;What’sthewrongwiththeChineseConventionalnegotiatingPIOC------Processesofprinciplednegotiating:P:Separatepeoplefromproblem(attackproblemnotpeople,yieldtoprinciplesnotpressure,People-centered

philosophy)I:Focuson

interestsnotonpositions;O:invent/generateavarietyofoptionsbeforedecidingwhattodo;C:reacharesult/agreementbasedonexternalcriteriaindependentofwill(reasonandbeopentoreason,),17Essentialdifferences&

outcomes

betweentwokindsofNegotiating1Attachimportancetophilosophy____People-centeredornot;(win-winorwin-losegame;conflictinginterestspartialassessmentofresults.)2.ThebasesofNegotiators’judgmentandconclusion;(onassumptionandassertionthatIhaveupperhandovertheopponent,egoismprevailingv.sTreattheothersideequalhumanbeing,andthegreatestinterestishuman,trusttheothersideandcollaboratewiththeotherside.)3.Focuson

takingandgivingup

positionpreventinfoexchanges,toomuchresourceswastedinidentifyeachother’sinterest;v.s

identifyinganddeveloping

PIOCformutualgains

4.Negotiator’sinclination:Attackproblemv.sAttackpeople.5.ObjectivesofNegotiation:Agreementv.scommitment183QuestionsforthisConflictManagementStyle:PrincipledNegotiating

A.Whenwouldusingthisstylebeparticularlybeneficialoruseful?B.Underwhatconditionsmightuseofthisstyleleadtodifficultyorproblems?C.WhatistheexactgoodaboutthePrincipledNegotiating?1.Boththeoryandexperiencesuggestthatthemethodofprinciplednegotiationwillproduceoverthelongrun

substantiveoutcomesasgoodasorbetterthanyouarelikelytoobtainusinganyothernegotiationstrategy.Inaddition,itshouldprovemoreefficientandlesscostlytohumanrelationship.

2.Abetterwaytonegotiate------awaythatavoidsyourhavingtochoosebetweenthesatisfactionsofgettingwhatyoudeserveandofbeingdecent.Youcanhaveboth.19Strengths&WeaknessesofConflictManagementStylesAvoidanceAccommodationCompromiseCompetitionCollaborationGoodtousethisstyle:UnlikelytoreachadealHavegoodalternativesIssueorrelationshipisnotimportantRelationshipisimportantbutoutcomeisnotYoudon’thavegoodalternativestoreachingadealDon’thavemuchpowerWantquickresolutionCaresomewhataboutoutcome&relationshipHavestronginterestingoodoutcomeRelationshipisnotveryimportantRelationshipANDoutcomearebothimportantSharecommongoalswithothersideBadtousethisstyle:ImportantissueorrelationshipTime-sensitiveissueOutcomeisimportantSetsaprecedentforrelationship(youwillalwaysgivein)Canleadtosub-optimaloutcomesIfprinciplesormoralsareinvolvedOthersideishighlycompetitiveNeedtomaintainlong-termrelationshipOne-timedealDealneedstobereachedveryquickly(thisstyletakestime)20Case-studyofawin-wingame:

twosistersdividingoneorange

TwosistersdividingoneorangewhichhasbeenanindispensablecaseinteachingofNegotiating.Itisaboutthat,ontheeveofChristmas,twosistershadonlyoneorange.Thetwosistershaddifferentpurposesfortheorange:theyoungersisterwouldliketoeatthefruitoftheorangesimply,whiletheeldersisterwouldliketohavethepealoftheorangeastheseasoningmaterialtomakecake.Thetwosistersbothkepttheirintentionfromeachotherandneitherwastoletothersidetohavethewholeoftheorange.Thentheyhaveanegotiationofthepossessionoftheorange.Latertheyfinallyagreedtodividetheorangeinhalf.Afterthedivision,theyoungersistertookonehalf,atethefruit,andtothrewawaythepeel,whiletheeldersisterthrewawaythefruitandusedthepeelfromthesecondhalfinbakingacake.Inreality,iftheyhadpursuedtheprincipledorinnovativenegotiating,theyoungersistercouldhavehadthewholeofthefruitoftheorangewhiletheeldersistercouldhavethewholeofthepeeloftheorangeQuestion:Whatarepre-requisitesthattheyoungersistercouldhavethewholeofthefruitandtheeldersistercouldhavethewholeofthepeeloftheorange?21Trust---thedeterminantin

NegotiatingenvironmentWhatistrust?Assuredrelianceonthecharacter,ability,strengthortruthofsomeoneWhatcausesustotrustsomeoneelse?Deterrence-basedtrust:“wecanhurteachotherifonesidedoesn’tkeepitsagreements”Knowledge-basedtrust:“weknoweachotherwellenoughtopredictthatwewillkeepouragreements”Identification-basedtrust:“webothvaluetherelationshipsomuchthatwewillkeepouragreements”22HowDoWeDevelopTrust?Whenweexpectashort-termrelationship:Setupgoodexpectations&meetthemMeet&keepshort-termpromisesConvinceothersthatbenefitsoftrustoutweighcostsofmistrustProposesafeguardsthatanticipate&avertabusebybothsidesMonitortheotherparty’sbehaviortomakesuretheyaretrustworthy23