DUE:11/16 @ 3PM

What's the benefit of studying this topic?

Working, perhaps living in different countries, means multiple levels of negotiation. Holding an awareness of cultural impact in your negotiations will enable you to be open and effective. This mindset sets you up for success in a global, interconnected work life.

Readings:

· Adler Ch 9 emphasizes specifics of different negotiation styles likely tied to a range of cultural values

· Adler Ch 10 explores cultural transitions when living in different countries

· Adler Ch 11 suggests an important role for your spouse as you/your family adventure across country borders and cultural values. Although US-centric culture often omits an emphasis on family, when managing professional advancement, family goals are emphasized in other cultures, and underpin important career negotiations.

· Lecture 11 (below)

Review:

· Power Point offers insights on the qualities of a good negotiator, and a checklist for managing the negotiation environment. (Scroll down to locate power point).

· Select 1 video clip or more, to add ideas. (See last section at the end of this web page).

Module 11 Negotiations in Multi-Cultural Settings to Bring It All Together

Introduction: Setting the Stage

Keep three key areas in mind discussed in other modules: ethics, motivation, and decision making. Think about how the ideas within these earlier topics also impact conflict and negotiation. The course elements are inter-related -- leadership is about many differing areas of importance in an integrated way.

But a leader must be an agent of change. As a change agent, he or she will navigate through conflict and negotiations in making decisions. Change is improved with effective management of conflict in the organization.

Along with conflicts and negotiating them to solutions, comes stress–let's spend a minute thinking about what stress can do. Take the use of steel in construction. Steel is a durable, yet flexible material that can accept much stress; enabling stability in a building. The benefit over wood is that in a fire, the stress of the heat won't cause damage as quickly. Yet, should the stress be overwhelming on an increasing basis, the steel too, will cease to function; and the building will fall. Stress is generally a good thing; it allows the building to settle, and it absorbs the effects of weather; but too much stress is not healthy for the building or for leaders and workers. In managing conflict negotiations well, you as a leader will need to also balance time, pace, and communication to find the right level of stress.

At-a-glance Definitions:

Conflict: Difference of view points, opposing perspectives, or a disagreement. As a conflict deepens there is growing understanding of harmful risk and expanded resistance to seeing other opinions.

Negotiation: A process for determining agreement and cooperation. This process is not a bad thing or situation. The need to negotiate suggests awareness that something can be better or improved.

Americans Have Framed Much of the Negotiation Approach:

USA leaders with their important history of industrial development and the country's continued diversity of people have influenced negotiation processes. Here's a basic American-centric approach:

1. Keep calm. The party, who loses her or his cool first, generally will come up short.

2. Negotiate with facts over emotion. Too often, the negotiator will wave the flag, cry out for the disadvantaged, or over-exaggerate the situation.

3. Be prepared to walk away and go another day. Sometimes it's better to plant the seed, leave, and come back to the table.

4. Don't be afraid to give up something early. When you are dealing with an issue that has benefit for both parties; give something small up front. The other party will see the need to reciprocate; and you then, want to go for the steak.

5. Kenny Rogers said it best, "know when to hold them; know when to fold them; know when to walk away; know when to run." By that, I mean - when negotiating, have a complete picture of the situation; don't lose sight of the trees in the forest; and be careful not to win a battle; but lose the war.

Differing Negotiation Expectations from Different Cultures:

Here's the issue–other cultures did not learn USA rules. They learned their own and that cultural knowledge becomes an important push or pull, when negotiations must happen across cultural belief systems.

Contrasting cultural expectations will be seen quickly in negotiation discussions. These contrasts are likely to create a sense of surprise and perhaps frustration. Here's an example:

· Americans may often focus on preparation, judgment, integrity, persuasiveness.

· Chinese offer interactions which demonstrate dedication, winning respect, broad perspective and integrity.

Adler (Chapter 9) suggests a more inclusive, dialogue approach which is "culturally synergistic". When negotiating across culture or working with a diverse group consider these actions carefully:

· Prepare

· Train around cultural values

· Define interests

· Build relationships

· Separate people from the problem

· Observe and then adjust to other styles and pace

· Exchange information about people, experience, priorities and tasks

· Invent options for mutual gain (actively use Best Alternatives)

· Use criteria appropriate for cultures represented.

Use of Best Alternatives--BATNA:

BATNA is a term coined by Roger Fisher and William Ury in their 1981 bestseller, Getting to Yes: Negotiating Without Giving In. The ideas in this book continue to be a standard for learning negotiation skills.

BATNA stands for "best alternative to a negotiated agreement." BATNAs help you as a manager to lead decision making through conflict, because the planning provides you with a wider range of options. With more options, critically thought through (here's the value for critical thinking skill once more), then you are better prepared to make a stronger, better decision or plan. Said differently, you will not make a wise decision without some thinking.

In the simplest negotiation, you may find that you and others may easily find a 3rd option, based on discussion. In that case, you don't need the BATNA. But more often, than not, the process of critical thinking used to develop alternatives will improve the negotiated agreement. Research into negotiation behaviors continues today. In the web links in the last section of this page, you will find a way to access the Project on Negotiation (PON, 2012).

The reasons for negotiation are:

· There are different views for activities ahead and there's a need for cooperation.

· The different views conflict.

· Better results are possible.

Having a good BATNA increases your negotiating power, and influence for effective leading.

BATNAs are not always easily seen. They surface through careful thinking and a simple process for finding the option that fits.

1. Develop a list of actions you might take if no agreement is reached.

2. Add to the more promising actions so that you can see them as practical step by step actions.

3. Identify (decide) which option appears best.

Cultural values add complexity and diversity of beliefs require the consideration of a broader range of factors and possibilities. For example, a community discovers that its water is being polluted by the discharges of a nearby factory, with headquarters in another country. Community leaders' first attempt to negotiate a cleanup plan with the company, but the business refuses to voluntarily agree on a plan of action that the community is satisfied with. In such a case, what are the community's options for trying to resolve this situation?

· The community could wage a public education campaign and inform citizens of the problem. This media attention could lead to new interest from a competing multi-national agreeing to be a "good corporate citizen" and offering better environmental strategy for the community.

· They could contact a designated international agency (such as subset of the United Nations) and see what sort of authority that agency has over such a situation.

· Community leaders could lobby appropriate governing agencies in country to develop and implement more stringent regulations on polluting factories.

At the same time you are determining your BATNA, you should also consider the alternatives available to the other side. The more you can learn about their options, the better prepared you will be for negotiation. In the discussion and learning process, you may find that both others and yourself were not informed, but thought you were. You are likely to discover more constraints and underlying interests.

When negotiating with people holding more collectivist values, as well as those who want to reduce uncertainties, know that you will be expected to talk about various alternatives so that everyone can develop or learn views of what may be very reasonable. It will be helpful to hold an open, patient and curious mindset.

Also understand that if you are acculturated as an American, or if you grew up in a culture that has a high commitment to competition (Hofstede) you want to be especially thoughtful about how you see the outcome. Negotiation is not a horse race, with one winning and others losing. Negotiation is a series of discussions in which people learn, add to understanding, and find a better solution for all interests represented.

Research Trends:

Studies related to negotiation have long held the interests of psychologists, sociologists and the legal profession. Before the 20th century studies were reported, and conflict management and mediation theorists having published more than 5,000 articles since.

Of keen, recent interest to the researchers are three topics: (a) use of technology and computer simulations to assist with data and strategy management of the negotiation process; (b) exploration of emotional intelligence as a related field to add resources and understanding about trust building; (c) stakeholder theory and the role of important influence impacting negotiations.