Chapter 12

GROUP TWO

SUMMARY OF CHAPTER 12: BEST PRACTICES IN NEGOTIATION

1. The chapter focuses on the best practices in negotiation that a negotiator could apply in the negotiation process in order to achieve an objective or stated goal. To be a good negotiator, the following steps could be adopted. First, being prepared for a negotiation is essential for achieving the interest and objective of the negotiation. Second, understanding their own strength & weakness, their needs and interest. Third, distinguishing between distributive and integrative negotiation is important or a blend of the two, and choose strategies and tactics accordingly. Fourth, Identify and work with the BATNA (Best Alternative to Negotiated Agreement) applying it in an instance where an agreement is not reached. Fifth, be willing to work away when there is no agreement, is often better than a poor agreement.

2. Sixth, mastering the key paradoxes of negotiation such as claiming value versus creating value, sticking by your principles versus being resilient to the flow, sticking with the strategy versus opportunistic pursuit to new options, honest and open versus closed and opaque, trust versus distrust. Seventh, remember the tangibles, trying to see what is not there is essential for negotiation. Eight, actively managing coalitions. Ninth, savouring and protecting your reputation. Tenth, remembering that rationality and fairness are relative. Eleventh, continuing to learn from your experience. In adopting the best practices a person needs to be outstanding when negotiating to meet a specific goal.

REFLECTION

3. Anyone adopting these best practices of negotiation will definitely be a star negotiator; negotiation is the key to meeting an objective or a goal. In a negotiation, it could either be a win-win experience or a win-lose experience. If anyone needs to win and winning is their objective, mastering the best practices of negotiation will go a long way to assist them in the negotiation process.

Chapter 11

GROUP TWO

CHAPTER 11: INTERNATIONAL AND CROSS-CULTURAL NEGOTIATION

Introduction:
• The frequency of International Negotiation has increased rapidly over the last 20 years
• People travel more often and scope of business is more global
• International negotiation has become a norm for many people and organizations

Factors that distinguish International Negotiations
1. Environmental Factors
2. Immediate Factors

ENVIRONMENTAL FACTORS/CONTEXT

i. Political and Legal Pluralism: The existence different political/legal systems could bring about difference modus operandi

ii. International Economics: Economic factors, particularly differences in the value of currency will impact negotiation outcomes

iii. Foreign Governments and Bureaucracies: extent to which there is government interventions and/regulations vary among countries and will affect negotiation outcomes

iv. Instability: Volatilities in the state and quality of resources/production influence negotiations

v. Ideology: business sense a negotiator has plays a critical role

vi. Culture: Differences in norms and values across territories impact on negotiations

vii. External Stakeholders: The number of interested external parties (shareholders, labour unions, associations) has will influence their negotiation outcomes.

IMMEDIATE CONTEXT

This refers to the more peculiar factors that directly affects the outcomes of negotiations. They include;

i. Relative bargaining power: The unique skills of the negotiating party

ii. Levels of conflict: Level of interdependence and differences in identity

iii. Relationship between Negotiations: The kind of relationship parties have developed over time (if any) has a strong influence on negotiation outcomes

iv. Desired outcomes: The goals and objectives of each party influences his/her expectation and thus the outcome of the process

v. Immediate stakeholder: The skills, abilities, power, ambition and position of the representative plays a key role


CONCEPTUALIZING CULTURE AND NEGOTIATION
Culture cannot be disconnected from negotiation. They go hand in hand

The concept or meaning of culture
• Culture is a group level phenomenon: it is based on shared values, beliefs and behavioural expectations
• Culture is dialectic because these beliefs are learned and passed on to new members of the group

CULTURE AS SHARED VALUES:
We will consider this from two views as opined by Hofstede and Schwartz.

On the one hand, Hofstede opined that there are four dimensions that could be used to describe important differences among cultures

i. Individualism/collectivism: extent to which the society is organized around individuals or groups

ii. Power distance: the extent to which less powerful members of organizations and institutions accept and expect that power is unequally distributed

iii. Career success/quality of life: Extent to which members held values that improved their career and quality of life

iv. Uncertainty avoidance: The extent to which a culture programs/makes members feel either comfortable or uncomfortable in unstructured situations

On the other hand, Schwartz highlighted ten fundamental values in identifying the motivational goal underlying cultural values. They are;

i. Power
ii. Security
iii. Tradition
iv. Conformity
v. Benevolence
vi. Universalism
vii. Self direction
viii. Simulation
ix. Hedonism
x. Achievement

CULTURE AS DIALETIC

This infers that culture brings about tensions in the learning process

Ways by which culture influence negotiation
i. Definition of negotiation
ii. Negotiation opportunity
iii. Selection of negotiators
iv. Protocol
v. Communication
vi. Time sensitivity
vii. Risk propensity
viii. Group versus individuals
ix. Nature of agreements
x. Emotionalism

Culturally responsive negotiation strategies
On the one hand, Rubin & Sander suggested that negotiators should focus on three factors namely;

1. Own bias
2. Strengths
3. Weaknesses

On the other hand, Weiss held that culturally responsive strategies may be organized in three groups or based on three conditions:

1. Low familiarity
2. Moderate familiarity
3. High familiarity

WHERE THERE IS LOW FAMILIARITY, negotiators may;
i. Employ agents of advisers (unilateral strategy)
ii. Bring in a moderator (joint strategy)
iii. Induce the other negotiator to use his/her negotiation approach

WHERE THERE IS MODERATE FAMILIARITY, negotiators may;
i. Adapt the other negotiator’s approach
ii. Coordinate adjustments

WHERE THERE IS HIGH FAMILIARITY, negotiators may;
i. Embrace the other negotiator’s approach
ii. Improvise or select an approach based on prevailing circumstances
iii. Create an approach that allows him/her to include aspects of his/her home culture

Chapter 10

GROUP TWO

SUMMARY OF CHAPTER 10: MULTIPLE PARTIES AND TEAMS

1. Multiparty Negotiation is one where more than two parties are working together to achieve a collective objective. Many Negotiations are multilateral or group deliberations, each with his or her own interests, positions and the group must arrive at a collective agreement regarding a plan, decision or course of action. The differences between two-party negotiations and multi party negotiations include number of parties, social complexity, procedural complexity, Informational and computational complexity and strategic complexity.

2. The three key stages that characterize multilateral negotiations include pre-negotiations; which focus on informal contact among the parties, the Actual Negotiation and managing the agreement. Several group decision making techniques that can be used to achieve the objectives of Negotiations include the Delphi technique, Brainstorming and Nominal group Technique. Finally, in multiparty Negotiations there is need to manage conflicts effectively, manage problem team members, manage the decision rules and thank the group for their participation, their hard work and their effort.

REFLECTION

3. This chapter is also about multiple parties and teams in Negotiations. Multiple parties must work together to achieve a collective decision or consensus. A lot of factors make multiple party Negotiations difficult such as Individual preferences, number of teams, tribe, culture and differing interest of teams. However, if there is a chair, he or she can ensure that the group receives input from each group member, that various constituencies and stakeholders have an opportunity to provide input and that relevant reports, documents or statistical analyses are circulated and discussed.

Chapter 9

Chapter 5

Chapter 4

Chapter 3

TEAM TWO

SUMMARY OF CHAPTER 3:
STRATEGY AND TACTICS OF INTEGRATIVE NEGOTIATION


1. The Chapter is a review of the strategy and tactics of integrative negotiation, in which both parties to the negotiation win. Integrative negotiation is always a win –win solution, allowing both parties to define their goals and achieve its objectives. The chapter began with an overview of integrative negotiation process, in which the process would involve both parties to the negotiation to provide relevant free flow of information, comprehending each party’s needs and objectives and proffering solutions that will meet both party’s needs. For a negotiation to scale through successfully, it requires several processes. First, the parties must understand each other’s true needs and objectives. Second, they must avail to each other any information that would be necessary for both parties to carry out a successful negotiation. Third, they must focus on their similarities, emphasizing their commonalities rather than their differences. Fourth, gather solutions that will meet the needs of both sides.

2. Further to complement the overview of integrative bargaining, there are four major steps in integrative negotiation which are, identifying and defining the problem, identifying interest and needs, generating alternative solutions, and evaluating and selecting alternatives. It was emphasized that the first three steps are for creating value, while the fourth step of the negotiation, that is evaluation and selection of alternatives is for claiming value. Claiming value involves many of the distributive negotiation skills. The technique and tactics where further discussed. Factors that facilitate successful integrative negotiation were discussed, which entails: First, both parties having a common goal or objective. Second, they must believe in their problem- solving ability. Third, the parties must be able to believe that the other person’s needs are valid. Fourth, they must share a motivation and commitment to work together. Fifth, it is important that both parties have trust in themselves and work hard to establish and maintain that trust. Sixth, there must be clear and accurate information about what each one wants and an effort to understand the others needs. The parties should view the needs of each other as important. Finally, there must be a firm understanding of the dynamics of integrative negotiation.
If parties cannot successfully apply the above conditions, there may end up not having a win-win solution

REFLECTION

3. In negotiation everyone wants to be the winning party nobody wants to lose. The chapter has illustrated ways any party could win a negotiation if the above steps are adhered to. Equipping one’s self with such tactics will make a person win most times.

Chapter 1

GROUP TWO
CHAPTER ONE: NATURE OF NEGOTIATION

Definition and Overview (should not be in the map): Negotiation is an activity, usually in form of a dialogue with the aim of resolving differences in interests between or among existing parties.
Negotiation is what we do in works of life ranging from domestic, business, social and political relationships. Strong negotiations skills will enhance your chances of succeeding in your relationships
Its purpose is to enable individual parties reach an agreement that is acceptable to them.
N1 – Characteristics of negotiation
1) Involves two or more parties: a) individuals, b) Groups, c) Organizations, etc
2) Conflict of needs and desires – parties have disagreed on a common interest
3) Parties choose to negotiate or not – subject to the likelihood of getting a better deal
4) A “give and/or take scenario exists – either party is ready to make a sacrifice for a reward
5) Parties prefer to resolve differences
6) Existence of negotiating factors
a. Tangible factors – crucial and would be managed (price, terms of agreement)
b. Intangible factors – underlying psychological motivations that could influence outcome negotiations
i. Need to win the other party
ii. Need to look good, competent and tough
iii. Need to defend an important principle – eg moral, social beliefs
iv. Need to appear fair and honourable
N2 – When not to negotiate… Do not negotiate when,
1) You could lose everything
2) You are sold out – running out of capacity in business
3) Demands are unethical (avoid the wrath of the law)
4) You don’t have time (time constraints exist)
5) Your counterparty acts in bad faith (you can’t trust the other party)
6) Waiting would improve your position (delays might make you benefit from technological or policy changes)
7) You are not prepared (adequate preparation pays in negotiations)
N3 – Interdependence of goals (needing each other to achieve the desired outcome. Interdependence occurs in three conditions
1) Distributive (mutually exclusive with only one winner) now loosing prominence
2) Integrative situation (mutually inclusive as in a “Win-Win” negotiation) focus is now centered on this as a plausible goal of negotiations: eg a singer and an instrumentalist can make a great music band
3) Existence of BATNA (Best Alternative To a Negotiated Agreement) – refers to the state, manner and extent of interdependence between parties
N4 – Common Differences in Negotiators (they impact the negotiators attitude)
1) Interests – objectives or goals may be in disagreement
2) Judgment about the future (general understanding of opportunities around)
3) Risk tolerance – while one party may love risks, the other may not
4) Time preferences – desired time to seal the deal or receive consideration may differ
N5 – Conflict in Negotiations (conflict is a perceived divergence of interest) we look at conflict under the following heads
1) Levels of conflict
a. Intrapersonal or intrapsychic – lies within an individual in form of ideas, thoughts, emotions, values etc
b. Interpersonal – between individuals (workers, spouses, siblings)
c. Intragroup – within a group. Eg; team – like Group one, family, organizations, political parties
d. Intergroup – between groups, organizations etc

2) Demerits of Conflicts
a. Breeds unhealthy competition
b. Distorts perception
c. Breeds emotionality – could arouse anger of pitySU
d. Reduces quality of communication
e. Likelihood of rigid commitments
f. Increases level of differences

3) Conflict Management Strategies– these are coordinated measures and efforts directed at minimizing or resolving differences in a negotiation
a. Contending – having little concern for the other party
b. Yielding – caring less about own objectives or outcomes
c. Inaction – indifference about whose goals are paramount
d. Problem solving – aimed at maximizing overall outcomes in a negotiation
e. Compromising – Moderate efforts towards ensuring neither party loses

Chapter 2

Chapter 7

Chapter 8

A Presentation On Ethics In Negotiation By Members Of Team 2.

This chapter tries to analyse if there are or should be socially acceptable ethical standards for behaviour in negations and the goal is to determine among different criteria the basis for judging a negotiators actions especially when issues of ethics might be involved.

Before delving into the topic, “Ethics In Negotiation”, we think it’s proper to define the key elements in this write-up which are;
i. Ethics, &
ii. Negotiation.

Ethics
Ethics are broadly applied social standards for what is right or wrong in a particular situation, or a process for setting those standards.

Ethics can also be defined as that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.

From these definitions we can infer that ethics evolve out of particular philosophies guarded by norms from the environment we live in.

Negotiation .
Negotiation can be referred to as a win-win situation such as those that occur when parties are trying to find a mutually acceptable solution to a complex situation.

It can also be defined as a process of dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage or to craft outcomes to satisfy various interest. It is the primary method of alternative dispute resolution.


What Is The Relevance Of Ethics In Negotiation?

The purpose of studying the relevance of ethics in negotiation is to distinguish among different standards the basis for judging negotiators actions in his tactics before and during the negotiation process.
We will be looking at four standards for evaluating strategies and tactics in business negotiation:

i. The End-Result Ethics: this is based on the premise that negotiators do whatever is necessary to get the best possible outcome and self fulfilment (happiness/contentment). The major concern here is the definition of happiness and it’s measurement in attaining satisfaction.
ii. The Duty Ethics: Adherence to consistent principles, laws and social standards that define right from wrong is the central tenet here. The major concern here is the judgement of the uprightness of the rules made by the authorities guiding the institutions
iii. Social Contract Ethics: In this standard, the rightness of an action is determined by the customs and norms of a community.
iv. Personality Ethics: The rightness of an action is determined by one’s conscience. The major challenge here is finding uniformity, as all individuals are unique in their own way.

What Questions Of Ethical Conduct Arise In Negotiation?
In business negotiations, when is lying acceptable? Negotiation is all about meeting one’s interest and when someone else stands in the way, the negotiator faces the core ethical issue of negotiation: when are my needs and wants more important than treating this person in a moral or socially acceptable manner? Whatever choice you make may involve significant costs to yourself, to the other party and to the wider community. Often the “right” thing to do is not clear.

Negotiators use ambiguous tactics in achieving strategic advantage in negotiations. The major types of ambiguous tactics are deception and subterfuge. Deception can be by way of omission or by commission, the latter being the more severe.
Existing law generally provides that the duty of good faith applies only to the performance and enforcement of agreements, not negotiations. The unscrupulous negotiator might take this as a licence to behave unethically during negotiations for as long as such behaviour is not out and out fraudulent. With such negotiators there’s a reputation effect to deal with, one which a negotiator cannot afford to have.

Is it right to use ambiguous tactic? It might be allowed to use certain minor forms of misrepresentation or forms of omission but outright deception and falsification is wrong.

Why do negotiators use deceptive tactics?
1. To gain undue advantage over the other party.
2. To selfishly achieve their objectives to the detriment of the other party

How Can Negotiators Deal With The Other Party’s Use of Deception?
1. Ask probing questions.
2. Force the other party to back off.
3. “Call the tactic”.
4. Discuss what you see and offer to help the other arty change to more honest behaviour.
5. Respond in kind.
6. Ignore the Tactic


In conclusion, negotiators overlook the fact that, although unethical or expedient tactics may give desired results in the short run, these same tactics could damage their reputation in the long run.


Team Opinion:
We conclude that there is a very fine line between ethical and unethical tactics in negotiations though many commonly used negotiation tactics are fraught with ethical concerns. We believe the most effective negotiators are cooperative and cooperative negotiators strive to be ethical.
When negotiators share material information, the opportunity to engage in value-producing trades increases.

Chapter 6