Negotiations

TEAM MEMBERS: Ankit Jain Gaurav Muteja Aman Vijay Ishita Tuli Arti Rawat Ajit Kumar Kompalli

A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.

How individual differences influence Negotiations?

Three ways:
Personality Traits

Moods/Emotions

Gender Differences

Personality Traits
Negotiators who are agreeable or extraverted are not very successful when it comes to Distributive bargaining.
But on the contrary it is effective in Integrative negotiations.

Moods/Emotions
In distributive negotiations, it appears that negotiators who show anger negotiate better outcomes, it helps in better concessions .
In Integrative negotiation, positive moods and emotions appear to lead to better agreements.

Gender Differences In Negotiation

Research shows that men are found to negotiate better than women. There is a popular stereotype that women are more cooperative and pleasant in negotiations than are men.
And men are consider to be tough, hence more suitable for distributive negotiation while women for integrative negotiations.

Third Party Negotiator

Mediator

Consultant

Third Party Negotiation

Arbitrator

Conciliator

Advantages of Third party

Advantages

Chance to vent in a non-threatening environment Chance to disclose your feelings about the situation Both parties gets benefitted from the experience and expertise of third party Help the negotiating parties to organise their thoughts and develop options that may be acceptable to both parties.

Mediator
Neutral third party who aims for a negotiated solution Uses reasoning and persuasions, and suggests alternatives Party must be motivated to bargain and resolve their conflict To be effective, Mediator must be perceived as neutral Settlement rate of 60% with negotiator.

Arbitrator
Most powerful among the 4 groups. Third party with the authority to dictate an agreement Can be voluntary or compulsory Always results in a settlement May lead to dissatisfaction to one of the party Negotiator and opponent may not necessarily be happy with the outcome

Conciliator
Provides an informal communication link between parties
Help to find facts, interpret messages, and persuade parties to agreements. Lowest powered third party.

Consultant
Skilled and impartial third party
Facilitate problem solving through communication and analysis aided by knowledge of conflict management

GLOBAL IMPLICATIONS

Cultural Differences in Negotiations

Cultural differences cause four kinds of problems in negotiations, at the levels of 1. Language 2. Nonverbal behaviours 3. Values 4. Thinking and decisionmaking processes

Gosh! I cant distinguish these Japanese. All of them look alike.

Unlike Japanese, these Americans are not racially or culturally homogenous

Moshi Moshi
Japanese negotiators are known for their politeness, their emphasis on establishing relationships, and their indirect use of power

They are less likely to make procedural suggestions than their U.S. counterparts

Hello Mister! What Sister?

U.S. negotiators tend to rely on individualist values, imagining self and other as autonomous, independent, and self-reliant

Concentrate on one problem at a time. Focus on areas of disagreement, not areas of commonality or agreement.