What is negotiation?

Is a communication process between two or more people to arrive to a mutually agreeable solution.

What is negotiation?
Is the art to reach an agreement by resolving differences through creativity.

Commercial negotiation
Is a process in which one party agrees to exchange one product or service with another party in
return of something (commercial negotiation, sale and purchase, trade).

To negotiate
Is to arrange or settle by conferring or discussing; or to use information and/or power to affect human
behavior in an environment filled with multiple issues and tensions.

Another negotiation definition

a strategic endeavor directed toward the specific ends of reaching agreements and satisfying
negotiators needs.
- Strategies are the pre-formulated game plans, objectives, and approaches that guide
negotiators in reaching their goals;
- Tactics are the specific ways bargainers implement these strategies.

Why do we negotiate?
- to reach an agreement
- to win or obtain something
- to beat the opposition
- to make a point
- to settle an argument
- to compromise
- to solve a conflict

Characteristics of negotiation
1. two or more parties are involved
2. there exists a perceived conflict of interest between those parties.
3. Parties choose to negotiate for their own willingness.
4. Parties prefer to work together for resolution rather than fight or seek other non-negotiated
remedies.
5. Parties expect to experience give and take during their negotiations as each side
compromises positions.
6. Parties expect that negotiations will allow them to manage both the tangibles and the
intangibles contained in their issues.

When do we not negotiate?

- when you will loose everything.
- When requests are unethical.
- When your stocks (available inventory) are exhausted.
- When acting in bad faith
- When theres no time
- When you are not interested
- When you are not prepared
- When you wait until you improve your position
Interdependence
The parties need each other to achieve the goals or desired outcomes.(resultados)
- independent - interdependent - dependent

mutual adjustment
- When the parties are interdependent they must find a way to resolve their differences.
- Both parties can influence the results and decisions of the other, therefore (por lo que) each
party outcomes and decisions are affected by the other.

Declaring value or creating value

No zero sum situations or integrative situations: mutually inclusive everyone wins.

Conflict
- occurs when two or more parties perceive a threat (amenaza) to the interests, goals or needs.
- A conflict isnt the same as a disagreement or a dispute. The level of commitment
(compromise) of the parties is greater because their interests, goals and/or needs matter
greatly to each one of them.
- Individuals, group, companies and other, get themselves involved in a conflict over money,
time, information, power, loved ones, religion or things they hold dear.
- What determines whether a situation is a conflict or a dispute is subjective. Each individual, a
group of people or an entity has its own set of priorities, so what may be of little importance to
some may be of great importance to others.

1. Intrapersonal or intrapsyhic conflict: within the individual

2. Interpersonal conflict: conflict among and between individuals
3. Intragroup conflict: conflict within a group
4. Intergroup conflict: conflict among and between groups

CLASS #2
WAYS TO SOLVE A CONFLICT

Conflict
- Is the perceived divergence of interest between two or more parties
- Is directly related to interdependence

1. functional conflict Vs. 2. Disfunctional conflict

1. conflict that supports the goals of the group and improves its performance.
2. Conflict that hinders group performance.

Causes of conflict
- power differences
- mistrust
- misunderstanding
- lack of communication
- taking advantages over the other.

Why conflict arises?

- competition: the parties believe their interests are opposing or competing with each other and
so they compete against each other.
- Emotions: high emotionality can hinder the thinking processes and cause the conflict to
escalate. Anxiety, irritation and anger are all counterproductive to conflict management.
 - Decrease in the communication process: is a cause and a consequence of conflict. As
conflict escalates communication tends to decrease and sometimes the communication
breaks.
- Misperception and bias: during and conflict parties perceptions may become distorted.
Parties may begin to interpret situations and people as being either on their side or the other
side. Thinking may also become stereotypical and biased.
Bias
Attaching positive or negative meaning to elements in our environment (surroundings) based
on personal or social influence that shape our thinking.
- Blurred issues: the continuation of conflict may cause the main issue in the original situation
to become blurred (less defined).
- Magnified differences and minimized similarities: during conflict parties tend to focus more
on what makes them different from each other than what brings them together. This is a
perceptual distortion that leads parties to believe they are further away from each other than
what they really are
- Rigid commitments: as conflict unfolds parties unfolds parties may become more committed
to their positions and to see the situation through a black and white perpective.

Factors that make conflict

Dimension: issue in question; size of stakes; interdependence of the parties; continuity of interaction;
continuity of interaction; structure of the parties; involvement of third parties; perceived progress of
the conflict.

Difficult to resolve: principles, values, ethics; large; zero sum; single transaction; un cohesive and
weak leadership; no third party available; unbalanced.

Easy to resolve: divisible issue; small; positive sum (integrative solution); long-term relationship;
cohesive, strong leadership; trusted, powerful third party available; balanced.

Level of conflicts
Annihilatory conflict +. Overt efforts to destroy the other party.
Aggressive physical attacks.
Threats and ultimatums
Assertive verbal attacks
Overt questioning or challenging of others
No conflict -. Minor disagreements or misunderstandings

Dimensions to conflict-handlings intentions

 - Competing intentions: a desire to satisfy ones interests, regardless of the impact on the
other party to the conflict.
- Collaborating intentions: a situation in which the parties to a conflict each desire to satisfy
fully the concerns of all parties.
- Avoiding intentions: the desire to withdraw from or suppress a conflict.
- Accommodating intentions: the willingness of one party in a conflict to place the opponents
interests above his or her own.
- Compromising intentions: a situation in which each party to a conflict is willing to give up
something.

Ways to solve conflicts (disputes)

Avoidance; negotiation; mediation; conciliation; arbitration; litigation; tribunal; judicial dispute
resolution.

Alternative dispute resolution (ADR)

Any method of resolving disputes other than by litigation.

- avoidance: intentionally plan to avoid the development of resentment by sorting out critical
issues independently, without challenging or unsettling the other party
- negotiation: a communication process that involves two or more parties who seek to reach an
agreement.
- Mediation: is a dispute or conflict resolution where the parties agree to seek a third party
(mediator) to help them solve their issues and settle the dispute or differences. The disputing
parties are the ones in charge of taking the decisions not the mediator.
- Mediation process

engage
engage the
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decide other
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choose
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- Conciliation: is similar to mediation were the involved parties choose a third party or external
entity (conciliator), were the third party has an active role solving the situation through
suggestions of compromises.
The conciliation process its structured to bring disputing parties to an acceptable agreement
through concessions.
- Arbitration: it is a formal submission of a conflict or dispute to one or more arbitrators for a
decision to be reached to solve the issue.
Its a quasi-judicial system.
Decisions are voluntary/binding depending on the terms of the arbitration process (arbitration
clauses in a contract).
Court-imposed arbitration is binding.
- Litigation: it is a legal process was the dispute or conflict goes through a standard court with
the aim of engaging in judicial contest to achieve a legal settlement.
- Tribunal/court: a tribunal or court of law deals and decides about disagreements between
individuals, people or private organizations based on a legal system.
- Judicial dispute resolution: a judge decision made over a dispute that goes through a legal
process (litigation, court, tribunal). The most common one is the criminal cases.
CLASS # 3
NEGOTIATION PROCESS

Negotiation approaches
Distributive negotiation: also know as Zero sum game, the fired pie, or win-loose situation.
Integrative negotiation: also know as win to win situation, cooperative or collaborative
approach.

Distributive negotiation
Competitive tactics; obtain the best deal (I want It all); good cop and bad cop; use pressure
(power); intimidate; use ultimatums; play by positions; use time in your favor (pressure).

Integrative negotiation
Cooperative tactics; focus on interest not in the position; separate the people (emotions) from the
problem; give and exchange (concessions); build relationships; solve issues and get mutual
agreements progressively; use objective criteria (solid arguments and facts); create options.

Negotiation process
1. preparation or planning stage
2. set the stage
3. bargaining: proposals, argumentation, negotiation.
4. Closure: close the deal.

1. Preparation stage
Objective: prepare and plan deeply and thoroughly your team for the negotiation.
- define the problem at hand (situation or issues).
- Define the interests.
- Know the counterpart.
- Set the objectives.
- Stablish options.
- Define other alternatives.

Define the issues to negotiate: what do we want?

- price
- quality
- quantities
- delivery
- credit or payment method
- special conditions

define your interests

if the issues (problem or situation) let us know what do we want, interests us to define why
- maintain a good will
- maintain an image
- maintain prices
- increase/decrease quantities
- change the payment method or credit

Know the counterpart

Before attempting a negotiation, try to get as much information to know the other party.
- why would they be interested?
- What do they want?
- What do they need?
- What are the strengths and weaknesses?

Objectives or goals: set what you want to meet and reach set proprieties.
- must have or get
- wants or intend to get
- gives (concessions or trades away).

- profitability of 10%, increase in quantities 20%

- profitability of 20%, decrease in quantities 30%
options. Generate possible outcomes (deals).

Alternatives : if you dont reach agreement with the other party, what alternative do you have?
- are these good or bad?
- How much does it matter if you dont reach agreement?
- Does failure to reach agreement cut you out of future opportunities?
- What alternatives might the other party have?

Define and assign the people in charge of doing negotiation

It is important to select only team member who have the capability of using more than one style of
negotiation.

2. Set the stage

- Decide and schedule: the place; space; time.
- Set ground rules, protocols and agendas.
- Open the negotiation: break the ice so you can start talking with the counterpart, salute and
present the team members.

3. bargaining: proposals, argumentation, negotiation.

Explain; debate; propose; bargain.

- explain (talk): state the purpose of the negotiation: why are we here?; list the topics or points
you want to discuss (overall overview).
- Debate: listen carefully; dont assume; ask questions; clarify; summarize; take notes; dont
argue or interrupt if necessary.
from the discussion, the goals, interests and viewpoints of both sides appear.
List these in order of priority when you detect them.
Through clarification it is often possible to identify or establish common ground.
- Propose: make proposals; state conditions; express concerns; search for common interests;
use positive body language to try to approach to the other party.
- Bargain: key words are IF (give) and THEN (take).
Start making concession: every concession should have a condition (IF you THEN I will..)
Conserve your concessions dont give everything away too soon or for nothing.
You dont have to share every piece of information with the opposing side remember this.
Dont be afraid to say no.

4. Closure
Finish the negotiation and close the deal:
- Usually is the final concession (step): If you do that, THEN we have a deal!.
- Gain commitment
- Record (sign) and agree the results
- Leave satisfied
CLASS # 4-5
CROSS CULTURE NEGOTIATION

Intercultural negotiation
Involves the discussions of common and conflicting interests between people of different cultural
backgrounds who work to reach an agreement (of mutual benefit).

Culture
Are the characteristics and knowledge shared by a particular group of people defined by
language, religion, cuisine, social habits, customs, music and arts.

Characteristics of a culture
Language; communications; courtesies; rituals; roles; customs; relationships; behaviors; practices;
values; toughs; beliefs; interactions.

Western culture
The term western culture has come to define the culture of European countries as well as those
that have been heavily influenced by European immigration, such as the United States. Western
culture has its roots in the classical period of the Greco-Roman era and the rise of Christianity in
the 14th century.
Other drivers of western culture include Latin, Celtic, Germanic and Hellenic ethnic and linguistic
groups.

Eastern culture
Eastern culture generally refers to the societal norms of countries in Far East Asia (including
China, Japan, Vietnam, North Korea and South Korea) and the Indian subcontinent. Like the west,
eastern culture was heavily influenced by religion during its early development, but it was also
heavily influenced by the growth and harvesting of rice. In general, in eastern culture there is less
of a distinction between secular society and religious philosophy than there is in the west.

Latin culture
Many of the Spanish-speaking nations are considered part of the Latin culture, while the
geographic region is widespread. Latin America is typically defined as those parts of the Central
America, South America and Mexico where Spanish or Portuguese are the dominant languages.
Originally, the term Latin America was used by French geographers to differentiate between
Anglo and romance (latin-based) languages. While Spain and Portugal are on the European
continent, they are considered the key influencers of what is known as Latin culture, which
denotes people using languages derived from Latin, also known as Romance languages.

Middle Eastern Culture

The countries of the Middle East have some but not all things in common. This is not a surprise,
since the area consists of approximately 20 countries, according to PBS. The Arabic language is
one thing that is common throughout the region; however, the wide variety of dialect can
sometimes make communication difficult. Religion is another cultural area that the countries of the
Middle East have in common. The Middle East is the birthplace of Judaism, Christianity and Islam.

African culture
The continent of Africa is essential to all cultures. Human life originated on this continent and
began to migrate to other areas of the world around 60.000 years ago.
Africa is home to number of tribes, ethnic and social groups. One of the key features of this culture
is the large number of ethnic groups throughout the 54 countries on the continent. Nigeria alone
has more than 300 tribes, for example.
Currently, Africa is divided into two cultural groups: North Africa and sub-Saharan Africa. This is
because northwest Africa has string ties to Middle east, while sub-Africa shares historical, physical
and social characteristics that are very different from North Africa. The harsh environment has
been a large factor in the development of sub-Saharan Africa culture, as there are a number of
languages, cuisines, art and musical styles that have sprung up among the far-flung populations.

Conceptualizing culture and negotiation

- culture as learned behavior
a catalogue of behaviors the foreign negotiator should expect
- culture as shared values: understanding central values and norms
individualism / collectivism
power distance
career success / quality of life
uncertainty avoidance

Hofstede cultural dimensions

- powe distance (PDI) large degree of power distance accept a hierarchical order.
- Individualism vs. collectivism
- Masculinity preference for achievement, heroism, assertiveness and material reward for
success.
- Uncertainty avoidance uncomfortable with uncertainty and ambiguity.
- Long term orientation save for the future strong normative
- Indulgence vs restraint free gratification related to enjoying life and having fun

Trompenaars cultural 7 dimensions

- Inner-directed vs outer-directed
- Achievement vs ascription
- Sequential time vs synchronous time
- Universalism vs particularism
- Neutral vs emotional
- Individualism vs communitarianism
- Specify vs diffuse
 Cultural types: Lewis model

Cultural differences in negotiation

Cultural differences cause four kinds of problems in international business negotiations.
These differences are manifested in:
Language; nonverbal behaviors; values; thinking and decision-marking processes.

1. Language
Problems of comprehension / use of false friendly words, especially in high-context cultures.
Misuse of language or using commands

High context: communication draws on shared culture, fewer words need to suggest meaning.
Low-context: communication is more direct and explicit

Translators in negotiations
Use to communicate with the other side; use to gain time in making responses; use to study
the non-verbal communications of the other side; internal group conversations should be
allowed and followed.

2. non-verbal behaviors
anthropologist Ray. L. Bridwhistell: less than 35% of the message in conversations is
conveyed by the spoken word while the other 65% is communicated nonverbally.
Albert Mehrabian: where meaning in face-to-face interactions comes from.
- 7% from the words used
- 38% from speaking style: tone of voice, loudness, etc.
- 55% from facial expresions.

Non-verbal behaviors or body language

Facial expressions; eye contact; personal space; physical contact; silence; sounds; gestures.

1. negotiating goal: contract or relationship?

- relationship is goal: requires investment in getting to know each other and builing trust.
- Contract is goal: efforts are focus on developing the contract terms.
74 percent of Spanish respondents claimed their goal is a contract, vs 33% of indian executives

2. win lose (distributive) or win win (integrative)

- zero-sum: a winner and a loser; mutual gains bargaining or integrative approach
 100% of the Japanese respondents claimed that they approached negotiations as a win-win
process, only 33% of the Spanish executives took that view.

3. formality vs informality
perceived lack of proper respect. Appearance of coldness; too close, too soon.
4. direct or indirect communication
difficulty in saying no; considered rude to argue.
Or arguments are considered to be sign of engagement.
5. punctuality; pacing and preliminaries (understanding the other side and building relationship or
specifying contract terms and details). time is money
6. emotions: appropriate display of emotion varies by culture: spain & south America > England,
7. agreements: general or specific
us: specific agreements to cover all anticipated cases and act as guide to behavior.
China: Agreement on general principals and use the relationship to work out any difficulties.
Could also be reflective of power dynamic of the companies, not just by the nationality.
8. top-down or bottom-up negotiation
start with general principals and move to the details? Or start with specifics and general
principals emerge from details?
France: basic principals guide later details
US: specific details form the basis of general terms.
9. one leader vs. group consensus
- one key decision maker: complete authority to negotiate
- group: representatives or specialists from various internal departments
- one leader: may reach agreements faster.
- Group: may anticipate and solve problems before they become emergencies
10. dealing with risk
share information, try new methods, tolerate uncertainty.
Japan > united states
Avoid moving too fast
Focus on mechanisms to lessen risks provide information (on market, company, procedures)
Build relationship and trust
Move step-by-step not all-at-once

Managing intercultural negotiations

Successful management of intercultural negotiations requires the manager
- to gain specific knowledge of the parties in the upcoming meeting
- to prepare accordingly to adjust to and control the situation
- to be innovative (create options)

Creative negotiation
- Seek out creative outcomes.
- Understand cultures, especially your own.
- Dont just adjust to cultural differences, exploit them
- Gather intelligence and know the terrain.
- Design the information flow and process of meetings.
- Invest in personal relationships.
- Seek information and understanding.
- Make no concessions until the end.
COUNTRIES AND REGIONS

Deal or agreement
Party A
- Trust based relationship
-Contracts base don a handshake
Party B
- Business bonding via entertainment
- Gifts and favors

USA negotiators
- Focused on completing the deal
- Profit oriented and direct
- Do not need personal relationship with other negotiators
- Work during meals, golf, al any time
- Tend to be informal
- Individually oriented.

Canadians negotiators
- Two groups: the Anglophones and the francophone
- Well informed and analytical
- Sense of self determination
- Trust is an important component
- Individually oriented
- Mixture of tribal and pluralistic.

Chinese negotiators
- The Chinese want a win-win strategy
- Harmony is important
- Neutral site is important
- Team members need to be matched on both sides
- Relationship building is important
- Group oriented and prefer face to face negotiations.

Chinese
- Reserved; known for hospitality and good manners
- Give small, inexpensive presents
- Do not like to be touched
- Consider mutual relationships and trust very important
- Technical competence of negotiators necessary
- Prefer to use an intermediary
- Rarely use lawyers
- Ample room for compromise.

English negotiators
- Objective, matter of fact about negotiations
- Tend to understate their position
- Individualistic but Company policy followed without question
- Relationships not necessary
- Very deadline oriented.
French negotiators
- Negotiators should have the correct social and education background and authority
to make decisions
- A relationship will help negotiations
- Enjoy debates; are indirect
- Quality more important tan speed
- Individualistic and prefer face to face negotiations
- Mealtime is not a time to talk business.

French
- Have a sense of pride sometimes interpreted as supremacy;
- French logic (Cartesian logic) proceeds from what is known in a point-by-point
fashion until agreement is reached
- Protocol, manners, status, education, family and individual accomplish-ments are
keys to success with the French.

German negotiators
- Permanent and stringent contracts;
- No nonsense negotiators; Relationships not necessary; Individualistic and prefer
face to face negotiations.

German
- Protocol is important and formal
- Dress is conservative, correct posture and manners are required
- Use titles when addressing members of the negotiating team use please and thank
you often
- Prefer to keep a distance between themselves and the other team negotiators
- Have technical people as part of the negotiation team as Germans are detail
oriented
- Punctuality is expected
- Contracts are firm guidelines to be followed exactly.

Japanese negotiators
- The Japanese want a win to win situation
- Negotiations takes place away from the negotiation table
- Relationships are important
- Group and consensus oriented
- Prefer face to face negotiations

Japanese
- Business etiquette is very important
- Meeting should be arranged by an intermediary who has a relationship with both
parties
- Negotiating parties usually consist of five people
- Business card Exchange is common
- Subtle and complex verbal and nonverbal cues are used to avoid having someone
lose face or lose the group harmony
- Negotiations practices are base don the keiretsu system (a Company group formed
by the principal Company and the partner companies that supply parts equipment,
financial support, or distribution of the final products); a keiretsu group is viewed
as a long term commitment
 - The Japanese use more silence and less eye contact tan usa
- Consider contracts as flexible instruments
- Are suspicious of a negotiating team that includes lawyers

Hindu
- Bribery is common; having connections is important
- Avoid using the left hand in Greetings and eating
- Request permission before smoking, entering, or sitting
- Building relationships is important tan introduction is necessary
- Intermediaries are common
- Use titles to convey respect
- Knowledge of local affairs is important negotiation process can be long

Mexican negotiations
- Relationships and connections very important
- Senior executives make the decisions
- Time is fluid
- Emotional arguments are considered to be persuasive arguments
- Strategies are more win win
- Neutral site are preferred
- Leave room to bargain

Latin Americans
- Relationships are important bribery is common
- Government is very involved in business
- Negotiators chosen based on family connections, political influence education, and
gender (females should be in the background)
- Latinos are very individualistic but group oriented concerning family and Friends
- Social competence is important, will ask about ones health and well being of
family
- Most agreements are consummated over lunch
- Numerous meetings is the norm, time is not seen as important
- Avoid gestures

Dutch negotiators
- Averse to chaos; very organized
- The Dutch are direct and pragmatic
- Decision is base don consensus
- Will tend to move fast and expect you to also move fast

South korean negotiators

- Rank status very important
- Harmony is important
- Can be direct, express emotion, and use aggression
- Need to be introduced and develop a relationship
- South Korea is a collective culture
- Taiwanese negotiators
- Relationships need to be developed
- Seating protocol is important as is matching team members
- Self control and harmony are very important
- Taiwanese are collectivistic
Nigerians
- Nigerians are skillful negotiators, they view negotiation as a competitive process
- When selecting negotiators consider age (equated with wisdom), gender, cultural
background and educational credentials.
- Developing a personal relationship is important
- Time is not particularly important so negotiations may be lengthy
- Use titles and last names
- Use an intermediary to make initial introductions
- Being well dressed is important, courtesy and consideration are also expected
- Contracts considered flexible, they may be oral or written
- A bribe may be needed to expedite business
-
Russian federation
- In the past, negotiation sessions have been long with Russians controlling the
agenda
- Are concerned with age, Rank, and protocol
- Tend to be formal
- Friendships are not crucial to business
- Contracts interpreted rigidly
- Concerned with maximizing their profits

Key points regarding successful international negotiation

1. Few negotiations succeed without extensive preparation

2. Building personal relationships is a key step in a negotiation
3. Managers should be aware that first offers may differ by cultural background
4. Many tactics are used in persuasion
5. Know how counterpart views the concessions making process
6. Culture and legal traditions influence the content and forc of law regarding
business contracts
7. Competitive negotiations seldom leads to long term relationships
8. Problem solving negotiation is more flexible and probably more successful strategy
9. Must be flexible, empathic, and physically tough

CLASS # 6

POWER IN NEGOTIATION
What is power?
- The capacity to influence others on your favor or the capacity to obtain what you
want.
- In negotiation is the capacity to influence in a favorable way, the probabilities to
obtain your goals or objectives

Power and leverage

- power is associated (synonymous) of leverage.
- Leverage: an advantage that one party has over the other party (counterpart)

Why is important power in negotiation?

Seeking power in negotiation arises from one of two perceptions:
- the negotiator believes he or she currently has less power than the other party.
 - The negotiator believes he or she needs more power than the other party.

Two perspectives on power

- power used to dominate and control the other power over.
- Power used to work together with other power with.

Sources of power
- Informational sources of power
- Personal sources of power
- Power based on position in an organization
- Relationship-based sources of power
- Contextual sources of power

Informational sources of power

Information is the most common source of power:
- derived from the negotiators ability to assemble and organize data to support his
o her position, arguments, or desired outcomes.
- A tool challenges the other partys position or desired outcomes, or to undermine
the effectiveness of the others negotiating arguments.

Power based on personality and individual differences

- psychological or personal orientation
- cognitive orientation
+ ideologies about power
- motivational orientation
+ specific motives to use power
- disposition and skills
+ orientation to cooperation/competition
- moral orientation
+ philosophical orientation to power use.

Power based on position in an organization

Two major sources of power in an organization:
- legitimate power which is grounded in the title, duties, and responsibilities of a job
description and level within an organization hierarchy.
- Power based on the control of resources associated with that position.

Power based on resources control

- people who control resources have the capacity to give them to someone who will
do what they want, and withhold them (or take them away) from someone who
doesnt do what they want.
- Some of the most important resources:
Money; supplies; human capital; time; equipment; critical services; interpersonal
support.

power based on relationships

- goal interdependence
+ how parties view their goals.
- referent power
+ based on an appeal to common experiences, common past, common fate, or
membership in the same groups
 - networks
+ power is derived from whatever flows through that particular location in the
structure (usually information and resources).

Power based on relationships

Aspects of network structure that determine power include:
- centrality: the more central we are in the network, the more power we will have
(control of information).
- Criticality and relevance: depending on how essential the node is, there may not
be a lot information flowing through, but theres still significant power.
- Flexibility: how key individuals have the ability to make decisions or control access
(gatekeeper).
- Coalition: its entirely possible that we may be belong to one or more subgroups,
as in a holocracy.

Power based on relationships

Key aspects of networks:
- tie strength
+ an indication of the strength or quality of relationships with other-
- tie content
+ the resource that passes along the tie with the other person
- network structure
+ the overall set of relationships within a social system

contextual sources of power

power is based in the context, situation or environment in which negotiations take place.
- BATNAs:
Alternatives deal that a negotiator might pursue if she or he does not come to
agreement with the current other party.
- culture
often contain implicit rules about use of power.
- agents, constituencies and external audiences

types of power
coercive power; legitimate power; expert power; referent power; reward power;
situational power.

1. coercive power
the potential to impact other or effect change through the administration of
negative sanctions, like: on threats, sanctions, frustrations and control.
Reactions to execute power due to the fear of the negative consequences if one
disobey or disagree.

2. legitimate power
it represents the power received within a the position in a hierarchical structure.
It gives status, a figure, a role to play.
It means an authority.

3. expert power
power derived from knowledge, expertise or experience, special skills or specific
knowledge on a specific topic.
 Export power in negotiation
Is the most standard type of power that is applied by any individual who has
studied and prepared their position prior to the start of a negotiation. Preparation
(search and re-search is essential).

4. Referent power
Is the ability to impact others or effect change based on the strength of
relationships between the leader and followers (this is a strong way to influence
the others).
This power us based more on relationship that status.
Referent power arises from the admiration of others and the desire to be like that
person (follow up).

5. reward power
the opposite to coercive power, a person or party fulfills the wishes of another one
because it is beneficial; therefore who can distribute rewards to others will have
power over them.
A reward often comprises financial remuneration, but they can be intangibles as
well.

6. situational power
it is a fact or knowledge of reality that can have influence in the negotiations.
An inherent advantage arises from the situation.

Obstruction of power
- The capacity to obstruct the other party.
- Arises from its ability to cause discomfort to the other party.

Symmetrical and asymmetrical power

- Symmetrical: when no one can harm anyone or when everyone else to an equal
degree.
- Asymmetrical: when some among them can harm some others to a greater degree
than the others can harm them.

Things to consider with power

- rarely one party has all the power
- power may be real or apparent
- power exists only if the other party accepts it
- power relations can change over time
- in relationships, the side with the least commitment generally holds the most
power.

Some tips on power asymmetry

- never do a all or nothing deal
- make the other party smaller and you bigger
- information is best source of power

CLASS #7
Communication in negotiation

What is communication?
Is the process of transferring information meaning and understanding from sender to
receiver using language.
Encoding, medium, decoding, noise

Communication process
Sender: encodes message, chooses a medium(channel), sends massage.
Noise: can interfere at any point
Receiver: receives message, decodes message, may send feedback for clarification.

Modes of communication
Verbal mode
- Examples:
oral: conversation, speeches, telephone calls, videoconferences.
Written: letters, memos, reports, e-mail, fax
- Advantages:
vivid, stimulating, commands, attention, difficult to ignore, flexible, adaptive
Disadvantages: transitory, subject to, misinterpretation, decreased,
misinterpretation, precise.
- Disadvantages
precision loss in, translation, inflexible, easier to ignore

Nonverbal mode
- Example:
Dress, speech intonation, gestures, facial expressions.
- Advantages
Effectiveness of communication, increases with congruence to oral presentation,
can emphasize meaning.
- Disadvantage:
meanings of nonverbal communication not universal.

Media or medium communication

- Different media have different sets of characteristics (media richness)
+ Personal, impersonal nature
+ Speed in sending and receiving
+ Availability of multiple cues
+ Opportunity to receive immediate and continuing feedback from receiver
- One should match message with medium for effective communication.

Factors in media richness.

- Rich media:
Personal, multiple cues to aid in decoding, immediate feedback.
- Lean media
Impersonal, few cues to aid in decoding delayed feedback.

Directions of communication
- Supervisor-supervisor: lateral communication
 - Supervisor- subordinate: downward communication: goals. Objectives,
directions, decisions, feedback.
- Subordinate- subordinate: lateral communication: information, (formal or
informal) for joint problem solving.
- Subordinate-supervisor: upward communication: information, questions,
suggestions, problems, requests for calcification.
-
Channels of communication,
Formal communication channels:
- Specify individuals responsible for tasks
- Specify individuals responsible for communicating information above and below
them
- Indicate persons (positions) to whom work related messages should be sent
Informal communication channels
- Tend to operate laterally more tan vertically
- Move information quite rapidly
- Carry both work-related and nonwork information.

Patterns of organizational communication

+ Formal communication channels
- Authorized, planned, and regulated by the organization
- Reflect the organization`s formal structure
- Define who has responsibility for information dissemination and indicate the proper
recipients of work related information.
- May be modified by the organization
- Minor to severe consequences for ignoring them

+ Informal communication channels

- Develop trough interpersonal activities of organization members
- Not specified by the organization
- May be short lived or long lasting
- Are more often lateral tan vertical
- Information flow can be very fast
- Used for both work related and nonwork information

Barriers to communication.
Level
1. Interpersonal
- Origin of barrier: selective perception, frame of reference, individual differences,
emotion, language, nonverbal cues.
- Affects communication between: individual or groups.

2. Organizational.
- Origin of barrier: hierarchical (barriers resulting from formal structure), functional
(barriers resulting from differences between functional departments).
- Affects communication between: individuals and/ or groups within an organization,
indivuals and/or groups in different organization.

3. Cultural.
- Origin of barrier: language, high low context culture, stereotyping, ethnocentrism,
culture distance.
- Affects communication between: individual or groups in different organizations with
different national cultural., individuals or groups from different organizational cultures,
individual or groups form diverse cultural backgrounds within an organization.

Communication differences in high and low context cultures

High context cultures:
- more and greater adjustments in messages,
- Rank of receiver will probably affect message and medium,
- nonverbal communication cues may be very important,
- medium may be as important as message

Low context culture:

- fewer and smaller adjustments in messages,
- Rank or receiver may or may not affect message or medium
- nonverbal communication cues not as important
- message is more important tan medium.

Cross cultural barriers

Ethnocentrism:
- the belief in the superiority and importance of ones own group
Stereotyping:
- tendency to oversimplify and generalize about groups of people
Cultural distance:
- the overall difference between two cultures` basic characteristics such as
language, level of economic development, and traditions and customs.

Improving communication.
- Be more open minded
- Develop empathy
- Listen actively
- Observe nonverbal cues
- Simplify the language
- Organize the writing
- Understand the audience:
+ what is the direction of the communication?,
+ does the recover have any expectations concerning this communication?,
+ is the communication formal or informal?,
+ does the receiver have preferences for certain channels of communication?.

Question in negotiation
What to ask?:
- depending on what you want out of the question
- needs to be relevant.
When to ask:
- have a plan
- if you are using the question to influence the other party include information of the
positions in the question.
- If your are using the question to influence the other party include information of
the positions in the question
How to ask:
- Tone of voice
 - Framing the question correctly
- Ask for facts not for opinions
-
Question, what for?
- To guide and direct the negotiation
- To obtain give information
- To influence the other party/ to get a reaction from get other party
- To have a control over the negotiation (to bring attention to specific aspects/to
induce conclusion)
- To make the parties think and analyze the negotiation.

Levels of questions

Level 1: first hand experiences: what we perceive and know

Level 2: how we describe the experience.
Level 3: our interpretation of the experience.
Level 4 conclusions regarding what we said about what we had said of the experience

Some tools for making questions.

1. Affirmative manifestation
- Declarations
- Should not be used to threaten or abuse the other party
- Importance of attention to detail, the words that make up the declaration and their
order within the sentence
2. Statements framed as question
- May indicate uncertainty
- Hide lack of knowledge
- May be evidence of lack of questioning skills

Some tools for answering question

How to answer questions:
- Give the impression that the question has been answer.
- Provide an incomplete answer.
- Provide an inadequate answer.
- Leave the other party not waiting to continue asking questions.

What to look for

- Anxiety in the other party
- Reduce uncertainty
- Provide details on the process
- Antagonism in the other party

Nonverbal communication
- Importance of nonverbal communication in shaping perception
- Humans do not have the capacity to not communicate
- Characteristics: relational, ambiguous, influenced by culture- the use of emblems

Nonverbal communication: for what?

- Creating and maintaining relationships
- Regulating interaction
- Influencing others
 - Concealing/ deceiving
- Managing identify (manners/appearance/setting).

What to look for

- Face and eyes
- Body movement ( gestures)
- Touch
- Voice
- Proxemics ( personal space)
+ intimate distance- skin to 18 inches
+ Personal distance 18 inches to 4 feet
+ Social distance 4 to 12 feet
+ Public distance beyond 12 feet

- Barrier behaviors
- Territoriality
- Time
- Physical attractiveness
- Clothing
- Physical environment.