International Negotiation Skills (NG302E_B - Fall 2024) PDF

International Negotiation Skills (NG302E_B - Fall 2024) Session 1. Negotiation & Communication Olivier Moreau [email protected] 1 Session 1 NEGOCIATION & COMMUNICATION 1. Introduction to the course...

International Negotiation Skills (NG302E_B - Fall 2024) Session 1. Negotiation & Communication Olivier Moreau [email protected] 1 Session 1 NEGOCIATION & COMMUNICATION 1. Introduction to the course 2. The Nature of Negotiation 3. Communication 4. Perception, Cognition & Emotion 1 - INTRODUCTION Ground Rules Late arrivals: 0 minutes tolerance! Misbehavior: exclusion of class after 1 warning Absence at evaluation (continuous or nal): zero grade Absence will be entered in Rise no matter if justi ed or not NG302E_B Fall 2024 S1 4 fi fi What are your expectations? For the course of International Business Skills …. NG302E_B Fall 2024 S1 5 What are our needs? To ensure this course is both enjoyable and beneficial … NG302E_B Fall 2024 S1 6 Module Plan 8 sessions 1. Negotiation & Communication 2. What is the International Negotiation Architecture? 3. Negotiation Styles 4. Negotiation pre - planning, process and tools 5. Negotiation Strategies Part 1 6. Negotiation Strategies Part 2 7. Multiple Parties, Group & Teams in Negotiation 8. Group presentations Reference Text Books EDITION 2012 EDITION 2020 1 EDITION 2016 Bibliography Recommended textbooks Lewicki R., Saunders D. & Barry B. (2020). Essential of Negotiation (7th edition) Mc Graw Hill (*) Fischer R. & Urey W.L. (2011). Getting to Yes: Negotiating Agreemnt Without Giving In. Penguin Books Additional reading Cellich, C. & Jain S.C. (2016). Creative Solutions to Global Business Negotiations (2nd edition) New York: Business Expert Press (*) Most of the course structure and content is based on this textbook. Business cases, case studies, exercises, simulations and testimonials are provided separately. NG302E_B Fall 2024 S1 9 Focus on Assessments NG302E_B Fall 2024 S1 Academic Integrity Policy Zero tolerance policy Using generative AI is... - considered academic misconduct if involves cheating, plagiarism, fabrication etc. or if involves generation of discriminatory, malicious, inappropriate etc. content on a graded activity - considered appropriate if used responsibly for learning outside of graded activities. Students must declare use of generative AI on assessed activities even if its use is legitimate and ethical. Ideas and text generated by AI must be cited NG302E_B Fall 2024 S1 2 - THE NATURE OF NEGOCIATION Negotiation: a definition Negotiation is a “form of decision making in which two or more parties talk with one another in an effort to resolve their opposing interest.” NG302E_B Fall 2024 S1 13 Characteristics common to all negotiation There are two or more parties There is a conflict of needs and desires The parties negotiate by choice! When we negotiate we expect a “give and take” A compromise is not always required. A solution may be invented that meets the objectives of all parties. NG302E_B Fall 2024 S1 14 Successfully negotiation involves Negotiation skills Listening / Attention Creativeness (solution finding) Communication To perform : the management of tangibles (e.g. the price or the terms of the agreement) The resolution of intangibles (they are often rooted in personal values and emotions) NG302E_B Fall 2024 S1 15 Distributive Bargaining vs Integrative Negotiation Zero - sum or distributive bargaining There can be only one winner The purpose is to claim value Mutual gains or integrative negotiation Both parties can achieve their objectives The purpose of the negotiation is to create value Most negotiations are a combination of claiming and creating value processes NG302E_B Fall 2024 S1 16 3 - COMMUNICATION As a Negociation Tool What is communication ? Communication process model (Jakobson) 6 functions in Communication : 1. Emotive : feelings & attitudes of senders 2. Referential: context - How does this message relate to the world 3. Poetic : form & style of message 4. Phatic : establishing a contact 5. Metalingual : code - How does the language work 6. Conative : how does the receiver respond NG302E_B Fall 2024 S1 What is communicated during negotiation? Offers and counteroffers (with motives) Information about alternatives (BATNA) Outcomes (relationship) Explanation / Social accounts (context change… to justify bad news) Negotiation process (Communication about process) NG302E_B Fall 2024 S1 19 How People Communicate? Characteristics of language The 3 Vs of Communication Logical level (proposals / offers) (Mehrabian) Vocal, Visual, Verbal Pragmatic level (semantics, syntax and style) Use of nonverbal communication Facial expressions, body language,head movements, tone of voice,… Make eye contact, adjust body position NG302E_B Fall 2024 S1 20 Which communication channels can we use? PLACE/TIME model of social interaction: Same place Different place Telephone Same time Face-to-face Video conference E-mail Different time Single text editing Voice mail These channels: what do they vary in? NG302E_B Fall 2024 S1 12 Selection of a communication channel? Face to face The more Video conference Amount of The leaner the psychological Phone social cues channel distance we have In writing - emails Face to face The more social Video conference Amount of The richer the presence we Phone social cues channel have In writing - emails NG302E_B Fall 2024 S1 22 Face to Face Preferred communication channel for negotiation Same time / same place Allow to observe behaviours (verbal and non verbal signals) Best at building rapport / relationship Foster trust and cooperation Getting to better outcomes NG302E_B Fall 2024 S1 23 Phone and Video Conference Same time / different place Alternative to face to face Negotiators still recognise some social cues Challenges: loss of informal communication NG302E_B Fall 2024 S1 24  E-mail, Voice-mail, Text editing…. Different time / different place Helps entering and maintaining contact Minimise costs and speed up process Reduce the role of status and erases gender biases 4 biases can threaten e-mail negotiations: 4 specific biases : Temporal synchrony bias (asynchronous) Burned bridge bias (no step backwards => risky behaviour) Squeaky wheel bias (more muted emotions) Sinister attribution bias (shortage of rapport may lead to project sinister and deceitful motives) NG302E_B Fall 2023 S1 25 NG302E_B Fall 2024 S1 How to improve communication ? Ensuring the right understanding of message Communication is not just what has been said (verbal) or how it has been said (non verbal) it’s also how these messages have been received (listening skills?), perceived, processed etc… (noises?) Listening : become an active listener (words used) and observer (gestures) Asking questions to ensure your understanding Restating, rephrasing, summarising, reframing… to ensure proper understanding of message Reminder : Be sensitive about the other party’s culture and profile NG302E_B Fall 2024 S1 4 - PERCEPTION COGNITION & EMOTION Perception defined: Perception is a “sense making” process Stimulus -> Attention -> Recognition -> Translation -> Behavior NG302E_B Fall 2024 2023 S1 28 Perceptual Distortion Stereotyping: assign attributes to an individual solely on the basis of its membership in a particular social or demographic category (e.g. young / old, males / females, nationality,…. Halo effects: similar to stereotypes but based on a an attribute of an individual (e.g. a smiling person being judged to be more honest) Selective perception: consider only certain information that supports / reinforce prior beliefs Projection: assign to others the characteristics or feelings that you posses yourself NG302E_B Fall 2024 S1 29  Framing “Framing is about focusing, shaping, and organising the world around us.” (Lewicki, Barry, Saunders, Milton, Negotiation, Mc Graw Hill, 2002, Fourth Edition). Framing could be thought as a filter Je ff of reality. We frame / we see the event in such Bob a way which is logical to us. Sandy Our education, experiences, background, personality, culture…make us all understand differently in the face of an event or when interacting with people NG302E_B Fall 2024 S1 Why is framing important? Both parties have frames Frames shape what the parties define as the key issues and how they talk about them How we frame reflects what we see as really important to us Understanding the other parties’ frame help us to identify what is important to them Certain frames are more likely than others to lead to certain types of processes and outcomes NG302E_B Fall 2024 S1 31 Examples of frames Substantive: what the conflict is about / what the issue is Outcome: focus on the result / on the outcome Aspiration: concerned about the relationship Process: concerned about how the conflict should be managed Identity: concerned about reinforcing his identity (wether social, religious, cultural,…). In conflict, identity frames (of self) tend to be positive. Characterisation: shaped by experience with the other party, by information about the other’s party history or reputation. In conflict characterisation frame (of others) tend to be negative Loss / Gain frame: optimistic or pessimistic about the conflict (bottle half empty or half full) NG302E_B Fall 2024 S1 32 How Frames work in Negotiation Negotiators can use more than one frame Mismatches in frames between parties are sources of conflict e.g. One negotiator has an outcome frame and the other a procedural frame. This may cause ambiguity, create misunderstanding, lead to conflict escalation or even stalemate Parties negotiate differently depending on the frame E.g. when parties frame a negotiation in emotional terms, they tend to be more highly involved and behave competitively (leading to higher impasses rate As situations evolve over time, frames may change accordingly NG302E_B Fall 2024 S1 33 Cognitive Biases in Negotiation Errors to avoid : Escalation of commitment: persist in pursuing a failing course of action Fixed-pie beliefs: negotiation as a zero - sum or win - lose game Information availability: overweight information that is easily available Negotiator overconfidence NG302E_B Fall 2024 S1 34 Cognitive Biases in Negotiation Errors to avoid : The law of small numbers: inappropriate conclusions based on small data samples Self - serving bias: e.g. take personal credits for successes Endowment effect: inflate the value of something you own Ignoring others’ cognition: failure to consider the other party’s thoughts, perceptions, interest and goals Reactive devaluation: placing less value on concessions made by the other … NG302E_B Fall 2024 S1  Emotions The Culture Iceberg Model (Edward T. HALL) The Guest of Negotiations To deal with your emotions & the TOP’s ones; Emotions could be : The What Positive ✓ usually lead to more integrative processes ✓ create a positive attitude to TOP ✓ promote persistence Negative ✓Lead parties to define the situation as competitive / distributive The Why ✓Undermine the ability to analyse the situation accurately ✓Lead parties to escalate the conflict and / or retaliate NG302E_B Fall 2024 S1 Responding to Negative emotion Separate the emotion from its expression (Is the emotion a way to signal an important interest?) Turn the table (“Why would I behave this way?”) Reflect the emotion being expressed back to the other party (acknowledging that the other party is human and has feelings) Ask questions to uncover the issue or interest behind the emotion NG302E_B Fall 2024 S1 37 Effective Communication Overcoming barriers to Effective Communication NG302E_B Fall 2024 S1 In class exercices NG302E_B Fall 2024 S1 39 Thank you for your attention 40