Effective Negotiation Strategies and Cross-Cultural Communication

Benefits of Active Listening

• Ask questions to analyze possible positions and organize our negotiation strategy.
• Observe verbal and non-verbal language.
• Look for cooperation.
• Faster negotiation. No need to repeat information.
• Quick detection of inconsistencies and weaknesses.

Recommendations for Active Listening

• Listen carefully.
• Do not interrupt.
• Empathy.
• Be focused on the conversation.
• Get informed, in advance, about the topic to be discussed.
• Take notes if it is necessary.
• Make summaries during the conversation.
• Clarify doubts.
• Adequate climate and positive attitude.
• Remove communication barriers.

Kinetics

• Interpretation of body movements and gestures.
• Posture
• Gesture
• Look
• Smile

Paralinguistics

• Non-verbal communication provided by the non-linguistic vocal aspects of the message.
• Emotional tone of voice
• Volume
• Rhythm
• Sighs
• Moans and groans

Proxemics

• Study of the use of space and the effects that population density has on behavior, communication, and social interaction.

Simultaneous Interpretation

• Listener receives translation in real time.
• Translation is superimposed on the original speech.
• Immediacy.
• Closed booths equipped with microphones, headphones, and recorders.
• The interpreter should not spend too much time reformulating the speech.
• “Décalage” (time lag).

Consecutive Interpretation

• After the speaker has spoken.
• Partial translations.
• Use: Conferences, press conferences, courts, etc.
• Interpreter with great memory.
• The interpreter plays in front of the audience but must not be the protagonist.

Whispered Interpretation / Chuchotage

• Simultaneously in a low voice, directly to the ear of the receiver.
• Just with two receivers: negotiations or small meetings.

Strategies

Win-Win

A strategy in which both sides win. Both sides make concessions, this way they can get to a pleasant agreement. Useful for long-term relationships. This strategy encourages new opportunities looking forward to the future.

Win-Lose or Distributive

A strategy in which one side wins over the other. The negotiator fights for the best interest of his party, defeating the other side. Useful in short-term negotiations.

Negotiation Tactics

Specific actions to develop a strategy. Strategies are for long-term relationships. Tactics are for short-term relationships.

• Set a high price, so that the final price is close to it. Make sure that the other party knows that the conditions and prices are not the final ones, so there is a place for the negotiation. Have a good answer for the question “why”, related to the high price.
• Making excessive requests. The point is to make many petitions, in order to exchange for concessions that can close the negotiation near our ideal result.
• Making mini-concessions: give the impression of renouncing some petitions.
• Asking for mini-concessions: if they are granted to us, by adding them up, we might achieve a significant result.
• Set limits: pretend not to give up any more concessions. There’s the risk of losing the other party’s interest. If the other party sets the limits, the best is to ignore them.
• Precedents: useful for pressuring the other party. Use past agreements to persuade the current negotiation.
• Comparisons
• Shape the other party’s aspirations
• Adding new partners (Serrucho)
• Influencing preferences; etc.

Avoidance

• No negotiation because there is a hard conflict or parties deny an existing conflict.
• Uncooperative parties.
• Relations may be affected negatively in the future.
• Result: Lose-lose.

Accommodation

• A party subordinates to the other. One party is weaker. The strongest party will not make concessions. The weakest party gives in, except for its main goal.
• Cooperative parties.
• Accommodation may be an effective strategy if the weaker party has an objective that is more important to the others. This party prefers to reach this objective, although it means losing other aims.
• Lose-win. May even be win-win.

Compromise

• Parties agree about many things, but there are differences in some points. They must be open and creative to solve discrepancies.
• Trust is needed. Cooperation. Objective criteria.
• Parties may be willing to sacrifice something valuable. Concessions are given by both parties.
• Mini-win or mini-lose.

Competition

• A party has a position of strength, so they take an inflexible position. Every concession is considered a weakness.
• Information is kept and the position is hidden.
• Competition may lead to poor relationships in the long run. It may be effective in the short run.
• Win-lose.

Collaboration

• Usually solved successfully, after a negotiation process. New proposals are provided, and parties know how to adapt.
• Trust, cooperation, active listening, and collaboration.
• Successful and long-run relationships.
• Win-win.

Negotiator Focused on Results

• Chooses profit over relationship.
• Achieves goals at all costs.
• Interlocutors seen as enemies.
• Useful for all-or-nothing negotiations.
• Not advisable for long-run relations.

Focused on People

• Personal relationships are the most important.
• Cooperation and trust.
• Long-run relationship.
• They risk being too soft and the interlocutor taking advantage.

Focused on Conciliation

• In the middle of the two previous approaches.
• Firm and flexible.

Personal Styles

Positive

• Procedure-based approach: Realistic (facts) / Correct behavior and patient / No trust in people.
• Cooperative approach: Prefers listening instead of talking / Trust / Does not like conflict and avoids it / Generous and honest.
• Persuasive approach: Competition / Aggressive / Good at analyzing situations and dismantling opponent’s arguments / They can keep the discussion for hours until achieving goals / Precise, assertive, and tight-fisted.
• Conciliatory approach: Reach agreements / Give in at some points / Realistic, pragmatic, prudent, and does not transmit fear / Not transparent with information / Smart and tougher than they appear to be.

Ideal Approach

The negotiator isn’t afraid to negotiate when disagreement is encountered / never nervous, aggressive nor too nice / correct and objective / long-term relationships.

Negative

• Too nice approach: Cordial and friendly / Real negotiation issues not discussed for fear / Other party takes advantage.
• Formalistic approach: Slow and long negotiations / Careful preparation / Many interruptions and complicated procedures.
• Aggressive approach: Negotiator only thinks about winning / Interlocutor as an adversary / Lack of sincerity and cooperation / Hard to reach agreements.
• Over-commitment approach: Negotiator aims to achieve results in every negotiation / He seeks any kind of agreement, even if they do not solve problems / Insecure negotiator.
• Idealistic or utopian approach: Negotiator seeks a better result than would be reasonable or possible.

Context

High

Close and lasting relationships, non-verbal communication, hierarchy, family, rigid cultural patterns, Latin countries, and Japan.

Low

Short and impersonal relationships, explicit messages, written agreements, Europe and the USA.

Intellectual Styles

• Saxonic: rigorous and empathetic.
• Gallic: theoretical arguments.
• Teutonic: purity of arguments and elegant and aesthetic language.
• Nipponic: flexible, ambiguous, and hierarchical.

Sequential vs. Synchronous

• Sequential: One thing after another, never several at once. Short, rational relationships. Germans, Swiss, Austrians, British, Americans.
• Synchronous: Several things at once. Friends and business. Brazilians, Mexicans, Chinese, Japanese, Indians, Arabs.

Universalism vs. Particularism

• Universalism: Common aspects. Ex: Mass production, scientific work organization, and formal communication systems. USA, Germany, and Switzerland.
• Particularism: They pay more attention to exceptions, valuing difference. Production systems oriented to tailor-made products, informal communication, greater relevance of human relations. China, South Korea, India, and Saudi Arabia.

Individualism vs. Collectivism

• Individualism: Own interests, and superficial relationships. USA, Holland, Great Britain, and Italy.
• Collectivism: Close community relations, China, Mexico, South Korea, Saudi Arabia.

Power Distance

• Low power distance: Little distance between decision-makers and workers. Boss leadership and skills. UK, Germany, USA.
• High power distance: A lot of distance between decision-makers and workers. Boss protector. Japan, Brazil.

Uncertainty Avoidance

• Low uncertainty avoidance: High tolerance for uncertainty. India, Netherlands, Scandinavia, UK, Switzerland.
• High uncertainty avoidance: Low tolerance for uncertainty. Stability. Greece, Portugal, Japan, and Mexico.