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Business agreements
Influenced not only by price, contracts, and legal terms, but also by culture, communication, trust, time orientation, and relationship-building.
Authority
Those with ____ have more influence than those without. A negotiator may use a title, such as doctor, to show authority. There are two broad uses of authority in influence seeking.
Based on a person’s personal expertise or credibility.
Based on a person’s legitimate position in a social hierarchy.
The first is a “soft” influence tactic; the second is a “harsh” tactic. When dealing with authority figures, ask two questions.
Is this authority truly an expert?
How truthful can I expect this expert to be?
Personal relationships
Given the complexity of most close ____, it is difficult to know which dimensions might be most relevant. Reputations. This includes past experience both direct and indirect. Justice. This plays an important role in shaping relationship development. Trust. This is the most common and most important dimension.
Intercultural negotiation
Negotiation between people from different cultural backgrounds.
Culture
Includes values, customs, traditions, language, religion, history, lifestyle, and social expectations passed from one generation to another. Shapes what power is seen as legitimate. “Power distance” is a key dimension that distinguishes it.
Culture affects
How people communicate, make decisions, solve conflicts, and define success.
Integrative negotiation
Seeks mutual benefit and is often described as “win-win.” It works best when parties discuss several variables, such as salary, schedule, benefits, deadlines, guarantees, or long-term cooperation.
Distributive negotiation
Is more competitive and usually focuses on dividing a fixed resource, such as price.
Accommodative negotiation
Happens when one party accepts losing or giving in, either partially or fully, to preserve the relationship or avoid conflict.
Harvard negotiation method/principled negotiation
Its main foundations are: separate the people from the problem, focus on interests rather than positions, generate options for mutual benefit, and use objective criteria to reach fair agreements. Identify what each side really needs and support your proposal with evidence, standards, market references, expert opinions, or legal frameworks.
BATNA/Best Alternative to a Negotiated Agreement
Your best option if no agreement is reached. Knowing it gives you power because it helps you decide when to accept, reject, or continue negotiating. A strong ___ increases the chance that you make the first offer, increase your outcomes , gain leverage, and claim more value.
Bargaining zone
The space where both parties’ acceptable terms overlap.
A good negotiator identifies
The limits, alternatives, and possible concessions before closing a deal.
Preparation is essential
Before negotiating, study the counterpart, context, interests, culture, possible objections, legal environment, and your own objectives. Strong preparation includes defining your ideal outcome, acceptable outcome, walk-away point, and possible concessions.
Best practices
Such as learning from experience, communicating clearly, being willing to walk away, and understanding the structure of the negotiation.
Negotiations in Latin America
Common tendencies such as relationship-oriented interaction, flexible use of time, importance of trust, personal connections, intuition, and sometimes haggling. However, avoid stereotypes. Use these patterns as cultural tendencies, not absolute rules. Building rapport before discussing business may be important.
Cultural dimensions frequently used to analyze negotiation
Individualism vs collectivism, power distance, masculinity vs femininity, uncertainty avoidance.
Individualism vs. collectivism
Explains whether people prioritize personal goals or group harmony.
Collectivist societies
Relationships and group approval often matter strongly.
Power distance
How a society handles hierarchy.
High power-distance
Cultures concentrate decisions at the top.
Low power-distance
Cultures distribute decision-making more broadly.
Masculinity vs. femininity
Contrasts competitive, achievement-oriented values with nurturing, cooperative, quality-of-life values
Uncertainty avoidance
How comfortable a culture is with ambiguity
High uncertainty-avoidance
Cultures prefer rules, structure, and predictability.
Time orientation
Also important, monochronic and polychronic cultures.
Monochronic cultures
Prefer schedules, punctuality, and sequential tasks
Polychronic cultures
More comfortable with multiple activities occurring at the same time and may treat schedules more flexibly.