Introduction to International Negotiations

International Negotiations

A.J.Ibaev

Negotiation is one of the most important global business skills
What is negotiations?
Two or more parties combining their conflicting points of view into a single decision of mutual interest.
Negotiation is about value claiming, value creation and trust building

Learning Objectives

• Improved ability to negotiate
• General strategy (mental model) for successful negotiation
• Enlightened model of negotiation (fraternal twin)

Negotiation Skills as Core Leadership Competency

• Key communication & influence tool for interdependent relationships (in & outside the company)
• Most people are not very good at negotiation (e.g., over 80% of corporate executives and CEOs leave money on the table)
• People don’t realize this

Conditions of negotiations

• Perception of conflict
• People hold different perceptions. Objective conflicts or perception of conflict
• Communication opportunities
• If people cannot communicate, they cannot negotiate. In explicit bargaining people communicate with one another. In tacit bargaining they coordinate through their actions.
• Interdependence
• People are interdependent if their actions affect others’ outcome. In the dyadic case parties must agree to the outcome to occur. Veto power to walk away.

The role of conflict

• Predominantly negative
• Competitive processes
• Misperception and bias
• Emotionality
• Decreased communication
• Positive aspects of conflicts
• Discussing conflicts make people aware and able to cope with problems.
• Create organizational changes
• Promote awareness of self and other

Interdependence