STRM060 IBN

‘Introduction to IBN and the

nature of negotiation’

Workshop 1

1
Recap: topics we explore in this module are…

o Define what is ‘negotiation’

o The skills needed to be a negotiator
o The importance of cross cultural negotiation
o Gender roles in negotiating

2
Recap: topics we explore in this module are…

o Negotiation strategies
o Understanding your own [and others] BATNA
o Power and control
o The importance of trust and ethics
o Corporate Social Responsibility

3
Recap: topics we explore in this module are…

o Assignment support and feedback sessions

o Academic guidance with the written essay
o Practical group presentation activities
o There will be other topics!

4
 It is important to note that…

o The concept of IBN is not a dedicated subject field.

o It has no central conceptual framework.
o There is no core area of study.
o It borrows from other subjects, e.g. employment
relations, international relations, social psychology etc.

5
 So, Negotiation is…

“The deliberate interaction of two or more complex social

units which are attempting to define or redefine the terms of
their interdependence”(Walton and McKersie, 1965)

6
 So, Negotiation is… cont.

“The exchange of specific proposals to reach an agreement

on a particular issue”(Lewicki et al., 1992)

“A process that leads to a voluntary agreement”

(Tomlinson and Lewicki, 2015)

7
Negotiation is all around us (think of at least 3 for each)

• Right now, in the world, can you think of any

negotiations that are taking place?

• What about over the last 100 years?

• What about in the next 100 years?

Question: why do people / organisations'

negotiate? 8
 Negotiation is all around us
(in groups discuss each of the points: 15 minutes in total)

Give an example of how a Government can approach

negotiating?

How do multinational corporations negotiate?

How do students (both individually and collectively)

negotiate?
Are there any similarities between them?
9
 Why do we negotiate?

• Conflict is often ignored. It is possible to overcome conflict

through force of will or superior power.
• Struggle is inefficient
• Reduces good will between the parties.
• Increases suspicion.
• Consumes energy / resources.
• Negotiation permits exploration of issues
• Clarification of objectives / meaning and motivation.

10
 Why do we negotiate?

Do you have any examples of when you negotiated?

When do human beings start to negotiate?

11
Assumptions in negotiating

Two or more parties involved in the situation

(Lewicki et al., 2016; Saee, 2008; Greene and Burleson, 2003)

Each party has its own needs and desires

(Lewicki et al., 2016; Johnson, 1993)

Both parties prefer to negotiate and search for

an agreement (Saee, 2008)

Tangible and intangible factors involved in

each party motivation
(Greene and Burleson, 2003; Johnson, 1993)

12
 Gender and Negotiation
(Boyer et al., 2009), (Chua and Fujino, 1999), (Xinping, 2001), (Gerson and Peiss, 1985), (Eriksson and Sandberg, 2012), (Kray and Thompson, 2004), (Kray et
al., 2002), (Stuhmacher and Walters, 1999), (Stevens et al., 1993), (Craver, 2002), (Croson and Gneezy, 2004), (Mazei et al., 2015), (Eckel, 2008)

Stereotyping the performance Societal perception of men

level due to external factors being independent

Stereotyping the
Societal perception of women
performance level due to
being interdependent
their abilities

Collaborative strategy Authoritative, Aggressive,

Dominant
Supportive, Accommodating,
Emotional Distributive strategy

13
Impact of Cultural
Differences
on Gender

14
Uncertainty Avoidance (female perspective)

More risk averse than men which has a direct impact on

negotiation outcomes
(Bowles et al., 2007; Croson and Gneezy, 2004)

Have stronger emotions and tend to feel fear

(Boyer et al., 2009; Kray et al., 2002)

Have stronger emotions and tend to feel fear

(Stevens et al., 1993)

Tend to interpret risky situations as a threat

(Stuhlmacher and Walters, 1999;)

So, what would be the male

15
perspective?
Individualism
Countries Individualism and Collectivism
countries

Western and Asian countries can be categorised as

Individualist and collectivist respectively
(Watkins et al. (1998; Saee (2008) Hofstede
(1998)

Masculinity and Femininity countries

Vary among Western and Asian countries, are related

to historical roots and is unlikely to change
Hofstede (1998)

Collectivism
Countries

16
 Relationship of Negotiation and Cross
Culture
“Cross-cultural competence in international business is an individual’s
effectiveness in drawing upon a set of knowledge, skills, and personal
attributes in order to work successfully with people from different
national cultural backgrounds at home or abroad” (Johnson et al., 2006)

“The way a negotiator interacts with his / her counterparts during the
negotiation process differs across cultures. In most Asian cultures,
negotiators adopt a more formal negotiation style” (Ready and Tessema, 2009)

17
 Relationship of Negotiation and Cross
Culture
“The cultural differences of countries can act as barriers in the
negotiation process. People belonging to different cultures have different
perceptions hence they behave differently in case of negotiation” (Shaul, 2012)

“Culture differences impact negotiation skills across cultures, some cultures

adopt simple and direct methods of communication, while others prefer more
complex indirect methods” (Ready and Tessema, 2009)

18
There are two Assessments for STRM060

• Assessment one: an individual 3,000 word

academically based essay = 60% [week 5 from the
start of the module]
• Assessment two: a group presentation + individual
self-reflection = 40% [week 11 from the start of the
module, presentations in week 12]
Further details of the assessments can be
found on NILE, please make sure you read19
Assessments for STRM060: a good place to
start!
Remember that this is academic study at MBA Level 7 (which is
one below PhD).
• Actively read around the topics – attending class is only a small part of what you need to do.
• Use only quality academic sources i.e. books and especially journal articles – using non-academic sources will
impact on your grade.
• DO NOT give your personal opinion… you need to be discussing what the academic literature is saying.
• Do not bring in personal stories and / or fables i.e. “A friend of mine once purchased a car and he negotiated a
discount because…”
• When writing you need to be presenting academic discussions, academic synthesis and critical analysis.
• Read widely.
• Make sure you bring a two page draft to the support Workshops to get feedback and advice on before you submit.
• Use the many resources available from the Library.
• The group presentations also need to include relevant academic sources

And finally, do not

plagiarise!!!! 20
 Our first group activity

Defining aspects of negotiation.

(This links directly with the written assignment)

21
 References
Bear, J. and Babcock, L. (2012) Negotiation Topic as a Moderator of Gender Differences in Negotiation. Psychological Science. 23(7), 743-744.
Bowles, H., Babcock, L. and Lai, L. (2007) Social incentives for gender differences in the propensity to initiate negotiations: Sometimes it does hurt
to ask. Organizational Behavior and Human Decision Processes. 103(1), 84-103.
Boyer, M., Urlacher, B., Hudson, N., Niv-Solomon, A., Janik, L., Butler, M., Brown, S.Ioannou, A. (2009) Gender and Negotiation: Some
Experimental Findings from an International Negotiation Simulation1. International Studies Quarterly. 53(1), 23-47.
Chua, P. and Fujino, D.C. (1999). Negotiating new Asian-American masculinities: Attitudes and gender expectations. The Journal of Men’s
Studies, 7(3), pp.391-413.
Craver, C.B. (2002). Gender and negotiation performance. Sociological Practice: A Journal of Clinical and Applied Sociology, 4(3), pp.183-193.
Croson, R. and Gneezy, U. (2009). Gender differences in preferences. Journal of Economic literature, 47(2), pp.448-474.
Eckel, C., de Oliveira, A. and Grossman, P. (2008) Gender and Negotiation in the Small: Are Women (Perceived to Be) More Cooperative than
Men?. Negotiation Journal. 24(4), 429-445.
Eriksson, K.Sandberg, A. (2012) Gender Differences in Initiation of Negotiation: Does the Gender of the Negotiation Counterpart Matter?.
Negotiation Journal. 28(4), 407-428.
Forbes (2017) Forbes Welcome. Forbes.com. [online]. Available from: https://www.forbes.com/sites/dailymuse/2013/06/17/why-women-must-ask-
the-right-way-negotiation-advice-from-stanfords-margaret-a-neale/#2f4e3e9a30a2 [Accessed 10, June 2017].
Gerson, J.M. and Peiss, K. (1985). Boundaries, negotiation, consciousness: Reconceptualizing gender relations. Social problems, 32(4), pp.317-
331.
Glass, C. and Cook, A. (2016). Leading at the top: Understanding women's challenges above the glass ceiling. [online] Available at:
http://www.sciencedirect.com.ezproxy.northampton.ac.uk/science/article/pii/S1048984315001034 [Accessed 12 June. 2017].

22
 References
Hofstede, G. (1998). Masculinity and femininity: The taboo dimension of national cultures (Vol. 3). Sage.
International Labour Organization (2016). Women At Work Trend 2016. International Labour Organization [online]. Available from:
http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_457317.pdf [Accessed 8 April. 2017].
Johnson, R.A. (1993). Negotiation basics: Concepts, skills, and exercises. Sage.
Kray, L.J. and Thompson, L. (2004). Gender stereotypes and negotiation performance: An examination of theory and research. Research in
organizational behavior, 26, pp.103-182.
Johnson, J. P., Lenartowicz, T. & Apud, S., 2006. Cross-cultural competence in international business: toward a definition and a model. Journal of International
Business Studies, Volume 37, pp. 525-543.
Kray, L.J., Galinsky, A.D. and Thompson, L. (2002). Reversing the gender gap in negotiations: An exploration of stereotype
regeneration. Organizational Behavior and Human Decision Processes, 87(2), pp.386-409.
Lewicki, R. J., Barry, B. and Saunders, D. M. (2016) Essentials of negotiation. 6th ed. New York: McGraw-Hill Education.
Lewicki, R. J., Weiss, S. E. and Lewin, D. (1992). Models of Conflict, Negotiation and Third Party Intervention: A Review and Synthesis. Journal of
Organisational Behaviour, 13(3), pp. 209-252.
Mazei, J., Hüffmeier, J., Freund, P.A., Stuhlmacher, A.F., Bilke, L. and Hertel, G. (2015). A meta-analysis on gender differences in negotiation
outcomes and their moderators. Psychological bulletin, 141(1), pp.85-104.
Ready, K. J. & Tessema, M. T., 2009. Perceptions and strategies in the negotiation process: A cross cultural examination of U.S and Malaysia. International
Negotiation, 14, pp. 493-517.
Saee, J. (2008). Best practice in global negotiation strategies for leaders and managers in the 21st century. Journal of Business Economics and
Management, 9(4), pp.309-318.

23
 References
Shi, X., (2001). Antecedent factors of international business negotiations in the China context. MIR: Management International Review, pp.163-187
Shukla, A. (2014) Co-Branding : A perspective on joint marketing with partner brands. [Online] LinkedIn. Available at: https://www.linkedin.com/pulse/co-branding-
perspective-joint-marketing-partner-brands-anup-shukla [Accessed 14 June. 2017].
Small, D., Gelfand, M., Babcock, L.Gettman, H. (2007) Who goes to the bargaining table? The influence of gender and framing on the initiation of
negotiation. Journal of Personality and Social Psychology. 93(4), 600-613.
Stevens, C.K., Bavetta, A.G. and Gist, M.E., (1993). Gender differences in the acquisition of salary negotiation skills: the role of goals, self-efficacy,
and perceived control. Journal of Applied Psychology, 78(5), pp.723-735.
Stuhlmacher, A. and Walters, A. (1999) GENDER DIFFERENCES IN NEGOTIATION OUTCOME: A META-ANALYSIS. Personnel Psychology.
52(3), 653-677.
Stuhlmacher, A., Citera, M.Willis, T. (2007) Gender Differences in Virtual Negotiation: Theory and Research. Sex Roles. 57(5-6), 329-339.
Taras, V., Kirkman, B.L. and Steel, P. (2010). Examining the impact of Culture's consequences: a three-decade, multilevel, meta-analytic review of
Hofstede's cultural value dimensions.pp.405-439.
Tomlinson, E. C. and Lewicki, R. J. (2015). The Negotiation of Contractual Agreements. Journal of Strategic Contracting and Negotiation, 1(1), pp.
85-98.
Walton, R. E. and McKersie, R. B. (1965). A Behavioural Theory of Labour Negotiations: An Analysis of a Social Interaction System. Cornell
University Press, p. 3.
Watkins, D., Akande, A., Fleming, J., Ismail, M., Lefner, K., Regmi, M., Watson, S., Yu, J., Adair, J., Cheng, C., Gerong, A., McInerney, D., Mpofu, E.,
Singh-Sengupta, S. and Wondimu, H. (1998). Cultural dimensions, gender, and the nature of self-concept: A fourteen-country study. International
Journal of Psychology, 33(1), pp.17-31.
Weiss, S.E. (1993). Analysis of Complex Negotiations in International Business: The RBC Perspective. Organization Science, 4(2): 269-300.

24