International Negotiations An Interactive Approach RC Hoffman, Salisbury University

AoM 2007 PDW: Interactive Teaching Methods in IB - RC Hoffman, Salisbury University Purpose This PDW will demonstrate a a negotiation exercise that can be conducted in a normal class period. Typically the class will have been exposed to a brief lecture on the topic, but it can also be used to introduce the topic. We will learn by doing or at least brief exposure to the method.

AoM 2007 PDW: Interactive Teaching Methods in IB - RC Hoffman, Salisbury University IB Negotiation Exercise F You will be assigned a negotiating Role F Plan your exercise (5 mins) F Negotiate with your opposing team, see Role assignment sheet (10 min.) F Complete questionnaire F Debrief F Results of Negotiations

AoM 2007 PDW: Interactive Teaching Methods in IB - RC Hoffman, Salisbury University STEP 1:PLANNING STEP 2: BUILDING THE RELATIONSHIP STEP 3: EXCHANGING INFORMATION/FIRST OFFER STEP 5: AGREEMENT STEP 4: PERSUASION N e g S o t t e I p a s t I o n

Stages of Negotiations Time Importance High Low Japanese USA = build rel. 2= info. exch. 3= persuasion 4= agreement

AoM 2007 PDW: Interactive Teaching Methods in IB - RC Hoffman, Salisbury University NEGOTIATION TACTICS F Promise F Threat F Recommendation F Warning F Reward F Punishment F Normative appeal F Commitment F Self disclosure F Question F Command F No F Interrupting

Negotiating Styles

AoM 2007 PDW: Interactive Teaching Methods in IB - RC Hoffman, Salisbury University Successful Negotiators F Consider more outcomes F Focus on common ground F Long run view F More flexible F few irritating phrases F fewer counter proposals

IssuesCountryCompany Ownership & Mgt Facilities Employment Exports $$$ Other Results

CountryCompany Planned goals1.75 (1-2)2.50 (1-5) How to discuss2.75 (1-4)2.50 (1-4) Anticipate others1.25 (1-2)2.25 (1-4) Get know other side3.00 (1-4)4.00 (3-5) Made Compromises2.75 (1-5)3.50 (2-4) Satisfied with outcomes3.25 (1-5)3.50 (2-5) Negotiations Feedback Section: 2 1- SA, 2 – A, 3 – N, 4 – D, 5 - SD (Sample data)

AoM 2007 PDW: Interactive Teaching Methods in IB - RC Hoffman, Salisbury University INTERNATIONAL NEGOTIATION F More complex than domestic negotiations F Differences in national cultures and differences in political, legal, and economic systems often separate potential business partners