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Jeanne M. Brett - Negotiating globally: how to negotiate deals, resolve disputes, and make decisions across cultural boundaries

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Jeanne M. Brett Negotiating globally: how to negotiate deals, resolve disputes, and make decisions across cultural boundaries
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A framework for anticipating and managing cultural differences at the negotiating table

In todays global environment, negotiators who understand cultural differences and negotiation fundamentals have a decided advantage at the bargaining table. This thoroughly revised and updated edition of Negotiating Globally explains how culture affects negotiators assumptions about when and how to negotiate, their interests and priorities, and their strategies. It explains how confrontation, motivation, influence, and information strategies shift due to culture. It provides strategic advice for negotiators whose deals, disputes, and decisions cross cultural boundaries, and shows how to anticipate cultural differences and then manage them when they appear at the negotiating table. It challenges negotiators to expand their repertoire of strategies, so that they are prepared...

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Table of Contents The Jossey-Bass Business Management Series The - photo 1

Table of Contents

The Jossey-Bass Business Management Series The Instructors Guide for the - photo 2

The Jossey-Bass Business & Management Series

The Instructor's Guide for the third edition of Negotiating Globally contains an overall course design as well as chapter-by-chapter resources for both instructors and students, including cases, exercises, questionnaires, and tools. It is available for free at www.wiley.com/college/brett.

Cover design by Adrian Morgan Cover image Thinkstock Copyright 2014 by John - photo 3

Cover design by Adrian Morgan

Cover image Thinkstock

Copyright 2014 by John Wiley & Sons, Inc. All rights reserved.

Published by Jossey-Bass

A Wiley Brand

One Montgomery Street, Suite 1200, San Francisco, CA 94104-4594 www.josseybass.com

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.

Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data

Brett, Jeanne M.

Negotiating globally : how to negotiate deals, resolve disputes, and make decisions across cultural boundaries / Jeanne M. Brett. Third edition.

pages cm. (The Jossey-Bass business & management series)

Includes bibliographical references and index.

ISBN 978-1-118-60261-4 (cloth/website); ISBN 978-1-118-61150-0 (ebk); ISBN 978-1-118-61158-6 (ebk)

1. Negotiation in businessCross-cultural studies. 2. NegotiationCross-cultural studies. 3. Decision makingCross-cultural studies. 4. Conflict managementCross-cultural studies. I. Title.

HD58.6.B74 2014

658.4052dc23

2013047582

To all the negotiators

who shared their experiences

so that others could learn

Preface

If you must negotiate deals, resolve disputes, or make decisions in multiparty environments, this book is for you. If you have had formal training in negotiations, but no training in culture, the book will extend your negotiating skills and knowledge across cultural boundaries. Be prepared to discover that old familiar negotiation concepts, such as power and interests, take on somewhat different meaning in different cultures. If you have had no formal training in negotiations, the book will introduce you to all the fundamental concepts in negotiation and explain how and why the concepts apply in different cultural settings.

Although the book emphasizes negotiations in a global business environment, its advice is relevant not just to managers and management students who expect to be negotiating across cultural boundaries but also to lawyers and law students, and to government officials and students of public policy who are concerned with economic development in a global environment. Global negotiations occur in multiple legal, political, social, and economic environments. International agencies and national and local government officials are frequently at the table in negotiations that cross cultural boundaries. This book provides advice to help global negotiators navigate these complex environments.

Negotiating Globally focuses on national culture, because nation state boundaries are both geographical and ideological. The ideology or theory underlying a nation's social, economic, legal, and political institutions affects the way people interact. When negotiators are from the same culture, ideology is the backdrop against which deals and decisions are made and disputes are resolved. When negotiators are from different cultures, each may rely on different assumptions about social interaction, economic interests, legal requirements, and political realities. The book provides insights about when and why to adapt and how to execute an effective negotiation strategy that takes cultural differences into account.

In today's global environment, negotiators who understand cultural differences and negotiation fundamentals have a decided advantage at the bargaining table. This book explains how culture affects negotiators' assumptions about when and how to negotiate, their interests and priorities, and their strategies: the way they go about negotiating. It explains how confrontation, motivation, influence, and information strategies shift due to culture. It provides strategic advice for negotiators whose deals, disputes, and decisions cross cultural boundaries.

Researching Culture and Negotiations

Until recently, most of the knowledge about how to negotiate deals, resolve disputes, and make decisions in multiparty environments came from U.S. researchers studying U.S. negotiators negotiating with other U.S. negotiators. The evidence is overwhelming that U.S. negotiators leave money on the table when they negotiate deals, escalate disputes to the point at which costs outweigh gains, and make suboptimal decisions in teams and allow their emotions to interfere with outcomes. Their outcomes also often fall short of the outcomes they could have obtained if they had integrated their interests fully with those of their counterparts across the table.

Armed with knowledge about this gap and what can be done about it, my colleagues at the Kellogg School of Management at Northwestern University and I have worked with thousands of students, managers, and executives who wanted to improve their negotiation skills. In the early 1990s our student population and their interests started to shift. Managers from all over the world began to come to our executive programs. We were invited to teach negotiation in Europe, Latin America, and Asia. Kellogg's students became decidedly international. We could not avoid dealing with the question of whether what we were teaching applied across cultures. Was the same gap present in other cultures, or was it exclusively a U.S. problem? Would the same skills close the gap in other cultures? What about negotiating across cultures? What adjustments needed to be made to take what we knew about negotiations effectively across cultures?

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