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International Business Negotiation Part III Arts Arts of negotiation Chapter 8: Psychological fundamentals Chapter 9: Communication skills Chapter 10: Global negotiation Chapter 8 Psychological fundamentals Chapter 8 Psychology of negotiation Negotiating Power Personality and Negotiation styles Psychological frustration in a negotiation Traits leading to a successful negotiation Negotiating Power and Related Factors Motivation Dependence Substitutes Motivation Desires and incentives for gaining interests and stakes. A’s motivation ↑,A’s power ↓. Motivation can be stimulated by: Offering inducements to the other party or to the other’s supporters; Demonstrating attractiveness of the options; Getting external third parties to endorse your inducements; Placing a time limit on the availability of your offer. Dependence A constant and regular need that someone has for something in order to be able to survive or operate properly. A’ dependence on the other party ↑, A’s power ↓ How to increase the other’s dependence on ourselves? Reducing, delaying or withholding services or resources Blocking the other party’s ability to work on their own Isolating the other party Convincing the other party to give up Substitutes Alternatives one party can explore instead of the things and move one party takes to reduce its dependence on the other party. A’s substitute ↑, A’s power ↑. One’s chances of gaining substitutes increase in the case of: Having alternatives to allow operating without the other party; being able to absorb the escalating cost of conflict; Being able to use expert counsel to gain access to alternatives. Interpersonal Conflict Handling Styles: AC model Personal styles VS Negotiation modes (I) Personal styles VS Negotiation modes (II) Personal styles VS Negotiation modes (III) Personal styles VS Negotiation modes (IV) Personal styles VS Negotiation modes (V) When Should the Forcing Style BeUsed to Handle Interpersonal Conflicts? Emergencies requiring quick
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