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MULTI-NATIONAL COMPANIES
There are some multi-national companies that are larger than entire national economies (Reilly 2016). When they enter some of these economies, they bring direct investment which creates jobs, open up new markets to the local economy, and bring technology and products that otherwise would have never existed. As a result, demand for an educated and skilled workforce increases, improving not only the standard of living of the local economy, but international relations as well (Reilly 2016). Finally, diversity brings the opportunity of learning about different cultures.
A multi-cultural workforce offers some benefits to the multi-national company as well. For instance, the multi-national gets a different perspective on issues and challenges facing the company (Kokemuller 2016). This helps overcome cultural differences in the global marketplace since they have someone that speaks the language. In addition, employees enjoy new career opportunities in different countries.
But there are some challenges. There is an increased risk for discrimination as our unconscious biases can take over (Kokemuller 2016). Internal communication can become an issue, particularly when dealing with accents. Working in different time zones is another. There could also be an issue of the local culture not buying into shared values. Countries have different holidays, traditions, and taboos (Johnson 2016). For example, in many countries, gift giving is a part of doing business. In the United States, it could be considered a bribe. The concept of time is also different. In the United States, it is considered inappropriate to not start a meeting on time. In Japan, there is often a conversation build up before the start of a meeting, which could take hours (Johnson 2016). Outsourcing of jobs is another big problem. Americans are not too keen on speaking to someone from India to solve a simple problem or with seeing their jobs disappear. Finally, the United States focuses on individualism. It says so in the Constitution. Many countries, like China and Japan, focus on collectivism (Johnson 2016). This is one of the biggest challenges multi-national companies face.
THE ART OF NEGOTIATION
With more parties privy to a negotiation, comes more opportunities for disagreement. It is difficult enough negotiating one-on-one. But add in governments, cultural differences, environmentalist, and a vast array of other stakeholders, these meetings can become quite contentious. With multi-party negotiations, it is almost impossible to have a distributive meeting where one side wins and the other loses (zero-sum). Parties are forced to have integrative negotiations, where both sides feel like it is a win-win. Of course, this means not getting everything you want.
The process is still the same with multi-parties as it is with one-on-one. The first thing is to build trust and become familiar with the other parties. Create casual conversation in the beginning to ease tensions, set a positive tone, and possible identify saboteurs early. Always take the opportunity to study the other side(s) as much as possible. This information can be golden as the process continues. The ultimate goal is determining a satisfactory outcome for all sides.
Next, each side(s) needs to determine their BATNA (Best Alternative to a Negotiated Outcome). This means what you will do if you cannot reach an agreement. Will you give up a little more, stay firm, or walk away? Speaking of walking away, this is the reservation price. It is simply the least favorable point in which you will accept a deal. After this, try and identify each party’s BATNA’s and reservation prices. Once this is completed, a zone of possible agreement can be determined. This is the range in which a deal can take place.
ISSUES ARISING IN A MULTI-PARTY NEGOTIATION
When the actual negotiation begins, never open with numbers. If you haven’t been able to determine the other parties BATNA’s and reservation prices, you will need to here, in order to determine the zone of possible agreement. In most cases, you won’t know until the negotiation actually begins, especially in multi-party negotiations. It’s important to ask open-ended questions, and then just listen. This is good advice whether it is a one-on-one meeting or a one-on-fifty one.
However, multi-party negotiations offer a different set of challenges. One is it is hard to determine who is in charge. With one-on-one meetings, it usually the head of each party: the one who does most of the talking. With multi-party meetings, there are many different people talking, and they may or may not have the same influence. It could take some effort to determine who the real players are in the negotiation.
Another is, in all likelihood, each party has a different agenda. One party could be looking at the bottom-line. Another could be looking at environmental effects. A third could be determining how the next election will be affected, and so on. More parties mean more issues, differing points of view, and different perspectives. Personality conflicts and power struggles are sure to present themselves as well.
Determining the order of presenting is sure to cause a problem. Who speaks first? Who goes next? Often, the one that goes first sets the agenda (The Negotiation Experts 2016). Those who speak in the middle or at the end could feel resentment as their points may have a lesser impact. There is more opportunity for people talking over each other, which means nothing gets accomplished. Each party operates in their own manner. How do you respond to different tactics (The Negotiation Experts 2016)? Finally, coalitions could form, changing the entire dynamic of the negotiation. All of these variables add to the complexity of a multi-party negotiation.
SOLUTIONS TO MULTI-PARTY NEGOTIATION ISSUES
Of course, all of these issues present the opportunity to solve problems. The first solution is to appoint a chairperson. This person is responsible for setting the agenda and making sure each party gets equal time presenting their case. Ideally, this person should be a neutral party that can act as a mediator if needed (The Negotiation Experts 2016). The agenda should also state the rules and guidelines that all parties must abide by. Each party should be given the opportunity to make opening statements (University of Wisconsin 2016). This ensures each party has equal weight before any debating begins.
Another is appointing scouts, ambassadors, and coordinators responsible for collecting and disseminating information (The Negotiation Experts 2016). This ensures each party has all of the information needed to make decisions and proposals or counterproposals. It can also save time which allows the main focus to be the negotiation itself. It can be frustrating wasting time obtaining information. It can also be counterproductive if one or more parties feel ill will believing another has some sort of advantage or is not dealing fairly. It is important to keep emotions in check. It can be a long process.
A third is establishing a first agreement. Start by disseminating a questionnaire beforehand where each party can offer suggestions. The negotiation starts off by building on early successes and establishes a common ground. Brainstorming is a technique that can offer early successes. This is where every solution that pops up is written down and then ranked. It is important to show tolerance to all ideas in this stage. Always listen to all points of view completely and intently.
It is important to note that most negotiations do not end in one session. Always start the next session with what has been already agreed upon (University of Wisconsin 2016). When parties have time to digest and think about the previous proceedings, they may decide they didn’t like the outcome. Don’t give them the opportunity to rehash what has already been agreed upon.
CONCLUSION
Negotiation is the process of two or more parties coming together and agreeing on a solution that is beneficial to all. In its simplest form, two parties with common goals agree on a solution that is a win-win for both. The opposite is where one side wins and the other loses, which really is not a negotiation at all. Multi-parties involving different cultures are the most complex. Preparation is the key in these situations. It is important to understand the other side(s) motives, which are most likely vastly different than your own. There can be benefits and challenges in dealings with people who see things differently than you. Be prepared to not get everything you want. A BATNA and reservation price ensures you will get a satisfactory result. But remember, negotiating is as much an art as it is a skill.
References
Johnson, Sophie. What Are the Cultural Problems Encountered by Multinational
Companies? Retrieved May 16, 2016, from
http://yourbusiness.azcentral.com/cultural-problems-encountered-multinational-
companies-23236.html
Kokemuller, Neil. Advantages and Disadvantages of a Multicultural Workforce.
Retrieved May 16, 2016, from
http://smallbusiness.chron.com/advantages-disadvantages-multicultural-workforce-
18903.html
Reilly, Donna. Benefits and Challenges of Multinational Companies. Retrieved May 16, 2016,
http://www.examiner.com/article/benefits-and-challenges-of-multinational-companies
The Negotiation Experts. Multi-Party Negotiations. Retrieved May 16, 2016, from
http://www.negotiations.com/articles/multiparty-negotiation/
2016, from
https://www.ohrd.wisc.edu/onlinetraining/resolution/bestmultiparty.htm
