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Current Negotiations in the News: Lessons for Business Negotiators

Current Negotiations in the News: Lessons for Business Negotiators

 

INTRODUCTION

Current negotiations in the news can offer business negotiators valuable advice on how and how not to conduct themselves. In a new issue of the Negotiation Journal, negotiation experts analyse the negotiating style and influence of U.S. President Donald Trump.

 

What can business negotiators learn from current negotiations in the news? Quite a bit, according to the dozens of negotiation experts who contributed to the January 2019 special issue of the Negotiation Journal, entitled “Negotiation and Conflict Resolution in the Age of Trump.”

For the first time in U.S. history, the president has co-authored several books on negotiation, note the journal’s coeditors (Joel Cutcher-Gershenfeld, Daniel Druckman, Melissa Manwaring, Carrie Merkel-Meadow, and Nancy J. Waters) in their introduction to the special issue. President Trump, who made a name for himself as a New York real estate developer, has touted his negotiating skills for years.

Yet the president’s reliance on hardball tactics departs from the tenets that negotiation theorists and practitioners have developed over the past 50 years, write the editors. Books such as Roger Fisher, William Ury, and Bruce Patton’s blockbuster Getting to Yes: Negotiating Agreement Without Giving In have urged business negotiators to strive for mutually beneficial deals. Researchers have confirmed that the most effective negotiators combine value claiming with value creation. However, for Trump, negotiation is often a win-lose enterprise that relies on threats, coercion, and insults to get the other party to surrender.

 

As president, Trump’s negotiating style also differs greatly from many past presidents due to his “reliance on unilateral action and hard bargaining,” write the editors.

The articles in the special issue of Negotiation Journal describe current negotiations in the news to illustrate how Trump and his administration affect negotiation and conflict resolution in Washington and beyond. In particular, the contributors draw on negotiation news to write about the effects—so far—of the Trump era on negotiation theory and instruction, diplomacy and peacebuilding, trade and business negotiations, mediation, and gender and race.

5 Hallmarks of Trump’s Negotiating Style

In an article in the Negotiation Journal special issue entitled “Trump’s Lessons for Business Negotiators,” Thomas Kochan, a professor at MIT’s Sloan School of Management, describes five characteristics of Trump’s negotiating style and the lessons that negotiators can glean from business negotiations in the news:

 

A distributive approach. With statements such as “Trade wars are easy to win” and “We have more missiles than you” (referencing North Korea), Trump tries to signal to his perceived competitors that he’s in the dominant position and will “win” any negotiation. Kochan notes clear drawbacks of this type of win-lose, distributive approach to negotiation. For those trying to negotiate business contracts, potential counterparts may avoid negotiating with you because they expect to do better with more collaborative dealmakers or to be able to form a more stable coalition elsewhere.

 

They are overvaluing small concessions. In negotiations with American companies such as Carrier Corporation over jobs and wages, the president has been overly satisfied with small initial concessions rather than asking for more, as long as those concessions are accompanied by “sufficient displays of deference that feed his ego,” according to Kochan. It’s easy for business negotiators to take advantage of this trait. “Savvy business leaders will continue to give those who adopt this negotiating style what they are looking for—emotional gratification rather than substantive gains,” Kochan writes.

 

Lack of interest in relationship building. According to Kochan, by treating each negotiation as a one-off transaction, Trump misses out on opportunities to build fruitful relationships by gaining his counterparts’ trust. A year after calling Harley Davidson a “true American icon,” Trump called the company un-American when it made plans to expand production in Europe.

 

A penchant for personal attacks. From labelling the press “the enemy of the people” to calling Democratic representative Maxine Waters “crazy,” Trump has a longtime habit of insulting those he believes have harmed him or who disagree with him. When business negotiators disparage potential negotiating counterparts, they heighten conflict and cut themselves out of potentially beneficial deals.

 

Few reservations about dealing with questionable negotiating partners. Trump’s willingness to excuse unethical and allegedly illegal behaviour by the Russian and North Korean governments and their leaders have left many Americans questioning the president’s ethics and motives. Experienced business negotiators understand the importance of protecting their reputations by carefully vetting the company they keep.

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre shall not be responsible for any errors caused due to human error or otherwise. 

 

  • Introduction
  • 5 Hallmarks of Trump’s Negotiating Style
  • Few reservations about dealing with questionable negotiating partners

BY : Deewakar Yadav

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