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Effects of goals on the choice of negotiation strategy
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Effects of goals on the choice of negotiation strategy
The parties that are engaged in a negotiation always set specific targets that they intend to achieve during their negotiation period. These are targets therefore guide the parties in designing their plans hence constitutes the goals of the negotiation. Different parties involved in the negotiation process adopt various strategies to achieve their desired targets. However, it is worth noting that the set goals affect the choice of strategies to be adopted by the concerned parties. These effects may either be direct or indirect. According to the dual concern model, the negotiating parties may adopt one or both the five negotiating strategies including compromise, yielding, inaction, problem solving or contending depending on their preset goals and objectives. Lewicki et al argue that the goals of the negotiation process are interlinked and therefore define the issue of negotiation (90). They reiterate that the goals of one party are always in contradiction to the party’s goals hence the source of conflict. For instance, while negotiating for an item in the market the buyer would seek to achieve his/her goal of acquiring the item in question at the lowest price possible while the seller seeks to sell the item at the highest price possible to make profit. Consequently, the two parties finds themselves in contradicting situations as a result of the goals they seek to achieve in the negotiation. From such situations, it is important to appreciate the importance of pre-negotiation before the real process (Spangle & Isenhart, 2003, 399). The negotiating parties however have to reach a compromise without which the negotiation process would not be necessary (Lewicki et al, 2010, 90). On the other hand, the preset goals may also indirectly affect the negotiating strategies adopted by the concerned parties. For instance, concerned parties may seek to achieve short-term goals if they are not interested in their relationship after the outcome. In such situations, they usually adopt simple strategies to achieve successful negotiation process.
Influencing power in negotiation
Both the parties in a negotiating process have to identify what their resource and economic needs as well as their targets in the negation. Moreover, they have to identify the things they can never forsake and still achieve their preset goals. Spangle & Isenhart describes the resistance points as the lowest point a party can accept a deal and target as issues one can live reasonably with. It is noteworthy that the involved parties critically analyze their BATNA as well as other’s BATNA so as to reach an agreement. They have to compromise their positions but to a given limit to reach an agreement (Roy et al, 2010, 35). For instance in bargaining for a package before employment, an individual may demand for $50000 as his target. The employer offers him $30000 but his minimum limit is $40000 (resistance point). His BATNA would be to stick to his minimum limit of $40000 and not accept anything less. It is always important to develop a clear factual argument meant to convince the other party in the negotiation process on the soundness of one’s cause. According to Spangle & Isenhart a clear ideal characterized by proper reasoning and explanation holds the key to negotiation success through persuading the other party in the contract (397). To begin with, parties involved in the negotiation process have to appreciate their common ground including shared values and interest instead of focusing on their differences. It requires creativity for one party to develop value and thereafter validate his/her side of the contract. Moreover, the concerned party can also generate options using creativity especially even when the common approach is elusive. Besides, the parties in the negotiation process can also influence other’s viewpoint through clear communication process involving proper listening and understanding of the other party’s values and interest. Through enhanced communication, one party is in a position to articulate a position as well as support it in attempt to persuade the other party to compromise its resistance point. Spangle & Isenhart however stress on the need of the negotiating parties to understand and appreciate the other’s position in the process (397). The parties always have contrasting views concerning their interests and values and would therefore have varying resistant points as well as set different targets (Spangle & Isenhart, 2003, 397).
Approaches to negotiation
The concerned parties in a negotiation have to fully define the problems which the process is seeking to address before proceeding to the negotiating table. To begin with, it is noteworthy that the parties come together to solve a problem collaboratively in the integrative negotiation process unlike in the distributive bargaining where those negotiating are allowed to define the problems on the basis of solutions to the problems (Lewicki et al, 2010, 70). The distributive negotiations usually involve parties that have never interacted before. This kind of negotiation strategy is used in situations such as bargaining for a product in the market. Here, the seller seeks to sell the product at the highest possible price to get profits while the buyer seeks to purchase the product at the lowest possible price. Consequently, antagonism emerges between the two parties since none is willing to compromise his/her position. In such a situation, neither of the parties would achieve their target as no one will be willing to compromise their position. A lose or lose scenario is therefore inevitable in the negotiations. Instead, both the parties should consider the underlying interests in the negotiations (Lewicki et al, 2010, 71).
Integrative negotiation process on the other hand demands that the parties involved in the negotiation should fully define the problem together before identifying possible solutions to the problems collaboratively. Besides, integrative negations revolve around multiple issues unlike distributive negotiations and the negotiators are interested in trading something of high value for other items of lesser values. Moreover, The negotiation process require that both the parties engage in sharing information as well as problem solving in an attempt to fully understand the interest and problems of the others. Moreover, it enhances long-term relationship between the negotiators which is important as it guarantees greater security (Lewicki et al, 2010, 70). Generally, the two aforementioned negotiation strategies overlap at times but are used in many occasions hence their understanding would be useful when one is confronted with different situations.
Importance of BATNA in negotiation
It is always important for one approaching the negotiating table to bring more than one proposal so as to enhance chances of securing a deal. Negotiations may not go the way a negotiator had planned and therefore an alternative plan may prove helpful in such a situation. This is always referred to as the Best Alternative to a Negotiated Agreement (BATNA). BATNA may prove useful to a negotiator when he/she is not in a position to secure the planned deal due to wobbling in negotiations since he will have alternative plan for the negotiations and may therefore secure a fairer deal than walking out of the table empty handed. The strength of a negotiator’s BATNA is very important in the negotiation process. To begin with, it provides the negotiator with two options. Notably, the negotiator either settles the contract with favorable terms or contemplates quitting (Lewicki et al, 2010, 137). BATNA should be adopted during the planning and preparation phase of the negotiations. It always a two-fold process where the negotiator is initially involved in determining all the available options for him before gauging the options with those of the counterpart in the negotiation process to establish which alternative is stronger than the other. Negotiators should be flexible enough in their approach so as to achieve their goal in the negotiation process. This is due to the unexpected changes that might occur during negotiation thereby affecting the process. For instance, the changes in price of an item in review may occur as a result of the government’s decision to enforce legislation that was inexistent before.
Attractive BATNA improves the negotiator’s power in the negotiation as he will have less to lose if the deal is not stricken. The importance of strong BATNA may be exemplified by an organization that seeks to buy a machine for its operation and therefore approaches two firms to negotiate on the price of the product. In the process, two other firms intervene to seek the organization’s interest in purchasing their item. The purchasing organization therefore has many options and will therefore enjoy the power of making a decision of whether to accept the deal offered by the two original firms or quit and purchase the product from the other two firms. In essence, the purchaser has the power to either enter into a deal or not. He is therefore entitled to make high reservations since he has other alternatives incase a deal is not reached in the negotiations. On the other hand, negotiators with low BATNA usually make low reservations as he lacks the varied options and therefore seek secure a deal in the negotiation (Lewicki et al, 2010, 155).
Work cited:
Lewicki, Roy et al. Essentials of Negotiation, Canadian Edition. Canada: McGraw-Hill Ryerson
Ltd. 2010. Print.
Spangle, Michael & Isenhart, Myra. Negotiation: communication for diverse setting. London:
SAGE. 2003. Print.
Effects of Globalization
Effects of Globalization
Globalization has come with different challenges that accompany its strategic goals. The competitive nature of the world market has pushed some firms to engage in business malpractices that call for the intervention of various stakeholders in the society. Such entrepreneurial ills takes the form of irresponsibility and lack of accountability of the firms in regard to the negative externalities they create to the society, deteriorating integrity and manipulation of ethical codes of conduct. Many multinational corporations are now being compelled to help in the fight against the global environmental degradation and the increasing threat of global warming. In this respect the society is now holding the multinationals accountable to the various negative externalities they cost the society. The international community has enacted various rules and regulations that spell out the ethical standards expected of the firms. In the recent past the oil firms have been in the international focus for their major roe in the pollution of the environment as they produce and distribute their product and even as the products are consume. One of the major casualties for this problem is BP Oil Company that has been in wrong books with the international community for its growing unethical standards that emerged in the twenty-first century. To save its tainted reputation and restore its public image, BP management has been working on various strategic plans to improve the firm’s code of conduct. This came into light with the 2005 publication on code of conduct that was entitled “our commitment to integrity”. Due to the multinational status of the BP Company it has geographically dispersed operational regions across the world and this meant that they were to circulate this message homogeneously to all its employees across the globe. The bottom line is its intense campaign in imparting positive ethical standards to its employees by seeking to unite them behind a uniform internationally accepted code of conduct. This has been facilitated by use of BP website and the social networking and media sites that equally sensitize the public on its efforts to support green energy initiative and environmental gradation. It is worth noting that coming up with an umbrella legislation that could cut across all the employees who hails from a great variety of social and cultural framework. This a common challenge in any international statute since the actions of various communities are highly influenced by their cultural beliefs. To take of this problem the firm has been carrying out awareness campaign to help its employees get the content clearly and put them into practical application. The critical issues of focus in this campaign include health, safety measures, security, environmental care, public relations, company assets management and financial integrity. The questionable code of conduct of this firm was exposed with its unprecedented environmental degradation scale and this also indicates the wide management gaps and strategic flaws in the top management of the multinational. BP has to pull up its socks concerning the amount of effort it has put in place to mix the legal and ethical policies in its daily operation that would ensure that both its employees and the society at large have their interest covered as priority.
The challenges that this firm faces has since grown more complex after the great oil spill in the Gulf of Mexico. The firm at first lost the confidence of the national community in its disaster management strategies and this went down to tear its public image and significantly affect its performance in the global trade. The affected areas still have more at stake that BP management have solve before they can complete get rid of the entire problem. The environmental assessment and the health related investigation carried out at the oil spill sites still indicate a lurking danger to the marine ecosystem and the human inhabitants bordering the shores. The situation was worsening by the economic cost this has on the dependants to the sea. There is the substantial reduction in the number of marine life and scientific establishment that this may get worse due to deposition of oil on the sea-bed. These are issues that hit BP hard and it has bee engaged in tedious work to clear the mess in its effort to cleanse its public image. It is a bit hectic for the company to balance its profit goal and the heavy compensation scheme that the government of USA has sought legal redress over. In a nutshell BP has to consider immediate management restructuring and operation policies realignment.
Part 2
The debate over the position of BP on the issue of risks stands out as a much asked question by many people. It is understood that the oil production from the sea is a contractual co-operation between BP and Transocean as the driller. However, the risk need to be absorbed by both of the as the primary stakeholders. Bp is particularly in this picture being the major shareholder in the risk management and safety regulations target in its business goals. It was evident from the vast oil spill tragedy that swept the larger part of the shore with insignificant efforts from the firms to reduce this environmental menace. The life of the workers was openly at risk and this shows the less concern or poor safety measures that are designed to cover the staff. Ethical standards of BP seem hollow or ineffective following the exposed backup control system that was conspicuously missing during the tragedy. This also shows reluctance in adherence to the law especially considering that specific safety thresholds were not met. It is sad to note that BP has greedily been focusing on minimizing costs and saving time to the disadvantage of humanity. This is the height of business malpractices and failed integrity test at the helm of this firm’s leadership.
The post oil spill investigations reveals that the disaster prevention measures put in place by BP and its drilling contractor Transocean was in scanty supply and therefore technically inadequate to take care of the situation. This is a great risk management loop hole that was responsible in the uncontrollable oil spill. Even after the oil spill it was noted that it took BP time to sought out the problem is a clear evidence that bit was either complacent towards safety issue or technically incompetent to resolve such a serious a matter in the life of a firm, its employees and the general public.
Effects of globalization on the Kenyan economy
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Topic: Effects of globalization on the Kenyan economy
The effects of globalization in Kenya are wide reaching. Being a growing economy, the country has been forced by global market forces to become part of the larger global village. The ensuing results have been both positive and negative depending on the perspective they are viewed from. The ambiguity in distinguishing the pros and cons of globalization arises due to self-interests that most activists and scholars use as the yard stick. In the case of Kenya, the effects of globalization can be juxtaposed to gauge the magnitude of the applicability or inapplicability of the global village.
The homogenization of the global economy has greatly impacted on the Kenyan economy. There are many opportunities for free trade due to the laissez faire economic policies. The period between independence (1963) and 1970s for instance saw the manufacturing value added increasing by 44% (World Bank 2007). This was the period when Kenya like many other African countries was trying to woo foreign investment through investments. The World Bank-IMF’s Structural Adjustment Programs of the 1980s and 1990s are also credited with having accelerated liberalization of Kenya’s economy just like that of many African countries to the benefit of domestic and international capital. This brought multinationals which exploit raw materials and also human resources from the country. Companies such as Coca Cola, Unilever, Del Monte and B.A.T employ a large number of Kenyans thus reducing poverty and increasing purchasing power among the populace. In addition, it has led to upgrading of skills and personnel through workplace interactions. There has also been an increase in trade between Kenya and other countries since independence. Between 1993 and 1998, the exports to Europe grew by 41% with the exports to other African countries during the same period almost tripling (Economic survey, Republic of Kenya 1993-1998). The horticulture industry remains one of the highest foreign income earners. In the period between 1990 and 2006, earnings from fruits and vegetables rose from $79 million to $322 million while flowers income rose from $13 million to $313 million over the same period (Gertz 11). Studies show an improvement in the standards of living among the workers (McCulloch and Ota). Another economic benefit arising from globalization has been the flow of foreign aid into the country. International organizations such as IMF and World Bank have been very influential in formulation of financial policies in the country. More importantly, they have helped to fund infrastructural projects among others. Other organizations such JICA, USAID and GTZ have also helped Kenya greatly since independence. Most of the road infrastructure in the country has been realized through the cooperation of these organizations and other development partners. This has led to a better transport system leading to more economic growth. The financial, communication and investment linkages between Kenya and other countries have greatly helped her to rise as the economic hub of the region. One of the most important positive effects of structural adjustments is the opening of borders between the African counties. The structural adjustment programmmes changed the balance between the global and regional markets. The devaluation of the African currencies Kenya included has made it possible to earn foreign currency through trade with the neighboring countries.
Globalization as a concept can also be attributed with the opening up of democratic space in Kenya. The internationalization of politics into one mass has necessitated fair political practices in order to attract foreign investment. Most developed economies consider democratization as a catalyst to success of any country and the Kenyan political leadership has accepted the mantra. Kenya has is a signatory to all major international treaties on human rights and justice. This shows that the world is slowly moving to being administered by uniform laws. There is less impunity unlike the 1980s and early 90s when the country was at loggerheads with most of its international business partners. This democratization has also been linked to free trade practices which have led to interactions between Kenya and more open countries such as the US. Increased demand for goods from these countries has led to diversification in the political marketplace and in effect, the level of democracy has risen. (Doces, 8- 13). The presence of both local and international civil society groups is another result closely linked to globalization. During the oppressive regimes after independence, such groups would be considered subversive. The switch to a multi-party democracy state 1992 was enhanced by intervention or influence from the international communities. However, the current leadership is open to criticism. These groups are evidence of the strides made in the political facet of life due to globalization. Such groups include Transparency International, Kenya Human Rights Commission among others.
Technological advancement is another effect of globalization in Kenya. This is especially evident in the telecommunication sector. The penetration of the internet has grown rapidly in Kenya thus enabling easier and faster flow of information in the country. Global events now occur simultaneously through the advances in telecommunications, computers, audio visual media, satellites and the like anywhere in the world including Kenya, (Scholte 1996, 45). The daily and weekly internet usage in Kenya has doubled since 2008 whereas monthly usage has grown by 80% in the same period. In addition, there are over 4 million internet users in the country just a few years after the service became available (Synnovate research 2010). This has led to a higher rate of literacy and more information flow. The number of mobile phone subscribers has grown to almost 20 million within a span of 10 years which is an indicator of the birth of a digital era in the country. The mobile phone providers in Kenya are subsidiaries of larger entities from Asia and Britain again a clear pointer to the global village powered by high speed technologies envisaged in the 1960s by many scholars ((McLuhan 103).the ease in flow of information has also led to educational advances such as e-learning. Many international institutions now offer online courses and Kenyans have taken up these opportunities in droves. Away from telecommunications, there have been tremendous improvements in the production practices imported from development partners. These have led to faster production of goods either for export or local consumption making Kenya one of the largest economies in east and central African region.
Multiculturalism is another effect of globalization on the Kenyan society. The advances made in telecommunication has led to flow free of ideas and this has led to a change in lifestyles especially among the youth. The proliferation of western ideas through social sites such as facebook and twitter has led to an incursion of foreign practices especially in the lifestyle changes. Globalization has joined different cultures thus making Kenya a country where citizens freely interact with others from other countries freely. English language is widely used firstly among the Kenyan s and also among those visiting the country. The fact that a foreign language has been incorporated as a national language indicates the impact that globalization has had on Kenya. Other UN languages such as Chinese and Spanish are popular in most colleges within the country. A close look at the country among the youth reveals a general prevalence for western lifestyles including dressing, food and reading cultures among others. The amalgamation of cultures has led to more appreciation of indigenous cultures as the country comes up against more advanced western cultures. Numerous cultural centers have been set up in heritage areas such as Lamu and Nairobi to assist in the conservation of histories once buried under. The Kenya national museum still remains one of the major attractions for tourists as they seek to experience the cradle of humanity. The integration of all cultures eventually resulted in dual citizenship in the new constitutional dispensation.
In spite of the gains made through a globalized economy, many critics have faulted the concept especially within developing countries. There has been a downside over the lopsided trade practices. Kenya was arm twisted into opening its market with no control systems in place. The structural adjustment programmes (SAPs) initiated by IMF changed the economic policies abruptly without prioritizing the important areas. This has led to dumping of cheap imports in the country. The spiraling effect has been the collapse of indigenous companies due to high costs of production leading to job cuts. Companies such as Raymond textiles were forced out due to cheaper textile products from Pakistan and China. The economic superiority of the country’s trade partners has led to a situation similar to economic imperialism where the larger economies bully the smaller ones. Kenya’s products such as milk and vegetables have at times met high tariff walls set by her European and American partners. The international aid organizations also keep shifting goal posts for aid disbursement thus hurting the economy. In 1990, Kenya experienced a depression which can be attributed suspension of foreign aid among other reasons (Gertz 6). This reliance of aid has been perpetuated in most developing and is another negative effect of globalization thus cultivating a culture of underdevelopment an dependency. Kenya has also become a reservoir of cheap labor and raw materials while the western world has restricted the flow of human resources to their countries. The SAPs also recommended privatization at a time when the country was taking off .This resulted in job cuts, increase in poverty and a decline in per-capita income. The expected influx in investment happened but only benefitted the foreign investors who were protected by hastily drafted regulations. The employees in these multinationals are also treated as second rate employees. Their remuneration is not commensurate with their input and in most cases, the expatriates earn higher salaries.
The country has also suffered from cultural erosion due to the new trends or multiculturalism. The deeply held African cultures and customs are slowly collapsing as new ideas continuously bombard the social fabric. The growth of digital media including the internet has led to breakage of cultural borders. Foreign lifestyles in music, dressing and other spheres are now accepted as part of the Kenyan psyche. Controversial ideas such as homosexuality are now being accepted in the country’s rote of culturally accepted norms. The internet has increasingly contributed to immorality through access to pornography especially among the youth and other obnoxious behaviors. The country’s leadership has presently decried the annihilation of African cultures due to the new trends or globalization of culture. Many critics have labeled this as a colonial mentality where the citizens feel the urge to blindly copy the culture of their colonizers or the more developed nations.
Another negative effect of globalization is environmental degradation. The need for more land has led to deforestation in most of the country. Large swathes are cleared to give way for settlements or factories. This is necessitated by the urgent need for food as the population grows rapidly. The government is also forced to provide cheap land as an incentive for new companies wishing to invest in the country. as more factories are set up, the rates of carbon emission have risen. This has led to diseases related to such emissions especially in western Kenya.
The country has also witnessed a loss of sovereignty precipitated by the international community’s influence. Like most developing countries, Kenya’s budget factor’s the donor’s input every year. This dependency has increased the influence of international bodies such as IMF and the World Bank. The western powers such as Britain and America largely determine Kenya’s fiscal policies. The country’s leadership seems to have lost its mandate to the Kenyan people and instead follows the policies determined by its development partners. These countries are quick to put their opinion on any changes in the governance policies. A good example is in the implementation of the new constitution. Most western governments openly funded its drafting and even aided in the campaigns to pass it. This great influence indicates that the government’s independence is slowly being eroded as the sphere of governance becomes internationalized.
The free flow of manpower has also led to high levels of brain drain in the country. Kenya has lost a lot of high ranking professionals to the developed world. This is attributed to the fact that there are better working conditions in the western countries. The country currently suffers shortages in most crucial faculties especially the medical sector. Better pay packages in South Africa and America has robbed Kenya its best intellectuals.
Works cited
African Development Report 1999, oxford university press
Doces J.A, Globalization and Democracy: An Empirical Analysis Using a Simultaneous Equation Approach, Princeton University Press: Priceton , 2006 ,(pp 8-13)
Gertz, G. Kenyas Trade Liberalization of the 1980s and 1990s : policies , impacts and implications, Nairobi, 2007 ( pp 6-14)
HYPERLINK “http://dictionary.oed.com/cgi/entry/50297775?single=1&query_type=word&queryword=Globalization&first=1&max_to_show=10″ Globalization”. Oxford English Dictionary Online. September 2009. HYPERLINK “http://dictionary.oed.com/cgi/entry/50297775?single=1&query_type=word&queryword=Globalization&first=1&max_to_show=10” http://dictionary.oed.com/cgi/entry/50297775?single=1&query_type=word&queryword=Globalization&first=1&max_to_show=10. Retrieved 12 December 2010.
Kenya Republic of, various years : Economic survey, Nairobi :government press
McLuhan, Marshall, 1964, Understanding Media: The Extensions of Man, New York: McGraw Hill. (pp 103)
Scholte, Jan Aart, 2000, Globalization: A Critical Introduction, New York: St. Martin’s. (pp 45)