A problem-solving approach is essential to successful cross-cultural negotiations, whether abroad or in the home office. This approach works differently in various countries. The problem-solving approach requires that a negotiator treat everyone with respect, not criticise or blame the other parties in a personal way that may make someone feel shame and avoid making anyone feel uncomfortable. Modern technology can support the negotiating process, though it cannot take the place of the essential face-to-face interaction in many instances. A growing component for electronic commerce is the development of applications to support the negotiation of contracts and resolution of disputes. Web applications may provide support for various phases and dimensions, such as multiple-issue, multiple-party business transactions of a buy–sell nature; international dispute resolution and internal company negotiations and communications, among others.
The INSPIRE, a Web-based support system developed at Carleton University in Ottawa, Canada, provides applications for preparing and conducting negotiations and for renegotiating options after a settlement. Users can specify preferences and assess offers; the site also has graphical displays of the negotiation process.
Negotiation support systems (NSS) can provide support for the negotiation process in the following ways:
1. Increasing the likelihood that an agreement is reached when a zone of agreement exists (solutions that both parties would accept) 2. Decreasing the direct and indirect costs of negotiations, such as costs caused by time delays (strikes, violence), and attorneys’ fees, among others 3. Maximising the chances for optimal outcomes
Role of E-Negotiations in the Communication Channel The advantages of electronic communications are well known: speed, less travel, and the ability to lay out much objective information to be considered by the other party over time. The disadvantages, however, might kill a deal before it gets off the ground, by not being able to build trust and interpersonal relationships over time before getting down to business. In addition, nonverbal nuances are lost, although videoconferencing is a compromise for that purpose.
Computer-mediated communications, such as e-mail, loosen inhibitions and cause negotiators to become more competitive and more risk seeking. The increase in competitive and risky behaviour occurs because e-mail does not communicate social context cues in the same way as does the presence of another person.
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