Born in Bhojpur, Nepal, BASU SHARMA earned a Ph. D. degree in management from the University of Illinois at Urbana-Champaign, U.S.A. in 1983, and emigrated to Canada in 1984 to work at the University of Saskatchewan in Saskatoon as an Assistant Professor. In June 1985, he accepted a faculty appointment at the University of New Brunswick and moved to Fredericton. He was a professor of organizational studies in the Faculty of Management from 1985 to 2023. Basu’s intellectual contributions have been in diverse areas of business, management and economic development, with over 90 publications in internationally refereed publications including Aspects of Industrial Relations in ASEAN, originally published by the Institute of Southeast Asian Studies in Singapore and later translated into Japanese, by Professor Kozo Kagawa, and published by the Kansai Institute of Labour of Doshisha University in Tokyo. He founded the Journal of Comparative International Management in 1997 and served as its editor-in-chief from 1997 to 2021. It is now hosted by the CEDIMAS and edited by Professor Elie Chrysostome of the Western University in Canada. The journal has established a Basu Sharma Best Paper Award to recognize and honour his contribution. The Award is annually presented to author/s of the best paper published in the journal in a particular year. Basu took retirement as of January 1, 2024, after nearly four decades of employment as Professor at the University of New Brunswick in Fredericton, Canada. Excerpts of the interview:
Why are negotiations more critical than ever in today’s complex and interconnected world?
The interconnectedness of our world has intensified the importance of effective negotiation. From geopolitical hotspots to global health crises, the actions of one nation or entity can have far-reaching implications.
For example, tensions in Eastern Europe or the Middle East can destabilize entire regions, while the global impacts of climate change necessitate international cooperation. Another example–wealth inequality, both within and between countries, presents a significant challenge. Fair trade agreements and the protection of workers’ rights are crucial for addressing this issue. Similarly, businesses operating across borders must navigate complex regulatory environments and cultural differences, requiring skilled negotiation to establish partnerships and resolve disputes.
The COVID-19 pandemic highlighted the urgent need for international collaboration. Negotiations on vaccine distribution, public health measures, and economic recovery plans were essential to mitigate the global impact of the crisis.
It is through flexibility, creativity and cooperation that we can resolve conflicts, build relationships, and create sustainable solutions to the pressing challenges of our time. In fact, the ability to negotiate effectively is not just a skill but a necessity.
What are the key challenges that modern negotiators face when dealing with diverse stakeholders across different cultures and regions?
Modern negotiators in today’s globalized world face challenges stemming from cultural differences in terms of values and beliefs, which can have implications for individual behavior and social ethos. Take the case of communication style. In some cultures, communication methods could be direct and informal, while in others they could be indirect and informal. Some cultures might use a lot of nonverbal cues, while others might not do so. Misunderstandings can arise if negotiators are not aware of such differences. Hence a need to be sensitive to these differences to build trust and mutually acceptable outcomes in negotiations.
Challenges for effective negotiations emanate from political and economic differences too. For example, different countries have varying legal and regulatory frameworks that can impact negotiations. Economic disparities can influence bargaining power and priorities, while political instability can create a challenging environment for negotiations. In addition, there are two important technological challenges modern negotiators frequently face. First, technical issues such as poor internet connectivity or software incompatibility can disrupt negotiations. Secondly, protecting sensitive information and ensuring data privacy becomes a challenge in a digital age.
Overcoming these challenges requires cultural awareness, effective communication skills, flexibility, patience, and a deep understanding of the interests of the stakeholders involved. By addressing these issues proactively, negotiators can build trust, foster cooperation, and achieve successful negotiation outcomes even in diverse and complex environments.
How do we learn negotiations? Can we learn from the way children negotiate with their parents?
Negotiation is a valuable skill that can be learned and honed through various methods such as observing negotiations in action, enrolling in negotiation courses or workshops and by analyzing one’s own negotiation experience to identify strengths and areas for improvement. While children’s negotiation tactics might not always be the most sophisticated ones, observing their interactions with parents can provide valuable insights.
Children often exhibit persistence in pursuing their goals. This is a quality that can be beneficial in negotiation. Children can be creative in finding solutions and compromises, a skill that can be applied in adult negotiations too. Children are often more adaptable than adults, willing to adjust their strategies based on the situation. Also, children are not afraid to express their emotions, which can be a powerful tool in negotiation. More importantly, children negotiate with their parents without any assumptions, whereas adult negotiators generally come to the negotiation table with preconceived notions about the counterparty. Unrealistic and false assumptions can lead to negotiation failure or suboptimal agreements.
It is important to note that children’s negotiation skills are still developing, and their tactics might not always be effective or appropriate in all situations. But observing children can provide valuable insights. It is important to combine these insights with formal training and practice to develop a well-rounded understanding of negotiation.
What are some strategies and techniques that are particularly effective in resolving conflicts during negotiations?
A blend of strategies and techniques are needed for resolving conflicts during negotiations. These strategies and techniques include finding the underlying interests of the counterparty, active listening, and taking a problem-solving approach rather than pursuing a “you vs. me” framework. How one looks at the counterparty in negotiations very much depends on what frame of reference (called framing in negotiation literature) one uses. For example, one can approach a negotiation event as an opportunity for joint gain, developing a relationship, and building trust. One can also use it for negotiating over a position to win, whether reasonable or not, using all kinds of unethical tactics. But the outcome of such negotiation will not be optimal because it ignores the legitimate interests of the counterparty, which would hurt the relationship between the negotiating parties and could lead to problems in implementing the negotiated agreement.
A classic approach developed by negotiation experts and scholars at the Harvard Negotiation Project asserts that people should negotiate based on principles, not positions. They articulate four such principles: separate people from the problem; focus on interests, not positions; invent options by being creative and through brainstorming; and use objective criteria to decide on a debatable issue. Using the principled approach, a negotiator can change a distributive (you lose, I win) negotiation into a win-win negotiation. The story of one orange and two sisters, first told by the mother of modern management, Mary Parker Follett, shows how a “win-lose” negotiation can be converted to a “win-win” one.
The story goes something like this—There is one orange on the table in a dining room. Two sisters walk into the room, and both want it. They both argue about how to share it for a while and decide to cut the orange in half. One sister takes her share, eats the orange and throws the peel away. The other throws the orange away and uses the peel for making marmalade from her share. What happened here? Half the peel and half the orange got wasted. If the sisters had discussed why they wanted the orange, the outcome for both would have doubled.
We see the principle—focus on interest, not position—for an optimal outcome from a negotiation in action here.
Do you see any prospect of deploying the latest technology like artificial intelligence in negotiations of the future?
Yes, I do think that artificial intelligence (AI) is poised to play a significant role in future negotiations as data and information play an important role in formulating a negotiation agenda and devising negotiation strategies. AI can analyze vast amounts of data to identify patterns and trends, which can be tremendously helpful. Also, AI-powered platforms can create virtual negotiation environments. This will allow parties to negotiate remotely and efficiently, reducing travel inconvenience, cost and time.
Two other benefits of AI tools are (a) predictive analytics and (b) automated negotiation assistance. AI can predict potential outcomes of negotiations based on historical data, helping negotiators anticipate challenges and develop contingency plans. AI-powered assistants can handle routine tasks such as scheduling meetings, drafting documents, and summarizing key points, freeing up negotiators to focus on more strategic aspects of negotiation.
AI tools could also be used to track progress, ensure compliance, and make adjustment to the agreement as needed. Thus, there is a critical role for AI in negotiations and it will continue to expand in the future.
What role does trust play in negotiations, and how can negotiators build and maintain trust with their counterparts?
Trust fosters cooperation, open communication, and a willingness to compromise. When there is trust between negotiators, they are more likely to reach mutually beneficial agreements. However, building trust is not easy. Negotiators need to modify their own behavior in areas such as listening actively, showing empathy, being respectful, avoiding power plays, and building rapport.
Negotiators are generally not trained for active listening. If one does not actively listen to the counterparty, there is no way of finding their interests and understanding their perspective. One needs to look at things from the viewpoint of the other party. Thus, empathy is an important tool in finding out how the other party feels about the ongoing negotiations. This will be helpful in finding some common ground. Treating the other party with respect, even if you disagree with their position, is crucial for trust building as well. In some cultures, “saving face” is more important than anything else. One needs to avoid personal attacks and insults at any cost. Use of power tactics or threats to coerce are related to position bargaining. Instead of helping to build trust, such tactics can damage even existing relationships. So, negotiators need to avoid power plays in negotiations. Finally, building a rapport can help foster trust and create a more positive negotiation environment. Negotiators need to take time to get to know the other party.
How could small countries negotiate for better outcomes with their giant neighbors?
Small countries often face significant challenges when negotiating with larger, more powerful neighbors. However, they can still achieve favorable outcomes, provided they use the right strategies and hone negotiation skills and use them appropriately.
Insisting on using objective criteria is one of the most useful strategies for small countries while negotiating with larger, more powerful neighbors. By doing so, they can rely on international law, treaties, and organisations in showing how fair and equitable the counterparty’s position is. By aligning their actions with international norms and seeking support from global organisations such as the United Nations, World Trade Organization and International Court of Justice, they can gain legitimacy and create a level playing field. They can also use public diplomacy to gain international sympathy and support. By highlighting the small country’s challenges and the larger neighbor’s potential to overreach, they can influence global public opinion and put moral pressure on the larger country.
Small countries can also invest in developing high-level negotiation and diplomatic skills within the country’s leadership and diplomatic corps. Skilled negotiators can often achieve better outcomes by understanding the larger neighbor’s interests and finding creative solutions.
How can negotiators ensure that the agreements reached are sustainable and beneficial in the long term, considering the rapidly changing global environment?
This is an important question given the ever changing, extremely volatile global environment of our time when the sustainability of negotiated agreements becomes a challenge. Modern negotiators need to be creative in structuring agreements with enough room for flexibility for accommodating changes required due to changes in the environment. If core interests of all parties are in alignment, it is more likely that the agreement will be upheld. For this to happen, negotiators need to stick to principled negotiation rather than position bargaining.
Also, a negotiated agreement should incorporate such conflict resolution mechanisms as arbitration, mediation, or third-party intervention should a dispute arise during the life of the agreement. This way, it will ensure sustainability of the benefits of negotiated agreements within the parameters as agreed upon. Negotiators can also leverage technology and innovation to enhance the implementation and monitoring of the agreement. In fact, technological solutions can sometimes help adapt to changes more efficiently.
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