Section 3 Theories on negotiations

     Game theory (博弈论): Game theory is regarded as interactive, separate decision making on the basis of interdependence and mutual adjustment, and it places great emphasis on rationality and common knowledge, and the relationship between negotiators is competitive in nature. In this case, one’s win is at the cost of the other’s loss. Because there are conflicts of the negotiators’ interests, the parties involved compete and cooperate simultaneously.

     Needs theory, developed by Abraham Maslow (1954), mainly refers to the hierarchy of needs of human beings. The specific order goes as follows:

1. Biological and Physiological (生理的) needs, which include the needs of air, food, drink, shelter, warmth, sex, sleep, etc as the lowest and fundamental needs.

2. Safety needs, which include the needs of protection from elements, security, order, law, limits, stability, etc.

3. Belongingness (归属感) and Love needs, which include the needs of work group, family, affection, relationships, etc.

4. Esteem needs, which include the needs of self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.

5. Self-Actualization (自我实现) needs, which include the needs of realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.

Face negotiation theory: Face negotiation theory and subsequent research assumes that: 

     (1) People in all cultures try to maintain and negotiate face in all communication situations;

     (2) The concept of “face” is especially problematic in vulnerable interpersonal situations (such as embarrassment and conflict situations) when the situated identities of the communicators are called into question; 

     (3) Cultural variability, individual-level variables, and situational variables influence cultural members’ selection of one set of face concerns over others (such as self-oriented face-saving vs. other-oriented face-saving); 

     (4) Subsequently, face concerns influence the use of various facework and conflict strategies in intergroup and interpersonal encounters. In order to do better international business negotiations, negotiators shall have a command of face negotiation theory and apply it flexibly.

‍Section 3 Theories on negotiations

     Game theory (博弈论): Game theory is regarded as interactive, separate decision making on the basis of interdependence and mutual adjustment, and it places great emphasis on rationality and common knowledge, and the relationship between negotiators is competitive in nature. In this case, one’s win is at the cost of the other’s loss. Because there are conflicts of the negotiators’ interests, the parties involved compete and cooperate simultaneously.

     Needs theory, developed by Abraham Maslow (1954), mainly refers to the hierarchy of needs of human beings. The specific order goes as follows:

1. Biological and Physiological (生理的) needs, which include the needs of air, food, drink, shelter, warmth, sex, sleep, etc as the lowest and fundamental needs.

2. Safety needs, which include the needs of protection from elements, security, order, law, limits, stability, etc.

3. Belongingness (归属感) and Love needs, which include the needs of work group, family, affection, relationships, etc.

4. Esteem needs, which include the needs of self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.

5. Self-Actualization (自我实现) needs, which include the needs of realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.

The following picture can clearly and vividly explain the hierarchy of needs: 

Face negotiation theory: Face negotiation theory and subsequent research assumes that: 

     (1) People in all cultures try to maintain and negotiate face in all communication situations;

     (2) The concept of “face” is especially problematic in vulnerable interpersonal situations (such as embarrassment and conflict situations) when the situated identities of the communicators are called into question; 

     (3) Cultural variability, individual-level variables, and situational variables influence cultural members’ selection of one set of face concerns over others (such as self-oriented face-saving vs. other-oriented face-saving); 

     (4) Subsequently, face concerns influence the use of various facework and conflict strategies in intergroup and interpersonal encounters. In order to do better international business negotiations, negotiators shall have a command of face negotiation theory and apply it flexibly.