Negotiation acftlally represents the outcome of a series of small and large decisions. The decisions include those made by each party before actual negotiations start-in determining, for example, the position of the company and what failback proposals it may propose or accept. They also include incremental decisions, made during the negotiation process on how to react and proceeds when to concede, and on what to agree or disagree. Negotiation can thus be seen as a series of explicit and implicit decisions, and the subjects of negotiation and decision making become interdependent.
For instance, sometimes just the way in which a decision is made during the negotiation process can have a profound influence on the outcome, as this example shows:
In his first loan negotiation a banker new to Japan met with seven top
Japanese bankers who were seeking a substantial amount of money.
After hearing their presentationi the American agreed on the spot. The
seven Japanese then conferred among themselves and told the American they would get back to him in a couple of days as to whether they
would accept his offer or not. The American banker learned a lesson he never forgot.
The Japanese bankers expected the American to negotiate, to take time to think it over, and to consult with colleagues before giving the final decision. His immediate decision made them suspicious, so they decided to reconsider the deal.
There is no doubt that the speed and manner of decision making affects the negotiation process. In addition, how well negotiated agreements are implemented is affected by the speed and manner of decision making. In that regard, it is clear that the effective use of technology is playing an important role, especially when dealing with complex cross-border agreements in which the hundreds of decision makers involved are separated by time and space.
The role of decision making in management, however, goes far beyond the finite occasions of negotiations. It is part of the manager's daily routine-from operational-level, programmed decisions requiring minimal time and effort to those nonprogrammed decisions of far broader scope and importance, such as the decision to enter into a joint venture in a foreign country
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