tips on negotiating better in cross-cultural relationships
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Tips on Negotiating Better in Cross-Cultural Relationships
Track 3-World Class Negotiation Techniques
The 63rd Annual Southwest
Purchasing ConferenceBy
Thomas L. Tanel, C.P.M., CTL, CCA, CISCM ,
CATTAN Services Group, Inc.College Station, TXcattan@cattan.com
Created by CATTAN Services Group, Inc. © 2009
Negotiating in the Global Arena
The Importance of Culture• Culture comes from the Latin word "colere",
meaning to build on, to cultivate, to foster. • Culture is a set of accepted behavior patterns,
values, assumptions, and shared common experiences.
• Culture defines social structure, decision-making practices, and communication styles.
• Culture dictates behavior, etiquette, and protocol.
• Culture is something we learn. • Culture is communication.
Cultural Sensitivity
• When negotiating make it a point to know your counterparts.
• Communicate in a form that will most likely be understood as it is intended.
• This means the negotiator must:– Be aware of their own culture– The recipient’s culture– The expectations surrounding the situation
How Culture Impacts Negotiation
• By conditioning one’s perception of reality
• By blocking out information inconsistent or unfamiliar with culturally grounded assumptions
• By projecting meaning onto the other party’s words and actions
• By pushing the ethnocentric negotiator to an incorrect attribution of motive
Cross-Cultural Negotiations Involve
The Communication Process
Cultural communications are deeper and more complex
than spoken or written messages. The essence of
effective cross-cultural communication has more to do with releasing the right
responses than with sending the “right” messages.
—Hall and Hall
Hall’s Cultural Factors
• Context
• Time
• Space
High and Low Context
• In a high-context culture, there are many contextual elements that help people to understand the rules.
• As a result, much is taken for granted.
• In a low-context culture, very little is taken for granted.
• This means that more explanation is needed.
High Context and Low Context Cultures
Source: Munter, M. ”Cross-cultural Communications for Managers”, Business Horizons, May/June 1993.
Factor High-Context
Culture
Low-Context Culture
Overtness of messages
Many covert and implicit messages, with use of metaphor and “reading between the lines”.
Many overt and explicit messages that are simple and clear.
Locus of control and attribution
for failure
Inner locus of control and personal acceptance for failure.
Outer locus of control and blame of others for failure.
Use of non-verbal communication
Much nonverbal communication.
More focus on verbal communication than body language.
Contrasting the Two Contexts
Factor High-Context
Culture
Low-Context Culture
Expression of reaction Reserved, inward reactions. Visible, external, outwardReaction.
Cohesion andseparation of groups
Strong distinction between in-group and out-group. Strong sense of family.
Flexible and open grouping patterns, changing as needed.
People bonds Strong people bonds withaffiliation to family and community
Fragile bonds betweenpeople with little sense of loyalty.
Level of commitment to relationships
High commitment to long-term relationships.Relationship more
important than task.
Low commitment to relationship. Task more important than relationships.
Flexibility of time
Time is open and flexible.Process is more important than product.
Time is highly organized.Product is more important than process.
Contrasting the Two Contexts
Cultural Impact on Messages and Context in Negotiations
Source: Adapted from Edward Hall’s book Beyond Culture, 1976.
Chronomics: Time Orientation and
Predictable Patterns • Monochronic or M-Time,
as Hall called it, means doing one thing at a time.
• Monochronic people tend also to be low context.
• In Polychronic cultures, human interaction is valued over time and material things, leading to a lesser concern for 'getting things done‘
• Polychronic people tend also to be high context.
Chronomics—Country Comparison with
Differing Time Orientation Systems
Monochronic• Germany • Canada • Switzerland• Australia • United States • Scandinavia
Polychronic• Saudi Arabia • France• Egypt • Greece• Mexico • Philippines
Culture & Chronomics Decision Making:“Process Time” versus “Implementation Time”
Process Implementation
Process Implementation
UNITED STATES
Process Implementation
JAPAN
Process Implementation
Hall’s Cultural Space Orientation• Space also relates to comfort with
eye contact and attributions related to eye contact or lack of eye contact.
• There are large differences in spatial preferences according to gender, age, generation, socioeconomic class, and context.
• These differences vary by group, but should be considered in any exploration of space as a variable in negotiations.
Space orientations differ across cultures, according to Hall.
Space and Proxemics
• Hall was concerned about space and our relationships within it.
• He called the study of such space-Proxemics.
• Some people need more space in all areas.
• People who encroach into that space are seen as a threat.
• Some people are more territorial than others with greater concern for ownership.
Edward Hall's Definitions of Space
• Hall's most famous innovation has to do with the definition of the informal, or personal spaces that surround individuals:– Intimate space--the closest "bubble" of space
surrounding a person. – Social and consultative spaces--the spaces in which
people feel comfortable conducting routine social interactions with acquaintances as well as strangers.
– Public space--the area of space beyond which people will perceive interactions as impersonal and relatively anonymous.
Edward Hall's Theory of Proxemics and Personal Space
The nature of the message communicated also affects interaction distances. Average comfortable distances among North Americans are shown below:
Distance Between Faces Tone of Voice Type of Message
Very close (3-6") Soft whisper Top secret or Sensual
Close (8-12") Audible whisper Very confidential
Neutral (20-36") Soft voice
Low volume Personal subject matter
Neutral (4.5-5') Full voice Non-personal information
Across the room (8-20') Loud voice Talking to a group
Stretching the limits (20-24' indoors and up to 100' outdoors)
Loud hailing voice Departures and arrivals
Derived from The Silent Language by Edward Hall (1959)
Proxemics: High Territoriality Versus Low Territoriality
• High territoriality people seek to mark out the areas which are theirs.
• Territoriality also extends to anything that is 'mine' and ownership concerns extend to material things.
• Security thus becomes a subject of great concern for people with a high need for ownership.
• People with high territoriality tend also to be low context.
• People with lower territoriality have less ownership of space and boundaries are less important to them.
• They will share territory and ownership with little thought.
• They also have less concern for material ownership.
• People with low territoriality tend also to be high context.
Proxemics: High Territoriality Versus Low Territoriality
Typical American Office
Typical Japanese Office
Geert Hofstede Model of Cultural Dimension Analysis
• Dr. Geert Hofstede conducted perhaps the most comprehensive study of how values in the workplace are influenced by culture.
• From 1967 to 1973, while working at IBM as a psychologist, he collected and analyzed data from over 100,000 individuals from forty countries.
Geert Hofstede Dimension Analysis
“Culture is more often a source of conflict than of synergy.
Cultural differences are a nuisance at best and often a disaster." --Dr. Geert Hofstede
Professor Geert Hofstede’s—The Five Dimensions of Culture
• Power/Distance (PD)
• Individualism (IDV)
• Masculinity (MAS)
• Uncertainty Avoidance Index (UAI)
• Long Term Orientation (LTO)
Hofstede’s Model—Power/Distance (PD)
Characteristics Tips
High PD
Centralized companies. Strong hierarchies. Large gaps in compensation,
authority, and respect.
Acknowledge a leader's power.
Be aware that you may need to go to the top for answers
Low PD
Flatter organizations. Supervisors and employees
are considered almost as equals.
Use teamwork Involve as many people as
possible in decision making.
Culture Dimension Score for 10 Countries—Power/Distance (PD)
Hofstede’s Model—Individualism (IDV)
Characteristics Tips
High IDV
High valuation on people's time and their need for freedom.
An enjoyment of challenges, and an expectation of rewards for hard work.
Respect for privacy.
Acknowledge accomplishments. Don't ask for too much personal
information. Encourage debate and expression
of own ideas.
Low IDV
Emphasis on building skills and becoming masters of something.
Work for intrinsic rewards. Harmony more important than
honesty.
Show respect for age and wisdom. Suppress feelings and emotions to
work in harmony. Respect traditions and introduce
change slowly.
Culture Dimension Score for 10 Countries—Individualism (IDV)
Hofstede’s Model—Masculinity (MAS)
Characteristics Tips
High MAS
Men are masculine and women are feminine.
There is a well defined distinction between men's work and women's work.
Be aware that people may expect male and female roles to be distinct.
Advise men to avoid discussing emotions or making emotionally based decisions or arguments.
Low MAS
A woman can do anything a man can do.
Powerful and successful women are admired and respected.
Avoid an "old boys' club" mentality. Ensure job design and practices are
not discriminatory to either gender. Treat men and women equally.
Culture Dimension Score for 10 Countries—Masculinity (MAS)
Hofstede’s Model—Uncertainty Avoidance Index (UAI)
Characteristics Tips
High UAI
Very formal business conduct with lots of rules and policies.
Need and expect structure. Sense of nervousness spurns high
levels of emotion and expression. Differences are avoided.
Be clear and concise about your expectations and parameters.
Plan and prepare, communicate often and early, provide detailed plans and focus on the tactical aspects of a job or project.
Express your emotions through hand gestures and raised voices.
Low UAI
Informal business attitude. More concern with long term strategy
than what is happening on a daily basis.
Accepting of change and risk.
Do not impose rules or structure unnecessarily.
Minimize your emotional response by being calm and contemplating situations before speaking.
Express curiosity when you discover differences.
Culture Dimension Score for 10 Countries—Uncertainty Avoidance Index (UAI)
Hofstede’s Model—Long Term Orientation (LTO)
Characteristics Tips
High LTO
Family is the basis of society. Parents and men have more
authority than young people and women.
Strong work ethic. High value placed on education
and training.
Show respect for traditions. Do not display extravagance or
act frivolously. Reward perseverance, loyalty,
and commitment. Avoid doing anything that would
cause another to "lose face".
Low LTO
Promotion of equality. High creativity, individualism. Treat others as you would like to
be treated. Self-actualization is sought.
Expect to live by the same standards and rules you create.
Be respectful of others. Do not hesitate to introduce
necessary changes.
Culture Dimension Score for 10 Countries—Long Term Orientation (LTO)
West versus East Cultural Values:Hall’s and Hofstede’s Data Applied
Dimensions United
States
United
Kingdom
Singapore Korea
Power
Distance
Small Small Large Large
Individualism Individualist Individualist Collectivist Collectivist
Masculinity Masculine Masculine Feminine Feminine
Uncertainty
Avoidance
Weak Weak Strong Strong
Time Perspective
& Orientation
Monochronic
Short-term
Monochronic
Short-term
Polychronic
Long-term
Polychronic
Long-term
Communication
Context
Low
Context
Low
Context
High
Context
High
Context
Principles of Paralanguage
• Paralanguage refers to the vocal
aspect of communication.
• Vocal elements of language vocal
elements involve sound and its
manipulation for certain desired or
undesired effects.
• Verbal elements are the particular
words we choose when speaking.
Ingredients of Paralanguage: Voice Qualifiers and Segregates
Voice Qualifier Examples:
• Intensity • Pitch• Resonance • Tempo
Voice Segregate Examples:
• “Uh" • “Um" • “Uh-huh" • Silent pauses
Messages in the Voice—Infer Emotional States
Feeling Intensity Pitch Resonance Tempo Enunciation
Anger Loud High Blaring Fast Clipped
Joy Loud High Moderately Blaring
Fast Somewhat Clipped
Sadness Soft Low Booming Slow Slurred
Nonverbal Communication: Kinesics and Proxemics Acts
• Kinesics: The study of nonverbal gestures, facial expressions, eye contact, and body posture.
• Proxemics: The study of the use of space, touch, and distance as features of nonverbal communication.
Other Non-Verbal Communication
1. Haptics Touch, Arm and Hand Movements
2. Paralanguage Non-Verbal Elements of Speech
3. Paraverbal Non-Lexical Aspects of Verbal Communication
4. Olfactory Smells
Non-Verbal Communication— Dangers of Overgeneralizations• We cannot assume everybody in a culture behaves the
same way
• Infrequent actions should not be used to characterize a culture
• We should not ignore that nonverbal behaviors are part of complex communication processes
Silence: Is Also Part of Nonverbal Communication
• Sends nonverbal clues during communication
• Culturally determined
• Igbos Tribe of Nigeria adage: It’s not the sound you hear that I will have
to dance to.
Silence As A Part of Cultural Communication
• The distribution of speaking and silence in conversations is influenced by the specific individual participants.
• But it is also something which is observed and interpreted very differently in different cultures.
• Silence can shape sequences of speech, carry meaning, and organize the social relationships between speakers.
Recent Cross-Cultural Negotiation Lessons Learned
• Greeks: Relationships are the linchpin of business dealings, since Greeks prefer to do business with those they know and trust. Greeks prefer face-to-face meetings rather than doing business by telephone or in writing. Business is conducted slowly. Greeks are skilled negotiators and they love to argue and debate.
• Malaysians: Focus on the credibility of your organization and its management and leadership. Negotiations will be lengthy and you should have every detail of your proposal worked out before presenting it. Building long-term relationships with individuals from Malaysia is a long-term process. Remember to remind them frequently of your offer---the repetition of key points in your proposal.
• Argentineans: Decisions are made at the top and you often need several meetings and extensive discussion to make deals. Argentines are tough negotiators. Concessions will not come quickly or easily. Good relationships with counterparts will shorten negotiations. Be punctual for business appointments, but be prepared to wait for your counterpart. Spanish is heavily influenced by Italian and is unlike Spanish spoken anywhere else.
Recent Cross-Cultural Negotiation Lessons Learned
• Indians: The pace of business meetings in India is comparatively far more relaxed than in the United States. Indians are somewhat lax about time. The word “No" has harsh implications in India. Remember that hierarchy, titles and degrees are very important. More open to unstructured ideas and situations but very literal in some respects.
• Chinese: Be aware of their non-verbal messages and provide them with enough information for their decision-making process which is slow. Allow them to “save face”. The most important member of your negotiation team should lead important meetings. Chinese value rank and status as well as a long-term approach.
• Arabs: Communications occur at a slow pace. "Yes" usually means "possibly". Arabs will also employ some body contact to emphasize a point or confirm that they have your attention. It is important not to draw back, however. This may be interpreted as a rebuff or rejection of what is being said. Respect is a value that is held very highly by the Arab people. Be aware that they may use deceptive price-negotiation strategies––don't give away your minimum acceptable position too soon or be taken in by their flattery.
Cross-Cultural Tips—Not Everyone Negotiates Like Americans• Cultural differences influence negotiations
• Intercultural differences may cause misperception and misunderstandings
• Body language is important at the local cultural level
• Subculture issues may be present
• Moderate adaptation to a counterpart’s culture is perceived positively
Cross-Cultural Negotiation Degree of Difficulty for Americans
• Africa• Middle East• Far East• South America• Eastern Europe/Russia• Western Europe/Scandinavia• Australia/New Zealand
Highest
Lowest
Cross-Cultural Tips—Perceptions & Negotiations
• Discovering the other side’s interests is an exercise in discovering perceptions.
• Appreciating perceptions helps us distinguish between people and problems.
• Understanding perceptions can expand the range of possible solutions to achieve negotiations rapport with the other side.
THANKS—Questions???
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