CROSS-CULTURAL

NEGOTIATION

Negotiation Negotiation is the process of discussion by

which two or more parties aim to reach a mutually acceptable agreement

Negotiating across borders is more complex because of the number of stakeholders involved

The Negotiation Process

Managing Negotiation Successful management of intercultural

negotiations requires the manager To gain specific knowledge of the parties in

the upcoming meeting To prepare accordingly to adjust to and control

the situation To be innovative

Managing Negotiation

Cultural Variables Affecting Decision Making

Understanding

Negotiation Styles

Profile of an Indian Negotiator

Looks for and says the truthIs not afraid of speaking up and has no fearsExercises self-controlSeeks solutions that will please all the parties involvedRespects the other partyNeither uses violence nor insultsIs ready to change his or her mind and differ with himself or herself at the risk of being seen as inconsistent and unpredictable

Profile of an Indian Negotiator

Puts things into perspective and switches easily from the small picture to the big oneIs humble and trusts the opponentIs able to withdraw, use silence, and learn from withinRelies on himself or herself, his or her own resources and strengthsAppeals to the other party’s spiritual identityIs tenacious, patient, and persistentLearns from the opponent and avoids the use of secretsGoes beyond logical reasoning and trusts his or her instinct as well as faith

Profile of an Arab Negotiator

Protects all the parties' honor, self-respect, and dignityAvoids direct confrontation between opponentsIs respected and trusted by allDoes not put the parties involved in a situation where they have to show weakness or admit defeatHas the necessary prestige to be listened toIs creative enough to come up with honorable solutions for all partiesIs impartial and can understand the positions of the various parties without leaning toward one or the other

Profile of an Arab NegotiatorIs able to resist any kind of pressure that the opponents could try to exercise on himUses references to people who are highly respected by the opponents to persuade them to change their minds on some issuesCan keep secrets and in so doing gains the confidence of the negotiating partiesControls his temper and emotionsCan use conference as mediating devicesKnows that the opponent will have problems in carrying out the decisions made during the negotiation

Profile of an American Negotiator

Respects the “opponents”States his or her position as clearly as possibleKnows when he or she wishes a negotiation to move onIs fully briefed about the negotiated issuesHas a good sense of timing and is consistentMakes the other party reveal his or her position while keeping his or her own position hidden as long as possibleLets the other negotiator come forward first and looks for the best deal

Profile of an American Negotiator

Knows when to compromiseTakes a firm stand at the beginning of the negotiationRefuses to make concessions beforehandAccepts compromises only when the negotiation is deadlockedSets up the general principles and delegates the detail work to associatesKeeps a maximum of options open before negotiationOperates in good faith

Negotiating

characteristics

AMERICANSTend to be very direct in communicationResist making outrageous initial demandsMore likely to negotiate aloneUncomfortable with emotional displaysExpect short term profitsLess likely to speak a foreign languageThey are not world travelersUncomfortable with silenceHate to admit that we don’t know

ENGLISH PEOPLESensitive to national originPrefer to be called English, not BritishMake appointment in advanceExcessively politeRefrain from asking personal questionsAre very class consciousNot comfortable with strangersDo not move at the frantic pace

FRENCH PEOPLEFrance is very centralizedCompetitive environment for businessPeople are warm and friendly, share everythingUnderstand English, uncomfortable to speak logical thinkersValue principle over resultpunctual

GERMAN PEOPLEIs a low context countryExpect more detailed contractsTime management Masters of the dealAppear formal and aloof at firstGreat emphasis on titlesThey drive fast

ASIAN PEOPLE Are relationship based

Prefer to trust the personConsider promise made during negotiationDo not expect eye contact

CHINESE PEOPLESaying: “He ging, he li, he fa.”Traditional greeting styleDo business on building relationshipThe groups needs is ahead of personal needsNegotiate in teamsConcept of GuanxiRespect for persons positionEntrepreneur by heart and loves to bargain and haggle

JAPANESE PEOPLE

They are reluctant to say “NO” Ask them open ended questions Very high context country “we” comes before “I” Tradtional style of greeting The concept of Wa (Harmony) Prefer to work in group The concept of Kashi “Banana no tataki uri”

RUSSIAN PEOPLEAre not entrepreneurial by heartNot afraid to make tough initial demandHave very bureaucratic mind-setHave learned to protect themselves from blameUnless authorized, its forbiddenNot afraid to vocalize their concernHigh context country

MIDDLE EAST PEOPLEDo not refer them as Arabs, unless…..Do not spend time on dealSign the contract first and then negotiateContract to them means less than a letter of intentThe higher the floor you are, the higher your prestigeAppointments are not the firm commitments