Do’s and Don’ts of Cross-Cultural

Negotiations

Paul A. Herbig Hugh E. Kramer

The potentml for error when rndlvlduals from different I ul- tures talk together zs conslderahle Many negotlatlons have faded due to cross-culturul commumcatlons breakdown In this article we detail p~tjiull~ to avoid when undertaking cross- cultural negotiations

When one takes the seemingly simple process of ne- gotiation mto a cross-cultural context, complications tend to grow exponentially It is naive, indeed, to venture mto mternational negotiation with the belief that “after all, people are pretty much alike everywhere and behave much as we do ” Even if they wear suns hke you do, speak English as well as (or even better than) you, and prefer many of the comforts and attributes of American life, it is foolish to view a member of another culture as a brother or sister m spirit That negotiation style you use so effectively at home may be meffective when deal- mg with people from other cultural backgrounds, m fact,

Address correspondence to Paul A Herblg. Dept of MdndgementiMar- ketmg, College of Commerce dnd Busmess Admmlstrdtlon. Jack\onvllle State Untver\lty, Jacksonvdle, Alabama 36265

The first author wlshe\ to express thanks to the Edst West Center ot Hon- olulu, Hawdu, who supported the research whtch went mto thl\ mdnuscnpt

it may often result m more harm than gam Heightened sensitivity, more attention to detail, and perhaps even changes m basic behavioral patterns are required when working with mdividuals from another culture

Different cultural systems produce divergent negoti- ating styles-styles shaped by each nation’s culture, ge- ography, history, and polmcal system The two busmess negotiators are separated from each other not only by physical features, a totally different language, and busi- ness etiquette, but also by different ways of perceivmg the world, defining business goals, expressing thoughts and feeling, and showing or hiding motivattons and m- terests Unless one sees the world through the other’s eyes (no matter how similar they appear), the parties may not be seemg or hearing the same thmgs No one can avoid brmgmg his or her cultural assumptions, images, preludlces, and other attitudmal baggage into any ne- gotiating situation

Even the language of negottatton can be misleading m foretgn settmgs Compromise has positive meanmgs for Americans it is an essential part of busmess and de- mocracy, and willmgness to compromise shows morality, good faith and fair play-but this is not necessarily so

lndustrtal Markrtq Management 21, 287-298 ( 1992) 287 0 Elsevler Science Pubhshmg Co Inc 1992 , . 655 Avenue of the Amencas, New York. NY 10010 0019-8501/92/$5 00

Different cultures produce different styles.

for peoples of other cultures Throughout the Middle East, the word “compromlse” has a negative connota- tion, as m the phrase “her virtue was compromlsed ” The Perslan word for “mediator” means “meddler,” someone who barges m umnvlted To Mexicans and many Latin Americans, compromise IS a matter of honor, glvmg m means yleldmg dlgmty and Integrity, which are held m high regard Compromise m the Russlan culture IS a sign of weakness to give up a demand once pre- sented, even a mmor or formallstlc pomt, ImplIes one IS losmg control of his or her own ~111 and becoming sub- Jugated to someone else’s will In other words, a weak mdlvldual chooses compromises, a strong person with self esteem who commands the respect of his or her peers forces his or her will on others and does not avold con- frontatlons

The common Western Ideal of a persuasive commu- mcator-someone highly skllled m debate, able to over- come obJectIons with verbal flan-, an energetic extrovert-may be regarded by members of other cultures as unnecessarily aggressive, superficial, insincere, even vulgar and repressive To other Americans, the valued American traits of directness and frankness show evl- dence of good intentions and personal convIctIons, It IS a compliment to be called stralghtforward and aggressive Not necessarily so, however, for members of other cultures To describe a person as “aggressive” IS a de- rogatory characterlzatlon to a Brltlsh cmzen To the Jap- anese, those very traits mdlcate msmcerlty and lack of confidence m one’s convIctIons Instead, terms such as thoughtful, cooperative, conslderate, and respectful de- scribe posltlve traits in the Japanese and many Asian cultures

The way one succeeds m cross-cultural negotlatlons IS by fully understandlng others and using that understand-

PAUL A HERBIG IS with the College of Commerce and Business Admtntstratlon, Jacksonvie State Unlverslty, Jacksonville, Alabama

HUGH E KRAMER IS with the College of Business Administration at the University of Hawail-Manoa, Honolulu, Hawall

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mg to one’s own advantage to realize what each party wants from the negotlatlons, and turn the negotlatlons mto a wm-wm situation for both sides Table 1 sum- marizes the do’s and don’ts of cross-cultural negotlatlon

NATIONAL NEGOTIATING STYLES

The line-of-reasomng method persuasive to most Americans may not work at all m other cultures Amer- icans are usually swayed by expert opmlon and hard evidence and want to concentrate on the facts avallable, others prefer to spend what to Americans seems an m- ordinate amount of time on prmclples Mexican and Rus- sian negotiators habitually start with the most general aspects and purpose of a negotlatlon session by defining maJor and minor Issues, categorlzmg them, and then de- cldmg on the mam points to be solved The Chinese seek

TABLE 1 Do’s and Don’ts of Cross-Cultural Negotlatlon

DO know your \ub\tdnce dnd be well prepdred \pectfy cledr obJectlve\ dnd know your bottom fme develop personal reldtton\htp\ but be cdretul not to be mdmpuldted \eek opportumtte\ lor mtormdl get-together\ \mce thdt I\ where mo$t of the mtttdl contdct\ WIII be mdde meticulously lollou protocol lorelgner\ u\udlly dre more \tdtu\ con~tou\ thdn Amcrtcdm under\tdnd ndtmndl \en\ttlvltle\ dnd do not vmldte them d\\e\\ flexibtltty of your opponent dnd the ob\tdcle\ he or \he tdce\ under\tdnd the dcct\ton-mdkmg proce\\ and build up your poWton by tdktng ddvdntdge Of edch \tep pm down detdds

DON’T look dt everythmg from your own dehmtton of whdt determlnc\ d rdtmnal and \ctenttftc vtewpolnt pre\\ d point If other\ dre not prepdred to dLLept It look dt thmg\ tram your own ndrrow self mtere9t d \ k for conce$ston\ or compromtse~ whtch dre polltLdlfy or culturdlly \en\ttlve \ttck to your dgcndd II the other pdrty hd\ d dltferent \et of prIorltle\ u\e jagon thdt mdy contuse the other \lde \ktp duthorlty level< \mce you wtll need middle mdnapement to m~plemcnt the dgreem~nt d\k lor d dectslon thdt you knou the other \lde cdn t or I\n’t reddq to t l l d h e

doffer with mcmbcr\ 01 your own tedm m publtc \tdke out extreme po\mon~ be Lon%tent m your dpprodch

agreement on general prmciples, they expect the other party to reveal then Interests first while the Chinese mask their own interests and priorities

The concept of discussmg problems m a systematic, sequential, orderly manner IS promoted by Americans, while the Japanese prefer haragez, to talk around a subJect m order to get a holistic view of it Only after thrs is accomphshed will they discuss details The Japanese pre- fer to avoid any area m which an agreement cannot be easily reached Instead, they tend to move to another topic. To Americans, it often appears that the Japanese are trying to elude the issue To Americans, an unsolved issue is a point of contention Thts, not any general prm- ciple, must first be dealt with before the agreement as a whole can be considered

Many who come from a non-western tradition have to learn the value we place on give and take, as well as the confrontational aspects of Western-style negotiation In a host of cultures, especially those from the Orient, peo- ple depend more on feelmgs and personal relationships than intellectual confrontations In numerous other cul- tures, conflict avoidance IS central In these cultures, mediators, go-betweens, facihtators, brokers, and mid- dlemen are used to assist m smoothmg the negotiation process In the Middle East, the Bedouin model is often used This mvolves mtermediaries who enJoy trust of both sides, mamtammg the honor of both parties, and remem- bering that face savmg is important and gestures of gen- erosity and reciprocation must be adhered to [I] On the other hand, the authoritarian traditions of Latin Ameri- cans often spurn use of mediators or third parties

A primary bargammg strategy of the Chmese and Jap- anese is to ask questions that put the opponent on the defensive Many times the mitral meetmg is used merely to gather mformation, which IS then fed back to superiors and peers for deliberation and a carefully prepared re- sponse The Japanese strongly believe it is folly to make an offer until one knows what the other side wants This explains the slow start, lack of mmal proposal, emphasis on mformation gathering, and the long, drawn-out pre- hmmary ground work that IS usually encountered when negotiatmg m Japan. The Japanese need detailed mfor- mation to build the foundation for whatever proposal they

intend to put forward Should the venture fail, no one can be rebuked or blamed On the other hand, m Latin America, questions are not valued as m the Orient, m fact, there they are often Interpreted as prymg and m- appropriately nosy

Often, the team on the other side of the table IS not composed of the final decision makers The Japanese often conceal their top person by positioning him or her mconspicuously on the frmge of the team Inmally he or she makes no contribution while a Junior member acts as spokesperson The Japanese team leader might only be marginally technically competent m the specific subJect matter under negotiation but still be the undtsputed head credentials for leadership mclude seniority and frequently a degree from the right school The leader may have been chosen because he or she represents the company con- sensus, which was achieved before the negotiations started The leader’s symbolic authority IS high and the team shows the leader great deference So, one cannot assume the makeup of the opponent’s negotiating team is identical to that of one’s own [2] Japanese negotiating teams usually consist of large groups To avoid bemg mtimidated by sheer numbers, the Western negotiator is well advised to be prepared to bring sufficient staff to provide numerical balance (including sufficient techmcal experts)

Lawyers do not enJoy as much prestige m most cultures as they do m America In some cultures, they are con- sidered to be more of a problem, a hindrance to an agree- ment, than an advantage In Japan, lawyers are seen as people who comphcate personal relationships, mhibit basic understanding, and prevent the parties’ getting to know each other better A long-term business relationship between a Japanese and a foreign partner IS expected to be built on the principles of mutual trust, friendship, and cooperation, rather than on the legahstic grounds a lawyer would tend to emphasize In fact, the presence of a lawyer may be viewed as a sign of distrust, mtroducmg a lawyer mto the situation is often considered an unfriendly act or an implied threat of lmgation, since lawyers are tradi- tionally used for that specific purpose m Japan [3] Brmg- mg a lawyer to a first meeting with a Japanese company may be the kiss of death for an agreement In busmess

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transactlons, a contract IS secondary to harmomous re- latlonshlps, Japanese negotiators prefer conclhatlon and medlatlon over htlgatlon The Chinese also shun legal conslderatlons and instead stresses ethlcal prmclples

The proficient mtematlonal negotiator understands the national negotlatmg style of those on the other side of the table, accepts and respects their cultural beliefs, and IS conscious of his or her own mannerisms and how they may be viewed by the other side

DIFFERENCES IN DECISION MAKING

In mtematlonal negotiations one must also take mto account the nuances m other cultures’ declslon processes, that is, the way officials and executive\ reach decisions and instruct then negotiators, as well as personal styles of declslon-making behavior In most of the non-western world, declslon making does not rest with an mdlvldu- al Many cultures go to extraordinary lengths to avold mdlvldual action on any problem, group responslblhty replaces mdlvldual declslon-makmg responslblhty Americans view the Japanese mablhty to deviate from their position as mdlcatlng stubbornness and thus perceive the Japanese as unwlllmg to compromlse or as umnter- ested m keepmg the negotiation process ahve To the Japanese, the Western concept of “declslon makmg” IS ahen and not applicable to the Japanese process (rlng~- bulldmg consensus from mid-levels), which can be thought of as more of a drrectlon-indicating proces\ The Japanese come to a negotlatlon with a hard-gamed, time- consummg, mtraorgamzatlonal consensus already estab- lished that can not be easily changed at the bargammg table, no matter how small or seemmgly Irrelevant To the Japanese, the Americans m their give and take appear msmcere and unprepared, as they seem not appear to have a prepared positIon To the Latm Amencan\, de- clslons are typlcally made by those mdlvlduals who are m charge of declslon makmg m this area In KOre d,

middle managers have maJor veto power\ but no authority to commit their orgamzatlon to a long-term agreement

To Amencans, anythmg I\ permitted unles\ It ha\ been restricted by the state or by company policy For RUV slans, nothmg IS permltted unless It I\ mltlated by the state Polltics has pervasive influence on Chme5e and Russlan behavior, whdc Americans tend to separate busl- ncs\ and polltIcs The Ru$slans have an authorttarlan government with a ba\lcally ohgarchlcal declslon-makmg network controlled from the Politburo Not Ju\t major dccl\lons but many details of negotiations are \et at the

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top, almost to the pomt of complete subservience to In- structions from Moscow In such a declslon-making framework, the Russians have an advantage m that they can develop negotlatlon posmons and tactics wlthout other domestic conslderatlons But they are typically so much at the mercy of mstructlons from superiors that at times It seems to foreign observers that they need per- mlsslon from the Kremlm before they can even speak at the negotlatmg table [3] Russlan negotiators are gov- ernment employees wlthout exceptlon, while American negotiators usually are businessmen

Some cultures have strong authorltarlan elements The Mexican president has Immense authority, but any pres- idential directIon 1s slowed or frustrated by a formidable and powerful bureaucracy The Mexican president IS the prmclple declslon maker, therefore, governmental ne- gotiators have hmlted dlscretlon m actIon\ and decrslon- makmg capablhtles by American standards LIkewIse, the Egyptlan president pohtlcally has a very strong po- sItIon, but the actual lmplementatlon of a negotiated agreement eventually requires the acceptance of the pow- erful Egyptlan bureaucracy For long-term commitments m Brazil, declslons are made at the top of orgamzatlons, lmplementatlon of such declslons by the bureaucracy tend to be cumbersome and time consummg

The American hlerarchlcal model of responslblhty- accountablhty-power IS not universal, the “top man’s word” may not be enough In the Chinese pohtlcal cul- ture, there IS no assumption that declslon power must be tied to accountabdlty On the contrary, In the eyes of the powerful, proof of authority and respon\lblllty he\ In being 5hlelded from accountablhty Those below them will protect them from ml\takes and crltlclsm [4] The Chinese blur line\ of responslblhty and provide vague and confllctmg \lgnal\ as to the Ilmlts of thclr negotlatmg authority As government officials, most Russian ncgo- tlators, untd recently, could only dl\cus\ what they were told by therr \upenors They could go no further and had to get approval for further moves, action\, and responses from their \upenors Fear of dlsclphnary action forced them to carefully follow order\ A Ru\slan negotiator rarely took mltlatlvcs The Soviet people take virtually no step m their public or private IIves that doe\ not depend on the state

Americans love to compare negotlatmg to playing a poker game, they are quick to take advantage of a better power porltlon or strength Latm Americans are also great power players, to be stronger than the others IS partlcu- larly cherished The Jdpanese rcll\h subtle power plays

Negotiation is often macho.

m their goal of achlevmg conclhatlon The French typ- ically have an elaborate, well-prepared opening posltlon, but few (if any) mtermedlate fallbacks before their mm- lmum position IS reached In Eastern Europe, one team negotiates one day, followed by a fresh team the next, thus, it becomes very difficult for Western negotiators to ascertain which team IS most Important or has the final authortty

The accomplished international negotiator prepares for negotiation by understandmg the declslon-makmg pattern of the specific culture, learning the hmltatlons of the delegates’ authority and who wlthm the nation or com- pany will make the final decision, and prepares for tra- ditional culturally based power plays that may occur wlthm the negotiation

STATUS AND PROTOCOL

American egahtarlamsm can also present a problem m cross-cultural negotiations Negotlatlons between equals IS basically a Western concept, It IS not found m such status-oriented socletle\ as Japan, Korea, or Russia The Japanese and Korean\ rate others as either Jumor or semor to them but rarely as their equals, the Russians view others as either inferior or superior to themselves All of these cultures-Korea, Russia, and Japan-tend to see nego- tiations as war, a macho challenge They beheve m the rightness of their mltlal posltlon When pressed, the Jap- anese fully explam their position and underlymg mten- tlons m order to persuade the other side of the rightness of the Japanese posmon, but they will hesitate to yield their own posltlon The Chinese revere age and authority, unless men sport beards, be prepared for an uphill battle

American mformahty m down playing status, m usmg first names, m attire, and m other ways of showmg cas- ualness, IS not umversal The Japanese dress conserva- tlvely, they always prefer dark busmess suits Therefore, to be dressed casually during negotlatlons with the Jap- anese 1s mapproprlate. The Japanese do not believe m usmg first name5 unless it IS between the very best of personal friends In Asia, honorifics, title, and status are extremely Important, address counterparts by their proper title Frankness and directness, Americans virtues, are

not well received by Mexicans m formal encounters or by Japanese at any time Americans and Germans are more likely to start out expecting to trust the other party until they prove untrustworthy, while m Latm America and some parts of Asia people are mclmed to mlstrust others until good faith IS proven American humor 1s sometimes seen as strange or mapproprlate to members of other cultures, the Japanese art of being overly humble and apologetic seems condescending and artlficlal to many m the West

Some cultures have strong tradmons governmg dally life and social mteractlons In formal settmgs, Mexlcam respond with rhetoric and lofty prmclples They are proud of their country and traditions but frequently exhlblt a fear and susplclon of the “grmgos from the north” and their possible motives There IS no tradmon for solving busl- ness problems by holding public meetings, the Mexican appreclatlon of form and ceremony goes back to their Spamsh roots Protocol and status are Important to Ko- reans, they feel shghted if one does not recognize their proper status and posItIon m hfe The Arabs are highly rltuahstlc m their social interaction, an intimate knowl- edge of their customary formahty and protocol IS requn-ed If one IS to succeed with members of their society The Russlans are highly conscIou4 of protocol and not Inclined to accept any \urpnse change\ m the negotlatmg agenda or venue In Japan, tradition extends even to the proper way one must present a bu\mes\ card or drmk tea or \ake

The valued American handshake 1s often out of place m Japan, where bowing IS customary and the exact angle and number of bows are important according to whom you are meeting Even use of the hands can vlolate un- spoken rules of proper conduct The American thumbs- up and forefinger-thumb “OK” are consldered obscene gestures m many cultures When meetmg d devout Mo\- lem, never shake with the left hand or use it for any purpose-m Islam the left hand 14 as\oclated with human excretion To use It m any lnteractlon with d Moslem 14 considered rude and a personal affront

The successful foreign negotiator appreciate\. under- stands, and respects national protocols, ntuals, and statu\ symbols The competent global negotiator \ubordmates his or her own preferences to that of the ho\ts or guests

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Patience is key.

SOCIAL ASPECTS OF NEGOTIATIONS

The function of entertamment and other social actlv- ltles related to negotiation varies markedly from culture to culture Americans feel comfortable conducting busl- ness m a relaxed social setting, negotiators m other cul- tures may feel awkward m such settings and may even see this as a breach of etiquette towards one’s guests Americans eat m public and bathe m private, the Japanese vice-versa The Japanese rarely bring wives or family members to a busmess gathering Likewise, the French believe the home IS for intimate relationships, not for conducting business The bazaar model of bargammg through a series of formal sequential steps IS found m Egypt and m many parts of the Middle East It starts with a prellmmary period of discussing issues that go well beyond the contemplated transactlon and subsequently focuses on estabhshmg a personal relatlon\hlp, often over endless rounds of coffee and tea, finally, the actual bar- gammg aimed at a compromise position commences The parties engage m the fine art of haggling, sometimes simply for the fun of It No step must be overlooked Patience 1s the key to success [l]

In social interaction, face-savmg IS crucial to the Jap- anese Decisions are often made on the basis of saving someone from embarrassment To Americans, decisions are typically made on a cost-benefit basis, with little or no conslderatlon for saving face For Latin Americans, face-saving 1s crttlcal to preserve honor and dignity Dlf- ferent values and prlorltles are clearly accorded to social and busmess conslderatlons by different cultures The French see negotlatmg not as a place for bargammg but for searching out the reasoned solutions for which they have so carefully prepared They start with a long-range view of their purposes and place lower prlorlty on ac- commodatlon m short-range declslon\

Gift-glvmg IS a custom m many parts of the world It 1s not so much the cost but the source or nature of the gift that impresses In many cultures, especially the On- ent, glvmg a gift creates an obhgatlon between partie\, a reciprocal gift IS required If one receives a gift This can quickly spiral out of control, as the reciprocal gift

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must be more expensive than the gift received Be sure to offer a gift on the first meeting with a Japanese com- pany, but if a gift 1s tendered to you, open it only after returning home or to the hotel

TIME

Many Westerners, especially Americans, are con- stantly m a rush Seen through foreign eyes, Westerners always seem to be m a hurry, under pressure for results, and suffering from a “do it yesterday” syndrome With time runnmg out on self-imposed and frequently arbitrary deadlines, Americans tend to give away more than planned m order to finish “on time” and move on to the next deal [5] In this scenario, experienced A5lan ne- gotiators know that all they have to do IS to stall, be patient, and they will eventually be handed a favorable contract by an American Just so he or she can have one signed Koreans tend to be especially keen to take ad- vantage of negotiation deadlines by mfllctmg numerous delays with the help of flimsy excuses

Time moves at a different pace for the Chinese and most Asians The Chinese are more sedate and move at a rate that pleases them and at a pace that IS m their own self- and national interests This slowdown 1s sometimes used as a bargaining ploy to exploit natural American tendencies for impatience the foreign hosts take the American visitor\ touring and entertaining until their deadline nears and then negotiate a very favorable agree- ment There are other reasons for employmg the delaying tactic It could be partly host, partly frlendshlp/relatlon- ship oriented, or m the case of the Japanese, represent an intense studying of the proposal as a consequence of the need to sohclt approval from all company departments that will be affected by the outcome of the negotiation With the Japanese, one should schedule many sessions with a great deal of intervening time (weeks or even a month) to allow the rmgl to operate

In the case of the Chinese, delays are frequently caused by the fact that the Chinese negotiators want to be certain of all details and provlslons of the contract and not be held liable by their superiors for any mistakes Delays

from Mexicans indicate the different view of time most Latin Americans have, they are more relaxed and m less of a hurry than most North Americans Whereas most busmess people m the West try to be punctual, the Jap- anese are even more conscientious and precise m keeping appomtments The former Soviets are often unpredicta- ble, arrivmg late for appointments or simply cancelmg them without notice With Arabs, one should plan longer, less formal negotiating sessions

The mternational negotiator should clearly understand how people in each culture view time and value punc- tuality It is equally important that the negotiator have enough time to complete a negotiation and not be pressed by self-imposed deadlines

PERSONAL RELATIONSHIPS

To most Asians and Latin Americans, good personal relationships and feelings are all that really matter m a long-term agreement After all, the written word is less important than personal ties Once personal trust has been established, cooperation increases The social contacts developed between the parties are often far more sigmf- icant than the technical specifications and the price [6] In many countries the heart of the matter, the maJor point of the negotiations, is getting to know the people m- volved Brazilians and many Latin Americans cannot de- pend on their own legal system to iron out conflicts, so they must depend on personal relationships

Americans negotiate a contract, the Japanese negotiate a relationship In many cultures, the wrttten word IS used simply to sattsfy legalities In their eyes, emotion and personal relations are more Important than cold facts The key issue is, “can I get along with these people and their company and do I want to sell (or buy) their prod- ucts?” rather than “can I make money on this deal?” They are particularly interested m the smcerity of those with whom they are negotiatmg The Japanese are es- pecially unwillmg to do busmess with someone they thmk may be arrogant or unpleasant “I do not do busmess with someone who does not like usi” The Japanese do not separate personal feelmgs from busmess relatton- ships Therefore, the effective Amertcan negotiator should display cultural empathy, be polite and honest, and go out of his or her way to be good natured, practical, social, frank, responsible, and efficient-traits Japanese and most other Asians value

Personal affinity is also immensely important to Mex- icans and other Latm Americans The goal is to nurture

a mutual confidence, engage m mformal discusstons, and seek solutions to problems Therefore, personal rapport, prehmmary meetmgs, telephone conversattons, and so- cial acttvities are necessary when dealing wtth busmess people south of the border To the Malays, trust is fun- damental to a successful relationship a person’s capa- bthty for loyalty, commttment, and companionship 1s uppermost m the decision to do busmess Koreans love to lavish attention and mtimactes on their friends but give hostile and blunt treatment to those they don’t know Bmldmg relattonshtps there 1s necessary to good busmess

The development of personal friendships 1s an tmpor- tant prerequisite to butldmg long-term busmess contacts with foreigners However, it can also be used to the disadvantage of the American negotiator An effective strategy used by the Chinese, for example, is to attempt to identify members of the opposite team who are sym- pathetic to the Chinese cause, cultivate a sense of friend- ship and obligation m thetr counterparts, and then pursue their ObJectives through a variety of stratagems designed to take advantage of feelings of friendships, obhgatton, or even guilt Deeply rooted m Chmese traditions is the belief of reciprocity of actions favors are to be considered investments with return expected, if not for oneself, then for subsequent generations To the Chinese, a friend is one who will work to resolve problems that an unsym- pathetic person would not The American negotiator should be cognizant of these assumptions and conse- quences and not promise more than he or she can deliver

Playing host allows the Chinese to use tactics of sur- prise and uncertainty China can be an overwhelmmg experience for first-time visitors Often, livmg arrange- ments are not up to Western standards or expectations and may make visitors Impatient to get the deal done and return home The Chinese sometimes try to Influence the other party by shammg them or making them believe the difficulties and problems are their own fault Chinese hosts delight m structuring a negotiating environment that enhances a sense of obhgatlon on the part of their guests The Chinese seek a relatlonshlp based on permanence, steadfastness, and faithfulness To wm them over, West- erners would have some proficiency m Chinese, under- stand the mtricacies of the culture, and live m or at least visit the country as often as possible

Rather than cultivatmg friendly relattonships, the typ- tcal Russian strategy has been to put Westerners imme- diately on the defensive with confrontational, blunt, and combative tactics A widely applied tactic was to wear

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down the Western team with the help of long sessions, all-mght meetmgs, stem lectures at the conference table, and avoidance of the slightest compromise until the op- ponent was exhausted and gave m to their terms The Russian negotiator must first establish a hierarchy and the supertor/subordmate posmon of each party mvolved For the Japanese, persona1 relations are established not for manipulative purposes but because through them so- cial conflict can be mmimized Negotiators from these countries are very careful not to offend or use strong words and expect their opponent\ to do hkewise

The Japanese proclivity toward shunning confrontation and avoidmg hurtmg other people’s feelmgs has led them to develop 16 ways to pohtely avoid saymg “no ” A “Hal” from a Japanese means “I understand” but not necessarily “yes ” Knowmg when an answer IS m fact “yes” or “no” requires expert Judgment and gut feelmg or mtumon Mexicans also usually avotd \aymg “no”, it IS necessary to read gestures, not words, to determmc an accurate response To not hurt another’s feelings, many Asians are mclmed to tell people what they want to hear, rather than the facts, so as not to lose face They are not consciously lymg or concealmg, Just attempting not to hurt the other party When challenged, a Japanese will remam quiet rather than verbally argue This does not symbolize stubbomnes, or clo\ed mmdednes\, but rather a defensive technique to encourage harmony

The Japanese are not very argumentative, extroverted, or persuasive m the American seme They preter to be quiet when right, respectful and patient, modesty and self restraint are highly valued They do not criticize m public but seek harmony among all The Japanese prefer to avoid formal negotiations, smce to them negotiation5 arc a form of social conflict and avoiding social conflict IS para- mount The Japanese, m then pursuit of harmony and avoidance of conflict, often do not make eye contact this is not a virtue to American\ On the other side of the table, the Japanese view the American stare as rude and aggressive, improper behavior Americans are seen a\ bemg extremely argumentative. whether right or wrong, impersonal when argumg, and accommodating when pre- sentmg arguments

The Japanese VdlUe emotions but hide them They are truly as emotional as Italians, but their emotions dre di- rected toward or against other\ The Japanese also go out of their way to conceal then sentiments, showing emotion I\ considered m bad taste and poor conduct for any Jap- anese, let alone a businc\\man Formal display of emo-

tion means loss of respect or face Therefore, Americans are advised not to lose then temper when dealing with Japanese or others m the Orient Calm IS respected by the Chmese and shows \mcerny, seriousness, and com- petence To them, aggressive or assertive behavior IS rude

Many Latin Americans tend to get passionate and emo- tional when arguing, they enJoy a warm Interaction a\ well as a hvely debate In Latm America, sensitivity i\ valued In fact, many tasks in negotiatmg a bu\mess operation cannot be effectively communicated and ac- comphshed unless the person displays emotion and thereby demonstrates how close this issue IS to his or her heart These emotions may only reflect the individual’s feelmgs at that moment m time In Mexico and other Latin American countrie\, emotion, drama, and feelmg play a much larger part m negotiations compared with American considerations of efficiency

The deft multmational negottator recognizes ethmc dif- ference\ m the display of personal feelmgs and relation- ships He or she IS primed for them and has prepared the proper response

LOW VS. HIGH CONTEXT

Nonverbal commumcation IS a key element m all ne- gotiations It IS especially vital that its ramifications are fully understood m cross-cultural settmg\ What words fail to convey i\ told through gestures and body move- ments People will often disregard the spoken word when physical expressions Indicate otherwise People m non- Western cultures are more prone to understandmg non- verbal commumcations than we are m the West Such seemmgly harmless and even mundane behavior as cross- mg one’\ legs and exposmg the soles of one’s shoes or puttmg hands m one’s pockets are, m some culture\, considered m poor taste, offensive, and msultmg to the host The Japanese believe in mtumve mutual under- standmg and arc adept at the analysis of nonverbal be- havior They do not understand why Westerners talk 50 much and often appear to contradict each other at the bargammg table The Japanese can relate large amounts of mformation to one another with merely d glance, a movement, or even silence

Noise occurs more often m cross-cultural negotiations than in domestic \ettings, for a whole new range of noise reflecting cultural differences may be Introduced These can be gestures, behavior, clothmg, or unfamiliar envi-

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ronmental surroundmgs Mexicans and Italians get close to then counterpart Some cultures believe m virtually eyeball to eyeball contact, the Japanese and English prefer greater distances Americans unknowmgly also create noise for negotiators from other cultures slouchmg, chewing gum, using first names, forgetting titles, Joking, wearing too casual clothing, being overtly friendly toward the opposite sex, speaking too loudly, being too egah- tanan with the wrong people (usually lower class), work- mg with one’s hands, carrying bundles, tippmg too much Americans’ directness and overbearing manner may sig- nal to the Japanese a lack of self-control and imphcit untrustworthmess, at the very least it signals a lack of sincerity Such noise m one’s conduct, although perfectly natural m commumcation with another of one’s own cul- ture, may have the unintended effect of derailing the message in a cross-cultural setting

The most n-rrtatmg “noise” to Americans when ne- gotiatmg with the Japanese IS silence or the use of long pauses before responding The Japanese often use little verbal activity, nod frequently, use silence, and even close then eyes while others are speaking (this helps them concentrate m Zen Buddhist fashion) Silence to a Jap- anese means one is proJectmg a favorable impression and is thmkmg deeply about the problem When m an impasse m negotiation, the typical Japanese response 1s silence, withdrawal, or change of subJect Japanese pohteness can at times come across as artificial and excessive to many Americans

The adept negotiator recognizes potential sources of noise and consciously attempts to mmlmize its produc- tion, and is prepared for likely noise elements from the other side of the table

SEVEN RECOMMENDATIONS FOR SUCCESS

1 The path to success m negotlatlons IS “prepare, prepare, prepare ” Preparation IS difficult enough in domestic negotiations, but when the many multifaceted cross-cultural aspects are added, the problems and ttme necessary for adequate planning rise exponentially Plan- mng means coming to the table prepared, technically as well as culturally Many foreigners are prepared tech- mcally and operationally and expect you to be likewise Poor preparation, m addition to being a maJor obstacle to achieving an agreement, also can have adverse cultural considerations-m the Orient, not having the answers or

being sloppy may be a reason to lose face The Chinese (as well as the Japanese and Russians) usually are me- ticulous m their preparation and well briefed on techmcal uses Any sloppmess m then opponents’ preparation ~111 be used agamst them

Planning IS critical One should know sufficiently the country and the culture of those with whom one is going to negotiate One should also carefully plan the tactics Certain behaviors by Americans may insult or irritate members m other cultures Know, beware of, respect, and accept the customs and culture of the other side It ~111 greatly smooth the negotiation process Understand and avord those special meanmgs and nuances that are mhibmons, turnoffs, or taboos in the other culture On the other hand, some items will hkely facihtate the pro- cess, know them, too, and use them Just understand, accept, respect, and practice them during your stay, your hosts will appreciate it and respect you for it

Company representatives should prepare for a long negotiatmg period, cross-cultural negotiations often re- qurre two to SIX times as long to reach an agreement as do domestic negotiations It IS appropriate to take the time to learn about the culture and language of the people you are to meet with Set aside at least a week for such a study or even a month if it IS a maJor commitment Another reason for preparedness IS to learn about and be able to counter negotiating tactics that may be peculiar to the country you intend to visit that may harm your efforts Forewarned IS forearmed

2 Extensive prehmmary work by subordmutes or cross-cultural brokers (go-betweens) IS o&en net essary for a successful outcome It usually pays to spend what you consider an excessively large amount of time upfront with the other side’s subordinates and aides to get them on board and m agreement before the CEOs get together This IS especially true-and necessary-if one IS working with the Japanese, then rmgi system demands this de- cision from middle management upwards Know who are the key gatekeepers and decision-makers, where they are located m the orgamzation, and what then authority, im- pact on, and mvolvement in the upcommg negotiations will be In many cultures, behind-the-scenes actions are more important than the actual meeting, which may be- come a mere formality

In the case of a large company, it IS not recommended to send the president or CEO to the first meeting or tir\t mternational contact If the CEO comes over first, the subordmates may be at a severe disadvantage for com-

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pletmg the work on a favorable and equatable agreement It IS best to use top executives only for the sigmng at the end In many societies, subordinates work out the details of an agreement and corporate directors arrive only at the end for the actual signing However, the company should send high-level managers who have sufficient cre- dentials and access to relevant top-level managers at headquarters so as to have the capacity to talk as equals to top people of both sides Understand what IS customary m the culture you are negotiatmg with and have a clear plan of how you intend to use the CEO’s presence m your negotiating

3 Know the language of the other team Even if you decide not to use it at the conference, knowing tt will be handy A foreign language can be an awesome barrier, though Words have different or multiple meamngs Per- ceptions and concepts starkly differ across cultures If any doubt whatsoever exists regardmg the meaning of a word or action, ask questions For your part, paraphrase your response, go slow, and recap your position often If possible, ehmmate the use of Jargon, idioms, or slang Speak clearly, loudly, and slowly Explam each major pomt m several different ways, but don’t be condescend- mg Expressions and gestures may be useful m making a point with foreigners and bridging the gap between two foreign languages In most cultures it IS advisable always to mamtam a pleasant dtspositton and not show sign\ of anger

Negotiators typically-and naively-treat translation as a problem of lmgutstics rather than cross-cultural com- mumcatton Meanings may be further modified by ges- tures, tone of voice, and cadence, which are important to the message sent but are not found m straight trans- lations A truly bicultural interpreter offers multiple ben- efits If you do know the language, such an interpreter can offer you more time to think and prepare your re- sponse and next statement Even if you do know the language, chances are you may not fully understand the culture and the particular nuances and tmphed meanings involved Often, equivalent concepts do not exist between cultures Detailed probing and Illustrations, example\, and explanations must be given to ensure complete un- derstanding The interpreter may be skilled m lmguistics but untamihar with the nuances of negotiation If you can, hire a btcultural advisor who will, besides translat- mg, serve as a go-between and cultural broker on how to best prepare yourself and conduct the negotiations A truly btlmgual and bicultural interpreter can help you

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phrase responses with Just the correct shades of meaning and so decistvely influence the entire negotiation process It IS rare indeed to find a btcultural interpreter who IS thoroughly familiar with the busmess cultures of both sides It may be an expensive service but it ~111 yield dtvtdends many times over

Many American busmess travelers feel it is unneces- sary to learn a foreign language or to employ an mter- preter when doing business overseas This 1s penny-wise and pound-foolish Usmg the opponent’s interpreter may be unwise as his or her level of expertise is suspect and loyalty will be not to you but to your opponents It is clearly a much better strategy to employ your own bt- cultural advisor/mterpreter, who can alert you on the pe- culiarities of the foreign culture before you commit a faux pas on a seemingly innocent matter The interpreter can act as coach and should be briefed on all items m advance This mcludes gtvmg htm or her a copy of your proposed presentation and any media to study ahead of time so the interpreter can alert you to any problems Ask the interpreter’s advice when stuck on what to do next or If you do not completely understand the other’s response

Do not talk more than a minute or two without glvmg the interpreter a chance to speak Allow the interpreter to take notes or even use a dlctlonary, no one can be expected to be perfectly fluent m two or more languages Permit the translator to spend as much time as needed to clarify pomts whose meanings may be obscure Do not interrupt a translation If there IS heavy work, night ses- sions, or long sessions with no break, consider using two interpreters so they can alternately perform the translation task

4 Smce language barriers will always exut rn cross- cultural negotlatmnr, pictures ure worth more than a thousand words Support presentations with mstructlve visuals whenever possible Photographs, drawings, dla- grams, copies of key documents, catalogs, books, even samples of products should be brought If they will help state your case Brmgmg an Enghsh copy to the meeting I\ fine If that IS all that IS available Many members of other cultures can read English better than they can speak it But beware certain colors, subjects, or models may be taboo or distasteful to members of the other culture, using them may Jeopardize the agreement Check out your visuals with your blcultural interpreter or an ethnic member of your company’s local office to check for any faux pas You can always redo them ahead of time, but

once presented, they may have caused u-revocable dam- age to the negotiating effort

5 The side that uses time most effectively usuully wins 4mencans are, m the eyes of foreigners, noto- riously impatient, always m a hurry, and usually must go home with a signed agreement to show the boss the trip was worthwhile They can be driven mto an agree- ment they really don’t want Just to take home a signed document Therefore, It is a good strategy not to let the other side know your return plans, to prepare for the long term, and to be patlent The Chinese value patience and ~111 freely use all sorts of stalling tactics and delays This behavior can also stem from lack of experience, sluggish bureaucracy, subordinates fearmg crltlclsm from above, or Just plam slowness in declslons coming down from above In any case, negotiations can’t be rushed, nor should they

Be prepared for the long term Make certain everyone m your organization (including the CEO, the other ex- ecutives, and the board) IS aware of the Increased time demands of cross-cultural negotlatlon, especially with developing countries Get them all committed to the long term Do not create any self-imposed deadlines, they ~111 only come back to haunt you later If you think you can fly m, negotiate, sign, and fly out the same day or next, you are m for conslderable dlsappomtment and frustra- tion, and an agreement-if any-that 1s not m your or- gamzatlon’s best Interest Know what to expect and make certain everyone m your organization does, too

6. The use of Americans of the other country’s ethmc orlgm (I e , Chmese or Hlspamc Amencans) when ne- gotzatmg m an mternatlonal settmg 1s currently a hot trend It IS of questionable value m cross-cultural set- tings Many cultures put first allegiance to ethnic back- ground and second allegiance to citizenship For instance, most Chinese m China believe once a Chinese, always a Chinese, and one’s loyalty 1s (or should be) to China no matter where a Chmese currently resides or of which nation he or she 1s a citizen When negotlatmg m China, Chinese-Americans on a negotiating team are frequently pulled aside to discuss informally and with great mslght Items of interest on the agenda However, Americans of foreign ethmclty have usually lost touch with the subtle cultural nuances that are so critical m cross-cultural set- tings Unless he or she can take an active role m the negotlatlons, it 1s probably better not to send such an mdlvldual for ethmclty’s sake Instead, use a trustworthy local who 1s skilled blculturally or hire a native go-

between who has been highly recommended. However, If you are negotiating with a foreign government, a U S citizen of that or another country’s origin probably be more effective than usmg a government-supplied mter- preter or citizen of that country

7 Most agreements have long-lastmg lmpllca- tzons In many cultures, a wntten agreement 1s consld- ered not the culmmatlon of the talks but the start of a longer relationship To the Chinese, for example, the signing of a contract 1s not the termmatlon of the nego- tiations but a prologue to a longer, continuous relation- ship It sets the stage for a growing relationship m which It ~111 be proper for the Chinese to make increasing de- mands on the other party You can expect the Chinese negotiator m the post-agreement lmplementatlon phase to continue to press to further his or her ObJectives, closure 1s never fully reached In Japan and Greece, a contract 1s considered valid only as long as It serves both parties’ interests

To the Japanese, a negotiated agreement indicates the direction to be taken, while adJustments and modlfica- tlons can be made as condltlons and circumstances war- rant An agreement 1s seen as only the beginning of an adaptive process rather than the end The American ex- pectation of contractual finality 1s foreign to the Japanese way of thmkmg Japanese negotiators may suggest maJor changes even after a contract 1s signed, to Americans this 15 devious and implies that the agreement was made m bad faith Russians as well as numerous other cultures interpret a contract strictly or loosely according to what 1s m their best interest Americans and many Western busmesspeople beheve the slgmng of an agreement m- dlcates that all problems under dlscusslon have been re- solved An agreement m many other cultures IS open to renegotlatlon by either party at anytime Therefore, be sure that both partles understand and agree on the exact purpose of the agreement, what actions must be taken, and how tasks and responslbdltles are to be dlvlded or shared, or prepare for contmuous negotiations

Fmally, get the specifics on paper The Japanese and the Russians prefer generally worded accords that provide them utmost flexlblhty m actlons Here one must try to pm down details If you are working with a culture that likes such general, broadly worded agreements, It would be useful to agree on the details and get them on paper Otherwise, the other party may come back to you with an interpretation of dubious merit that IS advantageous to their posltlon and not to yours

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CONCLUSION

In summary, there are three major rules for success m cross-cultural negotiations

1 Recognize that a foreign negotiator IS different from you m perceptions, motlvatlon, beliefs, and out- look Identify, understand, accept, and respect the other side’s culture Be prepared to commumcate and operate on two separate and different cultural wavelengths

2 Be culturally neutral Bemg different does not de- note bemg better or mferlor Do not cast Judgment on the other party’s cultural mores any more than you would want them to Judge your values It may be true that from a moral pomt of view some foreign customs may appear senseless, capnclous, or even cruel and insane But remember you are vlsltmg the country as a busmessperson, not as a mlsslon- ary, you plan to do busmess there, not convert the natives to American customs and practice\ Rec- ogmze that they probably feel the same way about your culture as you do about theirs It may not be necessary to adopt their value\ as part of your own personal value system All that 15 necessary IS to accept and respect their norms as part of their culture

3 Be sensitive to their cultural norms, do’s, and ta- boos, try to understand what they are and how your behavior may affect them even If it causes you discomfort or emotlonal stress

Remember, one must accept and proceed with the busmess without showing distress if one IS to come

home with an agreement beneficial to both partles and the start of a long-term healthy relatlonshlp between two compames from two cultures

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