module ii a intl. negotiation cross cultural dimensionc

7/29/2019 MODULE II a Intl. Negotiation Cross Cultural Dimensionc

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MODULE-II-AINTERNATIONAL

NEGOTIATION AND CROSS-

CULTURAL COMMUNICATION


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BASICS OF CROSS -

CULTURAL

COMMUNICATION


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LANGUAGE AND CULTURE

The Whorf hypothesis:

The Whorf hypothesis is the view that language shapes cognition; that is,

concepts and ways of thinking depend on language. People who speak

significantly different languages, then, view the world differently.

Also called the hypothesis ofLinguistic relativity or the Sapir-Whorf

hypothesis: the Whorf hypothesis was named after the early twentieth-century linguistBenjamin Whorf.

Related to linguistic relativity is linguistic determinism, the view that

language necessitates how one thinks (thinking outside the bounds of

one's language is impossible). Some psychologists believe the Whorf

hypothesis helps explain cognition; like linguistic determinism,

however, it is highly controversial.


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HIGH CONTEXT

Communications have multiple meanings

interpreted by reading the situation

Asian and Arabic languages are among the

most high context in the world


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LOW CONTEXT

The words provide most of the meaning

Most northern European languages

including German, French, English, and the

Scandinavian languages are low context


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Cultural Differences in

Communication Styles

0

20

40

60

80

100

Nigeria

MexicoSpainArgentian

USA Germany

IndiaBrazilUK China

FranceJapan

% Direct % Formal


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NONVERBAL

COMMUNICATION -

COMMUNICATINGWITHOUT WORDS


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KINESICS

Communicating through body movements

Facial expressions

Body posture


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PROXEMICS

The use space to communicate

The personal bubble of space - nine inches to over

twenty inches North Americans prefer more distance than from

Latin and Arab cultures


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TOUCH

Basic human interaction

In greeting - shake hands, embrace, or kiss

Latin European and Latin American cultures-more touching than Germanic, Anglo, orScandinavian cultures


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PRACTICAL ISSUES IN CROSS-

CULTURAL VERBAL

COMMUNICATION


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INTERPRETERS

Provide simultaneous translation of a foreign

language

Require greater linguistic skills than speakinga language or translating written documents

Insure the accuracy and common

understanding of agreements


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COMMUNICATION WITH

NONNATIVE SPEAKERS

Use the most common words with most commonmeanings

Select words with few alternative meanings Follow rules of grammar strictly

Speak with clear breaks between words


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Communication with Non-native speakers,

continued

Avoid sports words or words borrowed from literature

Avoid words that represent pictures

Mimic the cultural flavor of nonnative speakers language

Summarize Test your communication success

AVOIDING ATTRIBUTION


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AVOIDING ATTRIBUTION

ERRORS

Attribution - process by which we interpret the

meaning and intent of spoken words or

nonverbal exchanges

Attribution errors


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INTERNATIONAL NEGOTIATION

More complex than domestic negotiations

Differences in national cultures and differences

in political, legal, and economic systems often

separate potential business partners


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STEPS IN THE INTERNATIONAL

NEGOTIATION PROCESS


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The Negotiation Process


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STEP-I: Preferences for Broad

Agreements

0

10

20

30

40

50

JapanGermany

India FranceChinaArgentina

BrazilUSA Nigeria

MexicoSpain UK

% Preference for Broad Agreements


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STEP 2: BUILDING THE RELATIONSHIP

No focus on business

Partners get to know each other

Social and interpersonal exchange

Duration and importance vary by culture

STEP 3 EXCHANGING


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STEP 3: EXCHANGING

INFORMATION AND THE FIRST

OFFER

Task-related information is exchanged

First offer


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STEP 4: PERSUASION

Heart of the negotiation process

Attempting to get other side to agree to a position

Numerous tactics used


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VERBAL AND NONVERBAL

NEGOTIATION TACTICS

Promise

Threat

Recommendation

Warning

Reward

Punishment

Normative appeal


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Negotiation Tactics, Continued

Commitment

Self disclosure

Question Command

No

Interrupting


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DIRTY TRICKS IN

INTERNATIONAL

NEGOTIATIONS

Dirty tricks are negotiation tactics that pressure

opponents to accept unfair or undesirableagreements or concessions


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PLOYS/DIRTY TRICKS -

POSSIBLE RESPONSES Deliberate deception - point out what is

happening

Stalling - do not reveal when you plan to

leave

Escalating authority - clarify decision makingauthority


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Good guy, bad buy routine - do not make

any concessions

You are wealthy and we are poor - ignore the

ploy Old friends - keep a psychological distance

Ploys/Dirty Tricks, Continued

STEPS 5 AND 6:


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STEPS 5 AND 6:

CONCESSIONS AND

AGREEMENT Final agreement: The signed contract,

agreeable to all sides

Concession making: requires that each siderelax some of its demands


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STYLES OF CONCESSION

Sequential approach

Each side reciprocates concessions

Holistic approach

Concession making begins after all issues are

discussed


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BASIC NEGOTIATION

STRATEGIES Competitive

The negotiation as a win-lose game

Problem solving

Search for possible win-win situations

COMPETITIVE OR


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COMPETITIVE OR

PROBLEM SOLVING

INTERNATIONALNEGOTIATION

Cultural norms and values may predispose

some negotiators to one approach (EX 3.10)

Most experts recommend a problem solving

negotiation strategy


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Preferences for Problem-Solving

Negotiation

0

20

40

60

80

100

Japan

China

Argentina

France

IndiaUSAUK Mexico

Germany

Nigeria

Brazil

Spain

% Win-Win


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SUCCESSFUL INTERNATIONAL

NEGOTIATOR: PERSONAL

CHARACTERISTICS

Tolerance of ambiguous situations

Flexibility and creativityHumor

Stamina

Empathy


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Levels of cultural understanding

Observable behavior

Can learn a lot, but likely to focuson dos and donts

Often leads to superficialunderstanding

Shared values

Requires inferences fromobserved behavior and learningabout a culture

More powerful, because valuesdrive (partially) behavior

Shared assumptions

Very abstract these drive ourvalues but are very hard todetermine

Very powerful, helps trulyunderstand a culture

Hofstedes Dimensions and Negotiation
http://www.brooks.edu/careers.htm


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Hofstedes Dimensions and Negotiation

Power Distance

extent to which power differentials are expected and honored

Low : Anglo/Germanic/Scandinavian High: Developing Nations, particularly Pacific Rim

Effect: As power distance increases, more approval from higher ups andless involvement from lower levels. Also, can expect more formality in Nswith people from high PD cultures, and they may be upset if you do notappear to be of sufficient status.

Individualism/Collectivism extent to which society is organized by individuals vs. groups

Ind.: Western European - based societies

Coll.: Latin America, Pacific Rim

Generally, wealthier societies tend to be more individualist

Effect: Relationship stability over time emphases, individual negotiators vs.

group of negotiators, importance of consensus, value placed on individualwinner, emphasis on group vs. individual goals, rewards, communicationin Ns, etc.


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Hofstedes Dimensions and Negotiation 2

Masculinity/Feminity

extent to which values fit traditional gender-based stereotypes

M: Japan, Anglo/Germanic

F: Scandinavia.

Effect: Masculinity associated with competitiveness vs. empathy & compromise

should expect strong relationships with distributive vs. integrative styles. Uncertainty Avoidance

degree of discomfort with unstructured situations

High: no strong pattern, but many Hispanic nations

Low: no strong pattern, but Anglo/Scandinavia

Effect: High prefers stable rules and procedures, less adaptive. High also tendsto be more risk-averserisk aversion has played into many N. dynamics. High

tends to do business ritualistically & formally.

Other cultural variables


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Other cultural variables

Time

present vs. future vs. past orientation

Time as linear vs. time as circular

Can affect timing/urgency of Ns, and also what sorts of time-relatedobjectives (short-term vs. long-term) are valued more

Americans often seen obsessed with time.

Universalism vs. particularism Can ideas/practices be applied everywhere every time, or do circumstances

dictate application?

Use of precedent vs. adapting styles/processes/agreements to situations

Emotionality

Great potential for misunderstandings here!!!

Achievement vs. ascription

Is status conferred by what youve done or who you are?

How will a person be viewed in a N situation?


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Example of communication patterns

Behavior Japanese American Brazilian

Verbal Inter-

ruptions/10m

12.6 10.3 28.6

Silent periods

>10s/30m

5.5 3.5 0

Eye contact/10m 1.3 3.3 5.3

Touches/30m 0 0 4.7

Negotiation process/timing for Americans in domestic vs.


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g p g

international negotiations

Domestic

1 2 3 4 5 6

International1 2 3 4 5 6

Key

1- orientation & fact-finding

2- resistance

3- reformulation of

strategies

4- hard bargaining & decision-making5- agreement

6- follow-up


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Negotiating Strategies in Other Countries

Opening offer Close to final settlement where haggling is not customary (e.g.

Australia, Sweden)

Expect lots o haggling in some nations (e.g. Russia, Egypt, China)

Rule of thumb (that wont always work, so apply with caution): if aculture has a long history of bartering & bargaining, expect to

haggle.

Detail vs. big-picture in presentation

Detail where culture emphasizes formality, logic, data, organization

(e.g. Germany, UK, Swiss, Japan)

Broad concepts preferred in some other areas (e.g. Latin America,

Middle East)

Cultural Differences affecting other Negotiation


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Cultural Differences affecting other Negotiation

Processes

Relationships orientation

Lack of trust across cultural differences trust building essential

Some cultures are standoffish (e.g. British, Germanic), so get downto business before too long

Emotional Aspects

Sensitivity is low for US, high for Latin America

Loyaltyto self in US, to organization in many other cultures

Decision Making Frame

In US change is acceptable, even encouraged, decisions madequickly

In many other nations, status quo is the normal frame of reference

US is relatively prone to using agendas, may be restrictive to someothers

N i i i S ifi R i


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Negotiating in Specific Regions

The next 4 slides are FYI only and far from complete There are important differences across nations within regions

(e.g., Israel vs. Iran in Middle East)

Remember you are negotiating with an individual(s) who

may or may not fit cultural norms to a T!!!

Source: How to Negotiate Anything with Anyone

Anywhere in the World, Frank Acuff

Negotiating in the Middle East/North Africa


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g g

Bargaining is a way of life Youre supposed to haggle! Monty Python Timenot punctual or planning-oriented (too much attempt to control the future

invites trouble). Ramadan is especially slow for business.

Group oriented, and very deferential to those of status

Much time upfront spent in developing relationships

Masculine Arabs read poetry, use intuition, and are emotional. Feminine Arabqualities are coolness and pragmatism.

Israelis are direct, Arabs indirect, vague & expressive, often to point of exaggeration &filled with fantastic metaphors

No is uncommon; look for a hesitant yes instead white lies common form ofcourtesy

Saying I dont know

you are of little account

Strong eye contact, close personal space, touchy

High initial demands, slow concessions, issues sequential, extreme face orientation,truth is revealed very slowly because it is considered dangerous

N ti ti i W t E


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Negotiating in Western Europe

Timingpunctual, relatively fast-paced

Individualistic, status-conscious, slow-developing friendships,emphasis on initiative & achievement

Loyalty & hard work are valued

Greater hierarchy than in US

Speakers s/b articulate & intellectual, formal, logical, and subtle

Low emotionality, reserved

Moderate initial demands, issues sequentially processed, slowconcessions

Negotiating in the Pacific Rim
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Old cultures, socially stratified, Confucian ethic Courtesy rituals, formality, politeness, modesty, loyalty to group and deference to

elderly, non-confrontational

Negotiations slow, relationship orientation & group negotiation style with team

consensus criticalimplementation usually quick, though

Very collectivist

Words mean little, conversation very indirect

he who speaks doesnt know, he who knows doesnt speak

No uncommon; might get a well study this further instead

Reserved body language, average-to-close personal space, not touchy

Sensitivity valued but not overstated Moderate-high initial offers, multiple issues presented at once, slow concessions,

logical decisions

Face is critical

Understanding Negotiation Styles


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Understanding Negotiation St les


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Understanding Negotiation Styles

For North Americans, negotiations are businesslike; theirfactual appeals are based on what they believe is

objective information, presented with the assumption that

it is understood by the other side on a logical basis.

Arabs use affective appeals based on emotions and

subjective feelings.

Russians employ axiomatic appeals that is, their

appeals are based on the ideals generally accepted in

their society.

Profile of an American Negotiator


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Knows when to compromise

Takes a firm stand at the beginning of the negotiation

Refuses to make concessions beforehand

Keeps his or her cards close to his or her chest

Accepts compromises only when the negotiation is deadlocked

Sets up the general principles and delegates the detail work to

associates Keeps a maximum of options open before negotiation

Operates in good faith



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Respects the opponents

States his or her position as clearly as possible

Knows when he or she wishes a negotiation to move on

Is fully briefed about the negotiated issues

Has a good sense of timing and is consistent

Makes the other party reveal his or her position whilekeeping his or her own position hidden as long as possible

Lets the other negotiator come forward first and looks forthe best deal

Profile of an Indian Negotiator


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Looks for and says the truth

Is not afraid of speaking up and has no fears

Exercises self-control

Seeks solutions that will please all the parties involved

Respects the other party

Neither uses violence nor insults Is ready to change his or her mind and differ with himself or herself at

the risk of being seen as inconsistent and unpredictable



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Puts things into perspective and switches easily from the small picture

to the big one

Is humble and trusts the opponent

Is able to withdraw, use silence, and learn from within

Relies on himself or herself, his or her own resources and strengths

Appeals to the other partys spiritual identity Is tenacious, patient, and persistent

Learns from the opponent and avoids the use of secrets

Goes beyond logical reasoning and trusts his or her instinct as well as

faith

Profile of an Arab Negotiator


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Protects all the parties honor, self-respect, and dignity

Avoids direct confrontation between opponents

Is respected and trusted by all

Does not put the parties involved in a situation where they have toshow weakness or admit defeat

Has the necessary prestige to be listened to

Is creative enough to come up with honorable solutions for all parties Is impartial and can understand the positions of the various parties

without leaning toward one or the other



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Is able to resist any kind of pressure that the opponents could try toexercise on him

Uses references to people who are highly respected by the

opponents to persuade them to change their minds on some issues

Can keep secrets and in so doing gains the confidence of thenegotiating parties

Controls his temper and emotions

Can use conference as mediating devices

Knows that the opponent will have problems in carrying out thedecisions made during the negotiation

Is able to cope with the Arab disregard for time

Managing Negotiation


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Successful management of interculturalnegotiations requires the manager

To gain specific knowledge of the parties in the

upcoming meeting

To prepare accordingly to adjust to and control thesituation

To be innovative

Using the Web to Support Negotiations


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Using the Web to Support Negotiations

Negotiation Support Systems (NSS) can provide supportfor the negotiation process by:

Increasing the likelihood that an agreement is reached

when a zone of agreement exists (solutions that both

parties would accept)

Decreasing the direct and indirect costs of negotiations,

such as costs caused by time delays (strikes, violence),

and attorneys fees, among others

Maximizing the chances for optimal outcomes

Comparative Management in Focus:


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Negotiating with the Chinese

The Chinese think in terms of process that has noculmination. Americans think in terms of concretesolutions to specific problems. . . . The Chineseapproach is impersonal, patient and aloof . . .To

Americans, Chinese leaders seem polite but aloofand condescending. To the Chinese, Americans

appear erratic and somewhat frivolous.Henry Kissinger,

Newsweek, May, 2001


i i i h h Chi


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Business people have two major areas of conflict whennegotiating with the Chinese

Amount of detail about product characteristics

Apparent insincerity about reaching an agreement

Chinese negotiation process is affected by three cultural

norms Politeness and emotional restraint

Emphasis on social obligations

Belief in the interconnection of work, family, and friendship


N i i i h h Chi


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Tips to foreigners conducting business in China Practice patience

Accept prolonged periods of stalemate

Refrain from exaggerated expectations

Discount Chinese rhetoric about future prospects

Expect the Chinese to try to manipulate by shaming

Resist the temptation to believe that difficulties are your fault

Try to understand Chinese cultural traits

Managing Conflict


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Managing Conflict

Decision Making


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Decision Making

Stages in the Rational Decision Making Model Defining the problem

Gathering and analyzing relevant data

Considering alternative solutions

Deciding on the best solution

Implementing the decision

Cultural Variables Affecting Decision

M ki


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Making

Objective (basing decisions on rationality) versussubjective (basing decisions on emotions)

approach

Risk tolerance

Locus of control internal (managers in control ofevents), or external (managers have little control

over events)

Cultural Variables Affecting Decision Making


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Comparative Management in Focus: Decision Making in

Japan


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Stakeholders Involvement


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Twelve Variables in the Negotiation Process


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Persuasion Tactics


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Return

CONCLUSIONS


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CONCLUSIONS

Successful negotiators:

Understand the negotiation steps

Build cross-cultural communication skills

Understand nonverbal communication

Avoid attribution errors

module ii a intl. negotiation cross cultural dimensionc

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