Slide 1
Intercultural Communication
Consequences for International Business & Negotiations:
Pellegrino Riccardi
Det Norske Veritas
Slide 2
Set the Scene Agree on the issues
Bargaining xxxxxxx
Agreement
Set & maintain the climate
Maximise Power
Persuasion
Resolving Deadlock
STAGES OF A NEGOTIATION
Slide 3
CULTURE
shared patterns of behaviours
collective programming of the mind
a system of values, beliefs, assumptions and norms, shared by a group of poeple
Slide 4
HEROES
VALUES
EXAMPLES OF HEROES FROM YOUR CULTURE
(alive or dead)
Slide 5
HEROES
Norwegian
VALUES
Slide 6
Slide 7
How frequently, in your experience, does the following
problem occur: employees being afraid to express their
disagreement with their managers?
Geert Hofstede
Slide 8
MOTHERFATHER
Pellegrino
Rosa
Antonio
Giovanni
Roberto
Protection
Security
Wisdom
Direction
Loyalty
Respect
Support
Slide 9
• Small Power Distance cultures
– Inequalities between people should be minimised
– Privileges and status symbols are considered to be negative
– Powerful people try to appear less powerful than they are
– Little if any differences in the way people speak to each other
Slide 10
• Large Power Distance cultures
– Power, status and privilege go together
– Subordinates expect direction and decisiveness
– The ideal boss is a “good father”
Slide 11
Slide 12
Percentage of respondents that feel that it is Percentage of respondents that feel that it is important for a boss to act and look like a bossimportant for a boss to act and look like a boss
Slide 13
Sources of POWER
Create DOUBT in the other person
Create MOVEMENT towards the goal
POWER is in the head
Slide 14
Cultural Dilemma - VALUES
• You are the passenger in a car driven by a close friend.
• He hits a pedestrian.
• You know he was driving at 80 kms per hour in a 60 zone.
• There are no witnesses.
• His lawyer says that if you testify under oath in court that your friend was only driving at 60, it might save him from serious consequences.
Does your friend have a right to expect you to protect him?
Would you lie in court to ”save” your friend?
Slide 15
Slide 16
Negotiation Tactics
• Ask for more than you expect to get• MPP (maximum plausible position)• The consequences of making a “fair” opening offer?
• Never say yes to the first offer• Play the reluctant seller/buyer • It makes them think that they could have done better• It makes them think that something must be wrong
Slide 17
• Individualist cultures
– Laws and rights are the same for all (consistency)
– Honest people speak their mind
– Clear & explicit communication is preferred
– Task-focused
– You take responsibility for your own actions
Slide 18
• Collectivist cultures
– Relationship-focused
– Harmony should always be maintained
– Protocol and rituals are important
– You treat people differently according to which group they belong to (discretion)
– Communication is discreet and cautious
Slide 19
Voice
Conversation Patterns
Reserved Cultures
1. _________ ___________1. _________ ___________
2. ___________ ____________2. ___________ ____________
Slide 20
Voice
Conversation Overlap
Expressive Cultures
1. _________ _ _ ___________ _ _ ___________1. _________ _ _ ___________ _ _ ___________
2. _ _ ___________ _ _ ____________2. _ _ ___________ _ _ ____________
Slide 21
Reserved meets Expressive
1.1. _________ _________
2. _ _ _________________ 2. _ _ _________________
Why does he keep interrupting me? He’s not interested in what I have to say
Why doesn’t he say something? He’s not
interested in what I have to say.
Slide 22
Negotiation Tactics
• Do emotions belong in a negotiation?
• The Flinch – reacting to offers
• Melodramatics
• Skilled negotiators reveal inner feelings
Slide 23
RF or DF?
Deal-Focused
Nordic and Germanic EuropeNorth America
Australia and New Zealand
Relationship-Focused
Central & Eastern EuropeLatin Europe
Hong Kong, Singapore
VERY Relationship-Focused
The Arab WorldMost of Africa
Latin America and Asia
Slide 24
Time
• Monochronic (Sequential) cultures– Order, precision, detail, agendas, deadlines, structure, action plans
– Tasks are dealt with systematically
• Polychronic (Synchronic) cultures– Flexibility, focus more on people rather than only the task
– Can seem chaotic or unsystematic to monochronics
Slide 25
• Time Pressure
• 80% of the concessions happen in the final 20% of the negotiation
• People become more flexible under time pressure
• The “tug boat” principle
• People are reluctant to walk away from a negotiation without a result after so much time and effort
