intercultural business communication, 3rd ed., chaney & martin chapter 10: intercultural...
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Intercultural Business Communication, 3rd ed., Chaney & Martin
Chapter 10:Chapter 10:
Intercultural Intercultural Negotiation ProcessNegotiation Process
Topics Characteristics of Effective Negotiators Cross-cultural Negotiation Considerations Variables Affecting Intercultural Negotiations Defining the Process Observing, Analyzing, and Evaluating Intercultural Negotiation Models Perspective Conflicts Conflict Resolution Stereotypes that Affect Intercultural
Negotiations
Intercultural Business Communication, 3rd ed., Chaney & Martin
Definition
Intercultural negotiation involves discussions of common and conflicting interests between persons of different cultural backgrounds who work to reach an agreement of mutual benefit.
Dr. Chester L. Karrass, Leader in negotiating
“In business, you don't get what you deserve, you get what you negotiate.”
Why take “no” for an answer? Successful people don't. They get what they want by negotiating better deals for both parties.
Characteristics of Effective NegotiatorsObservantPatientAdaptableGood listenersUse humor with discretionMentally sharp
Think before they speak Speak in an agreeable, civil manner Knowledgeable about history, customs,
values, and beliefs of both cultures Praise what is praiseworthy; refrain
from criticism Keep their promises and negotiate in
good faith
Fisher, International Negotiation
Cross-Cultural Negotiation Considerations
The Players and the Situation– how team was selected
– background of players
– expectations of other negotiators, their style, and the role they played in past negotiations
– environment free of tension
Fisher, International Negotiation
Decision-Making Styles– U.S. attitude on making export decisions is “Anything
is permitted unless restricted by the state."– In many cultures the attitude is “Nothing is permitted
unless it is initiated by the state." National Character
– Personality patterns exist for groups that have a common culture.
– Differences in values, such as punctuality, could hamper negotiations to a great degree, no matter how attractive the terms.
Fisher, International Negotiation
Cultural Noise - anything that would distract or interfere with the message being communicated– includes nonverbal messages, such as body language
and space – giving an inappropriate gift
Interpreters and Translators– Positive aspect - have more time to think about your next
statement; more inclined to state message succinctly.– Negative aspect - translators may not convey the
intended message because of the nuances of the languages involved.
Moran & Stripp, Dynamics of Successful International Business Negotiation
Variables Affecting Intercultural Negotiation
1. Policy
– Basic concept of negotiation
– Selection of negotiators
– Role of individual aspirations
– Concern with protocol
– Significance of type of issue
The Framework for Global Business Negotiations divides 4 components into 12 variables that can influence the success or failure of global negotiations:
Moran & Stripp, Dynamics of Successful International Business Negotiations
2. Interaction– Complexity of language– Nature of persuasive argument– Value of time
3. Deliberation– Bases of trust– Risk-taking propensity– Internal decision-making systems
4. Outcome– Form of satisfactory agreement
Leaptrott, Rules of the Game
Protocol Classifications Tribal - involves the family unit, close
relationships, and a connection to the past.
Collective - an extension of tribal and includes larger groups such as a town, nation, or race.
Pluralist - many different groups and combinations of groups; individuals are free to join those they wish.
Intercultural Business Communication, 3rd ed., Chaney & Martin
Defining the Process
Involves choosing where the meeting will be held. Turf matters. When on your own territory, you have more power, but you have more responsibility for seeing to the opponent's comforts. When held at a neutral location, each side is responsible for its own comforts.
Brett, Negotiating Globally
Observing, analyzing, and evaluating - completed for each of these 8 steps in
negotiation: Physical location Agenda/issues Preliminary statements and limitations Solution of some issues and identification of
issues of no agreement Preliminaries to final negotiations Final negotiations Contract or confirmation of agreement Implementation of the agreement
Casse & Deol, Managing Intercultural Negotiations
Factors to be Considered When Negotiating Interculturally
a situation mutual understanding communication need satisfaction compromise or
settlement a deal
Negotiation is . . . a bargaining process anticipation achieving consensus practicing empathy searching for
alternatives conflict management
Casse & Deol, Managing Intercultural Negotiations
winning a means of getting what you want from
others gaining the favor of people from whom you
want things managing power and information time and opportunity management more of an art than a science selling the least troublesome method of settling
disputes
Negotiation is . . .
Ghauri, Negotiating International Package Deals
Intercultural Negotiation Models
Socio-psychological ModelPrinciples ModelDirectional Model Interaction ModelPackage Deal Model
(Assumes a certain amount of ethnocentrism.)
Socio-Psychological Model
Goals parties want to reach Communication and actions leading to
the negotiations Expected outcomes Preexisting relationship and cultural
factors of both parties Conditions under which negotiations are
conducted
5 parts:
(Assumes negotiators have knowledge of each other's behaviors.)
Principles Model (Comparative Model)
Negotiators are problem solvers
Negotiators share a goal they wish to reach efficiently and amicably
2 assumptions: 4 parts: People are separate
from problems Focus is on interests The options have
mutual gains The criteria used to
judge the gains is objective
Directional Model
Based on prediction that tough or soft moves will be reciprocated by the other party; used when foreign buyers have few alternatives and U.S.-made products sell themselves.
Interaction Model
Environment – political, social, and cultural
Atmosphere – distance, power, variables, and expectations
Parties – their corporate and national cultures
Process– history and preconceived ideas of negotiators
4 aspects:
Package Deal Model
Background factors (objectives, environment, and market position)
Process (time, issues, contacts) Atmosphere (cooperation/conflict) Outcome (allows for win-win, lose-
lose or continued negotiations)
Perspective Conflicts
Substantive differences include use and control of resources.
Relationship-based differences center on long-term friendship or partnership.
Cognitive dissonance (logic and reasoning differences due to cultural differences) occurs because perspectives are based on one's own cultural training and way of reasoning.
Interpreters/translators may unintentionally translate communications inaccurately.
Subjective meanings of words may cause conflict. (“Fair play” is a culturally bound phrase used in U.S. business.)
Intercultural Business Communication, 3rd ed., Chaney & Martin
Conflict Resolution To avoid conflict, prepare, plan, and
respect the host culture. Know and respect customs of other
negotiator's culture. Be careful of gestures and respect
taboos of the other culture. Avoid using jargon, idioms, or slang.
Intercultural Business Communication, 3rd ed., Chaney & Martin
Use photographs, drawings, etc. to clarify explanations.
If you still have conflicts, turn to a 3rd party (a mediator). – Steps involved with a mediator:
»Stabilize the setting. »Give each side a chance to speak. »Assist in solving disagreements. »Clarify the agreement and make sure both
sides understand the terms.
Stereotypes that Affect Intercultural Negotiations
U.S. Persons’ Views Foreigners’ Views of U.S. Persons
Informal, friendly, casual Undisciplined, too personal, familiarEgalitarian Insensitive to statusDirect, aggressive Blunt, rude, oppressiveEfficient Obsessed with time, opportunisticGoal/achievement oriented Promise more than they deliverProfit oriented MaterialisticResourceful, ingenious Work-oriented; deals more important
than peopleIndividualistic, progressive Self-absorbed, equating the “new”
with “best”Dynamic, find identity in work DrivenEnthusiastic; prefer hard-sell Deceptive, fearsomeOpen Weak, untrustworthy
Elashmawi & Harris, Multicultural Management 2000
Culture-Specific Negotiation InformationElement U.S. Japanese MexicansGroup composition Marketing Function Friendship
oriented oriented orientedNumber involved 2-3 4-7 2-3Space orientation Confront- Display Close,
ational; harmonious friendlycompetitive relationship
Establishing rapport Short period; Longer period; Longer period;direct to task until harmony discuss family
Exchange of information Documented; Extensive; Less emphasisstep-by-step; concentrate on on technology,multimedia receiving side more on
relationshipUse of language Open/direct; Indirect; Respectful;
sense of appreciative; graciousnessurgency cooperative
Elashmawi & Harris, Multicultural Management 2000
Element U.S. Japanese MexicansPersuasion tools Time pressure; Maintain Emphasis on
loss of saving/ relationship family and social making money references; concerns, goodwill
intergroup measured in connections generations
First offer Fair +/-5 to 10% +/-10 to 20% FairSecond offer Add to package; -5% Add an incentive
sweeten the dealFinal offer Total package No further Total packagepackage concessionsDecision-making Top mgmt. Collective Senior manager
team and secretaryDecision maker Top mgmt. Middle line Senior manager
team with teamconsensus
Risk taking Calculated; Low group Personallypersonal responsibility responsibleresponsibility
Intercultural Business Communication, 3rd ed., Chaney & Martin
U.S. Negotiator’s Global Report CardCompetency Grade Preparation B- Synergistic approach (win-win) D Cultural I.Q. D Adapting the negotiating process to the
host country environment D Patience D Listening D Linguistic abilities F Using language that is simple and accessible C High aspirations B+ Personal integrity A- Building solid relationships D
Statements Characteristic of U.S. Negotiating Style
"I can handle this myself" (to express individualism).
"Please call me Steve" (to make people feel relaxed by being informal).
"Pardon my French" (to excuse profanity). "Let's get to the point" (to speed up decisions). "Speak up; what do you think?" (to avoid silence). "A deal is a deal" (to indicate an expectation that
the agreement will be honored).
Canada
People appear to be friendly but are reserved and formal.
Observe strict rules of etiquette. Are individualistic. Speak a variation of British English –
also French in Québec. Negotiation practices similar to the U.S.
China Reserved; known for hospitality and good
manners. Give small, inexpensive presents. Consider mutual relationships and trust very
important. Technical competence of negotiators necessary. Prefer to use an intermediary. Rarely use lawyers. Ample room for compromise.
France Have a sense of pride sometimes
interpreted as supremacy. French logic ("Cartesian" logic)
proceeds from what is known in a point-by-point fashion until agreement is reached.
Protocol, manners, status, education, family, and individual accomplishments are keys to success with the French.
Germany Protocol is important and formal; punctuality is expected. Dress is conservative; correct posture and manners are
required. Use titles when addressing members of the negotiating
team; use please and thank you often. Prefer to keep a distance between themselves and the
other team negotiators. Have technical people as part of the negotiation team as
Germans are detail oriented. Contracts are firm guidelines to be followed exactly.
India Bribery is common; having connections is
important. Avoid using left hand in greetings and eating. Request permission before smoking, entering, or
sitting. Building relationships is important; an introduction is
necessary; intermediaries are common. Use titles to convey respect. Knowledge of local affairs is important. Negotiation process can be long.
Japan Business etiquette is very important; business
card exchange is common. Intermediary arranges meetings. Negotiating parties usually consist of five people. The Japanese use more silence and less eye
contact than U.S. persons. Consider contracts as flexible instruments. Negotiating practices based on the keiretsu
system – viewed as a long-term commitment. Are suspicious of lawyers on the team.
Latin America
Relationships are important; negotiators chosen based on family connections, political influence, education, and gender.
Bribery is common. Time is not seen as important; numerous
meetings is the norm with most agreements consummated over lunch.
Avoid gestures. Social skills are important; will ask about one’s
health and well-being of family members.
Nigeria Nigerians are skillful negotiators; they view
negotiation as a competitive process. Age, gender, cultural background, and education are
considered when selecting negotiators. Developing a personal relationship is important. Time is not particularly important so negotiations may
be lengthy. Intermediaries are used to make initial introductions. Contracts (oral or written) are flexible. A bribe may be needed to extradite business.
Russian Federation In the past, negotiation sessions have
been long, with Russians controlling the agenda.
Are concerned with age, rank, and protocol.
Tend to be formal. Friendships are not crucial to business. Contracts are interpreted rigidly. Concerned with maximizing their profits.
True or False? In intercultural negotiation the meeting location
is associated with power and responsibilities. Russian negotiating strategies include a need to
control. The Socio-Psychological Negotiation Model
assumes no use of power or negative tactics. The Principles Negotiation Model assumes a
certain amount of ethnocentrism.
The Interaction Negotiation Model involves environment, atmosphere, parties, and process.
Social class is unimportant in negotiator selection. Gender is important when negotiating in the Latin
American countries. The Japanese prefer negotiating teams, rather than a
single negotiator. Bribery is a common part of conducting business in
India. Protocol is very important when dealing with the French.