intercultural communication consequences for international business & negotiations:

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Intercultural Communication Consequences for International Business & Negotiations:. Pellegrino Riccardi Det Norske Veritas. STAGES OF A NEGOTIATION. Set the Scene. Agree on the issues. Bargaining xxxxxxx. Agreement. Set & maintain the climate. Maximise Power. Persuasion. - PowerPoint PPT Presentation


  • Intercultural Communication

    Consequences for International Business & Negotiations:

    Pellegrino RiccardiDet Norske Veritas

  • Set the SceneAgree on the issuesBargaining xxxxxxxAgreementSet & maintain the climateMaximise PowerPersuasionResolving DeadlockSTAGES OF A NEGOTIATION

  • CULTUREshared patterns of behaviourscollective programming of the minda system of values, beliefs, assumptions and norms, shared by a group of poeple



  • How frequently, in your experience, does the following problem occur: employees being afraid to express theirdisagreement with their managers?Geert Hofstede

  • MOTHERFATHERPellegrinoRosaAntonioGiovanniRobertoProtectionSecurityWisdomDirectionLoyaltyRespectSupport

  • 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

  • Large Power Distance cultures

    Power, status and privilege go together

    Subordinates expect direction and decisiveness

    The ideal boss is a good father

  • Percentage of respondents that feel that it is important for a boss to act and look like a boss

  • Sources of POWER

    Create DOUBT in the other personCreate MOVEMENT towards the goalPOWER is in the head

  • Cultural Dilemma - VALUESYou 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?

  • Negotiation TacticsAsk for more than you expect to getMPP (maximum plausible position)The consequences of making a fair opening offer?

    Never say yes to the first offerPlay the reluctant seller/buyer It makes them think that they could have done betterIt makes them think that something must be wrong

  • Individualist cultures

    Laws and rights are the same for all (consistency) Honest people speak their mind

    Clear & explicit communication is preferred


    You take responsibility for your own actions

  • Collectivist cultures


    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

  • Voice

    Conversation Patterns

    Reserved Cultures1. _________ ___________

    2. ___________ ____________

  • Voice

    Conversation Overlap

    Expressive Cultures1. _________ _ _ ___________ _ _ ___________

    2. _ _ ___________ _ _ ____________

  • Reserved meets Expressive_________

    2. _ _ _________________ Why does he keep interrupting me? Hes not interested in what I have to sayWhy doesnt he say something? Hes not interested in what I have to say.

  • Negotiation TacticsDo emotions belong in a negotiation?

    The Flinch reacting to offers


    Skilled negotiators reveal inner feelings

  • RF or DF?

    Deal-Focused Nordic and Germanic EuropeNorth AmericaAustralia and New Zealand


    Central & Eastern EuropeLatin EuropeHong Kong, Singapore

    VERY Relationship-Focused

    The Arab WorldMost of AfricaLatin America and Asia

  • TimeMonochronic (Sequential) culturesOrder, precision, detail, agendas, deadlines, structure, action plansTasks are dealt with systematically

    Polychronic (Synchronic) culturesFlexibility, focus more on people rather than only the task Can seem chaotic or unsystematic to monochronics

  • 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

    Cultural Awareness Course (Pellegrino Riccardi 2003)Cultural Awareness Course (Pellegrino Riccardi 2003)Cultural Awareness Course (Pellegrino Riccardi 2003)Cultural Awareness Course (Pellegrino Riccardi 2003)Cultural Awareness Course (Pellegrino Riccardi 2003)Cultural Awareness Course (Pellegrino Riccardi 2003)Cultural Awareness Course (Pellegrino Riccardi 2003)


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