intercultural negotiation process: chapter10

International Business Communication, 4th ed., Chaney & Martin

Intercultural Negotiation

Process

Chapter 10


Topics

• Steps in the Negotiation Process

• Mistakes Commonly Made During Negotiations

• Intercultural Negotiation Models

• Negotiation Strategies• Trade Agreements


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.


Steps in the Negotiation Process

• Preparation and Site Selection

• Team Selection

• Relationship Building

• Opening Talks

• Discussions

• Agreement


Preparation and Site Selection

• Hire a consultant in the country.

• Consult resource videos and written materials on negotiation.

• Choose a site—here or there can be important.


Team Selection

• Consider number, age, gender, and rank of team members.

• Consider background of players.

• Evaluate other negotiators - their political affiliation, social class, age, and risk-taking propensity.


Relationship Building

• Time required

• Intermediaries or agents

• Friendship versus business relationship


Opening Talks and Discussions

• Observe opening rituals - small talk, humor, etc.

• Consider the appropriateness of an agenda.

• Expect a variety of behaviors.• Plan ahead for concessions.• Move to an informal location when

appropriate.


Agreement

• Close negotiations properly.

• Expect delays .

• Get tax and legal advice.

• Anticipate a long wait until final approval.

• Remember that contracts are not always considered final.


Common Negotiation Mistakes

• Making negative initial impression

• Failing to listen and talking too much

• Assuming understanding by the other culture

• Failing to ask important questions

• Showing discomfort with silence

• Using unfamiliar and slang words

• Interrupting the speaker

• Failing to read the nonverbal cues


• Failing to note key points• Making statements that are irritating or

contradictory• Failing to prepare a list of questions for

discussion• Being easily distracted• Failing to start with conditional offers• Failing to summarize and restate to ensure

understanding• Hearing only what you want to hear• Failing to use first-class supporting materials


Intercultural Negotiation Models

• Problem-solving approach — considers national and organizational cultural differences

• Competitive approach — individualistic and persuasive orientation

• Compromising — seeks a middle ground • Forcing — makes the other party comply• Legalism — uses legal documentation to

force the partner to comply

Kozicki, Creative Negotiating

Four - Stage Negotiation Model

• Investigative

• Presentation

• Bargaining

• Agreement


Negotiation Strategies

• People act on the basis of their own best interests.

• Truth in negotiations:– Faith– Fact– Feeling

• U.S. negotiators make fewer adjustments to their opponents.

• Strategies include: preparation; tactics; conflict resolution and mediation; and observation, analysis, and evaluation.


Trade Agreements

• General license – never actually issued

• Validated license — allows specific exporter to export specific products to specific places

• Free trade zones or trade blocs — products enter without customs duties


NAFTA Benefits

• To eliminate barriers to trade and facilitate cross-border movement of goods and services

• To promote fair competition• To increase investment opportunities• To provide adequate and effective

protection for intellectual property• To develop effective procedures to handle

disputes• To expand cooperation and increase

benefits to the three countries


The U.S. Negotiator’s Global Report Card

• 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

Competency Grade


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).


China

• Reserved; known for hospitality and good manners

• Give small, inexpensive presents• Do not like to be touched• 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 • Dress is conservative; correct posture and manners are

required• Use titles when addressing members of the negotiating team• Prefer keeping a distance between themselves and the other

team • Have technical people as part of the negotiation team as

Germans are detail oriented• Punctuality is expected• Contracts are firm guidelines to be followed exactly


India

• Bribery is common; having connections is important

• Avoid using the 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, including

business card exchange• Meeting should be arranged by an intermediary • Subtle and complex verbal and nonverbal cues

are used to avoid having someone lose face or lose the group harmony

• The Japanese use more silence and less eye contact than U.S. persons

• Consider contracts as flexible instruments• Are suspicious of a negotiating team that

includes lawyers


Latin America• Relationships are important• Bribery is common• Government is very involved in business• Negotiators chosen based on family

connections, political influence, education, and gender (females should be in the background)

• Social competence is important• Most agreements are consummated over lunch• Numerous meetings is the norm; time is not

seen as important• Avoid gestures


Nigeria• Nigerians are skillful negotiators; they view negotiation as a competitive

process • When selecting negotiators, consider age (equated with wisdom), gender,

cultural background, and educational credentials• Developing a personal relationship is important• Time is not particularly important so negotiations may be lengthy• Use titles and last names• Use an intermediary to make initial introductions• Being well dressed is important; courtesy and consideration are also

expected• Contracts (oral or written) are flexible• A bribe may be needed to expedite business


Russian States

• 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 interpreted rigidly• Concerned with maximizing their profits


Negotiating globally can present many opportunities. Corporations can expand their markets, increase their markets, increase their profits and productivity, and lower their costs by negotiating globally.

intercultural negotiation process: chapter10

Business

chaney martin

negotiation strategies

common negotiation mistakes

negotiating processto

creative negotiating

negotiating style

agreement close negotiations

trade blocs products