intercultural negotiation process
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Chapter 10. Intercultural Negotiation Process. Topics. Steps in the Negotiation Process Mistakes Commonly Made During Negotiations Intercultural Negotiation Models Negotiation Strategies Trade Agreements. Definition. - PowerPoint PPT PresentationTRANSCRIPT
International Business Communication, 4th ed., Chaney & Martin
Intercultural Negotiation
Process
Chapter 10
International Business Communication, 4th ed., Chaney & Martin
Topics
Steps in the Negotiation ProcessMistakes Commonly Made During NegotiationsIntercultural Negotiation ModelsNegotiation StrategiesTrade Agreements
International Business Communication, 4th 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.
International Business Communication, 4th ed., Chaney & Martin
Steps in the Negotiation Process
Preparation and Site Selection
Team Selection
Relationship Building
Opening Talks
Discussions
Agreement
International Business Communication, 4th ed., Chaney & Martin
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.
International Business Communication, 4th ed., Chaney & Martin
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.
International Business Communication, 4th ed., Chaney & Martin
Relationship Building
Time required
Intermediaries or agents
Friendship versus business relationship
International Business Communication, 4th ed., Chaney & Martin
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.
International Business Communication, 4th ed., Chaney & Martin
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.
International Business Communication, 4th ed., Chaney & Martin
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
International Business Communication, 4th ed., Chaney & Martin
Failing to note key pointsMaking statements that are irritating or contradictoryFailing to prepare a list of questions for discussionBeing easily distractedFailing to start with conditional offersFailing to summarize and restate to ensure understandingHearing only what you want to hearFailing to use first-class supporting materials
International Business Communication, 4th ed., Chaney & Martin
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
International Business Communication, 4th ed., Chaney & Martin
Negotiation Strategies
People act on the basis of their own best interests.Truth in negotiations:
FaithFactFeeling
U.S. negotiators make fewer adjustments to their opponents.Strategies include: preparation; tactics; conflict resolution and mediation; and observation, analysis, and evaluation.
International Business Communication, 4th ed., Chaney & Martin
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
International Business Communication, 4th ed., Chaney & Martin
NAFTA Benefits
To eliminate barriers to trade and facilitate cross-border movement of goods and servicesTo promote fair competitionTo increase investment opportunitiesTo provide adequate and effective protection for intellectual propertyTo develop effective procedures to handle disputesTo expand cooperation and increase benefits to the three countries
International Business Communication, 4th ed., Chaney & Martin
The U.S. Negotiator’s Global Report Card
Preparation B-Synergistic approach (win-win) DCultural I.Q. DAdapting the negotiating process to the host country environment DPatience DListening DLinguistic abilities FUsing language that is simple and accessible CHigh aspirations B+Personal integrity A-Building solid relationships D
Competency Grade
International Business Communication, 4th ed., Chaney & Martin
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).
International Business Communication, 4th ed., Chaney & Martin
China
Reserved; known for hospitality and good mannersGive small, inexpensive presentsDo not like to be touchedConsider mutual relationships and trust very importantTechnical competence of negotiators necessaryPrefer to use an intermediaryRarely use lawyersAmple room for compromise
International Business Communication, 4th ed., Chaney & Martin
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
International Business Communication, 4th ed., Chaney & Martin
GermanyProtocol 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
International Business Communication, 4th ed., Chaney & Martin
India
Bribery is common; having connections is importantAvoid using the left hand in greetings and eatingRequest permission before smoking, entering, or sittingBuilding relationships is important; an introduction is necessaryIntermediaries are commonUse titles to convey respectKnowledge of local affairs is importantNegotiation process can be long
International Business Communication, 4th ed., Chaney & Martin
JapanBusiness etiquette is very important, including business card exchangeMeeting 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 harmonyThe Japanese use more silence and less eye contact than U.S. personsConsider contracts as flexible instrumentsAre suspicious of a negotiating team that includes lawyers
International Business Communication, 4th ed., Chaney & Martin
Latin AmericaRelationships are importantBribery is commonGovernment is very involved in businessNegotiators chosen based on family connections, political influence, education, and gender (females should be in the background)Social competence is importantMost agreements are consummated over lunchNumerous meetings is the norm; time is not seen as importantAvoid gestures
International Business Communication, 4th ed., Chaney & Martin
NigeriaNigerians 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
International Business Communication, 4th ed., Chaney & Martin
Russian States
In the past, negotiation sessions have been long, with Russians controlling the agendaAre concerned with age, rank, and protocolTend to be formalFriendships are not crucial to businessContracts interpreted rigidlyConcerned with maximizing their profits
International Business Communication, 4th ed., Chaney & Martin
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.