Negotiation with the Japanese Negotiation with the Japanese from a westerner point of viewfrom a westerner point of view

A case study of the Influence of Culture on the Negotiation StyleA case study of the Influence of Culture on the Negotiation Style

SOUBIGOU Antoine, LESCROAT Vincent, THIBERT Romain, SOUBIGOU Antoine, LESCROAT Vincent, THIBERT Romain, d’HERBAIS Alexis, SHI Jing, Li Shijiaod’HERBAIS Alexis, SHI Jing, Li Shijiao

Japanese Business Culture with Mr Suzuki Friday 19th March 2004

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Introduction• Pokémons, karaoké, Vidéo games, mangas... are Westerner’s

stereotypes about Japan

• Is the Japanese culture so stereotypical ?

• Japanese culture through the business point of view

• The Japanese negotiation style: Theory VS a practical point of view (interview)

Negotiation with the Japanese from a westerner point of view DESS MI

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Different parts

1- Hofstede’s model in Japan

2- The main features of the Japanese culture

3- Some more concepts of the Japanese culture

4- The Japanese negotiation process

5- The case study

Negotiation with the Japanese from a westerner point of view DESS MI

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Hoefstede’s Dimensions in Japan

• Very high Power distance :Very high Power distance : respect of rank centralized power.

• Collectivist society :Collectivist society : integration of individuals in groups and teams (companies) is essential.

• Masculine society :Masculine society : no expression of emotions or feelings, paternalistic society.

• Uncertainty avoidance :Uncertainty avoidance : Everything has to be under control

Negotiation with the Japanese from a westerner point of view DESS MI

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Main features of japanese culture

• Japanese business organization :Japanese business organization :High degree of cooperation with governmentCompany is seen as a family for employeesHierarchically structured and quality oriented

• The decision making process :The decision making process :Very slow, based on consensusRingi system, everybody involved

• The Japanese Seniority system :The Japanese Seniority system :Age, sex, family names are status criteriaFeudal society more than democracy

Negotiation with the Japanese from a westerner point of view DESS MI

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• The Face : Never lose the face• « Wa » : A zen social behavior• « amae » : the oil of life• « Uramu » : an hostile feeling• « Enryo » : rejection opposite of amae• « Koto To Shidai Ni Wa » : the circumstantial

truth• « Tatemae/Honne » : The two-faced syndrome,

the Yin Yang. Frankness or tactfulness

Main concepts of the « doh » (way)

Negotiation with the Japanese from a westerner point of view DESS MI

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The negotiation

• The non task soundingThe non task sounding

– Not to discuss business but to learn about the other

– Integrity, reliability, commitment and humility

– Giving of gifts on first meeting often occurs

– Meishi, the traditional exchange of business cards

Negotiation with the Japanese from a westerner point of view DESS MI

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The negotiation

• The task related exchange of The task related exchange of informationinformation– Very important after the ”wa”– Ask a lot of questions and give no feedback – Negotiators will remain polite and won’t

disrupt the harmony

– The Japanese are information oriented – Often ask the same question

Negotiation with the Japanese from a westerner point of view DESS MI

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The negotiation

• PersuasionPersuasion

– Avoid using aggressive tactics– To defeat the enemy psychologically is the

superior strategy– Persistent and aggressive determination to

achieve one’s end – tactical questioning– avoidance strategies (silence)

Negotiation with the Japanese from a westerner point of view DESS MI

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The negotiation

• Concessions and agreementConcessions and agreement

– A broad agreement first and to reach the consensus is a holistic approach

– Verbal contracts in Japan remain widespread

Negotiation with the Japanese from a westerner point of view DESS MI

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The interview

• The interview with the managing The interview with the managing director of Konamidirector of Konami

• Main goal :Main goal : Get impressions of Europeans negotiating with Japanese.

• Two parts in the interview:Two parts in the interview: • Japanese culture (according to Mr Klingborg)• Japanese negotiation

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The Japanese culture

• The first impressionThe first impression– “Good impression from the start is everything!”

• Avoiding talking aroundAvoiding talking around• The hierarchyThe hierarchy

– “If the boss say no, then it is no.”– Business card– Sitting procedure

• Long-term relationshipLong-term relationship– “They have to know you before before they trust you.”

Negotiation with the Japanese from a westerner point of view DESS MI

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The Japanese negotiation

• Non Task Sounding:Non Task Sounding:– Japanese’s face : on time, business cards (anecdote)– contradictory : Japanese ‘s laptop

• Task-related exchange of Task-related exchange of informationinformation– to do : delicate preparation , get the trust , be patient– not to do : speak your own language , talk things out of

the meeting.– contradictory : Japanese spoken among them, interrupt

during the meeting

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The Japanese negotiation

• PersuasionPersuasion– to do : emphasize benefit , respect hierarchy– not to do : treating

• AgreementAgreement– dilemma in front of the Japanese rules

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Anectodes

The hierarchyThe hierarchy

The faceThe face

The collectivistic society & the The collectivistic society & the wrong impressionwrong impression

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The Hierarchy

• When a big boss visits his subsidiaries abroad, every member of the staff has to be there and to greet the boss; even if it’s not that useful for the quality of the job…

• In a conference room, you’ll sometimes notice that the boss’ chair is higher than the other participant’s one.

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The Face

• He is the superior and when he decided, you cannot change the situation, even when you have a better or more profitable solution. In fact the boss completely agrees with the critics, but he cannot agree, because his is superior. When the time went on they can change the situation without loosing his face

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The collectivistic society & the wrong impression

• All the employees of Konami have a pin. That is a comrade sign, it emphasizes that you are working for the same company. If you loose the pin you have to write a letter with a really good explanation to get a new one.

• The Japanese close sometimes their eyes during a presentation. They give you the impression that they are sleeping, but that is not true at all !!! They close their eyes to focus on what you say during your presentation. It is a Japanese manner to concentrate

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Conclusion• Japanese and Westerner’s negotiation styles are different

• However, several similarities come to the daylight when examining the Swedish case (cooperation, teamwork, harmony and consensus)

• The case study points out differences with the theory : high/low context, written contracts…

• The Japanese are very flexible and prepared to negotiate with foreigners

Negotiation with the Japanese from a westerner point of view DESS MI