module ii a intl. negotiation cross cultural dimensionc
TRANSCRIPT
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MODULE-II-AINTERNATIONAL
NEGOTIATION AND CROSS-
CULTURAL COMMUNICATION
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BASICS OF CROSS -
CULTURAL
COMMUNICATION
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LANGUAGE AND CULTURE
The Whorf hypothesis:
The Whorf hypothesis is the view that language shapes cognition; that is,
concepts and ways of thinking depend on language. People who speak
significantly different languages, then, view the world differently.
Also called the hypothesis ofLinguistic relativity or the Sapir-Whorf
hypothesis: the Whorf hypothesis was named after the early twentieth-century linguistBenjamin Whorf.
Related to linguistic relativity is linguistic determinism, the view that
language necessitates how one thinks (thinking outside the bounds of
one's language is impossible). Some psychologists believe the Whorf
hypothesis helps explain cognition; like linguistic determinism,
however, it is highly controversial.
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HIGH CONTEXT
Communications have multiple meanings
interpreted by reading the situation
Asian and Arabic languages are among the
most high context in the world
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LOW CONTEXT
The words provide most of the meaning
Most northern European languages
including German, French, English, and the
Scandinavian languages are low context
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Cultural Differences in
Communication Styles
0
20
40
60
80
100
Nigeria
MexicoSpainArgentian
USA Germany
IndiaBrazilUK China
FranceJapan
% Direct % Formal
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NONVERBAL
COMMUNICATION -
COMMUNICATINGWITHOUT WORDS
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KINESICS
Communicating through body movements
Facial expressions
Body posture
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PROXEMICS
The use space to communicate
The personal bubble of space - nine inches to over
twenty inches North Americans prefer more distance than from
Latin and Arab cultures
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TOUCH
Basic human interaction
In greeting - shake hands, embrace, or kiss
Latin European and Latin American cultures-more touching than Germanic, Anglo, orScandinavian cultures
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PRACTICAL ISSUES IN CROSS-
CULTURAL VERBAL
COMMUNICATION
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INTERPRETERS
Provide simultaneous translation of a foreign
language
Require greater linguistic skills than speakinga language or translating written documents
Insure the accuracy and common
understanding of agreements
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COMMUNICATION WITH
NONNATIVE SPEAKERS
Use the most common words with most commonmeanings
Select words with few alternative meanings Follow rules of grammar strictly
Speak with clear breaks between words
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Communication with Non-native speakers,
continued
Avoid sports words or words borrowed from literature
Avoid words that represent pictures
Mimic the cultural flavor of nonnative speakers language
Summarize Test your communication success
AVOIDING ATTRIBUTION
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AVOIDING ATTRIBUTION
ERRORS
Attribution - process by which we interpret the
meaning and intent of spoken words or
nonverbal exchanges
Attribution errors
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INTERNATIONAL NEGOTIATION
More complex than domestic negotiations
Differences in national cultures and differences
in political, legal, and economic systems often
separate potential business partners
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STEPS IN THE INTERNATIONAL
NEGOTIATION PROCESS
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The Negotiation Process
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STEP-I: Preferences for Broad
Agreements
0
10
20
30
40
50
JapanGermany
India FranceChinaArgentina
BrazilUSA Nigeria
MexicoSpain UK
% Preference for Broad Agreements
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STEP 2: BUILDING THE RELATIONSHIP
No focus on business
Partners get to know each other
Social and interpersonal exchange
Duration and importance vary by culture
STEP 3 EXCHANGING
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STEP 3: EXCHANGING
INFORMATION AND THE FIRST
OFFER
Task-related information is exchanged
First offer
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STEP 4: PERSUASION
Heart of the negotiation process
Attempting to get other side to agree to a position
Numerous tactics used
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VERBAL AND NONVERBAL
NEGOTIATION TACTICS
Promise
Threat
Recommendation
Warning
Reward
Punishment
Normative appeal
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Negotiation Tactics, Continued
Commitment
Self disclosure
Question Command
No
Interrupting
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DIRTY TRICKS IN
INTERNATIONAL
NEGOTIATIONS
Dirty tricks are negotiation tactics that pressure
opponents to accept unfair or undesirableagreements or concessions
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PLOYS/DIRTY TRICKS -
POSSIBLE RESPONSES Deliberate deception - point out what is
happening
Stalling - do not reveal when you plan to
leave
Escalating authority - clarify decision makingauthority
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Good guy, bad buy routine - do not make
any concessions
You are wealthy and we are poor - ignore the
ploy Old friends - keep a psychological distance
Ploys/Dirty Tricks, Continued
STEPS 5 AND 6:
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STEPS 5 AND 6:
CONCESSIONS AND
AGREEMENT Final agreement: The signed contract,
agreeable to all sides
Concession making: requires that each siderelax some of its demands
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STYLES OF CONCESSION
Sequential approach
Each side reciprocates concessions
Holistic approach
Concession making begins after all issues are
discussed
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BASIC NEGOTIATION
STRATEGIES Competitive
The negotiation as a win-lose game
Problem solving
Search for possible win-win situations
COMPETITIVE OR
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COMPETITIVE OR
PROBLEM SOLVING
INTERNATIONALNEGOTIATION
Cultural norms and values may predispose
some negotiators to one approach (EX 3.10)
Most experts recommend a problem solving
negotiation strategy
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Preferences for Problem-Solving
Negotiation
0
20
40
60
80
100
Japan
China
Argentina
France
IndiaUSAUK Mexico
Germany
Nigeria
Brazil
Spain
% Win-Win
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SUCCESSFUL INTERNATIONAL
NEGOTIATOR: PERSONAL
CHARACTERISTICS
Tolerance of ambiguous situations
Flexibility and creativityHumor
Stamina
Empathy
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Levels of cultural understanding
Observable behavior
Can learn a lot, but likely to focuson dos and donts
Often leads to superficialunderstanding
Shared values
Requires inferences fromobserved behavior and learningabout a culture
More powerful, because valuesdrive (partially) behavior
Shared assumptions
Very abstract these drive ourvalues but are very hard todetermine
Very powerful, helps trulyunderstand a culture
Hofstedes Dimensions and Negotiation
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Hofstedes Dimensions and Negotiation
Power Distance
extent to which power differentials are expected and honored
Low : Anglo/Germanic/Scandinavian High: Developing Nations, particularly Pacific Rim
Effect: As power distance increases, more approval from higher ups andless involvement from lower levels. Also, can expect more formality in Nswith people from high PD cultures, and they may be upset if you do notappear to be of sufficient status.
Individualism/Collectivism extent to which society is organized by individuals vs. groups
Ind.: Western European - based societies
Coll.: Latin America, Pacific Rim
Generally, wealthier societies tend to be more individualist
Effect: Relationship stability over time emphases, individual negotiators vs.
group of negotiators, importance of consensus, value placed on individualwinner, emphasis on group vs. individual goals, rewards, communicationin Ns, etc.
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Hofstedes Dimensions and Negotiation 2
Masculinity/Feminity
extent to which values fit traditional gender-based stereotypes
M: Japan, Anglo/Germanic
F: Scandinavia.
Effect: Masculinity associated with competitiveness vs. empathy & compromise
should expect strong relationships with distributive vs. integrative styles. Uncertainty Avoidance
degree of discomfort with unstructured situations
High: no strong pattern, but many Hispanic nations
Low: no strong pattern, but Anglo/Scandinavia
Effect: High prefers stable rules and procedures, less adaptive. High also tendsto be more risk-averserisk aversion has played into many N. dynamics. High
tends to do business ritualistically & formally.
Other cultural variables
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Other cultural variables
Time
present vs. future vs. past orientation
Time as linear vs. time as circular
Can affect timing/urgency of Ns, and also what sorts of time-relatedobjectives (short-term vs. long-term) are valued more
Americans often seen obsessed with time.
Universalism vs. particularism Can ideas/practices be applied everywhere every time, or do circumstances
dictate application?
Use of precedent vs. adapting styles/processes/agreements to situations
Emotionality
Great potential for misunderstandings here!!!
Achievement vs. ascription
Is status conferred by what youve done or who you are?
How will a person be viewed in a N situation?
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Example of communication patterns
Behavior Japanese American Brazilian
Verbal Inter-
ruptions/10m
12.6 10.3 28.6
Silent periods
>10s/30m
5.5 3.5 0
Eye contact/10m 1.3 3.3 5.3
Touches/30m 0 0 4.7
Negotiation process/timing for Americans in domestic vs.
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g p g
international negotiations
Domestic
1 2 3 4 5 6
International1 2 3 4 5 6
Key
1- orientation & fact-finding
2- resistance
3- reformulation of
strategies
4- hard bargaining & decision-making5- agreement
6- follow-up
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Negotiating Strategies in Other Countries
Opening offer Close to final settlement where haggling is not customary (e.g.
Australia, Sweden)
Expect lots o haggling in some nations (e.g. Russia, Egypt, China)
Rule of thumb (that wont always work, so apply with caution): if aculture has a long history of bartering & bargaining, expect to
haggle.
Detail vs. big-picture in presentation
Detail where culture emphasizes formality, logic, data, organization
(e.g. Germany, UK, Swiss, Japan)
Broad concepts preferred in some other areas (e.g. Latin America,
Middle East)
Cultural Differences affecting other Negotiation
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Cultural Differences affecting other Negotiation
Processes
Relationships orientation
Lack of trust across cultural differences trust building essential
Some cultures are standoffish (e.g. British, Germanic), so get downto business before too long
Emotional Aspects
Sensitivity is low for US, high for Latin America
Loyaltyto self in US, to organization in many other cultures
Decision Making Frame
In US change is acceptable, even encouraged, decisions madequickly
In many other nations, status quo is the normal frame of reference
US is relatively prone to using agendas, may be restrictive to someothers
N i i i S ifi R i
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Negotiating in Specific Regions
The next 4 slides are FYI only and far from complete There are important differences across nations within regions
(e.g., Israel vs. Iran in Middle East)
Remember you are negotiating with an individual(s) who
may or may not fit cultural norms to a T!!!
Source: How to Negotiate Anything with Anyone
Anywhere in the World, Frank Acuff
Negotiating in the Middle East/North Africa
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g g
Bargaining is a way of life Youre supposed to haggle! Monty Python Timenot punctual or planning-oriented (too much attempt to control the future
invites trouble). Ramadan is especially slow for business.
Group oriented, and very deferential to those of status
Much time upfront spent in developing relationships
Masculine Arabs read poetry, use intuition, and are emotional. Feminine Arabqualities are coolness and pragmatism.
Israelis are direct, Arabs indirect, vague & expressive, often to point of exaggeration &filled with fantastic metaphors
No is uncommon; look for a hesitant yes instead white lies common form ofcourtesy
Saying I dont know
you are of little account
Strong eye contact, close personal space, touchy
High initial demands, slow concessions, issues sequential, extreme face orientation,truth is revealed very slowly because it is considered dangerous
N ti ti i W t E
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Negotiating in Western Europe
Timingpunctual, relatively fast-paced
Individualistic, status-conscious, slow-developing friendships,emphasis on initiative & achievement
Loyalty & hard work are valued
Greater hierarchy than in US
Speakers s/b articulate & intellectual, formal, logical, and subtle
Low emotionality, reserved
Moderate initial demands, issues sequentially processed, slowconcessions
Negotiating in the Pacific Rim
https://www.clipart.com/Main/signup/index?PRODUCT=AT_TIME_01&oid=351843&a=p&width=128&choose_prod=yhttps://www.clipart.com/Main/signup/index?PRODUCT=AT_TIME_01&oid=1370701&a=p&width=128&choose_prod=y -
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Old cultures, socially stratified, Confucian ethic Courtesy rituals, formality, politeness, modesty, loyalty to group and deference to
elderly, non-confrontational
Negotiations slow, relationship orientation & group negotiation style with team
consensus criticalimplementation usually quick, though
Very collectivist
Words mean little, conversation very indirect
he who speaks doesnt know, he who knows doesnt speak
No uncommon; might get a well study this further instead
Reserved body language, average-to-close personal space, not touchy
Sensitivity valued but not overstated Moderate-high initial offers, multiple issues presented at once, slow concessions,
logical decisions
Face is critical
Understanding Negotiation Styles
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Understanding Negotiation St les
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Understanding Negotiation Styles
For North Americans, negotiations are businesslike; theirfactual appeals are based on what they believe is
objective information, presented with the assumption that
it is understood by the other side on a logical basis.
Arabs use affective appeals based on emotions and
subjective feelings.
Russians employ axiomatic appeals that is, their
appeals are based on the ideals generally accepted in
their society.
Profile of an American Negotiator
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Profile of an American Negotiator
Knows when to compromise
Takes a firm stand at the beginning of the negotiation
Refuses to make concessions beforehand
Keeps his or her cards close to his or her chest
Accepts compromises only when the negotiation is deadlocked
Sets up the general principles and delegates the detail work to
associates Keeps a maximum of options open before negotiation
Operates in good faith
Profile of an American Negotiator
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Profile of an American Negotiator
Respects the opponents
States his or her position as clearly as possible
Knows when he or she wishes a negotiation to move on
Is fully briefed about the negotiated issues
Has a good sense of timing and is consistent
Makes the other party reveal his or her position whilekeeping his or her own position hidden as long as possible
Lets the other negotiator come forward first and looks forthe best deal
Profile of an Indian Negotiator
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Profile of an Indian Negotiator
Looks for and says the truth
Is not afraid of speaking up and has no fears
Exercises self-control
Seeks solutions that will please all the parties involved
Respects the other party
Neither uses violence nor insults Is ready to change his or her mind and differ with himself or herself at
the risk of being seen as inconsistent and unpredictable
Profile of an Indian Negotiator
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Profile of an Indian Negotiator
Puts things into perspective and switches easily from the small picture
to the big one
Is humble and trusts the opponent
Is able to withdraw, use silence, and learn from within
Relies on himself or herself, his or her own resources and strengths
Appeals to the other partys spiritual identity Is tenacious, patient, and persistent
Learns from the opponent and avoids the use of secrets
Goes beyond logical reasoning and trusts his or her instinct as well as
faith
Profile of an Arab Negotiator
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Profile of an Arab Negotiator
Protects all the parties honor, self-respect, and dignity
Avoids direct confrontation between opponents
Is respected and trusted by all
Does not put the parties involved in a situation where they have toshow weakness or admit defeat
Has the necessary prestige to be listened to
Is creative enough to come up with honorable solutions for all parties Is impartial and can understand the positions of the various parties
without leaning toward one or the other
Profile of an Arab Negotiator
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Profile of an Arab Negotiator
Is able to resist any kind of pressure that the opponents could try toexercise on him
Uses references to people who are highly respected by the
opponents to persuade them to change their minds on some issues
Can keep secrets and in so doing gains the confidence of thenegotiating parties
Controls his temper and emotions
Can use conference as mediating devices
Knows that the opponent will have problems in carrying out thedecisions made during the negotiation
Is able to cope with the Arab disregard for time
Managing Negotiation
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Managing Negotiation
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Managing Negotiation
Successful management of interculturalnegotiations requires the manager
To gain specific knowledge of the parties in the
upcoming meeting
To prepare accordingly to adjust to and control thesituation
To be innovative
Using the Web to Support Negotiations
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Using the Web to Support Negotiations
Negotiation Support Systems (NSS) can provide supportfor the negotiation process by:
Increasing the likelihood that an agreement is reached
when a zone of agreement exists (solutions that both
parties would accept)
Decreasing the direct and indirect costs of negotiations,
such as costs caused by time delays (strikes, violence),
and attorneys fees, among others
Maximizing the chances for optimal outcomes
Comparative Management in Focus:
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Negotiating with the Chinese
The Chinese think in terms of process that has noculmination. Americans think in terms of concretesolutions to specific problems. . . . The Chineseapproach is impersonal, patient and aloof . . .To
Americans, Chinese leaders seem polite but aloofand condescending. To the Chinese, Americans
appear erratic and somewhat frivolous.Henry Kissinger,
Newsweek, May, 2001
Comparative Management in Focus:
i i i h h Chi
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Negotiating with the Chinese
Business people have two major areas of conflict whennegotiating with the Chinese
Amount of detail about product characteristics
Apparent insincerity about reaching an agreement
Chinese negotiation process is affected by three cultural
norms Politeness and emotional restraint
Emphasis on social obligations
Belief in the interconnection of work, family, and friendship
Comparative Management in Focus:
N i i i h h Chi
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Negotiating with the Chinese
Tips to foreigners conducting business in China Practice patience
Accept prolonged periods of stalemate
Refrain from exaggerated expectations
Discount Chinese rhetoric about future prospects
Expect the Chinese to try to manipulate by shaming
Resist the temptation to believe that difficulties are your fault
Try to understand Chinese cultural traits
Managing Conflict
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Managing Conflict
Decision Making
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Decision Making
Stages in the Rational Decision Making Model Defining the problem
Gathering and analyzing relevant data
Considering alternative solutions
Deciding on the best solution
Implementing the decision
Cultural Variables Affecting Decision
M ki
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Making
Objective (basing decisions on rationality) versussubjective (basing decisions on emotions)
approach
Risk tolerance
Locus of control internal (managers in control ofevents), or external (managers have little control
over events)
Cultural Variables Affecting Decision Making
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Comparative Management in Focus: Decision Making in
Japan
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Stakeholders Involvement
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Twelve Variables in the Negotiation Process
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Persuasion Tactics
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Return
CONCLUSIONS
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CONCLUSIONS
Successful negotiators:
Understand the negotiation steps
Build cross-cultural communication skills
Understand nonverbal communication
Avoid attribution errors