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A,A,*,Unit 8,Intercultural Negotiation,Negotiation,Negotiation is the process of discussion by which two or more parties aim to reach a mutually acceptable agreement,Negotiating across borders is more complex because of the number of,stakeholders,involved,Two common beliefs about intercultural negotiation,There are two common beliefs about cross-cultural business negotiations:,First,dealing in one country is totally different from dealing in any other country.So,global negotiations are likely to be completely different from domestic transactions.,Second,negotiating global deals are the same as negotiating domestic business deals.Theyre all business transactions.,In the global arena,cultural differences produce great difficulties in the negotiation process.,Cultural Barriers,In a World Bank financed China rural water supply project,the World bank representatives from America and Canada,during the negotiation,insisted on telling the project beneficiaries such detailed information as project total budget,counterpart funding,beneficiaries contribution,total water tariff they have to pay and villagers monthly payment.,From the Banks perspective,the purpose of doing so is to guarantee correct understanding,on the villagers part,of their benefits as well as their obligations.,Cultural Barriers,However officials from national,Provincial and county project offices refused to provide actual numbers to beneficiary villagers,and they argued that the huge project budget would frighten the villagers and drive them back to their old and unhealthy way of drinking water.,All what the villagers need to know was the fact that they had to repay the loan.The two sides debated hard over the issue for a couple of days and the agreement was finally reached only on basis of mutual concessions.,The Negotiation Process,Stage One-Preparation,Managers should find out as much as possible about,The kinds of demands that might be made,The composition of the opposing team,The relative authority that the members possess,Develop a profile of their counterparts,They consider different variables during this process as well,Stage Two and Three,Relationship building-taking time to build mutual trust before starting business discussions,Exchanging task related information-during this stage each side makes a presentation and states its position,normally followed by a question-and-answer session,Stage four and five,Persuasion during this stage both parties try to persuade the other to accept more of their position while giving up some of their own;there are recognizable,tactics,for this stage.,Concessions and Agreements at this point each side will make various concessions so that an agreement can be reached and signed.,Understanding Negotiation StylesAmericans,vs,Japanese,Case study,Japan Airlines International Co.,Ltd.(JAI)decided to import 10 sets of Boeing airplanes from McDonnell Douglas.The standing boarder was appointed as the leader of the negotiation team,financial manager the negotiator and the technical manager the assistant negotiator,the three of whom were together responsible for purchasing the airplanes.,The McDonnell Douglas arranged the negotiation on the next day immediately after the JAI representative arrived in the U.S.by air.When the three Japanese gentlemen entered the conference room with a tired look,the leading negotiator of the American company considered it a good chance and stepped into the introduction part of the negotiation promptly.,Understanding Negotiation StylesAmericans,vs,Japanese,From 9:00 to 11:30 a.m.,a,huge number,of graphs,data,computed design,auxiliary materials and aviation pictures were demonstrated by three projection machine successively,proving a perfect quality and pricing of its airplanes.When the introduction was finished,pulling the curtain confidently,the negotiation representative looked into the Japanese and asked them full of expectation,“What do you think?”,Seemed to be insusceptible,the Japanese guests gave a smile and said,“We dont understand.”,Greatly shocked and puzzled,the negotiation leader of the American,ide,asked,“you dont understand?What do you mean?Which part?”,The three Japanese apologized and asked them to repeat the introduction.,Deeply depressed,however,the American leader had no other choice.,Their representative had lost original,paion,and confidence while,repeating the introduction that cost two and half hours,always feeling annoyed for the unexpected frustration.,Understanding Negotiation StylesAmericans,vs,Japanese,In the following negotiations,the Japanese seemed stagnant to the Americans,making them feel the well prepared opinions,supporting data,deduction and carefully selected negotiation strategy doesnt work for the stupid Japanese at all.After they finished the negotiation for the second day,the Americans didnt even arrange any recreations,.They had been agitated and afraid of any other troubles,and the only wish for them was to end the,negotation,as early as possible.,So the Americans asked straightly,“Our airplanes are the best and the price is also reasonable,do you have any different opinions?”,Taking this opportunity,the Japanese offered a very low price and at last the deal was settled at the price proposed by the,Japanses,.,1.In your opinion,why did the Japanese say that they didnt understand when the Americans finished their introduction?,2.What do you think is the negotiation style of the Americans?,3.What characteristic is reflected for the Japanese from the negotiation process?,The Western View of the Business Deal,The Deal,Party A,Party B,Asian View of the Business Deal,The Deal,Trust-based,Relationships,Business bonding,Via,Entertainment,Contracts based,On a,Handshake,Gifts,and,Favors,Handling of Problems,Western-American,Asian,Opinion,Western-American,Asian,The challenge is to:,Understand the,multiple influences of several cultural factors,on the negotiation process,Update this understanding regularly as circumstances change,Low Context Perspectives,American negotiators tend to be,surprised,by their negotiation partners preoccupation with history and hierarchy,preference for principle over nitty-gritty detail,personalized and repetitive style of argument,lack of enthusiasm for explicit and formal agreement,and willingness to sacrifice substance to form.,They are,frustrated,by their partners reluctance to put their cards on the table,intransigent bargaining,evasiveness,and readiness to walk away from the table without agreement.Raymond Cohen,Negotiating Across Cultures,High Context Perspectives,Non-Western negotiators tend to be,surprised,by their negotiation partners ignorance of history,preoccupation with individual rights,obsession with the immediate problem while neglecting the overall relationship,excessive bluntness,impatience,disinterest in establishing a philosophical basis for agreement,extraordinary willingness to make soft concessions,constant generation of new proposals,and inability to leave a problem pending.,They are,frustrated,by their American partners occasional obtuseness and insensitivity;tendency to see things and present alternatives in black-or-white,either-or-terms;appetite for crisis;habit of springing unpleasant surprises;intimidating readiness for confrontation;tendency to bypass established channels of authority;inability to take no for an answer;and obsession with tidying up loose ends and putting everything down on paper.,Raymond Cohen,Cultural,dimesion,Individualism-Collectivism,Power Distance,C,ultural dimension,Understanding Negotiation Styles,For North Americans,negotiations are businesslike;their,factual 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,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 while,keeping his or her own position hidden as long as possible,Lets the other negotiator come forward first and looks for the best deal,Direct,outgoing,confident and positive,Openly disagree and use,aggressive persuasive tactics such as threats and warnings,Prefer speedy negotiations and get annoyed with too much socializing or postponement,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,Goes beyond logical reasoning and,trusts his or her instinct as well as faith,Profile of an Arab Negotiator,Is able,to resist any kind of pressure,that the opponents could try to exercise on him,Uses references to,people who are highly respected by the opponents to,persuad,e them to change their minds on some issues,Can keep secrets and in so doing gains the confidence of the negotiating parties,Controls his temper and emotions,Can,use conference,as mediating devices,Knows that the opponent will have problems in carrying out the decisions made during the negotiation,Is able to cope with the Arab disregard for time,Japanese Approaches to Negotiation,Focus on,group goals,interdependence,and a hierarchical orientation.,politeness,relationships,and their indirect use of power.,disclose less about themselves and their goals,than French or American counterparts.,put less emphasis on the literal meanings of words,German Approaches to Negotiation,Thorough,systematic,highly prepared,low in flexibility and compromise.,takes the rule of law seriously.,Conservatism and security is valued greatly,Make poor conversation partners as they see no point in small talk.,Frankness is honesty and“diplomacy”can often mean deviousness.,Consider formality and use of surname as signs of respect.,Be slow at making decisions as they have a consensus decision-making process which takes time.,Latin American Approaches to Negotiation,Role expectations influence negotiation in Latin American contexts.,Responsibility to others is generally considered more important than schedules and task accomplishment.,polychronic orientation to time.,Negotiation is done within networks,relationships are emphasized,and open,ruptures,are avoided.,They preferred a storied,holistic approach to conflict and negotiation,rather than a linear,analytical one.,African Approaches to Negotiation,These systems rely on particular approaches to negotiation that respect,kinship,ties and elder roles,and the structures of local society generally.,The goal of restoring social networks is paramount,and individual differences are expected to be,subsumed,in the interest of the group.,Elders have substantial power,and when they intervene in a conflict or a negotiation,their words are respected.,French,A great deal of,firmness,An,insistence on using French,as the language for the negotiation,A decidedly lateral style in negotiating,Verbally and nonverbally expressive,Love debate but not intense criticism,Drinking wine,Red tape,a big part of negotiating,Russian,Clear agendas,Make,few concessions early,in negotiation,Warm and gregarious,Be ready for,hardball tactics,:table-pounding,emotional outbursts,brinkmanship,loud threats and walkouts,Bureaucratic decision-making,Chinese,Have business negotiations in an indirect manner,Decision-making process is slow and time-consuming,Distinguished by concern for,“face,”and specialization,Welcome genuine interest in families,Korean,Respect hard-line,strong opponents,Avoid a joke or humorous anecdote,Known as,tough negotiators,Mistakes are dealt with severely,Being direct is incompatible with their business practices,Women play a subservient role,Interests,Drive,Negotiations,Peop,le,negotiate to,fulful,their interests.,Same bed,different dreams,Smart Bargaining:Doing Business with the Japanese,Japan,the first very successful,Asian,economy,M,uch of study about doing business,wi,th Japanese,Eight tactics for negotiating with the Japanese,1.Let Japanese bring up business.,2.Try not to interrupt them,3.Ask questions before making counter offers.,4.Expect and allow for silence.,5.Expect high price demands and ask questions.,6.Consider all issues together,not one at time,7.use informal channel of communication,8.Avoid threats.,Now that China has risen to economic prominence,China is the focus of most writing about negotiating in Asia.,Imbalances,In China,the tactics are like proverbs or folklore,36 Chinese Strategies China,It has been modified and applied to the world of business,History of“36 strategies”,Many foreign negotiators are realizing that the way to negotiating in China may be best sought from the source,Chinas ancient military classics,A collection of 36 stories of strategic prowess in ancient Chinese history,Stories are derived from military ploys applied during the Warring States Period(403-221 BC)or during the Three Kingdom Period(220-265 BC),Strategy 1:Cross the Sea by Deceiving the Sky,瞒天过海,Act in the open,but hide your true intentions.,Strategy 11:Sacrifice the Plum for the Peach,李代桃僵,Trade up!,Take a small loss for a large gain.,Strategy 15:Lure the Tiger out of the Mountain,调虎离山,Seek a neutral location.,Negotiate after leading them away from a position of strength.,Strategy 17Toss out a Brick to Attract a piece of Jade,抛砖引玉,Trade something of minor value for something of major value.,Strategy 29:Decorate the Tree with Fake Blossoms,树上开花,Reframe deceitfully.,Expand the pie with objects of little value.,Strategy 36:Retreat is the Best Option,走为上,Use your BATNA,Frequent use of Deception,Chinese negotiators commonly use,deception,when dealing with outsiders and non-family members,If you are an outside,you are from a culture that Chinese think of having exploited them in the past,you are very likely to encounter deception in the negotiation process.,Do you agree?,There can never be too much deception in war.,The market place,is a battlefield.,Chinese study these strategies not to deceive,but to prevent these strategies from being used against them,Effective Conflict Management,The key to effective cross-cultural communication is knowledge.,First,it is essential that people understand the potential problems of cross-cultural communication,and make a conscious effort to overcome these problems.,Second,it is important to assume that ones efforts will not always be successful,and adjust ones behavior appropriately.,2.Withdraw from the situation,step back when there is conflict.,3.Often,intermediaries,who are familiar with both cultures can be helpful in cross-cultural communication situations.,4.Redefine the conflicts without the,self-reference criterion,influence.,Effective Conflict Management(Cont.),Summary of International Business Negotiations,The laws,policies and political authorities of more than one nation.,The presence of different currencies,The participation of governmental authorities,International ventures are vulnerable to sudden and drastic changes in their circumstances,International business negotiators also encounter very different ideologies.,Cultural differences are an important factor in international negotiations.,
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