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CulturalDifferences

inBusinessNegotiationChapter8Outlines

I.DefiningInterculturalNegotiationII.InterculturalNegotiationVariablesGeneralmodelRoleoftheindividualInteraction:dispositionsInteraction:processOutcomeIII.InterculturalNegotiationGuidelinesAwin-winstrategyUnderstandingyourcounterpartsBeinganeffectivenegotiator20rulesforinterculturalnegotiationApproachingnegotiations

Formalnegotiations:Informalnegotiationsbusinesspeopletalkaboutunitprice,theconditionsforatimelydeliveryandtheclausesforcompensations,ortheinvestmentproportionsforajointventure.

Informalnegotiations:

e.g.youtalktoyourbossaboutthepayraiseortheholidays,youcontactyourdebtorabouttheoverduepayment,youclaimcompensationtothesupplierforawrongdispatchofmerchandise,youaskyoursubordinatestofinishtheworkaccordingtothescheduledtimetable,etc.Alltheseeventsareatestofyourcommunicationskills.I.DefiningInterculturalNegotiationTheword“negotiation”stemsfromtheRomanwordnegotiari

meaning“toacrryonbusiness”andisderivedfromtheLatinrootwordsneg(not)andotium(easeorleisure).ObviouslyitwasastrueforancientRomansasitisformostbusinesspersonsoftodaythatnegotiationsandbusinessinvolvehardwork.DefinitionofNegotiationVariesTheverydefinitionofnegotiationcanvaryfromculturetoculture.-whatanegotiationisdesignedtoaccomplish(purpose,process,definingtheprocess,etc.)-inlowcontextcultures,negotiationusuallymeansachievingagoodoutcomeforbothpartiesthroughadiscussionofthereasonsandfactsinvolved.-inahighcontextculture,negotiationhasasitscoreelementtherelationshipbetweenthetwoparties.Ikle’sdefinitionofnegotiation(2)Tobeginwith,twoelementsmustnormallybepresentfornegotiationtotakeplace:Theremustbebothcommoninterestsandissuesofconflict.Withoutcommonintereststhereisnothingtonegotiatefor,withoutconflictingissues,nothingtonegotiateabout.(Ikle,1964)Therefore,amoderndefinitionofnegotiationistwoormorepartieswithcommon(andconflicting)interestswhoenterintoaprocessofinteractionwiththegoalofreachinganagreement(preferablyofmutualbenefit).InterculturalnegotiationAccordingtoMoran&Stripp(1991),interculturalnegotiationinvolvesdiscussionsofcommonandconflictinginterestsbetweenreasonsofdifferentculturalbackgroundswhoworktoreachanagreementofmutualbenefit.Theyfurtherexplainthatnegotiationstakeplacewithinthecontextofthefour

C’s:commoninterest,conflictinginterests,compromiseandcriteria.Merculturalenvironment

Inamono-culturalenvironment,thenegotiationprocessismorepredictableandaccurate,asthenegotiatorsdonothavetobeconcernedwithchallengesoflanguageandculturaldifferences.Thereare

manymorechallengesinaninterculturalenvironmentthaninamono-culturalsetting.Interculturalnegotiationsarenegotiationswherethenegotiatingpartiesbelongtodifferentculturesanddonotsharethesamewaysofthinking,feelingandbehavior.II.InterculturalNegotiationVariablesItisgenerallyagreedthataknowledgeoftheotherside’scultureallowsanegotiatortocommunicate,tounderstand,toplan,andtoanticipatemoreeffectively.Inadditiontotheconventionalpreparationforanynegotiation,theneedforextensivestudyoftheculture(s)cannotbeoverstressed.Thefocusofthesepreparationsshouldbeontheculture,notthelanguage.StephenWeiss’variablesofnegotiationManyscholarshaveidentifiedvariablesaffectinginterculturalnegotiations.Amongthem,StephenWeisshaddonesignificantstudiesonculture’seffectsonthenegotiationprocessproper.

Weiss(1988)proposestwelvevariablesofnegotiationasfociforinterculturalcomparisonsandpresentscorrespondingpropositionsforthesevariablesineachofthesevenculturalgroups–Americans,Chinese,French,Japanese,Mexicans,Nigerians,andSaudis.Foreaseofuse,theformconsistsof5“blocks”ofthe12points.Eachofthemrepresentsafocalpointinidentifyingaculturalimpact:SummaryofTwelveVariables(2)

ROLEOFTHEINDIVIDUAL3.SelectionofNegotiatorsknowledge/negotiatingexperience/personalattributes/status4.Individuals’Aspirationsindividualcommunity5.Decision-makinginGroupsauthoritativeconsensualSummaryofTwelveVariables(3)

INTERACTION:Dispositions6.OrientationtowardTimemonochronicpolychronic7.Risk-takingPropensityhighlow8.BasesofTrustExternalsanctions/other’sreputation/intuition/sharedexperiencesSummaryofTwelveVariables(5)

OUTCOME12.FormofAgreementcontractualimplicitAmongthetwelvevariablesabove,therearesometie-insandoverlaps.Forinstance,thecommunicationcomplexityrelatestothenatureofpersuasionandformofagreement,aswellas,howtheindividual’saspirationsaffecttheselectionofnegotiators.III.InterculturalNegotiationGuidelines

Awin-winstrategy

Thekeytoeffectivenegotiatingistocreatenewissuesandthusincreasethealternativesforeachpartytobenefit,i.e.findawin-winalternativebywhichbothsidescanbenefit.Howawin-winsolutionhelpsbothsidesisexemplifiedinthefollowing(Follet,1940).TheExampleThereweretwosistersarguingoverthepossessionofanorange.Onesisterwantedtodrinkthejuice,theother,tousethepeelinbakingacake.Theyagreedtocutitinhalf,andtherebyoverlookedthealternativebywhichbothwoulddoubletheirbenefits:onetakeallthepeelandtheothertakeallthejuice.Understandingyourcounterparts(1)

Negotiatorsasmembersofsocietyareledeasilyintoattitudesofculturalbias.Theonlywaytoovercomethatbiasistocreateawarenessofone’sownculturalsystembyunderstandinghowotherpeoplebehaveinanothersystem.Thenegotiatorwho,fromhisknowledgeofhiscounterpart’scultureandhissensitivitytoit,canadapthisbehaviortothesituationandservetheinterestsoftheinteraction.Understandingyourcounterparts(2)Themoreandbetterthecommunication,thegreatertheamountofinformationsharedorextracted,andthegreaterthebuild-upoftrust,themorelikelyisthepossibilityofcreatingthesatisfactionthatnegotiatorsareexchangingattheendoftheday.Inordertobeeffectivethenegotiatormustbeconstantlyalerttothedistinctivequalitiesofthepeoplewithwhomheisnegotiating.Understandingyourcounterparts(3)Thenegotiatorhastoappreciatethemeaningoftheiractionssoasnottomisleadorbemisledbythem,andtomakehisownpointsinawaythatpromotesadvantageousoutcomes.Effectivenegotiatorsoperateasdetectivessearchingforcluestothevaluesandinterestsoftheircounterparts.Beinganeffectivenegotiator(1)Effectivenegotiatorswillgenerallybesuccessfulintheirnegotiationattempts,andtheirideaswillbefeasibletoimplement.Skillednegotiatorsconsideranumberofalternatives,arenotasconcernedaboutthesequenceoftheitemstobenegotiated,emphasizeareasofagreement,andconsiderthelongtermconsequencesoftheiragreements.Beinganeffectivenegotiator(2)

Thecharacteristicsofeffectivenegotiatorsusuallyinclude:

Beingobservant,patient,andgoodlistenersHavingoutstandingcommunicationskillsBeingknowledgeableaboutthecountrywithwhomtheyareBeingpersistent,adaptableandtactfulBeingwillingtotakerisksandusehumorwithdiscretionHavingphysicalstamina,self-confidence,decisiveness,creativity,willingnesstolisten,self-control,andalong-runoutlookBeingsensitivetotheinterestandneedsofothersBeforethenegotiation(1)

Rule1:Determinethatthenegotiationisfeasible.

Rule2:Definetheobjectivestobegainedfromthenegotiation.

Rule3:Researchyourfactssuchasculture-specificinformationandbusinessstyle.Beforethenegotiation(2)

Rule4:Decideonyourstrategy.

Rule5:Sendtheproperteamincludingyourowninterpreter;ifconsultantsareproper,includethem.Donotchangenegotiators.

Rule6:Allowplentyoftime.Donot,however,telltheothersideyourtimetable.Beginningthenegotiation

Rule7:

Makesuretheenvironmentiscorrect;befamiliarwiththeagenda,physicalarrangements,andtheareawherethenegotiationswilltakeplace.Hardbargaining(1)

Rule8:Controltheinformationyougiveyouropponents.

Rule9:Watchyouruseofidioms,slang,andotherverbalandnonverbalcommunication.

Rule10:Putyourthoughtprocessesonthesamemindsetasyouropponents.RememberthattheyarenotU.S.Americansandthatyourpersuasiontechniquesneedtobeflexible.Hardbargaining(2)

Rule11:Adjusttothewayoflifeinthehostculture.Rememberthewell-knownadage,“WhileinRome,doastheRomansdo.”

Rule12:Talkinformallyawayfromthepressure.

Rule13:Remembertosavefaceforeveryone.Rule14:Avoidadeadlock;neithersidewinsandbothsideslose.Hardbargaining(3)Rule15:Donotagreetoabaddeal,bepreparedtowalkaway.

Rule16:Makesuretheagreementissignedbeforeyouleave.

Rule17:Besurebothpartiesunderstandthemeaningofwhattheysigned.

Rule18:Beflexibleinyourviewofthedefinitionofacontract.Beyondthecontract

Rule19:Discussdifferencesandcometoagreementsratherthanlegalsettlements.

Rule20:Maintainagoodrelationshipwiththeotherside.

Byusingtheseguidelines,planningproperly,treatingpeopleindividuallyratherthanstereotypingthem,

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