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Unit7
CulturalVariationsinNegotiationStyles1Unit7
CulturalVariationsinNegotiationManagement’sabilitytonegotiateproductivelyeffectstheirabilitytoimplementstrategiesNegotiationistheprocessofdiscussionbywhichtwoormorepartiesaimtoreachamutuallyacceptableagreementNegotiatingacrossbordersismorecomplexbecauseofthenumberofstakeholdersinvolved©2006PrenticeHall2NegotiationManagement’sabilitTheNegotiationProcess©2006PrenticeHall3TheNegotiationProcess©2006StageOne–PreparationNegotiatormustfamiliarizethemselveswithTheentirecontextandbackgroundoftheircounterpartsTothespecificsubjectstobenegotiatedDifferencesinculture,language,andenvironmentManagersmusthaveanunderstandingoftheirownnegotiatingstyle©2006PrenticeHall4StageOne–PreparationNegotiStageOne-PreparationManagersshouldfindoutasmuchaspossibleaboutThekindsofdemandsthatmightbemadeThecompositionoftheopposingteamTherelativeauthoritythatthememberspossessDevelopaprofileoftheircounterpartsTheyconsiderdifferentvariablesduringthisprocessaswell©2006PrenticeHall5StageOne-PreparationManagerTheNegotiationProcessRelationshipbuilding–takingtimetobuildmutualtrustbeforestartingbusinessdiscussionsMayrequirego-betweensBepreparedtowaitfortheotherpartytostartbusinessnegotiationsExchangingtaskrelatedinformation–duringthisstageeachsidemakesapresentationandstatesitsposition,normallyfollowedbyaquestion-and-answersessionRolereversal:showinganunderstandingoftheotherparty’sviewpointandneeds©2006PrenticeHall6TheNegotiationProcessRelatioTheNegotiationProcessPersuasion–duringthisstagebothpartiestrytopersuadetheothertoacceptmoreoftheirpositionwhilegivingupsomeoftheirown;therearerecognizabletacticsforthisstageStressfultacticsConcessionsandAgreements–atthispointeachsidewillmakevariousconcessionssothatanagreementcanbereachedandsigned©2006PrenticeHall7TheNegotiationProcessPersuasUnderstandingNegotiationStyles©2006PrenticeHall8UnderstandingNegotiationStylUnderstandingNegotiationStylesForNorthAmericans,negotiationsarebusinesslike;theirfactualappealsarebasedonwhattheybelieveisobjectiveinformation,presentedwiththeassumptionthatitisunderstoodbytheothersideonalogicalbasis.Arabsuseaffectiveappealsbasedonemotionsandsubjectivefeelings.Russiansemployaxiomaticappeals–thatis,theirappealsarebasedontheidealsgenerallyacceptedintheirsociety.©2006PrenticeHall9UnderstandingNegotiationStylProfileofanAmericanNegotiatorKnowswhentocompromiseTakesafirmstandatthebeginningofthenegotiationRefusestomakeconcessionsbeforehandKeepshisorhercardsclosetohisorherchestAcceptscompromisesonlywhenthenegotiationisdeadlockedSetsupthegeneralprinciplesanddelegatesthedetailworktoassociatesKeepsamaximumofoptionsopenbeforenegotiationOperatesingoodfaith©2006PrenticeHall10ProfileofanAmericanNegotiaProfileofanAmericanNegotiatorRespectsthe“opponents”StateshisorherpositionasclearlyaspossibleKnowswhenheorshewishesanegotiationtomoveonIsfullybriefedaboutthenegotiatedissuesHasagoodsenseoftimingandisconsistentMakestheotherpartyrevealhisorherpositionwhilekeepinghisorherownpositionhiddenaslongaspossibleLetstheothernegotiatorcomeforwardfirstandlooksforthebestdeal©2006PrenticeHall11ProfileofanAmericanNegotiaProfileofanIndianNegotiatorLooksforandsaysthetruthIsnotafraidofspeakingupandhasnofearsExercisesself-controlSeekssolutionsthatwillpleaseallthepartiesinvolvedRespectstheotherpartyNeitherusesviolencenorinsultsIsreadytochangehisorhermindanddifferwithhimselforherselfattheriskofbeingseenasinconsistentandunpredictable©2006PrenticeHall12ProfileofanIndianNegotiatoProfileofanIndianNegotiatorPutsthingsintoperspectiveandswitcheseasilyfromthesmallpicturetothebigoneIshumbleandtruststheopponentIsabletowithdraw,usesilence,andlearnfromwithinReliesonhimselforherself,hisorherownresourcesandstrengthsAppealstotheotherparty’sspiritualidentityIstenacious,patient,andpersistentLearnsfromtheopponentandavoidstheuseofsecretsGoesbeyondlogicalreasoningandtrustshisorherinstinctaswellasfaith©2006PrenticeHall13ProfileofanIndianNegotiatoProfileofanArabNegotiatorProtectsalltheparties’honor,self-respect,anddignityAvoidsdirectconfrontationbetweenopponentsIsrespectedandtrustedbyallDoesnotputthepartiesinvolvedinasituationwheretheyhavetoshowweaknessoradmitdefeatHasthenecessaryprestigetobelistenedtoIscreativeenoughtocomeupwithhonorablesolutionsforallpartiesIsimpartialandcanunderstandthepositionsofthevariouspartieswithoutleaningtowardoneortheother©2006PrenticeHall14ProfileofanArabNegotiatorProfileofanArabNegotiatorIsabletoresistanykindofpressurethattheopponentscouldtrytoexerciseonhimUsesreferencestopeoplewhoarehighlyrespectedbytheopponentstopersuadethemtochangetheirmindsonsomeissuesCankeepsecretsandinsodoinggainstheconfidenceofthenegotiatingpartiesControlshistemperandemotionsCanuseconferenceasmediatingdevicesKnowsthattheopponentwillhaveproblemsincarryingoutthedecisionsmadeduringthenegotiationIsabletocopewiththeArabdisregardfortime©2006PrenticeHall15ProfileofanArabNegotiatorIManagingNegotiation©2006PrenticeHall16ManagingNegotiation©2006PreManagingNegotiationSuccessfulmanagementofinterculturalnegotiationsrequiresthemanagerTogainspecificknowledgeofthepartiesintheupcomingmeetingToprepareaccordinglytoadjusttoandcontrolthesituationTobeinnovativeAproblemsolvingapproachisessentialtosuccessfulcross-culturalnegotiationsTreateveryonewithrespect,avoidmakinganyonefeeluncomfortable,don’tcriticizeorblameothersinapersonalwaysuchthattheyloseface©2006PrenticeHall17ManagingNegotiationSuccessfulUsingtheWebtoSupportNegotiationsNegotiationSupportSystems(NSS)canprovidesupportforthenegotiationprocessby:Increasingthelikelihoodthatanagreementisreachedwhenazoneofagreementexists(solutionsthatbothpartieswouldaccept)Decreasingthedirectandindirectcostsofnegotiations,suchascostscausedbytimedelays(strikes,violence),andattorneys’fees,amongothersMaximizingthechancesforoptimaloutcomes©2006PrenticeHall18UsingtheWebtoSupportNegotComparativeManagementinFocus:NegotiatingwiththeChineseTheChinesethinkintermsofprocessthathasnoculmination.Americansthinkintermsofconcretesolutionstospecificproblems....TheChineseapproachisimpersonal,patientandaloof...ToAmericans,Chineseleadersseempolitebutaloofandcondescending.TotheChinese,Americansappearerraticandsomewhatfrivolous.—HenryKissinger,Newsweek,May,2001©2006PrenticeHall19ComparativeManagementinFocuComparativeManagementinFocus:NegotiatingwiththeChineseBusinesspeoplehavetwomajorareasofconflictwhennegotiatingwiththeChineseAmountofdetailaboutproductcharacteristicsApparentinsincerityaboutreachinganagreementChinesenegotiationprocessisaffectedbythreeculturalnormsPolitenessandemotionalrestraintEmphasisonsocialobligationsBeliefintheinterconnectionofwork,family,andfriendship©2006PrenticeHall20ComparativeManagementinFocuComparativeManagementinFocus:NegotiatingwiththeChineseTipstoforeignersconductingbusinessinChinaPracticepatienceAcceptprolongedperiodsofstalemateRefrainfromexaggeratedexpectationsDiscountChineserhetoricaboutfutureprospectsExpecttheChinesetotrytomanipulatebyshamingResistthetemptationtobelievethatdifficultiesareyourfaultTrytounderstandChineseculturaltraits©2006PrenticeHall21ComparativeManagementinFocuManagingConflict©2006PrenticeHall22ManagingConflict©2006PrentiDecisionMakingStagesintheRationalDecisionMakingModelDefiningtheproblemGatheringandanalyzingrelevantdataConsideringalternativesolutionsDecidingonthebestsolutionImplementingthedecision©2006PrenticeHall23DecisionMakingStagesintheRCulturalVariablesAffectingDecisionMakingObjective(basingdecisionsonrationality)versussubjective(basingdecisionsonemotions)approachRisktoleranceLocusofcontrol–internal(managersincontrolofevents),orexternal(managershavelittlecontroloverevents)©2006PrenticeHall24CulturalVariablesAffectingDCulturalVariablesAffectingDecisionMaking©2006PrenticeHall25CulturalVariablesAffectingDComparativeManagementinFocus:DecisionMakinginJapanRingisystem:timetodecidevs.timetoimplement©2006PrenticeHall26ComparativeManagementinFocuLookingAheadChapter6-FormulatingStrategyReasonsforgoinginternationalStrategicFormulationProcessStepsinDevelopingInternationalandGlobalStrategies©2006PrenticeHall27LookingAheadChapter6-FormuStakeholdersReturn©2006PrenticeHall28StakeholdersReturn©2006PrenTwelveVariablesintheNegotiationProcess©2006PrenticeHall29TwelveVariablesintheNegotiPersuasionTacticsReturn©2006PrenticeHall30PersuasionTacticsReturn©2006Unit7
CulturalVariationsinNegotiationStyles31Unit7
CulturalVariationsinNegotiationManagement’sabilitytonegotiateproductivelyeffectstheirabilitytoimplementstrategiesNegotiationistheprocessofdiscussionbywhichtwoormorepartiesaimtoreachamutuallyacceptableagreementNegotiatingacrossbordersismorecomplexbecauseofthenumberofstakeholdersinvolved©2006PrenticeHall32NegotiationManagement’sabilitTheNegotiationProcess©2006PrenticeHall33TheNegotiationProcess©2006StageOne–PreparationNegotiatormustfamiliarizethemselveswithTheentirecontextandbackgroundoftheircounterpartsTothespecificsubjectstobenegotiatedDifferencesinculture,language,andenvironmentManagersmusthaveanunderstandingoftheirownnegotiatingstyle©2006PrenticeHall34StageOne–PreparationNegotiStageOne-PreparationManagersshouldfindoutasmuchaspossibleaboutThekindsofdemandsthatmightbemadeThecompositionoftheopposingteamTherelativeauthoritythatthememberspossessDevelopaprofileoftheircounterpartsTheyconsiderdifferentvariablesduringthisprocessaswell©2006PrenticeHall35StageOne-PreparationManagerTheNegotiationProcessRelationshipbuilding–takingtimetobuildmutualtrustbeforestartingbusinessdiscussionsMayrequirego-betweensBepreparedtowaitfortheotherpartytostartbusinessnegotiationsExchangingtaskrelatedinformation–duringthisstageeachsidemakesapresentationandstatesitsposition,normallyfollowedbyaquestion-and-answersessionRolereversal:showinganunderstandingoftheotherparty’sviewpointandneeds©2006PrenticeHall36TheNegotiationProcessRelatioTheNegotiationProcessPersuasion–duringthisstagebothpartiestrytopersuadetheothertoacceptmoreoftheirpositionwhilegivingupsomeoftheirown;therearerecognizabletacticsforthisstageStressfultacticsConcessionsandAgreements–atthispointeachsidewillmakevariousconcessionssothatanagreementcanbereachedandsigned©2006PrenticeHall37TheNegotiationProcessPersuasUnderstandingNegotiationStyles©2006PrenticeHall38UnderstandingNegotiationStylUnderstandingNegotiationStylesForNorthAmericans,negotiationsarebusinesslike;theirfactualappealsarebasedonwhattheybelieveisobjectiveinformation,presentedwiththeassumptionthatitisunderstoodbytheothersideonalogicalbasis.Arabsuseaffectiveappealsbasedonemotionsandsubjectivefeelings.Russiansemployaxiomaticappeals–thatis,theirappealsarebasedontheidealsgenerallyacceptedintheirsociety.©2006PrenticeHall39UnderstandingNegotiationStylProfileofanAmericanNegotiatorKnowswhentocompromiseTakesafirmstandatthebeginningofthenegotiationRefusestomakeconcessionsbeforehandKeepshisorhercardsclosetohisorherchestAcceptscompromisesonlywhenthenegotiationisdeadlockedSetsupthegeneralprinciplesanddelegatesthedetailworktoassociatesKeepsamaximumofoptionsopenbeforenegotiationOperatesingoodfaith©2006PrenticeHall40ProfileofanAmericanNegotiaProfileofanAmericanNegotiatorRespectsthe“opponents”StateshisorherpositionasclearlyaspossibleKnowswhenheorshewishesanegotiationtomoveonIsfullybriefedaboutthenegotiatedissuesHasagoodsenseoftimingandisconsistentMakestheotherpartyrevealhisorherpositionwhilekeepinghisorherownpositionhiddenaslongaspossibleLetstheothernegotiatorcomeforwardfirstandlooksforthebestdeal©2006PrenticeHall41ProfileofanAmericanNegotiaProfileofanIndianNegotiatorLooksforandsaysthetruthIsnotafraidofspeakingupandhasnofearsExercisesself-controlSeekssolutionsthatwillpleaseallthepartiesinvolvedRespectstheotherpartyNeitherusesviolencenorinsultsIsreadytochangehisorhermindanddifferwithhimselforherselfattheriskofbeingseenasinconsistentandunpredictable©2006PrenticeHall42ProfileofanIndianNegotiatoProfileofanIndianNegotiatorPutsthingsintoperspectiveandswitcheseasilyfromthesmallpicturetothebigoneIshumbleandtruststheopponentIsabletowithdraw,usesilence,andlearnfromwithinReliesonhimselforherself,hisorherownresourcesandstrengthsAppealstotheotherparty’sspiritualidentityIstenacious,patient,andpersistentLearnsfromtheopponentandavoidstheuseofsecretsGoesbeyondlogicalreasoningandtrustshisorherinstinctaswellasfaith©2006PrenticeHall43ProfileofanIndianNegotiatoProfileofanArabNegotiatorProtectsalltheparties’honor,self-respect,anddignityAvoidsdirectconfrontationbetweenopponentsIsrespectedandtrustedbyallDoesnotputthepartiesinvolvedinasituationwheretheyhavetoshowweaknessoradmitdefeatHasthenecessaryprestigetobelistenedtoIscreativeenoughtocomeupwithhonorablesolutionsforallpartiesIsimpartialandcanunderstandthepositionsofthevariouspartieswithoutleaningtowardoneortheother©2006PrenticeHall44ProfileofanArabNegotiatorProfileofanArabNegotiatorIsabletoresistanykindofpressurethattheopponentscouldtrytoexerciseonhimUsesreferencestopeoplewhoarehighlyrespectedbytheopponentstopersuadethemtochangetheirmindsonsomeissuesCankeepsecretsandinsodoinggainstheconfidenceofthenegotiatingpartiesControlshistemperandemotionsCanuseconferenceasmediatingdevicesKnowsthattheopponentwillhaveproblemsincarryingoutthedecisionsmadeduringthenegotiationIsabletocopewiththeArabdisregardfortime©2006PrenticeHall45ProfileofanArabNegotiatorIManagingNegotiation©2006PrenticeHall46ManagingNegotiation©2006PreManagingNegotiationSuccessfulmanagementofinterculturalnegotiationsrequiresthemanagerTogainspecificknowledgeofthepartiesintheupcomingmeetingToprepareaccordinglytoadjusttoandcontrolthesituationTobeinnovativeAproblemsolvingapproachisessentialtosuccessfulcross-culturalnegotiationsTreateveryonewithrespect,avoidmakinganyonefeeluncomfortable,don’tcriticizeorblameothersinapersonalwaysuchthattheyloseface©2006PrenticeHall47ManagingNegotiationSuccessfulUsingtheWebtoSupportNegotiationsNegotiationSupportSystems(NSS)canprovidesupportforthenegotiationprocessby:Increasingthelikelihoodthatanagreementisreachedwhenazoneofagreementexists(solutionsthatbothpartieswouldaccept)Decreasingthedirectandindirectcostsofnegotiations,suchascostscausedbytimedelays(strikes,violence),andattorneys’fees,amongothersMaximizingthechancesforoptimaloutcomes©2006PrenticeHall48UsingtheWebtoSupportNegotComparativeManagementinFocus:NegotiatingwiththeChineseTheChinesethinkintermsofprocessthathasnoculmination.Americansthinkintermsofconcretesolutionstospecificproblems....TheChineseapproachisimpersonal,patientandaloof...ToAmericans,Chineseleadersseempolitebutaloofandcondescending.TotheChinese,Americansappearerraticandsomewhatfrivolous.—HenryKissinger,Newsweek,May,2001©2006PrenticeHall49ComparativeManagementinFocuComparativeManagementinFocus:NegotiatingwiththeChineseBusinesspeoplehavetwomajorareasofconflictwhennegotiatingwiththeChineseAmountofdetailaboutproductcharacteristicsApparentinsincerityaboutreachinganagreementChinesenegotiationprocessisaffectedbythreeculturalnormsPolitenessandemotionalrestraintEmphasisonsocialobligationsBeliefintheinterconnectionofwork,f
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