Negotiation&Cross Cultural Communicaion Unit4

8/13/2019 Negotiation&Cross Cultural Communicaion Unit4

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Cross Cultural Communication &

Negotiation across Cultures

Unit 4


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BASICS OF CROSS-CULTURAL

COMMUNICATION


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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 languagesincluding German, English, and the

Scandinavian languages are low

context


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Swiss

Germans

Scandinavians

North Americans

Arabs

French

Italians

Latin Americans

British

Japanese

High Context: Meaning

Implicit Languages

Low Context: MeaningExplicit in Language

Surrounding

Information

Necessary for

Understanding

EX 3.1 High Context and

Low Context Countries


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Exhibit 3.2 Cultural

Differences in

Communication Styles

0

20

40

60

80

100

Nigeria

Mexico

SpainArgentian

USAGermany

IndiaBrazil

UK China

France

Japan

% Direct % Formal


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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 toover 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 Americancultures-more touching than Germanic,

Anglo, or Scandinavian 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

speaking a language or translating

written documents

Ensure the accuracy and common

understanding of agreements


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COMMUNICATION WITH

NONNATIVE SPEAKERS

Use the most common words with mostcommon meanings

Select words with few alternative meanings

Follow rules of grammar strictly

Speak with clear breaks between words


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INTERNATIONAL

NEGOTIATION

More complex than domestic negotiations

Differences in national cultures anddifferences in political, legal, and economic

systems often separate potential business

partners


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the process that is influenced not justby hard facts but by the personalvalues, skills, perceptions, attitudesand emotions of the parties at the

bargaining table.

time bound activity. Timing is acritical factor in negotiation. It playsan important role in influencing the

overall climate, and directly affectsthe ultimate outcome of thediscussions

Negotiation


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Negotiation

a voluntary activity in the sense thateither party can break away or refuseto enter discussion atany time.

a win-win situation. Each negotiatingparty feels that he or she has won inthe hardest way.

implies that both the parties areserious about the deal and are willingto enter a contract after the deal isstruck.


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The process in which two or more parties

communicate and exchange goods or services in

an attempt to rich a mutually agreeable solution

Negotiation


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Cultural Differences in Negotiations

Negotiating styles vary among national cultures;

for effective cross-cultural negotiation, you need

to understand other partys communicationpatterns, time orientations, social behavior and

idiosyncratic national issues.


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Successful Negotiators Characteristics

US Japanese Taiwanese Brazilian

Preparation &planning skill

Dedication tojob

Persistence &determination


Thinking underpressure

Perceive &exploit power

Win respect &confidence

Thinking underpressure

Judgment &intelligence

Win respect &confidence



Verballyexpressive

Integrity Productknowledge

Verballyexpressive

Product

knowledge

Demonstrate

listening skills

Interesting Product

knowledgePerceive &exploit power

Broadperspective


Perceive &exploit power

Integrity Verballyexpressive

Competitive


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Cultural Differences in Negotiations

Cultural context significantly influences:

History & identity in relation to conflict

Time frame (short/long; deadlines)

Emphasis on rationality/emotion/idealsThe amount and type of preparation for bargaining

Participants: few essential or the more the merrier;

young professional or respectable elderThe relative emphasis on task versus interpersonal

relationships and formal vs. informalmechanisms

(e.g., lawyers)


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Differences in Negotiations

Where the negotiation should be conducted

(business/leisure) and emphasis on entertainment

Communication patterns (verbal/nonverbal);

direct vs. non-direct rejection

The tactics used:

Extent of bargaining

Initial offersextreme or moderate

Nonverbal behavior

Verbal Tactics


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Verbal Tactics

(per hour session)

Behavior US Brazilian Japanese

Promise 8 3 7

Normative 2 1 4

Commitment 13 8 15

Self-Disclosure 36 39 34

Command 6 14 8

Nos 9 83.4 5.7

Profit level 57.3 75.2 61.5

Initial concessions 7.1 9.4 6.5


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Nonverbal Tactics

Behavior US Brazilian Japanese

Silent periods (per30 min.)

3.5 0 5.5

Conversationaloverlaps (per 10min.)

10.3 28.6 12.6

Facial gazing(minutes per 10

min.)

3.3 5.2 1.3

Touching (per 30min.)

0 4.7 0


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STEPS IN THE INTERNATIONALNEGOTIATION PROCESS


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STEP 1: PREPARATION

STEP 2: BUILDING THE

RELATIONSHIP

STEP 3: EXCHANGING

INFORMATION/FIRST OFFER

STEP 5: CONCESSIONS

STEP 6: AGREEMENT

STEP 4: PERSUASION


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STEP 1: PREPARATION

Is the negotiation possible?

Know what your company wants

Know the other side

Send the proper team

Agenda

Prepare for a long negotiation

Environment

Strategy


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Cultural Differences in Key

Negotiating Processes, Continued

Forms of agreementspecific or broad(ex. 3.5) Team organizationa team or one leader


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Exhibit 3.5 Preferences for

Broad Agreements

0

10

20

30

40

50

Japan

Germany

IndiaFrance

China

Argentina

Brazil

USANigeria

Mexico

SpainUK

% Preference for Broad Agreements


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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


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Negotiation Tactics, Continued

Commitment

Self disclosure Question

Command

No Interrupting


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DIRTY TRICKS IN

INTERNATIONALNEGOTIATIONS

Dirty tricks are negotiation tactics that

pressure opponents to accept unfair or

undesirable agreements or concessions


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PLOYS/DIRTY TRICKS -

POSSIBLE RESPONSES

Deliberate deception - point out what ishappening

Stalling - do not reveal when you plan toleave

Escalating authority - clarify decisionmaking authority


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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


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BASIC NEGOTIATION STRATEGIES

Competitive

The negotiation as a win-lose game

Problem solving

Search for possible win-win situations


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COMPETITIVE OR PROBLEM

SOLVING INTERNATIONALNEGOTIATION

Cultural norms and values maypredispose some negotiators to one

approach (EX 3.10)

Most experts recommend a problemsolving negotiation strategy


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EX 3.10 Preferences for

Problem-Solving Negotiation

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20

40

60

80

100

Japan

China

Argentina

France

IndiaUSAUK Mexico

Germany

Nigeria

Brazil

Spain

% Win-Win


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Curiosity Bilingual

Personal Characteristics,

Continued


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Negotiation&Cross Cultural Communicaion Unit4

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