Cross cultural management 3e by cullen ch12

International Negotiation• Process of making business deals across cultures • Precedes any multinational project • Successful negotiation requires successful communication • Negotiators

Chapter 12

International Negotiation and

Cross-Cultural Communication

• Recognize and respond to the “dirty tricks”

• Understand the basics of spoken and nonverbal

International Negotiation

• Process of making business deals across cultures

• Precedes any multinational project

• Successful negotiation requires successful

communication

• Negotiators must understand all components of

culturally different communication styles

• Process of making business deals across cultures

• Precedes any multinational project

• Successful negotiation requires successful

communication

• Negotiators must understand all components of

culturally different communication styles

Language and Culture

• Whorf hypothesis: theory that language determines the nature of culture

• All languages have limited sets of words

• Words provide the concepts of understanding the

• All languages have limited sets of words

• Words provide the concepts of understanding the

world

• Restricted word sets constrain the ability to understand the world

High- and Low-Context Languages

• Low-context language: people state things directly and explicitly

• Most northern European languages including

German, English, and the Scandinavian languages

• High-context language: people state things indirectly

and implicitly

• Asian and Arabic languages

• Low-context language: people state things directly and explicitly

• Most northern European languages including

German, English, and the Scandinavian languages

• High-context language: people state things indirectly

and implicitly

• Asian and Arabic languages

Exhibit 12.1: Country Differences in

High-Context and Low-Context

Communication

Basic Communication Styles

• Direct communication: communication that comes to

the point and lacks ambiguity

• Formal communication: communication that

acknowledges rank, titles, and ceremony in prescribed social interaction

• Direct communication: communication that comes to

the point and lacks ambiguity

• Formal communication: communication that

acknowledges rank, titles, and ceremony in prescribed social interaction

Exhibit 12.2: Cultural Differences in

Communication Styles

Nonverbal Communication

• Communication without words

• Includes array of behaviors that enhance/supplement spoken communication

• Include

• Kinesics, proxemics, haptics, oculesics, and

olfactics

• Communication without words

• Includes array of behaviors that enhance/supplement

spoken communication

• Include

• Kinesics, proxemics, haptics, oculesics, and

olfactics

• Communication through body movements

• E.g., facial expressions, body posture

• Most Asian cultures use bowing to show respect

• No universal code for what body movements mean

• Easy to misinterpret gestures

• Communication through body movements

• E.g., facial expressions, body posture

• Most Asian cultures use bowing to show respect

• No universal code for what body movements mean

• Easy to misinterpret gestures

• Use of space to communicate

• Each culture has appropriate distances for

communication

• The personal bubble of space may range from 9

inches to over 20 inches

• North Americans prefer more distance than Latin

and Arab cultures

• Use of space to communicate

• Each culture has appropriate distances for

communication

• The personal bubble of space may range from 9

inches to over 20 inches

• North Americans prefer more distance than Latin

and Arab cultures

Seating in a Typical Japanese Office

• E.g., Latin American countries, Italy, and Greece

• Shaking hands, embracing, or kissing when greeting

• Communication through eye contact or gaze

• U.S and Canada: people are very comfortable and expect eye contact to be maintained

• China and Japan: eye contact is considered very

rude and disrespectful

• Communication through eye contact or gaze

• U.S and Canada: people are very comfortable and expect eye contact to be maintained

• China and Japan: eye contact is considered very

rude and disrespectful

The Basics of Cross-Cultural Communication

• Olfactics: use of smells as a means of nonverbal

communication

• U.S.: find body odor offensive

• Arab: consider body odors natural

• Olfactics: use of smells as a means of nonverbal

communication

• U.S.: find body odor offensive

• Arab: consider body odors natural

Practical Issues in Cultural Business

Cross-Communication

• Interpreter’s role: to provide a simultaneous translation

of a foreign language

• Require greater linguistic skills than speaking a

language or translating written documents

• Have the technical knowledge and vocabulary to deal with technical details common in business

• Require greater linguistic skills than speaking a

language or translating written documents

• Have the technical knowledge and vocabulary to deal with technical details common in business

transactions

• Have to ensure the accuracy and common

understanding of agreements

Tips for Successful Use of Interpreters

• Spend time with the interpreter

• Go over technical and other issues with interpreter for proper understanding

• Insist on frequent interruptions when it’s necessary

• Look for feedback and comprehension by watching the eyes

• Spend time with the interpreter

• Go over technical and other issues with interpreter for proper understanding

• Insist on frequent interruptions when it’s necessary

• Look for feedback and comprehension by watching the eyes

Tips for Successful use of Interpreters (cont.)

• Discuss the message beforehand

• Request that your interpreter apologize for your

inability to speak in the local language

• Confirm that all key components of the message have been properly comprehended

• Discuss the message beforehand

• Request that your interpreter apologize for your

inability to speak in the local language

• Confirm that all key components of the message have been properly comprehended

Communication with Nonnative Speakers

• Use the most common words with most common

meanings

• Select words with few alternative meanings

• Follow rules of grammar strictly

• Speak with clear breaks between words

• Avoid sports words or words borrowed from literature

• Use the most common words with most common

meanings

• Select words with few alternative meanings

• Follow rules of grammar strictly

• Speak with clear breaks between words

• Avoid sports words or words borrowed from literature

Communication with Nonnative Speakers (cont.)

• Avoid words or expressions that are pictures

• Avoid slang

• Mimic the cultural flavor of the nonnative speaker’s

language

• Test your communication success

• Repeat basic ideas using different words when your

counterpart does not understand

• Confirm important aspects in writing

• Avoid words or expressions that are pictures

• Avoid slang

• Mimic the cultural flavor of the nonnative speaker’s

language

• Test your communication success

• Repeat basic ideas using different words when your

counterpart does not understand

• Confirm important aspects in writing

Avoiding Attribution Errors

• Attribution: process by which we interpret the meaning

of spoken words or nonverbal exchanges

• Attribute meaning based on our taken-for-granted

cultural expectations

• Easy to make mistakes of attribution

• Need to observe carefully

• Avoid subtleties of a foreign language

• Avoid complex nonverbal behaviors

• Attribution: process by which we interpret the meaning

of spoken words or nonverbal exchanges

• Attribute meaning based on our taken-for-granted

cultural expectations

• Easy to make mistakes of attribution

• Need to observe carefully

• Avoid subtleties of a foreign language

• Avoid complex nonverbal behaviors

International Negotiation

• More complex than domestic negotiations

• Differences in national cultures and differences in

political, legal, and economic systems

• Steps in international negotiation

• Preparation, building the relationship, exchanging

information, first offer, persuasion, concessions,

agreement, and post agreement

• More complex than domestic negotiations

• Differences in national cultures and differences in

political, legal, and economic systems

• Steps in international negotiation

• Preparation, building the relationship, exchanging

information, first offer, persuasion, concessions,

agreement, and post agreement

Exhibit 12.3: Steps in International

Negotiations

Step 1: Preparation

• Determine if the negotiation is possible

• Know what your company wants

• Know the other side

• Send the proper team

• What is the agenda?

• Prepare for long negotiation

• What is the environment like?

• Plan a strategy

• Determine if the negotiation is possible

• Know what your company wants

• Know the other side

• Send the proper team

• What is the agenda?

• Prepare for long negotiation

• What is the environment like?

• Plan a strategy

Cultural Differences in Key Negotiating Processes

• Negotiation goal—signing the contract or forming a

relationship

• Formal or informal personal communication style

• Direct or indirect communication style

• Sensitivity to time—low or high

• Forms of agreement—specific or general

• Team organization—a team or one leader

• Negotiation goal—signing the contract or forming a

relationship

• Formal or informal personal communication style

• Direct or indirect communication style

• Sensitivity to time—low or high

• Forms of agreement—specific or general

• Team organization—a team or one leader

Exhibit 12.4: Cultural Differences

in Preference for Broad

Agreements

Exhibit 12.5: Understanding

Negotiators from Other Countries

Step 2: Building the Relationship

• First stage of the actual negotiation process

• No focus on business

• Partners get to know each other

• Social and interpersonal exchange

• Duration and importance vary by culture

• First stage of the actual negotiation process

• No focus on business

• Partners get to know each other

• Social and interpersonal exchange

• Duration and importance vary by culture

Step 3: Exchanging Information and the First Offer

• Both parties exchange information on their needs for

• First offer: first proposal by parties of what they

expect from the agreement

• Both parties exchange information on their needs for

• First offer: first proposal by parties of what they

expect from the agreement

Exhibit 12.6: Information Exchange and

First-Offer Strategies

Exhibit 12.6: Information Exchange and

First-Offer Strategies

Exhibit 12.6: Information Exchange and

First-Offer Strategies

Step 4: Persuasion

• Stage when each side in the negotiation attempts to

get the other side to agree to its position

• Heart of the negotiation process

• Numerous tactics used

• Stage when each side in the negotiation attempts to

get the other side to agree to its position

• Heart of the negotiation process

• Numerous tactics used

Verbal Negotiation Tactics

Verbal Negotiation Tactics

Exhibit 12.7: Comparison of Brazilian,

U.S., and Japanese Negotiators (in

half-hour bargaining session)

Ploys/Dirty Tricks and Responses

• Deliberate deception or bluffing—point out what you

believe is happening

• Stalling—do not reveal when you plan to leave

• Escalating authority—clarify decision making authority

• Good-guy, bad-guy routine—do not make any

concessions

• Deliberate deception or bluffing—point out what you

believe is happening

• Stalling—do not reveal when you plan to leave

• Escalating authority—clarify decision making authority

• Good-guy, bad-guy routine—do not make any

concessions

Ploys/Dirty tricks and Responses

• You are wealthy and we are poor—ignore the ploy

• Old friends—keep a psychological distance

• You are wealthy and we are poor—ignore the ploy

• Old friends—keep a psychological distance

Step 5 and 6: Concession and Agreement

• Final agreement: signed contract, agreeable to all

sides

• Concession making: requires that each side relax

some of its demands

• Final agreement: signed contract, agreeable to all

sides

• Concession making: requires that each side relax

some of its demands

Styles of Concession

• Sequential approach: each side reciprocates

concessions

• Holistic approach: each side makes very few

concessions until the end of the negotiation

• Sequential approach: each side reciprocates

concessions

• Holistic approach: each side makes very few

concessions until the end of the negotiation

Basic Negotiation Strategies

• Competitive negotiation: each side tried to give as little

as possible and tries to “win” for its side

• The negotiation as a win-lose game

• Problem solving: negotiators seek out ground that is

beneficial to both companies’ interests

• Search for possible win-win situations

• Competitive negotiation: each side tried to give as little

as possible and tries to “win” for its side

• The negotiation as a win-lose game

• Problem solving: negotiators seek out ground that is

beneficial to both companies’ interests

• Search for possible win-win situations

Exhibit 12.8: Competitive and

Problem-Solving Negotiation in the Negotiating

Steps

Exhibit 12.9: Cultural Differences in

Preference for a Problem-Solving

Negotiation Strategy

Step 7: Post Agreement

• Commonly ignored step

• Consists of an evaluation of the success of a

competed negotiation

• Allows the garnering of insights from understanding

strengths and weaknesses of negotiation

• Commonly ignored step

• Consists of an evaluation of the success of a

competed negotiation

• Allows the garnering of insights from understanding

strengths and weaknesses of negotiation

The Successful International Negotiator: Personal

Major Points Regarding Successful International Negotiation

• Few negotiations succeed without extensive

Major Points Regarding Successful International Negotiation

4 Many tactics are used in persuasion

5 Know how counterpart views the concession-making

4 Many tactics are used in persuasion

5 Know how counterpart views the concession-making

process

6 Culture and legal traditions influence the content and

force of law regarding business contracts

7 Competitive negotiation seldom leads to long-term

relationships

Major Points Regarding Successful International Negotiation

8 Problem-solving negotiation is more flexible and

probably more successful strategy

9 Must be flexible, empathic, and physically tough

8 Problem-solving negotiation is more flexible and

probably more successful strategy

9 Must be flexible, empathic, and physically tough