Cross cultural management 5e by cullen CH13

International Negotiation• Process of making business deals across cultures • Precedes any multinational project • Without successful negotiation and the accompanying cross-cultural comm

• Recognize and respond to the “dirty tricks” in

• Understand the basics of verbal and nonverbal

International Negotiation

• Process of making business deals across cultures

• Precedes any multinational project

• Without successful negotiation and the accompanying cross-cultural communication, there are seldom

successful business transactions

• Process of making business deals across cultures

• Precedes any multinational project

• Without successful negotiation and the accompanying cross-cultural communication, there are seldom

successful business transactions

The Basic of Cross-Cultural Communication

• Successful negotiation requires successful

communication

• Negotiators must understand all components of

culturally different communication styles (both verbal

and nonverbal)

• Avoid attribution errors

• Attribution: process by which we interpret the meaning

of spoken words or nonverbal exchanges

• Successful negotiation requires successful

communication

• Negotiators must understand all components of

culturally different communication styles (both verbal

and nonverbal)

• Avoid attribution errors

• Attribution: process by which we interpret the meaning

of spoken words or nonverbal exchanges

Language and Culture

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

• Words provide the concepts of understanding the world

• All languages have limited sets of words

• Restricted word sets constrain the ability to

conceptualize the world

• As language structures the way we think about what

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

• Words provide the concepts of understanding the world

• All languages have limited sets of words

• Restricted word sets constrain the ability to

conceptualize the world

• As language structures the way we think about what

High- and Low-Context Languages

• Low-context language: people state things directly and explicitly, and you do not have to understand contexts

- Most northern European languages including

German, English, and the Scandinavian languages

• High-context language: people state things indirectly

and implicitly

- Asian and Arabic languages

- Multiple meanings depending on the context

• Low-context language: people state things directly and explicitly, and you do not have to understand contexts

- Most northern European languages including

German, English, and the Scandinavian languages

• High-context language: people state things indirectly

and implicitly

- Asian and Arabic languages

- Multiple meanings depending on the context

Exhibit 13.1: 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 13.2: Cultural Differences in

Communication Styles

Nonverbal Communication

• Communication without words

• Face to face communication that is not oral

• Includes array of behaviors that enhance/supplement spoken communication (gestures, smiles, etc)

• Include

- Kinesics, proxemics, haptics, oculesics, and olfactics

• Communication without words

• Face to face communication that is not oral

• Includes array of behaviors that enhance/supplement

spoken communication (gestures, smiles, etc)

• Include

- Kinesics, proxemics, haptics, oculesics, and olfactics

• Communication through body movements

- E.g., facial expressions, body posture, gestures

- 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, gestures

- 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 various

levels of communication

- The personal bubble of space may range from 9

inches to over 20 inches

- North Americans prefer more distance than Latin and Middle East cultures

• Use of space to communicate

- Each culture has appropriate distances for various

levels of communication

- The personal bubble of space may range from 9

inches to over 20 inches

- North Americans prefer more distance than Latin and Middle East cultures

Seating in a Typical Japanese Office

Haptics or Touching

• Communication through body contact

• Shaking hands, embracing, or kissing when greeting one

• E.g., Latin American and Latin European countries

• Communication through body contact

• Shaking hands, embracing, or kissing when greeting one

• Communication through eye contact or gaze

- U.S and Canada: people are very comfortable and expect eye contact to be maintained for a short

moment during conversations

- China and Japan: eye contact is considered very

rude and disrespectful, and respect is shown by

avoiding eye contact

• Communication through eye contact or gaze

- U.S and Canada: people are very comfortable and

expect eye contact to be maintained for a short

moment during conversations

- China and Japan: eye contact is considered very

rude and disrespectful, and respect is shown by

avoiding eye contact

• The use of smells as means of nonverbal

communication

- U.S and U.K: find body odor offensive

- Arab: consider body odors natural

• The use of smells as means of nonverbal

communication

- U.S and U.K: find body odor offensive

- Arab: consider body odors natural

Using Interpreters in Cultural Communication

Cross-• 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

transactions

• 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

transactions

- Have to ensure the accuracy and common

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

• Summarize

• Test your communication success

• Repeat basic ideas using different words when your

• Avoid words or expressions that are pictures

• Avoid slang

• Mimic the cultural flavor of the nonnative speaker’s

language

• Summarize

• Test your communication success

• Repeat basic ideas using different words when your

International Negotiation

• More complex than domestic negotiations

• Differences in national cultures and in political, legal,

and economic systems

• Steps in international negotiation

- Preparation, building the relationship, exchanging

information, first offer, persuasion, concessions,

agreement, and post agreement

• May combine two or more steps together

• More complex than domestic negotiations

• Differences in national cultures and in political, legal,

and economic systems

• Steps in international negotiation

- Preparation, building the relationship, exchanging

information, first offer, persuasion, concessions,

agreement, and post agreement

• May combine two or more steps together

Exhibit 13.3: Steps in International

Negotiations

Step 1: Preparation

• Determine if the negotiation is possible

• Know what your company wants

• Be aware of what can be compromised

• Know the other side

• Send the proper team

• Understand the agenda

• Prepare for long negotiation

• Determine if the negotiation is possible

• Know what your company wants

• Be aware of what can be compromised

• Know the other side

• Send the proper team

• Understand the agenda

• Prepare for long negotiation

Cultural Differences in 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

• 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

Cultural Differences in Negotiating Processes

• Attitude towards negotiation – win-lose or win-win

• High or low emotions

• Latin Americans and the Spanish: show their

emotions through negotiations

• Japanese and Germans: tend to be more reserved

• Attitude towards negotiation – win-lose or win-win

• High or low emotions

• Latin Americans and the Spanish: show their

emotions through negotiations

• Japanese and Germans: tend to be more reserved

Exhibit 13.4: Cultural Differences

in Preference for Broad

Agreements

Exhibit 13.5: Understanding

Negotiators from Other Countries

Step 2: Building the Relationship

• First stage of the actual negotiation process

- Do not focus on business

- Partners get to know each other

- Social and interpersonal exchanges

- Duration and importance vary by culture

• First stage of the actual negotiation process

- Do not focus on business

- Partners get to know each other

- Social and interpersonal exchanges

- 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 13.6: 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

Two general types of tactics : Standard verbal and nonverbal negotiation tactics, and dirty tricks

• 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

Two general types of tactics : Standard verbal and nonverbal negotiation tactics, and dirty tricks

Verbal and Nonverbal Negotiation Tactics

Verbal and Nonverbal Negotiation Tactics

Exhibit 13.7: Comparison of Brazilian,

U.S., and Japanese Negotiators (in

half-hour bargaining session)

Dirty Tricks

• Negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions

• Negotiation tactics that pressure opponents to accept

unfair or undesirable agreements or concessions

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 made by the other side

• Holistic approach: each side makes very few, if any,

concessions until the end of the negotiation

• Sequential approach: each side reciprocates

concessions made by the other side

• Holistic approach: each side makes very few, if any,

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 mutually

satisfactory 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 mutually

satisfactory ground that is beneficial to both companies’ interests

- Search for possible win-win situations

Exhibit 13.8: Competitive and

Problem-Solving Negotiation in the Negotiating

Steps

Exhibit 13.9: 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