Cross cultural management 3rd chapter 15 (11) negotiating internationally

The ‘Western’ approach:• Negotiating is a problem-solving exercise • Two types of negotiation strategy predominate: – the distributive win–lose – the integrative win–win strategy.. Cro

Chapter 15

Negotiating internationally

The ‘Western’ approach:

• Negotiating is a problem-solving exercise

• Two types of negotiation strategy predominate:

– the distributive (win–lose)

– the integrative (win–win strategy).

The nature of negotiation

Cross-cultural negotiation in practice:

the USA and China

• The US sees the deal:

– as the main objective of any negotiation

• Very focussed bottom-line approach

• For the Chinese:

– a negotiation is just part of developing a life-long relationship

• Need to establish a good rapport before talking of a

deal

Interpersonal orientation: fundamental opposition

the USA and China (Continued)

US

•Clear hierarchy in US team

•Deference shown, even if the language used informal

•Risk-taking seen as inherent to getting the best deal possible

China

•Often difficult to know who the Chinese team leader is

•Will resist pressure from the American side until all Chinese

parties satisfied

•Any risk-taking must be carefully orchestrated

Power orientation

Cross-cultural negotiation in practice:

the USA and China (Continued)

Underlying concept of negotiation

1 Negotiation strategies:

Both US approaches (win–win and win–lose):

•should lead to a definitive contract to which both sides are expected

to adhere.

•The Chinese:

– find it difficult to take this linear approach.

– the negotiation is just one of many encounters

– The principle is to build a business partnership

the USA and China (Continued)

Underlying concept of negotiation

2 Strategic time frame:

For the Chinese:

•a deal made at the end of a negotiation remains negotiable in the long term.

• Agreements are based on trust and goodwill

– This can be frustrating for Americans since for them time is of the essence – and a deal’s a deal!

Cross-cultural negotiation in practice:

the USA and China (Continued)

US negotiators:

- concerned with specifics, the information which allows them to pursue their way of negotiating

•Need to gain a clearer idea of the other party’s concerns and interests

to establish or modify their goals

•Ready to give a lot of information if this is part of an exchange

The Chinese

•gaining trust + confidence is more important than facts and figures

•May not have information asked for (possible face loss)

•Younger managers more in tune with Western behaviour norms

Style of negotiation

the USA and China (Continued)

US negotiators

•a detailed contract is the ideal conclusion to a negotiation:

– signed, sealed and delivered

•In the final phase detailed points are hammered out:

– Implementation

– Legal aspects

Chinese

•tend to avoid legalistic details

•Prefer short contracts that show commitment to project

•A contract :

– only a formal moment in development of a relationship

•Further negotiations:

Outcome orientations

Cross-cultural negotiation in practice:

the USA and China (Continued)

• The Chinese and American negotiators:

– face innumerable potential difficulties

• The opposition in expectations and attitudes:

– is clear

– the expected frustrations and irritations evident

Cultural approach of negotiating

• ‘one-size-fits-all’ approach to be inappropriate

• a range of strategies which are:

1 culturally responsive;

2 reflect the skills of the individuals involved;

3 take account of the circumstances in which they

are working.

The five steps

The five steps in selecting a negotiating strategy

take account of these complexities

1.Reflect on your culture’s negotiation script

2.Learn the negotiation script of the counterpart’s

culture

3.Consider the relationship and circumstances

4.Predict and influence the counterpart’s approach 5.Choose your strategy.