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HOW BEST CAN WE NEGOTIATE ACROSS CULTURES?
Negotiating across cultures Selecting your negotiating style, tactic and strategy Term paper: Group Work Group 5 United States International University.
Its process we undertake in everyday activities to manage our relationships both business and personal. The latter type of negotiations is what we are interested in this paper. negotiation. what is culture.1 . being able to negotiate effectively with foreigners has become a critical skill.Cross cultural Negotiations Abstract Negotiation is basic human activity. Since international business is all around us and many thousands of companies are already involved. highly relevant to the implementation of business strategies. Business negotiations are increasingly recognized as a full part of the managerial process. tactics and strategies and draw a conclusion as to which best suits international and cross cultural negotiations. This paper first discusses the fundamentals. intercultural discussions and then goes on to discuss different negotiating styles.
Cross cultural Negotiations INTRODUCTION Over the years culture has had different definition from different authors. and assumptions about life that are widely shared among people and that guide specific behaviors. . Both the relevant skills and the appropriate circumstances are quite different for these three activities. 6). It‘s not another term for bargaining or selling. p.Thus negotiation also has different definitions with different authors. usually by the exchange of concessions (Thorn. (Brislin 1993) Negotiation on the other hand is a much abused word. Each of the authors has brought out different characteristics of culture that wholesomely make up a comprehensive definition.21). It consists of ideals. usually on a competitive basis against other supplier in exchange for money. It‘s "to human collectivity while personality is to the individual" (Hofstede 1984. storing. 2004. 2003). Below are some of the definitions of culture: It‘s a technical term used by anthropologists to refer to a system for creating. p. values. sending. Bargaining is more like haggling in a typical ―bazaar‖ setting (Chauri & Usunier. and processing information developed by human beings. To fully understand the difference note that selling is about satisfying a specific customers specific needs. which differentiates them from other life forms (Hall 1990). but negotiation is concerned with resolving conflict between two or more parties.
and the arrangement of all elements that deal. Negotiation is a process that involves balancing matters between two parties so that you not only get what you want. 2002. implicit assumptions. the terms and conditions in some business deals. It‘s the art of concluding a deal. It is and should be used to resolve disputes and reaching decisions in teams and other multiparty environments. Brett (2007) also defined negotiation as the process by which people with conflicting interests determine how they are going to allocate resources or work together in the future. for instance.Cross cultural Negotiations Chauri and Usunier (2003) define negotiation as a voluntary process of give and take where both parties modify their offers and expectations in order to come closer to each other. Harris and Moran (2000) state that. 7). negotiating styles . . It‘s a form of communication (Forsyth. 54). and the role of ceremony and formality (p.p 6. the difference in the negotiation from culture to culture include language . She goes on to say negotiation is not only for making deals. cultural conditioning . negotiation is the process in which two or more entries come together to discuss common and conflicting interests to reach an agreement of mutual benefit. p. gestures and facial expressions . but get what you want in the best possible way. approaches to problem solving. In international business negotiations then. All in all negotiation is at the heart of every transaction and for the most part it comes down to interaction between two sides with a common goal but divergent methods.
Cultural factors play an important role in international business negotiations (Chauri & Usunier. First we looked at the core factors and strategies that will affect cross cultural negotiations. p. in some cases. cultural sensitivities. 1997). All of this can be set against a background of political and economic instability. influence these positions (Acuff. restrictive regulations and. both sides must conduct ―cultural due diligence. legal systems. at best. According to Brett (2007 p. 156). Underlying cultural orientations and core values. marginally negotiable. direct government interference. 1) the negotiating environment can be further complicated by government-led bureaucracy. The process of negotiation requires individuals and groups to adopt a position based on their interests and needs.Cross cultural Negotiations Negotiating across borders differs markedly from negotiating within the domestic market. which may be nonnegotiable or. 2003). labor laws and different business practices. tax regimes. 2004. with currency ﬂuctuations and uncertainty stemming from ideological differences.‖ Cultural due diligence is the process of clarifying the other side‘s cultural orientations and the resultant behavior before entering into the negotiation (Kennedy. Since we are going to discuss negotiation styles and which style suits the best. Number of new factors has to be considered. To arrive at a mutually beneficial agreement. We have chosen to use the following factors that are most important in this respect: . including different languages.
Culture may also affect the strategies that the negotiators bring to the table – for example. but also within cultures and overlap between the cultures. All the negotiators have interests. about how to behave and how others in the culture will behave. political and other institutions. priorities and strategies. How Culture affects Negotiation Strategies When people negotiate. Culture is the unique character of a social group. economic.Cross cultural Negotiations Negotiation strategies A negotiation strategy is an integrated set of behaviors chosen because they are thought to be the means of accomplishing the goal of negotiating. their behaviors are strategic and their strategies may be culturally biased. the way they go about . These are affected by culture. Cultural values direct the attention of the negotiator to the issues that are more important and influence the negotiators' interests and priorities. including the values and norms shared by members of the group and the group's social. With the result. Negotiation Strategies are linked with culture because cultures evolve norms to facilitate social interaction. Norms are functional because they reduce the number of choices a person has to make. Not only are there differences in strategic behavior between cultures. Cultural norms define the behaviors that are appropriate and inappropriate in negotiation and influence the negotiators' strategies. some members of a culture may negotiate less like their own cultural prototype and more like the prototype of another culture.
whether they confront directly or indirectly. the root cause of many "communication problems" was deeper than that. their motivations. unskilled team leaders and members. and the way they use the information and influence. * Confrontation * Motivation * Influence * Information Types of Negotiations Strategies Communication Strategies Communication is both a symptom and a cause of organization performance problems. we've heard hundreds of managers use communication as a vague catchall for every type of organization and team problem imaginable. and purpose. unclear customer/partner focus. bureaucratic systems. fuzzy visions. and weak measurements and feedback loops all cause communication problems. .Cross cultural Negotiations negotiating. Over the years. ineffective processes. low trust levels. unaligned rewards." we always know we have some digging to do. values. Generally. Whenever a manager contacts us to solve a "communication problem. cluttered goals and priorities. Poorly designed organizations.
and practices have a huge and direct effect on organization learning and innovation. ideas. A thoughtful and comprehensive communication strategy is a vital component to any successful change and improvement. and feedback equally well in all directions — up. down. and practices do play a central role in high-performance. direction. Strong communications keep everyone focused on goals and priorities while providing feedback on progress and the course corrections needed. The education and communication strategy sets the tone and direction of improvement efforts. Education and communication strategies influence the energy levels for change and improvement. Effective communication strategies. understanding. and knowledge are the lifeblood of the organizational body. systems. Information. Effective communication strategies. systems. direct. human.Cross cultural Negotiations Communication strategies. and across the organization Provide multiple channels Are only possible in an atmosphere of trust and openness . learning. and personal Move information. and fast with a minimal number of filters and interpreters Inspire and energize Are user-friendly. and practices: Deliver clear and consistent messages to all parts of the organization Are simple. systems. experiences.
(1998) found that U.S. Consequently. and Japanese negotiators had similar norms for information sharing in negotiation.S. The literature on cross-cultural communication suggests that different cultures may have different information-sharing strategies in negotiation. Japanese negotiators are less likely to say ―no‖ and more likely to remain silent than U. An Good Example Brett et al.S. Power Strategies Power in negotiation is the basis of one party‘s ability to gain advantage over the other party through positional. and Brett 2001). and Japanese negotiation styles also report different communication styles." Our communication strategies. but subsequent research found that U. Okumura. March 1990).S.Cross cultural Negotiations Despite all their talk about communications. The various norms and strategies for information sharing seen in the U. negotiators embraced direct informationsharing strategies while Japanese negotiators used indirect information-sharing strategies (Adair. Other accounts of U. systems. But the amount and type of communicating we do speak volumes about how much we trust people and whether we see people as partners or "subordinates" who "work for me. distributive. many managers don't appreciate the highly strategic role communication plays in their improvement efforts. and practices set the dimensions of the environment we are putting people in. Egalitarianism versus hierarchy is a cultural . negotiators (Graham and Sano 1989. for example. they don't spend enough time thinking through what they want to say and the best ways to say it. or inﬂuence tactics.S. and Japan suggest that culture may account for different communication strategies in the six cultures under investigation.
including accommodation. persuasion strategies. Before buyers and sellers can engage in business. Hierarchical cultural values stress the importance of status and power whereas egalitarian cultural values stress sameness. not joint. Each party‗s individual culture will determine its way of thinking. 1999. These different styles in business negotiation are the product of differences in communication. protocols. and personal characteristics. values. and adaptation (Hung. a negotiator will chose a style depending on what the negotiator Negotiation styles. Brett et al. making threats or using arguments) are power strategies that are focused on individual. Gulbro & Herbig (1994) indicated that different cultures can generate distinct negotiation styles.e. flexibility. norms and behaviors (Simintiras & Thomas. determination.Cross cultural Negotiations value with implications for the use of power strategies in negotiation. 1998. (1998) found that hierarchical cultures in comparison to egalitarian cultures were more likely to espouse norms for distributive tactics. Distributive tactics are normative in hierarchical cultures because negotiators use positional and persuasive arguments to make status and power differences clear. Hung. When a clear negotiation strategy has been chosen a style is need to close the deal. Chang. Those specializing in . gains. 2003). they need to negotiate terms of agreement or contracts. Woo & Pru‗homme. equal opportunity. and achievement. 1998). 1998. Distributive tactics (i.
finance. marketing. How is he supposed to behave there? What can he say and what not? Will they understand what he has to tell them? How should Jan negotiate with these guys? . A hundred questions went through his mind. he realized that all he knows about Asian culture actually comes from TV and movies. To further illustrate the best possible ways of negotiations we look at a case study below: Jan graduated from a leading Polish business school. Jan and his boss are flying to Asia. and strategy and his grades were excellent. and possibly in China. his boss has asked him to identify a company potentially interested in cooperation especially in the area of research and development. his secretary gave him the tickets. Today. He had learned a lot about economics. Very soon he found a job he was dreaming of and started applying what he had learned in real business environment. Since his company was operating in a niche market manufacturing very specialized products. The same was true for his boss. Recently. Everything indicated that he was well prepared for his starting career. particularly in Japan. very early Jan realized that for a potential partner he would have to look in Southeast Asia. Suddenly. He has been advancing his career rather quickly and taking over new areas of responsibility.Cross cultural Negotiations negotiation need to understand the negotiation styles of other people who live in different countries by studying their cultural beliefs and norms (Chang. Not without difficulty he came up with a short list of potential partners and scheduled the first meetings with them. 2003). Taiwan. Next week.
Competing . brand strength or size or market share. This style is high in Assertiveness and low in Cooperativeness as show in the diagram above. . make attempts to withdraw from the situation or pass responsibility onto another party.Avoiding . This trend is especially evident in Poland. and in the extreme can become aggressive/psychotic and domineering. including their personality. This style is most suitable in the American setting since they are known to be naturally aggressive and assertive hence used when results are needed quickly. prefer to avoid conflict. political and economic integration with the European Union and progressing globalization have caused that international negotiations have become relatively common both in the diplomatic as well as in the business environment. Amid all issues connected with the international negotiations the one that has been attracting the most attention has been the influence of culture on negotiation.Negotiators that exhibit this style are results-oriented. 2. position. Intensification of trading relationships.Cross cultural Negotiations Within the last few decades the number of international negotiations has been increasing rapidly.Negotiators that exhibit this style are passive. 2004) According to the negotiation literature. self-confident. are focused primarily on the bottom line. have a tendency to impose their views upon the other party. Similar processes occurring worldwide were most likely also the reason for increased interest in this topic among the scholars. (Cohen. and fail to . the measurement of Assertiveness and Cooperativeness requires the consideration of five distinct negotiation styles the five negotiation styles are: 1. assertive. They often use whatever power and tactics they can muster. economic threats.
Negotiators that exhibit this style use open and honest communication. 3Collaborating . frequently engage in give and take tradeoffs. and suggest many alternatives for consideration. This style is both high in Assertiveness and high in Cooperativeness. downplay differences. Graph displays the relationship between these five negotiating styles and the competing dimensions of Assertiveness versus Cooperativeness. 4. focus on finding creative solutions that mutually satisfy both parties. . This style is both low in Assertiveness and low in Cooperativeness. This style is low in Assertiveness but high in Cooperativeness. and are most concerned with satisfying the needs of the other party. 5. This style is both moderate in Assertiveness and moderate in Cooperativeness. are open to exploring new and novel solutions. and accept moderate satisfaction of both parties‘ needs. often split the difference between positions.Accommodating – Negotiators that exhibit this style make attempts to maintain relationships with the other party. smooth over conflicts.Compromising – Negotiators that exhibit this style aim to find the middle ground.Cross cultural Negotiations show adequate concern or make an honest attempt to get to a solution.
Cross cultural Negotiations .
Washington. (2000). R. How to negotiate better deals. (2004).Cross cultural Negotiations LIST OF REFERENCES Acuff.. T. Managing cultural differences (5th ed.. J. DC: United States Institute of Peace Press. R. .) Amsterdam: Elsevier Ltd.). International business negotiations (2nd ed. G.). & Moran. (2007). P. L. J. 2004. How to negotiate anything with anyone anywhere around the world (2nd ed.).). Negotiating Across Cultures. (Eds. Brett.) Houston TX: Gulf publishing company. San Francisco: Jossey bass publishers. M. N. (1997). Forsyth. (2002). Chauri. Negotiating globally (2nd ed. Harris. (2003). Cohen. F. Oxford: How to books ltd..). & Usunier C. R. J. (Ed.. New York: American management association publishers. P. P. Mumbai: Jaico publishing house. Business Essentials: Successful Negotiating.. Thorn.. (ed.
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