Russian negotiation(word document)


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Russian negotiation(word document)

  1. 1. 12 VARIABLES OF RUSSIAN NEGOTIATION1 # BASIC CONCEPT OF NEGOTIATION PROCESSRussian show great emphasis on knowing their partners if theircounterpart are new to negotiation they can expect to be tested by them.The Russian only negotiate when they know that other party is serious innegotiation. They show a lot of patience in negotiation and look at thewhole situation rather than part of it.Russians see negotiations as win-lose. They do not believe in win-winscenarios.Russian generally do not give timelines for delivery of a product orcompletion of project. During negotiation when Russian confronts strongresistance they will back off.2 # NEGOTIATOR SELECTION CRITERIAThe Russian criteria for selecting the negotiation team includenegotiating experience seneriorty, political affiliation ethnic ties,technical knowledge and personal attributes. The leader of the teamnormally selected on the basis of specialization in a particular field andhis loyalty and trust worthiness.3 # SIGNIFICANCE OF TYPE OF ISSUESDefining the issue in negotiation is critical Russian are generally notfluent in English. Normally services of interpreter are needed. Russian
  2. 2. expects that their counterpart will communicate with them. Keeping inmind their handicap of English language.Negotiations in Russian can be conducted by individual or team ofnegotiators. Russian expects the meeting schedule to be finalized at least2 to 3 weeks in advanced. The Russian would prefer to know the detailabout the negotiating team.4 # CONCERN OF PROTOCOLProtocol accepted practices of social behavior and interaction rules ofprotocol can be formal or informal. Under formal protocols negotiationsstress adherence to strict and detailed rules that govern manner andconduct .To the contrary under informal protocol, negotiators scarcelyadhere to rules that govern manner and conduct. Russian view compromiseas a weakness and will continue to negotiate until you offer concessions.Russian may lose their temper, walk out of the meeting or threaten toterminate the relationship in an attempt to coerce you to change yourposition.Russian expects that meetings are schedule into two to three weeks inadvanced. They want to know whom they will be meeting. It is unlikelythat top executive of an organization will meet the bargaining team. Themeeting schedule needs to be confirming several time. There meetingcanceled or postponed with little or no notice. Russians expect thevisitors to be punctual; being late by more than 10-15 min without having avalid plausible excuse is considered an offense. However Russians couldbe late by an hour or more without any remorse.
  3. 3. Russian negotiators may try to convince you that they have the backgroundand experience required to be successful, exaggerating their capabilities.or making questionable promises in order to maintain foreign contactsPresentations should be short and concise. Making a good first impressionis at least as important as coming with a compelling proposal. It ischaracteristic of Russians to be pessimistic, so a lack of enthusiasticresponses should not discourage you. Your presentation materials shouldbe attractive, with good and clear visuals. Use diagrams and pictureswherever feasible, cut down on words, and avoid complicated expressions.Russians may expect to discuss many details, so bring enough backgroundinformation. Having your handout materials translated to Russian is not a.must, but it helps in getting your messages across5 # COMPLEXITY OF LANGUAGEIn addition to Russian, the country official language, the number ofminority languages exists. Not many business people speak Englishfluently. In addition, Russians may insist that they understand everythingyou say even when this is not really the case. It may be necessary to havean interpreter. Ask beforehand whether an interpreter should be presentat a meeting. However, keep in mind that even some interpreters may notspeak and understand English at a fully proficient level. It may be in yourbest interest to bring your own interpreter, rather than depending on oneprovided by the Russians, to ensure an unbiased translation. Whencommunicating in English, speak in short, simple sentences and avoid usingslang and Jargon. It will help people with a limited command of English if
  4. 4. you speak slowly, summarize your key points often and pause frequentlyto allow for interpretation6 # NATURE OF PERSUASIVE ARGUMENTSOne way or the another negotiations involves attempts to influence theother party.In Russia the primary approach to negotiating is to employ is distributiveand contingency bargaining .The buyer is often in a strongly fairableposition and may try to push the responsibility to reach agreement to theseller while quite a few Russian are highly skilled negotiator, the majorityof business people in the country have only limited experience in thefield.Russians can be extremely patient, persistent and stubborn negotiators.It can be very difficult to obtain concessions from them.Russian may also claim limited authority, stating that they have to ask fortheir managers approval. More often than not this might be the truth.However you may not always be able to force the true decision maker toparticipate directly in the negotiation meaning that you may have acceptthis indirect negotiation approach Russians are often reluctant to takerisk.7 # ROLE OF INDIVIDUAL ASPIRATIONThe emphasis negotiators place on their individual goals and needs forrecognition may also vary. In some cases the position of a negotiator mayreflect personnel goals to a greater extent than corporate goals. In
  5. 5. contrast negotiator may want to prove he or she is a hard bargainer andcompromise the goals of the corporation.Russian often starts with extreme positions, ignored deadlines and due totheir limited authority frequently check backs with their headquarters.8 # BASES OF TRUSTEvery negotiator at some point must face the critical issue of trust .onemust eventually trust ones counterparts ,otherwise resolution would bedifficult .Trust can be based on the written laws of a particular countryor it can be based on friendship and mutual respect and esteem. Russianslike to establish on general principles first. The first meeting is normallyapproached more as a formality. They try to establish the credibility ofnegotiator in this meeting. Once the trust is established than the Russiango for serious negotiating.9 # RISK TAKING PROPENSITYNegotiators can be perceived as either cautious (low risk takers)oradventurous(high risk takers).If a negotiator selects a solution that haslower rewards but higher probability of success, He or she is not a risktaker. If the negotiator chooses higher rewards but a lower probabilityof success then he or she is adventurous and a risk taker.Russian often reluctant to take risk , If you expect them to support arisky decision you may need to find ways for them. To becomecomfortable with it first .You are much more likely to succeed. If therelationship with your counterparts is strong and you managed win theirtrust.
  6. 6. 10 # VALUE OF TIMEEach culture has a difference way of perceiving and acting upon time.Monochronic cultures emphasize making agendas being on time forappointment and generally seeing time as a quantity to be scheduled.Polychronic cultures stress the involvement of people rather than presetschedules. The future cannot be firm, so planning takes on littleconsequence.Negotiations with Russians could be very slow and protracted.Thsi is trueduring the initial bargaining stages. Russian generally employs a ploychronic work style. It is not unusual for them to reopen a discussion overitems that had already been agreed upon. If the Russian appeared to bestalling negotiation access carefully whether their slowly down theprocess indicates that they are evaluating alternatives or that they arenot interested in doing business with you. More often then not thisbehavior indicates attempt to create time pressure or wear you down inorder to obtain concessions.11 # INTERNAL DECISION MAKING SYSTEMBroadly understood, decision making systems can be authoritative orconsensual. In authoritative decision making individual makers thedecision without consulting with his or superiors. However, seniorexecutives may overturn the decision. In consensus decision makingnegotiators do not have the authority to make decisions unless theyconsult their superiors.
  7. 7. Russians expect to work within clearly established line of authority.Openly disagree with or criticizing superior is unacceptable. Decisionmakers are usually senior executive, who consider the best interest ofthe group or the organization. They will likely consult with other beforemaking the call. Subordinates make reluctant to accept responsibility.Decision makers also rarely delegate their authority .Decision can take along time and requires patience.12 # FORM OF SATISFACTORY ARGUMENTGenerally there are two broad form of agreement. One is the writtencontract that covers possible contingencies. The other is the broad oralagreement that binds the negotiating parties through the quality of theirrelationship.Russian may insist on having a protocol (minutes of meeting) signed byboth parties at the end of the meeting. Its serves to record what wasdiscussed, is not a contract and should not be mistaken for finalargument. Written contract contract should be clear and concise withouttoo many detailed terms and conditions. Signing the contract is importantnot only from the legal perspective but also as a strong confirmation ofyour Russian partners commitments. The Russian may request that thedetailed of the contract may be kept secret.