The document discusses different aspects of intercultural negotiation including how culture influences the negotiation process, profiles of negotiators from different cultures like Americans, Indians and Arabs, guidelines for cross-cultural negotiations, and the negotiation process. Key differences in negotiation styles between cultures include Americans being more direct and fact-driven while Asians avoid conflict and maintain harmony. Successful negotiators need knowledge of other cultures and flexibility.
27. The cross-cultural negotiation process 1 Status distinction 2 Impression formation accuracy 3 Interpersonal attraction Non-task related interaction 4 Exchange of information 6 Concession making and agreement 5 Persuasion and bargaining strategy 7 Negotiation outcome Task related interaction Seller’s cultural background Buyer’s cultural background Cultural distance between seller and buyer Source: Adapted from Simintiras, A.C. and Thomas, A.H. (1998) and Simintiras, A.C. and Reynolds, N. (2001).
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30. Comparison of Cultural Approaches to Negotiation 13- American Negotiator Indian Negotiator Arab Negotiator Accepts compromise when deadlock occurs Has firm initial and final stands Sets up principles but lets subordinates do detail work Has a maximum of options Respects other parties Is fully briefed Keeps position hidden as long as possible Relies on truth Trusts instincts Seeks compromises Is ready to alter position at any point Trusts opponent Respects other parties Learns from opponent Avoids use of secrets Protects “face” of other parties Avoids confrontation Uses a referent person to try to change others, e.g. “Do it for your father” Seeks creative alternatives to satisfy all parties Mediates through conferences Can keep secrets
31. Comparison of Cultural Approaches to Negotiation 13- Swedish Negotiator Italian Negotiator Gets straight to the point of the discussion Avoids confrontation Time conscious Overly cautious Informal Flexible Reacts slowly to new propositions Quiet and thoughtful Dramatic Emotional Able to read context well Suspicious Intrigues Uses flattery Concerned about creating a good impression Indefinite
32. Differences Between American and Chinese Culture and Approach to the Negotiation Process 13- Contrast of Basic Cultural Values American Task and information oriented Egalitarian Analytical Sequential, monochronic Seeks the complete truth Individualist Confrontative, argumentative Chinese Relationship oriented Hierarchical Holistic Circular, polychronic Seeks the harmonious way Collectivist Haggling, bargaining
33. Differences Between American and Chinese Culture and Approach to the Negotiation Process(cont.) 13- Approach to the Negotiation Process American Quick meetings Informal Make cold calls Full authority Direct Proposals first Aggressive Impatient A “good deal” Chinese Long courting process Formal Draw on intermediaries Limited authority Indirect Explanations first Questioning Patient A long-term relationship nontask sounding information exchange means of persuasion terms of agreement
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35. Nature of Conflict Between Members of Low and High Context Culture Key Questions Low-Context Conflict High-Context Conflict Why Analytic, linear logic; instrumental oriented; dichotomy between conflict and conflict parties Synthetic, spiral logic; expressive oriented; integration of conflict and conflict parties When Individualistic oriented; low collective normative expectations; violations of individual expectations create conflict potentials Group oriented; high collective normative expectations; violations of collective expectations create conflict potentials What Revealment; direct, confrontational attitude; action and solution oriented Concealment; indirect, nonconfrontational attitude; “face” and relationship oriented How Explicit communication codes; line-logic style: rational-factual rhetoric; open, direct strategies Implicit communication codes; point-logic style: intuitive-effective rhetoric; ambiguous, indirect strategies
36. Decision-Making 13- The conscious process of moving toward objectives after considering various alternatives. It is concerned with making an appropriate choice among a multitude of possible scenarios.
37. Steps in the Decision-Making Process 13- 1. DEFINE THE PROBLEM 2. ANALYZE THE PROBLEM 3. IDENTIFY DECISION CRITERIA AND THEIR IMPORTANCE 4. DEVELOP AND EVALUATE ALTERNATIVE SOLUTIONS 5. CHOOSE THE BEST SOLUTION 6. IMPLEMENT THE SOLUTION 7. EVALUATE THE OUTCOMES
The Charles W. Wason Collection on East Asia is a highlight of Cornell University Library, and is among the oldest and most distinctive collections of its kind in North America, nearly as old as Cornell University itself. It ranks among the largest East Asian collections in North America. Holdings on China constitute the historical foundation of the collection and remain its largest component, but the collection also includes materials on Japan and Korea as well as on the variety of subcultures within these national groupings. The Wason Collection, physically embodied in the striking lines and open spaces of the state-of-the-art Carl A. Kroch Library that houses it, represents Cornell’s long-standing commitment to East Asian studies. The first courses in Japanese and Chinese were offered in 1870, just four years after the University’s opening. In 1918, a bequest from Cornell alumnus Charles W. Wason assured the University’s future as an American leader in East Asian materials. The extensive collection—which included roughly 9,500 books, 1,200 pamphlets, 550 manuscripts, innumerable documents, drawings, maps, and a number of rare objects—established China as a focal point for collecting and research at Cornell.
This slide highlights steps two and three in the negotiation process. During relationship building many non-task events (social events, tours, and ceremonies) take place so that the parties can get to know one another. Once stage three begins the parties begin to present their positions and discussion follow so that a mutually beneficial solution can be found. Negotiators should focus not only on presenting their situation and needs but also on showing an understanding of their opponents’ viewpoint. Focusing on the entire situation confronting each party encourages the negotiators to assess a wider range of alternatives for resolution, rather than limiting themselves to their preconceived, static positions. Researchers suggest that to be most effective, negotiators should prepare for meetings by practicing role reversal.
This slide highlights the final two stages in the negotiation process. Follow the hyperlink to the persuasion tactics. Well-prepared negotiators are aware of various concession strategies and have decided ahead of time what their own concession strategy will be. Familiar with the typical initial positions that various parties are likely to take, they know that the Russians and the Chinese generally open their bargaining with extreme positions, asking for more than they hope to gain, whereas the Swedes usually start with what they are prepared to accept. Research in the United States indicates that better end results are attained by starting with extreme positions. With this approach, the process of reaching an agreement involves careful timing of the disclosure information and of concessions. Most people who have studied negotiations believe that negotiators should disclose only the information that is necessary at a given point and that they should try to obtain information piece by piece to get the whole picture gradually without giving away their goals or concession strategy.
Skillful global managers must assess many factors when managing negotiations. They must understand the position of the other parties in regard to their goals—whether national or corporate—and whether these goals are represented by principles or specific details. They should have the ability to recognize the relative importance attached to completing the task versus developing interpersonal relationships. Managers also must know the composition of the teams involved, the power allotted to the members, and the extent of the teams’ preparation. In addition, they must grasp the significance of personal trust in the relationship.
The Chinese are among the toughest negotiators in the world. American managers must anticipate various tactics, such as their delaying techniques and their avoidance of direct, specific answers: Both ploys are used to exploit the known impatience of Americans. The Chinese frequently try to put pressure on Americans by “shaming” them, thereby implying that the Americans are trying to renege on the friendship—the basis of the implicit contract. Whereas Westerners come to negotiations with specific and segmented goals and find it easy to compromise, the Chinese are reluctant to negotiate details. They find it difficult to compromise and trade because they have entered negotiations with a broader vision of achieving development goals for China, and they are offended when Westerners don’t internalize those goals.
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