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International culture negotiation


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International culture negotiation

  1. 1. Culture ’ s impact on business negotiation 欧阳思思 Mr.Phongwarin Buranasathitwong
  2. 2. <ul><li>In business,you don ’ t get what you deserve;you get what you negotiate.Why take ‘ no ’ for an answer? Successful people don ’ t .They get what they want by negotiating better deals for both parties. </li></ul><ul><li>----Dr.Chester L.Karrass </li></ul>
  3. 3. <ul><li>Negotiation is two CIs----- </li></ul><ul><li>They are common interests and conflicting issues </li></ul><ul><li>Intercultral negotiation is four Cs----- </li></ul><ul><li>They are common interest,conflicting interest ,compromise and criteria. </li></ul>
  4. 5. Process in a negotiation <ul><li>Preparation before (before it) </li></ul><ul><li>Negotiate (in it) </li></ul><ul><li>After the process (after it) </li></ul>
  5. 6. Before IT <ul><li>Define our own interest </li></ul><ul><li>Investigate your counterpart </li></ul><ul><li>and its cultural background </li></ul><ul><li>Decide who, where, how </li></ul>
  6. 7. IN IT <ul><li>Bring out your business interest </li></ul><ul><li>Arguing and persuasion, adaption </li></ul><ul><li>Outcome: Negotiation breaking down or reaching an agreement </li></ul>
  7. 8. AFTER IT <ul><li>Establishing a cooperation relationship </li></ul><ul><li>No following things </li></ul>
  8. 9. Culture and Negotiations <ul><li>As intercultural negotiations occur where negotiating parties have different cultures and do not share the same ways of thinking, feeling, and behavior .The process is generally more complex . </li></ul><ul><li>Culture has impact on every step in a negotiation, from negotiator ’ s styles to ways of communication, pursuation and making decisions , even after a whole process,it also makes effect, especially in countries where people emphasize on long-term relationship.. </li></ul>
  9. 10. Cultural contrasts in negotiation <ul><li>Preparations and business introductions </li></ul><ul><li>Presentations and information exchanges </li></ul><ul><li>Argumentation and persuasion </li></ul><ul><li>Agreement and conflict resolution </li></ul>
  10. 11. Preparations and business introductions
  11. 12. Presentations and information exchanges
  12. 13. Argumentation and persuation
  13. 14. Agreement and conflict resolution
  14. 15. How to achieve success <ul><li>Awarenes of cultural differences </li></ul><ul><li>Learn more about cultures </li></ul><ul><li>Choose proper negotiation style </li></ul><ul><li>Understanding deeds of people from different cultural background </li></ul><ul><li>“ When in Rome,do as romans do ” is not enough </li></ul><ul><li>To seek “ win-win ” result </li></ul>
  15. 16. Awarenes of cultural differences <ul><li>Different groups have their own particular etiquette associated with the negotiation process and their adherence to protocol varies according to its perceived importantance. </li></ul>
  16. 17. <ul><li>bribery: what is a bribe in the US? In Afghanistan? In France? In China (贿赂,行贿,开后门,塞红包) ? Be careful and be aware of Foreign Corrupt Practices Act, but be aware of local culture. Americans don ’ t 塞红包 but Chinese don ’ t tip. Think about it. </li></ul>
  17. 18. Learn more about cultures <ul><li>知己知彼,百战百胜。 </li></ul><ul><li>The more you know about your enemy or your counterpart ,the more likely you will win. </li></ul>
  18. 19. Choose proper negotiation style <ul><li>To be intuiti v e ,normative,ananalytic or facual? </li></ul><ul><li>To send whom to where ,how to communicate and compromise? </li></ul><ul><li>1 or 2? </li></ul>
  19. 20. try to take advantege <ul><li>Your place or mine? </li></ul><ul><li>Home cou r t advantage </li></ul><ul><li>= More comfortable and more familiar = more confident. </li></ul>
  20. 21. “ When in Rome,do as Romans do ” ? <ul><li>Not exactly! </li></ul><ul><li>Under different conditions one should do or shouldn ’ t do as Romans do when in Rome do. </li></ul><ul><li>Based on different levels of familiarity with counterpart ’ s culture, cases are diffferent. </li></ul><ul><li>& Imagine what will happen when an American talk with an Arabian? </li></ul><ul><li>----- different results! </li></ul>
  21. 22. How to win-win? <ul><li>A new concept---coopetition! </li></ul><ul><li>Five methods of reaching integrative agreements. </li></ul><ul><li>1. Expanding the pie </li></ul><ul><li>2. Nonspecific compensation </li></ul><ul><li>3. logrolling </li></ul><ul><li>4. cost cutting </li></ul><ul><li>5. bridging </li></ul>
  22. 23. How to win-win? <ul><li>1. expanding resoures </li></ul><ul><li>2. repaying parties who do not get what they want in an unrelated way in order to satisfy them and make them agree </li></ul><ul><li>3. variant of nonspecific ,different from No.2,it involves both parts </li></ul><ul><li>4. reduction of one person ’ s costs while the other gets what he wants </li></ul><ul><li>5. devising a new option for situations in which neither person gets his initial demands </li></ul>
  23. 24. Something you should know <ul><li>In order not to lose much </li></ul>
  24. 25. Negotiation Styles
  25. 26. <ul><li>For North Americans, negotiations are businesslike; their factual appeals are based on what they believe is objective information, presented with the assumption that it is understood by the other side on a logical basis. </li></ul><ul><li>Arabs use affective appeals based on emotions and subjective feelings. </li></ul><ul><li>Russians employ axiomatic appeals – that is, their appeals are based on the ideals generally accepted in their society. </li></ul>Negotiation Styles
  26. 27. Profile of an American Negotiator <ul><li>Knows when to compromise </li></ul><ul><li>Takes a firm stand at the beginning of the negotiation </li></ul><ul><li>Refuses to make concessions before hand </li></ul><ul><li>Keeps his or her cards close to his or her chest </li></ul><ul><li>Accepts compromises only when the negotiation is deadlocked </li></ul><ul><li>Sets up the general principles and delegates the detail work to associates </li></ul><ul><li>Keeps a maximum of options open before negotiation </li></ul><ul><li>Operates in good faith </li></ul>
  27. 28. <ul><li>Respects the “opponents” </li></ul><ul><li>States his or her position as clearly as possible </li></ul><ul><li>Knows when he or she wishes a negotiation to move on </li></ul><ul><li>Is fully briefed about the negotiated issues </li></ul><ul><li>Has a good sense of timing and is consistent </li></ul><ul><li>Makes the other party reveal his or her position while keeping his or her own position hidden as long as possible </li></ul><ul><li>Lets the other negotiator come forward first and looks for the best deal </li></ul>Profile of an American Negotiator
  28. 29. Profile of an Indian Negotiator <ul><li>Looks for and says the truth </li></ul><ul><li>Is not afraid of speaking up and has no fears </li></ul><ul><li>Exercises self-control </li></ul><ul><li>Seeks solutions that will please all the parties involved </li></ul><ul><li>Respects the other party </li></ul><ul><li>Neither uses violence nor insults </li></ul><ul><li>Is ready to change his or her mind and differ with himself or herself at the risk of being seen as inconsistent and unpredictable </li></ul>
  29. 30. Profile of an Indian Negotiator <ul><li>Puts things into perspective and switches easily from the small picture to the big one </li></ul><ul><li>Is humble and trusts the opponent </li></ul><ul><li>Is able to withdraw, use silence, and learn from within </li></ul><ul><li>Relies on himself or herself, his or her own resources and strengths </li></ul><ul><li>Appeals to the other party’s spiritual identity </li></ul><ul><li>Is tenacious, patient, and persistent </li></ul><ul><li>Learns from the opponent and avoids the use of secrets </li></ul><ul><li>Goes beyond logical reasoning and trusts his or her instinct as well as faith </li></ul>
  30. 31. Profile of an Arab Negotiator <ul><li>Protects all the parties’ honor, self-respect, and dignity </li></ul><ul><li>Avoids direct confrontation between opponents </li></ul><ul><li>Is respected and trusted by all </li></ul><ul><li>Does not put the parties involved in a situation where they have to show weakness or admit defeat </li></ul><ul><li>Has the necessary prestige to be listened to </li></ul><ul><li>Is creative enough to come up with honorable solutions for all parties </li></ul><ul><li>Is impartial and can understand the positions of the various parties without leaning toward one or the other </li></ul>
  31. 32. Profile of an Arab Negotiator <ul><li>Is able to resist any kind of pressure that the opponents could try to exercise on him </li></ul><ul><li>Use references to people who are highly respected by the opponents to persuade them to change their minds on some issues </li></ul><ul><li>Can keep secrets and in so doing gains the confidence of the negotiating parties </li></ul><ul><li>Controls his temper and emotions </li></ul><ul><li>Can use conference as mediating devices </li></ul><ul><li>Knows that the opponent will have problems in carrying out the decisions made during the negotiation </li></ul><ul><li>Is able to cope with the Arab disregard for time </li></ul>
  32. 33. Profile of a Successful Swedish Negotiator <ul><li>Very quiet and thoughtful </li></ul><ul><li>Punctual (concerned with time) </li></ul><ul><li>Extremely polite </li></ul><ul><li>Straightforward (they get straight down to business) </li></ul><ul><li>Eager to be productive and efficient </li></ul><ul><li>Heavy-going </li></ul><ul><li>Down-to-earth and overcautious </li></ul><ul><li>Rather flexible </li></ul><ul><li>Able to and quite good at holding emotions and feelings </li></ul>
  33. 34. Profile of a Successful Swedish Negotiator (contd.) <ul><li>Slow at reacting to new (unexpected) proposals </li></ul><ul><li>Informal and familiar </li></ul><ul><li>Conceited </li></ul><ul><li>Perfectionist </li></ul><ul><li>Afraid of confrontations </li></ul><ul><li>Very private </li></ul>
  34. 35. Profile of a Successful Italian Negotiator <ul><li>Has a sense of drama (acting is a main part of the culture) </li></ul><ul><li>Does not hide his or her emotions (which are partly sincere and partly feigned) </li></ul><ul><li>Reads facial expressions and gestures very well </li></ul><ul><li>Has a feeling for history </li></ul><ul><li>Does not trust anybody </li></ul><ul><li>Is concerned about the bella figura, or the “good impression,” he or she can create among those who watch his or her behavior </li></ul><ul><li>Believes in the individual’s initiatives, not so much in teamwork </li></ul><ul><li>Is good at being obliging and simpatico at all times </li></ul>
  35. 36. Profile of a Successful Italian Negotiator (contd.) <ul><li>Is always on the qui vive, the “lookout” </li></ul><ul><li>Never embraces definite opinions </li></ul><ul><li>Is able to come up with new ways to immobilize and eventually destroy his or her opponents </li></ul><ul><li>Handles confrontation of power with subtlety and tact </li></ul><ul><li>Has a flair for intrigue </li></ul><ul><li>Knows how to use flattery </li></ul><ul><li>Can involve other negotiators in complex combinations </li></ul>
  36. 37. Comparative Management in Focus: Negotiating with the Chinese <ul><li>Business people have two major areas of conflict when negotiating with the Chinese </li></ul><ul><ul><li>Amount of detail about product characteristics </li></ul></ul><ul><ul><li>Apparent insincerity about reaching an agreement </li></ul></ul><ul><li>Chinese negotiation process is affected by three cultural norms </li></ul><ul><ul><li>Politeness and emotional restraint </li></ul></ul><ul><ul><li>Emphasis on social obligations </li></ul></ul><ul><ul><li>Belief in the interconnection of work, family, and friendship </li></ul></ul>
  37. 38. Comparative Management in Focus: Negotiating with the Chinese <ul><li>Tips to foreigners conducting business in China </li></ul><ul><ul><li>Practice patience </li></ul></ul><ul><ul><li>Accept prolonged periods of stalemate </li></ul></ul><ul><ul><li>Refrain from exaggerated expectations </li></ul></ul><ul><ul><li>Discount Chinese rhetoric about future prospects </li></ul></ul><ul><ul><li>Expect the Chinese to try to manipulate by shaming </li></ul></ul><ul><ul><li>Resist the temptation to believe that difficulties are your fault </li></ul></ul><ul><ul><li>Try to understand Chinese cultural traits </li></ul></ul>
  38. 39. Comparative Management in Focus: Negotiating with the Chinese <ul><li>The Chinese think in terms of process that has no culmination. </li></ul><ul><li>Americans think in terms of concrete solutions to specific problems. . . . </li></ul><ul><li>The Chinese approach is impersonal, patient and aloof . . . </li></ul><ul><li>To Americans, Chinese leaders seem polite but aloof and condescending. </li></ul><ul><li>To the Chinese, Americans appear erratic and somewhat frivolous. </li></ul><ul><li>— Henry Kissinger, </li></ul><ul><li>Newsweek, May, 2001 </li></ul>
  39. 40. Differences Between American and Chinese Culture and Approach to the Negotiation Process 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
  40. 41. Differences Between American and Chinese Culture and Approach to the Negotiation Process(cont.) 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
  41. 42. Comparison of Cultural Approaches to Negotiation 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
  42. 43. Comparison of Cultural Approaches to Negotiation 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
  43. 44. 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
  44. 45. <ul><li>Guidelines on Negotiation across Cultures </li></ul><ul><li>Check whether they think like you </li></ul><ul><li>Spend time on non-task sounding matters to establish personal relationships </li></ul><ul><li>Know the differences between your opponent’s social, political and economic systems and yours </li></ul><ul><li>Know how the above differences affect his thinking, authority and negotiating methods </li></ul><ul><li>Know your opponent’s legal, technical and financial systems </li></ul><ul><li>Know how the above will affect our choice of tactics </li></ul><ul><li>Know the effects of ethical standards (right, wrong, reasonable) </li></ul><ul><li>Know the importance of face saving </li></ul>
  45. 46. <ul><li>Recognize the role of status </li></ul><ul><li>Understand the role of government in the affairs of your opponent </li></ul><ul><li>Identify the levels of approval </li></ul><ul><li>Ask questions, but don’t put pressure </li></ul><ul><li>Ensure there is a suitable communication system with Head Office </li></ul><ul><li>Identify the right leader for the situation </li></ul><ul><li>Make sure when using an interpreter he is skilled in both languages and negotiation. </li></ul><ul><li>Have a dummy run with him. Get him to translate gestures etc </li></ul><ul><li>Avoid using jargon </li></ul><ul><li>Confirm in writing and use words carefully to avoid ambiguity </li></ul><ul><li>Use team approach by using experts </li></ul><ul><li>Recognize differences in perceiving contractual differences and agreements </li></ul><ul><li>Make concessions only after issues are discussed. </li></ul>Guidelines on Negotiation across Cultures
  46. 47. Thank You!