210 likes | 659 Views
Who negotiates better?. Different nationalities negotiating within national boundariesSimilar outcomes across nationsDifferent processes (Americans increase profits by making opponent uncomfortable, Japanese opposite is true; Brazilians increase profit by power and deception tactics; Chinese ask m
E N D
1. Cultural DifferencesGlobal Negotiation
2. Who negotiates better? Different nationalities negotiating within national boundaries
Similar outcomes across nations
Different processes (Americans increase profits by making opponent uncomfortable, Japanese opposite is true; Brazilians increase profit by power and deception tactics; Chinese ask more questions, say no less, interrupt more
True cross-cultural negotiations
Poorer outcomes for Japanese and English-Canadian
No harm for American (more satis.) or French-Canadian (more coop)
3. American negotiators from an international perspective STRENGTHS
Preparedness
Pragmatism
Candor, honesty, friendliness
Cooperative and fair
Win-win orientation
Willingness to make concessions WEAKNESSES
Cultural insensitivity
Impatience
Lack of unified constituencies
Poor listening skills
Too quick to concede
Don’t understand small talk
4. What are some shared American values?
5. Levels of cultural understanding Observable behavior
Can learn a lot, but likely to focus on do’s and don’ts
Often leads to superficial understanding
Shared values
Requires inferences from observed behavior and learning about a culture
More powerful, because values drive (partially) behavior
Shared assumptions
Very abstract – these drive our values but are very hard to determine
Very powerful, helps truly understand a culture
6. Hofstede’s Dimensions and Negotiation Power Distance
extent to which power differentials are expected and honored
Low : Anglo/Germanic/Scandanavian
High: Developing Nations, particularly Pacific Rim
Effect: As power distance increases, more approval from higher ups and less involvement from lower levels. Also, can expect more formality in N’s with people from high PD cultures, and they may be upset if you do not appear to be of sufficient status.
Individualism/Collectivism
extent to which society is organized by individuals vs. groups
Ind.: Western European - based societies
Coll.: Latin America, Pacific Rim
Generally, wealthier societies tend to be more individualist
Effect: Relationship stability over time emphases, individual negotiators vs. group of negotiators, importance of consensus, value placed on individual “winner”, emphasis on group vs. individual goals, rewards, communication in N’s, etc.
7. Hofstede’s Dimensions and Negotiation 2 Masculinity/Feminity
extent to which values fit traditional gender-based stereotypes
M: Japan, Anglo/Germanic
F: Scandinavia.
Effect: Masculinity associated with competitiveness vs. empathy & compromise – should expect strong relationships with distributive vs. integrative styles.
Uncertainty Avoidance
degree of discomfort with unstructured situations
High: no strong pattern, but many Hispanic nations
Low: no strong pattern, but Anglo/Scandinavia
Effect: High prefers stable rules and procedures, less adaptive. High also tends to be more risk-averse – risk aversion has played into many N. dynamics. High tends to do business ritualistically & formally.
8. Other cultural variables Time
present vs. future vs. past orientation
Time as linear vs. time as circular
Can affect timing/urgency of N’s, and also what sorts of time-related objectives (short-term vs. long-term) are valued more
Americans often seen obsessed with time.
Universalism vs. particularism
Can ideas/practices be applied everywhere every time, or do circumstances dictate application?
Use of precedent vs. adapting styles/processes/agreements to situations
Emotionality
Great potential for misunderstandings here!!!
Achievement vs. ascription
Is status conferred by what you’ve done or who you are?
How will a person be viewed in a N situation?
9. Some communication differences Verbal communication
Is message conveyed in context, or is it explicitly what is stated?
Americans often believed to be blunt, even to point of rudeness.
Non-verbal
Handshakes
Conversational distance
Facial & bodily expressiveness & animation, gestures, etc.
Very difficult to interpret because subtle and great differences across cultures
Look for patterns in order to interpret
The concept of “face”
10. Example of communication patterns
11. Negotiation process/timing for Americans in domestic vs. international negotiations
12. Negotiating Strategies in Other Countries Opening offer
Close to final settlement where haggling is not customary (e.g. Australia, Sweden)
Expect lots o’ haggling in some nations (e.g. Russia, Egypt, China)
Rule of thumb (that won’t always work, so apply with caution): if a culture has a long history of bartering & bargaining, expect to haggle.
Detail vs. big-picture in presentation
Detail where culture emphasizes formality, logic, data, organization (e.g. Germany, UK, Swiss, Japan)
Broad concepts preferred in some other areas (e.g. Latin America, Middle East)
13. More Negotiation Strategies in Other Countries Dealing With Disagreement
Subtle, quiet vs. demonstrative
In Pacific Rim, “no” is almost a dirty word
In Middle East, histrionics (to our eyes & ears) are normal
Patterns of concessions
In some nations, given grudgingly (US, S.Afr., Brazil, e.g.)
In others, declining pattern is norm (Australia, NZ, Taiwan, Thailand, e.g.)
Escalating in others (Indonesia, Philippines, India, Kenya, e.g)
Calling other on “dirty tricks”
Be EXTREMELY cautious where “face” is important (Pacific Rim, Middle East)
14. Cultural Differences affecting other Negotiation Processes Relationships orientation
Lack of trust across cultural differences ? trust building essential
Some cultures are standoffish (e.g. British, Germanic), so get down to business before too long
Emotional Aspects
Sensitivity is low for US, high for Latin America
Loyalty – to self in US, to organization in many other cultures
Decision Making Frame
In US change is acceptable, even encouraged, decisions made quickly
In many other nations, status quo is the normal frame of reference
US is relatively prone to using agendas, may be restrictive to some others
15. More Cultural Differences Contracts
Advisable to use more paper, since cultural misunderstandings more likely
Bureaucracy
You think US businesses/organizations are bureaucratic?
Women’s issues
US is relatively progressive regarding women’s roles
Rule of thumb: less developed nations, greater disparity
Women negotiating in these countries should be introduced by a very high-status person
Because you look different than local women, you may be viewed as “executive”
Demonstrations of expertise critical
Women can and do often perform well even where cultures do not give women status
16. Negotiating in Specific Regions The next 4 slides are FYI only and far from complete
There are important differences across nations within regions (e.g., Israel vs. Iran in Middle East)
Remember you are negotiating with an individual(s) who may or may not fit cultural norms to a “T”!!!
17. Negotiating in Western Europe Timing – punctual, relatively fast-paced
Individualistic, status-conscious, slow-developing friendships, emphasis on initiative & achievement
Loyalty & hard work are valued
Greater hierarchy than in US
Speakers s/b articulate & intellectual, formal, logical, and subtle
Low emotionality, reserved
Moderate initial demands, issues sequentially processed, slow concessions
18. Negotiating in the Middle East/North Africa Bargaining is a way of life “You’re supposed to haggle!” – Monty Python
Time – not punctual or planning-oriented (too much attempt to control the future invites trouble). Ramadan is especially slow for business.
Group oriented, and very deferential to those of status
Much time upfront spent in developing relationships
Masculine Arabs read poetry, use intuition, and are emotional. Feminine Arab qualities are coolness and pragmatism.
Israelis are direct, Arabs indirect, vague & expressive, often to point of exaggeration & filled with fantastic metaphors
“No” is uncommon; look for a hesitant “yes” instead – white lies common form of courtesy
Saying “I don’t know” ? you are of little account
Strong eye contact, close personal space, touchy
High initial demands, slow concessions, issues sequential, extreme “face” orientation, truth is revealed very slowly because it is considered dangerous
19. Negotiating in the Pacific Rim Old cultures, socially stratified, Confucian ethic
Courtesy rituals, formality, politeness, modesty, loyalty to group and deference to elderly, non-confrontational
Negotiations slow, relationship orientation & group negotiation style with team consensus critical – implementation usually quick, though
Very collectivist
Words mean little, conversation very indirect
“he who speaks doesn’t know, he who knows doesn’t speak”
“No” uncommon; might get a “we’ll study this further” instead
Reserved body language, average-to-close personal space, not touchy
Sensitivity valued but not overstated
Moderate-high initial offers, multiple issues presented at once, slow concessions, logical decisions
“Face” is critical
20. Doing as the Romans do This is common advice when negotiating internationally
BUT…
Negotiators may not be able to modify their approach effectively
Other side may also try to modify
Knowing how a given nationality negotiates with its peers may be misleading for your negotiations with them
SO…
Moderate adaptation may be better
May be able to adapt completely or transcend culture entirely when very familiar with a country
Consider cultural “brokers” when very unfamiliar with a country
Articulate the cultural difference, agree in advance to work through it.
BEST ADVICE
Prepare, prepare, prepare.
21. BOOZE & NEGOTIATION Avoid when:
wanting to use impression management
professional boundaries are important
social pressure is a big concern
negotiation involves many issues
negotiation involves calculations
diplomacy, tact, and careful communication are crucial
interpersonal conflict is likely to escalate
May be OK when:
social norms favor drinking
opportunities for social exchange > alcohol’s risks
value of developing bonds > alcohol’s risks
focus is long-term relationship
appealing to emotional criteria
learning information about the other party is crucial
your relative tolerance level is high