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Intercultural Communication Consequences for International Business & Negotiations:

Intercultural Communication Consequences for International Business & Negotiations:. Pellegrino Riccardi Det Norske Veritas. STAGES OF A NEGOTIATION. Set the Scene. Agree on the issues. Bargaining xxxxxxx. Agreement. Set & maintain the climate. Maximise Power. Persuasion.

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Intercultural Communication Consequences for International Business & Negotiations:

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  1. Intercultural Communication Consequences for International Business & Negotiations: Pellegrino Riccardi Det Norske Veritas

  2. STAGES OF A NEGOTIATION Set the Scene Agree on the issues Bargaining xxxxxxx Agreement Set & maintain the climate Maximise Power Persuasion Resolving Deadlock

  3. CULTURE sharedpatternsof behaviours a system of values, beliefs, assumptions and norms, shared by a group of poeple collectiveprogrammingof the mind

  4. EXAMPLES OF HEROES FROM YOUR CULTURE (alive or dead) HEROES VALUES

  5. HEROES Norwegian VALUES

  6. How frequently, in your experience, does the following problem occur: employees being afraid to express their disagreement with their managers? Geert Hofstede

  7. FATHER Protection Security Wisdom Direction MOTHER Pellegrino Rosa Antonio Giovanni Loyalty Respect Support Roberto

  8. Small Power Distancecultures • Inequalities between people should be minimised • Privileges and status symbols are considered to be negative • Powerful people try to appear less powerful than they are • Little if any differences in the way people speak to each other

  9. Large Power Distance cultures • Power, status and privilege go together • Subordinates expect direction and decisiveness • The ideal boss is a “good father”

  10. Percentage of respondents that feel that it is important for a boss to act and look like a boss

  11. Sources of POWER POWER is in the head CreateDOUBTin the other person Create MOVEMENT towards the goal

  12. Cultural Dilemma - VALUES • You are the passenger in a car driven by a close friend. • He hits a pedestrian. • You know he was driving at 80 kms per hour in a 60 zone. • There are no witnesses. • His lawyer says that if you testify under oath in court that your friend was only driving at 60, it might save him from serious consequences. Does your friend have a right to expect you to protect him? Would you lie in court to ”save” your friend?

  13. Negotiation Tactics • Ask for more than you expect to get • MPP (maximum plausible position) • The consequences of making a “fair” opening offer? • Never say yes to the first offer • Play the reluctant seller/buyer • It makes them think that they could have done better • It makes them think that something must be wrong

  14. Individualist cultures • Laws and rights are the same for all (consistency) • Honest people speak their mind • Clear & explicit communication is preferred • Task-focused • You take responsibility for your own actions

  15. Collectivist cultures • Relationship-focused • Harmony should always be maintained • Protocol and rituals are important • You treat people differently according to which group they belong to (discretion) • Communication is discreet and cautious

  16. VoiceConversation PatternsReserved Cultures 1. _________ ___________ 2. ___________ ____________

  17. VoiceConversation OverlapExpressive Cultures 1. _________ _ _ ___________ _ _ ___________ 2. _ _ ___________ _ _ ____________

  18. ReservedmeetsExpressive Why does he keep interrupting me? He’s not interested in what I have to say Why doesn’t he say something? He’s not interested in what I have to say. • _________ • 2. _ _ _________________

  19. Negotiation Tactics • Do emotions belong in a negotiation? • The Flinch – reacting to offers • Melodramatics • Skilled negotiators reveal inner feelings

  20. RF or DF? Deal-Focused Nordic and Germanic Europe North America Australia and New Zealand Relationship-Focused Central & Eastern Europe Latin Europe Hong Kong, Singapore VERY Relationship-Focused The Arab World Most of Africa Latin America and Asia

  21. Time • Monochronic (Sequential)cultures • Order, precision, detail, agendas, deadlines, structure, action plans • Tasks are dealt with systematically • Polychronic (Synchronic)cultures • Flexibility, focus more on people rather than only the task • Can seem chaotic or unsystematic to monochronics

  22. Time Pressure • 80% of the concessions happen in the final 20% of the negotiation • People become more flexible under time pressure • The “tug boat” principle • People are reluctant to walk away from a negotiation without a result after so much time and effort

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