Cross cultural management 3e by cullen ch12

Chapter 12 International Negotiation and CrossCultural Communication Copyright© 2004 Thomson Learning All rights reserved Learning Objectives •• Understand Understand the the basics basics ofof spoken spoken and and nonverbal nonverbal communication communication •• Understand Understand the the basic basic international international negotiation negotiation processes processes •• Understand Understand the the basic basic tactics tactics ofof international international negotiations negotiations •• Recognize Recognize and and respond respond toto the the “dirty “dirty tricks” tricks” Copyright© 2005 South-Western/Thomson Learning All rights reserved Learning Objectives •• Know Know the the difference difference between between the the problem-solving problem-solving and and competitive competitive approaches approaches •• Identify Identify the the personal personal characteristics characteristics ofof the the successful successful international international negotiator negotiator Copyright© 2005 South-Western/Thomson Learning All rights reserved International Negotiation •• •• •• Process Process ofof making making business business deals deals across across cultures cultures Precedes Precedes any any multinational multinational project project Successful Successful negotiation negotiation requires requires successful successful communication communication •• Negotiators Negotiators must must understand understand all all components components ofof culturally culturally different different communication communication styles styles Copyright© 2005 South-Western/Thomson Learning All rights reserved Language and Culture •• Whorf Whorf hypothesis: hypothesis: theory theory that that language language determines determines the the nature nature ofof culture culture •• All All languages languages have have limited limited sets sets ofof words words •• Words Words provide provide the the concepts concepts ofof understanding understanding the the world world •• Restricted Restricted word word sets sets constrain constrain the the ability ability toto understand understand the the world world Copyright© 2005 South-Western/Thomson Learning All rights reserved High- and Low-Context Languages •• Low-context Low-context language: language: people people state state things things directly directly and and explicitly explicitly •• Most Most northern northern European European languages languages including including German, German, English, English, and and the the Scandinavian Scandinavian languages languages •• High-context High-context language: language: people people state state things things indirectly indirectly and and implicitly implicitly •• Asian Asian and andArabic Arabic languages languages Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 12.1: Country Differences in High-Context and Low-Context Communication Copyright© 2005 South-Western/Thomson Learning All rights reserved Basic Communication Styles •• Direct Direct communication: communication: communication communication that that comes comes toto the the point point and and lacks lacks ambiguity ambiguity •• Formal Formal communication: communication: communication communication that that acknowledges acknowledges rank, rank, titles, titles, and and ceremony ceremony inin prescribed prescribed social social interaction interaction Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 12.2: Cultural Differences in Communication Styles Copyright© 2005 South-Western/Thomson Learning All rights reserved Nonverbal Communication •• •• Communication Communication without without words words Includes Includes array array ofof behaviors behaviors that that enhance/supplement enhance/supplement spoken spoken communication communication •• Include Include •• Kinesics, Kinesics, proxemics, proxemics, haptics, haptics, oculesics, oculesics, and and olfactics olfactics Copyright© 2005 South-Western/Thomson Learning All rights reserved Verbal Negotiation Tactics •• •• •• •• •• •• Normative Normative appeal appeal Commitment Commitment Question Question Command Command Refusal Refusal Interruption Interruption Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 12.7: Comparison of Brazilian, U.S., and Japanese Negotiators (in half-hour bargaining session) Copyright© 2005 South-Western/Thomson Learning All rights reserved Dirty Tricks •• Negotiation Negotiation tactics tactics that that pressure pressure opponents opponents toto accept accept unfair unfair or or undesirable undesirable agreements agreements or or concessions concessions Copyright© 2005 South-Western/Thomson Learning All rights reserved Ploys/Dirty Tricks and Responses •• Deliberate Deliberate deception deception or or bluffing—point bluffing—point out out what what you you believe believe isis happening happening •• Stalling—do Stalling—do not not reveal reveal when when you you plan plan toto leave leave •• Escalating Escalating authority—clarify authority—clarify decision decision making making authority authority •• Good-guy, Good-guy, bad-guy bad-guy routine—do routine—do not not make make any any concessions concessions Copyright© 2005 South-Western/Thomson Learning All rights reserved Ploys/Dirty tricks and Responses •• •• You You are are wealthy wealthy and and we we are are poor—ignore poor—ignore the the ploy ploy Old Old friends—keep friends—keep aa psychological psychological distance distance Copyright© 2005 South-Western/Thomson Learning All rights reserved Step and 6: Concession and Agreement •• Final Final agreement: agreement: signed signed contract, contract, agreeable agreeable toto all all sides sides •• Concession Concession making: making: requires requires that that each each side side relax relax some some ofof its its demands demands Copyright© 2005 South-Western/Thomson Learning All rights reserved Styles of Concession •• Sequential Sequential approach: approach: each each side side reciprocates reciprocates concessions concessions •• Holistic Holistic approach: approach: each each side side makes makes very very few few concessions concessions until until the the end end ofof the the negotiation negotiation Copyright© 2005 South-Western/Thomson Learning All rights reserved Basic Negotiation Strategies •• Competitive Competitive negotiation: negotiation: each each side side tried tried toto give give as as little little as as possible possible and and tries tries toto “win” “win” for for its its side side •• The The negotiation negotiation as as aa win-lose win-lose game game •• Problem Problem solving: solving: negotiators negotiators seek seek out out ground ground that that isis beneficial beneficial toto both both companies’ companies’interests interests •• Search Search for for possible possible win-win win-win situations situations Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 12.8: Competitive and ProblemSolving Negotiation in the Negotiating Steps Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 12.9: Cultural Differences in Preference for a Problem-Solving Negotiation Strategy Copyright© 2005 South-Western/Thomson Learning All rights reserved Step 7: Post Agreement •• •• Commonly Commonly ignored ignored step step Consists Consists ofof an an evaluation evaluation ofof the the success success ofof aa competed competed negotiation negotiation •• Allows Allows the the garnering garnering ofof insights insights from from understanding understanding strengths strengths and and weaknesses weaknesses ofof negotiation negotiation Copyright© 2005 South-Western/Thomson Learning All rights reserved The Successful International Negotiator: Personal Characteristics •• •• •• •• •• •• •• Tolerance Tolerance ofof ambiguity ambiguity Flexibility Flexibility and and creativity creativity Humor Humor Stamina Stamina Empathy Empathy Curiosity Curiosity Bilingualism Bilingualism Copyright© 2005 South-Western/Thomson Learning All rights reserved Major Points Regarding Successful International Negotiation •• Few Few negotiations negotiations succeed succeed without without extensive extensive preparation preparation •• Building Building personal personal relationships relationships isis aa key key step step inin aa negotiation negotiation •• Managers Managers should should be be aware aware that that first first offers offers may may differ differ by by cultural cultural background background Copyright© 2005 South-Western/Thomson Learning All rights reserved Major Points Regarding Successful International Negotiation 4.4.Many Many tactics tactics are are used used inin persuasion persuasion 5.5.Know Know how how counterpart counterpart views views the the concession-making concession-making process process 6.6.Culture Culture and and legal legal traditions traditions influence influence the the content content and and force force ofof law law regarding regarding business business contracts contracts 7.7.Competitive Competitive negotiation negotiation seldom seldom leads leads toto long-term long-term relationships relationships Copyright© 2005 South-Western/Thomson Learning All rights reserved Major Points Regarding Successful International Negotiation 8.8.Problem-solving Problem-solving negotiation negotiation isis more more flexible flexible and and probably probably more more successful successful strategy strategy 9.9.Must Must be be flexible, flexible, empathic, empathic, and and physically physically tough tough Copyright© 2005 South-Western/Thomson Learning All rights reserved ... International Negotiation •• •• •• Process Process ofof making making business business deals deals across across cultures cultures Precedes Precedes any any multinational multinational project project... Negotiators Negotiators must must understand understand all all components components ofof culturally culturally different different communication communication styles styles Copyright© 2005 South-Western/Thomson... disrespectful Copyright© 2005 South-Western/Thomson Learning All rights reserved The Basics of Cross- Cultural Communication •• Olfactics: Olfactics: use use ofof smells smells as as aa means means