Cross cultural management 5e by cullen CH13

Chapter 13 International International Negotiation Negotiation and and Cross-Cultural Cross-Cultural Communication Communication © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Learning Objectives •• Understand Understand the the basics basics ofof verbal verbal 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” inin international international negotiation negotiation © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part International Negotiation •• •• •• Process Process ofof making making business business deals deals across across cultures cultures Precedes Precedes any any multinational multinational project project Without Without successful successful negotiation negotiation and and the the accompanying accompanying cross-cultural cross-cultural communication, communication, there there are are seldom seldom successful successful business business transactions transactions © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Basic of Cross-Cultural Communication •• 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 (both (both verbal verbal and and nonverbal) nonverbal) •• Avoid Avoid attribution attribution errors errors •• Attribution: Attribution: process process by by which which we we interpret interpret the the meaning meaning ofof spoken spoken words words or or nonverbal nonverbal exchanges exchanges © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Language and Culture •• Whorf Whorf hypothesis: hypothesis: theory theory that that language language determines determines the the nature nature ofof culture culture •• Words Words provide provide the the concepts concepts ofof understanding understanding the the world world •• All All languages languages have have limited limited sets sets ofof words words •• Restricted Restricted word word sets sets constrain constrain the the ability ability toto conceptualize conceptualize the the world world •• As As language language structures structures the the way way we we think think about about what what we we see, see, itit determines determines cultural cultural patterns patterns © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part High- and Low-Context Languages •• Low-context Low-context language: language: people people state state things things directly directly and and explicitly, explicitly, and and you you do not not have have toto understand understand contexts contexts 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 Multiple Multiple meanings meanings depending depending on on the the context context © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 13.1: Country Differences in High-Context and Low-Context Communication © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 13.2: Cultural Differences in Communication Styles © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Step 4: Persuasion •• Stage Stage when when each each side side inin the the negotiation negotiation attempts attempts toto get get the the other other side side toto agree agree toto its its position position Heart Heart ofof the the negotiation negotiation process process Numerous Numerous tactics tactics used used Two Two general general types types ofof tactics tactics :: Standard Standard verbal verbal and and nonverbal nonverbal negotiation negotiation tactics, tactics, and and dirty dirty tricks tricks © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Verbal and Nonverbal Negotiation Tactics •• •• •• •• •• •• Promise Promise Threat Threat Recommendation Recommendation Warning Warning Reward Reward Punishment Punishment © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Verbal and Nonverbal Negotiation Tactics •• •• •• •• •• •• •• Normative Normative appeal appeal Commitment Commitment Self Self disclosure disclosure Question Question Command Command Refusal Refusal Interruption Interruption © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 13.7: Comparison of Brazilian, U.S., and Japanese Negotiators (in half-hour bargaining session) © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Styles of Concession •• Sequential Sequential approach: approach: each each side side reciprocates reciprocates concessions concessions made made by by the the other other side side •• Holistic Holistic approach: approach: each each side side makes makes very very few, few, ifif any, any, concessions concessions until until the the end end ofof the the negotiation negotiation © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 mutually mutually satisfactory satisfactory 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 Helps Helps develop develop long long term term relationships, relationships, isis flexible, flexible, and and probably probably more more successful successful strategy strategy © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 13.8: Competitive and ProblemSolving Negotiation in the Negotiating Steps © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 13.9: Cultural Differences in Preference for a Problem-Solving Negotiation Strategy © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Conclusion •• Chapter Chapter examined examined the the negotiating negotiating process process and and other other elements elements ofof cross-cultural cross-cultural communication communication •• International International negotiations negotiations involves involves several several steps steps including: including: preparation, preparation, building building the the relationship, relationship, persuasion, persuasion, making making concessions concessions and and reaching reaching agreement agreement •• Successful Successful negotiators negotiators prepare prepare and and understand understand these these steps steps and and adapt adapt them them toto local local host host countries countries © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ... successful successful negotiation negotiation and and the the accompanying accompanying cross- cultural cross- cultural communication, communication, there there are are seldom seldom successful successful... International Negotiation •• •• •• Process Process ofof making making business business deals deals across across cultures cultures Precedes Precedes any any multinational multinational project project... or duplicated, or posted to a publicly accessible website, in whole or in part The Basic of Cross- Cultural Communication •• Successful Successful negotiation negotiation requires requires successful