Cross cultural management 3rd chapter 15 (11) negotiating internationally

Slide 15.1 Chapter 15 Negotiating internationally Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.2 The nature of negotiation The ‘Western’ approach: • Negotiating is a problem-solving exercise • Two types of negotiation strategy predominate: – the distributive (win–lose) – the integrative (win–win strategy) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.3 Cross-cultural negotiation in practice: the USA and China Interpersonal orientation: fundamental opposition • The US sees the deal: – as the main objective of any negotiation • Very focussed bottom-line approach • For the Chinese: – a negotiation is just part of developing a life-long relationship • Need to establish a good rapport before talking of a deal Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.4 Cross-cultural negotiation in practice: the USA and China (Continued) Power orientation US •Clear hierarchy in US team •Deference shown, even if the language used informal •Risk-taking seen as inherent to getting the best deal possible China •Often difficult to know who the Chinese team leader is •Will resist pressure from the American side until all Chinese parties satisfied •Any risk-taking must be carefully orchestrated Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.5 Cross-cultural negotiation in practice: the USA and China (Continued) Underlying concept of negotiation Negotiation strategies: Both US approaches (win–win and win–lose): •should lead to a definitive contract to which both sides are expected to adhere •The Chinese: – find it difficult to take this linear approach – the negotiation is just one of many encounters – The principle is to build a business partnership Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.6 Cross-cultural negotiation in practice: the USA and China (Continued) Underlying concept of negotiation Strategic time frame: For the Chinese: •a deal made at the end of a negotiation remains negotiable in the long term • Agreements are based on trust and goodwill – This can be frustrating for Americans since for them time is of the essence – and a deal’s a deal! Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.7 Cross-cultural negotiation in practice: the USA and China (Continued) Style of negotiation US negotiators: - concerned with specifics, the information which allows them to pursue their way of negotiating •Need to gain a clearer idea of the other party’s concerns and interests to establish or modify their goals •Ready to give a lot of information if this is part of an exchange The Chinese •gaining trust + confidence is more important than facts and figures •May not have information asked for (possible face loss) •Younger managers more in tune with Western behaviour norms Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.8 Cross-cultural negotiation in practice: the USA and China (Continued) Outcome orientations US negotiators •a detailed contract is the ideal conclusion to a negotiation: – signed, sealed and delivered •In the final phase detailed points are hammered out: – Implementation – Legal aspects Chinese •tend to avoid legalistic details •Prefer short contracts that show commitment to project •A contract : – only a formal moment in development of a relationship •Further negotiations: – will happen using the goodwill and friendship established Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.9 Cross-cultural negotiation in practice: the USA and China (Continued) • The Chinese and American negotiators: – face innumerable potential difficulties • The opposition in expectations and attitudes: – is clear – the expected frustrations and irritations evident Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.10 Cultural approach of negotiating • ‘one-size-fits-all’ approach to be inappropriate • a range of strategies which are: culturally responsive; reflect the skills of the individuals involved; take account of the circumstances in which they are working Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 15.11 The five steps The five steps in selecting a negotiating strategy take account of these complexities 1.Reflect on your culture’s negotiation script 2.Learn the negotiation script of the counterpart’s culture 3.Consider the relationship and circumstances 4.Predict and influence the counterpart’s approach 5.Choose your strategy End Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 ... strategy) Browaeys and Price, Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2 015 Slide 15. 3 Cross- cultural negotiation in practice: the USA... deal Browaeys and Price, Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2 015 Slide 15. 4 Cross- cultural negotiation in practice: the USA... orchestrated Browaeys and Price, Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2 015 Slide 15. 5 Cross- cultural negotiation in practice: the USA