Transcript chapter 3 international negotiation and cross

BASICS OF CROSS-CULTURAL
COMMUNICATION
LANGUAGE AND CULTURE
• The Whorf hypothesis
HIGH CONTEXT
• Communications have multiple
meanings interpreted by reading the
situation
• Asian and Arabic languages are
among the most high context in the
world
LOW CONTEXT
• The words provide most of the
meaning
• Most northern European languages
including German, English, and the
Scandinavian languages are low
context
EX 3.1 High Context and
Low Context Countries
High Context: Meaning
Implicit Languages
Japanese
Arabs
Surrounding Latin Americans
Information
Italians
Necessary for
Understanding
British
French
North Americans
Scandinavians
Germans
Swiss
Low Context: Meaning
Explicit in Language
Exhibit 3.2 Cultural
Differences in
Communication Styles
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% Formal
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% Direct
NONVERBAL
COMMUNICATION COMMUNICATING
WITHOUT WORDS
KINESICS
• Communicating through body
movements
• Facial expressions
• Body posture
PROXEMICS
• The use space to communicate
• The personal bubble of space - nine
inches to over twenty inches
• North Americans prefer more
distance than from Latin and Arab
cultures
TOUCH
• Basic human interaction
• In greeting - shake hands,
embrace, or kiss
• Latin European and Latin
American cultures-more touching
than Germanic, Anglo, or
Scandinavian cultures
PRACTICAL ISSUES IN CROSSCULTURAL VERBAL
COMMUNICATION
INTERPRETERS
• Provide simultaneous translation
of a foreign language
• Require greater linguistic skills
than speaking a language or
translating written documents
• Insure the accuracy and common
understanding of agreements
COMMUNICATION WITH
NONNATIVE SPEAKERS
• Use the most common words with most
common meanings
• Select words with few alternative
meanings
• Follow rules of grammar strictly
• Speak with clear breaks between
words
Communication with nonnative
speakers, continued
• Avoid “sports” words or words
borrowed from literature
• Avoid words that represent pictures
• Mimic the cultural flavor of
nonnative speaker’s language
• Summarize
• Test your communication success
AVOIDING
ATTRIBUTION ERRORS
• Attribution - process by which we
interpret the meaning and intent of
spoken words or nonverbal exchanges
• Attribution errors
INTERNATIONAL
NEGOTIATION
• More complex than domestic
negotiations
• Differences in national cultures and
differences in political, legal, and
economic systems often separate
potential business partners
EXHIBIT 3.4: STEPS IN THE
INTERNATIONAL
NEGOTIATION PROCESS
STEP 1: PREPARATION
STEP 2: BUILDING THE
RELATIONSHIP
STEP 3: EXCHANGING
INFORMATION/FIRST OFFER
STEP 4: PERSUASION
STEP 5: CONCESSIONS
STEP 6: AGREEMENT
STEP 1: PREPARATION
• Is the negotiation possible?
• Know what your company wants
• Know the other side
• Send the proper team
• Agenda
• Prepare for a long negotiation
• Environment
• Strategy
DIFFERENCES IN
CULTURES IN KEY
NEGOTIATING
PROCESSES (EXAMPLES)
• Communication styles—direct or
indirect
• Sensitivity to time—low or high
Cultural Differences in Key
Negotiating Processes,
Continued
• Forms of agreement—specific or broad
(EX 3.5)
• Team organization—a team or one leader
Exhibit 3.5 Preferences for
Broad Agreements
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% Preference for Broad Agreements
STEP 2: BUILDING THE
RELATIONSHIP
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No focus on business
Partners get to know each other
Social and interpersonal exchange
Duration and importance vary by
culture
STEP 3: EXCHANGING
INFORMATION AND THE
FIRST OFFER
• Task-related information is
exchanged
• First offer
STEP 4: PERSUASION
• Heart of the negotiation process
• Attempting to get other side to agree
to a position
• Numerous tactics used
VERBAL AND NONVERBAL
NEGOTIATION TACTICS
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Promise
Threat
Recommendation
Warning
Reward
Punishment
Normative appeal
Negotiation Tactics, Continued
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•
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Commitment
Self disclosure
Question
Command
No
Interrupting
“DIRTY TRICKS” IN
INTERNATIONAL
NEGOTIATIONS
Dirty tricks are negotiation tactics
that pressure opponents to accept
unfair or undesirable agreements or
concessions
PLOYS/DIRTY TRICKS POSSIBLE RESPONSES
• Deliberate deception - point out
what is happening
• Stalling - do not reveal when you plan
to leave
• Escalating authority - clarify
decision making authority
Ploys/Dirty Tricks, Continued
• Good guy, bad buy routine - do not
make any concessions
• You are wealthy and we are poor ignore the ploy
• Old friends - keep a psychological
distance
STEPS 5 AND 6:
CONCESSIONS AND
AGREEMENT
• Final agreement: The signed
contract, agreeable to all sides
• Concession making: requires that
each side relax some of its demands
STYLES OF
CONCESSION
• Sequential approach
– Each side reciprocates
concessions
• Holistic approach
– Concession making begins
after all issues are
discussed
BASIC NEGOTIATION
STRATEGIES
• Competitive
– The negotiation as a win-lose
game
• Problem solving
– Search for possible win-win
situations
COMPETITIVE OR
PROBLEM SOLVING
INTERNATIONAL
NEGOTIATION
• Cultural norms and values may
predispose some negotiators to
one approach (EX 3.10)
• Most experts recommend a
problem solving negotiation
strategy
EX 3.10 Preferences for
Problem-Solving
Negotiation
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% Win-Win
THE SUCCESSFUL
INTERNATIONAL
NEGOTIATOR: PERSONAL
CHARACTERISTICS
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Tolerance of ambiguous situations
Flexibility and creativity
Humor
Stamina
Empathy
Personal Characteristics,
Continued
• Curiosity
• Bilingual
CONCLUSIONS
• Successful negotiators:
– Understand the negotiation steps
– Build cross-cultural communication
skills
– Understand nonverbal
communication
– Avoid attribution errors