chapter copyright© 2004 thomson learning all rights reserved 12 international negotiation and...

Chapter

Copyright© 2004 Thomson Learning All rights reserved

12International Negotiation and Cross-Cultural Communication

Copyright© 2005 South-Western/Thomson Learning All rights reserved

Learning Objectives

• Understand the basics of spoken and nonverbal communication

• Understand the basic international negotiation processes

• Understand the basic tactics of international negotiations

• Recognize and respond to the “dirty tricks”

• Understand the basics of spoken and nonverbal communication

• Understand the basic international negotiation processes

• Understand the basic tactics of international negotiations

• Recognize and respond to the “dirty tricks”


Learning Objectives

• Know the difference between the problem-solving and competitive approaches

• Identify the personal characteristics of the successful international negotiator

• Know the difference between the problem-solving and competitive approaches

• Identify the personal characteristics of the successful international negotiator


International Negotiation

• Process of making business deals across cultures• Precedes any multinational project• Successful negotiation requires successful

communication• Negotiators must understand all components of

culturally different communication styles

• Process of making business deals across cultures• Precedes any multinational project• Successful negotiation requires successful

communication• Negotiators must understand all components of

culturally different communication styles


Language and Culture

• Whorf hypothesis: theory that language determines the nature of culture

• All languages have limited sets of words• Words provide the concepts of understanding the

world• Restricted word sets constrain the ability to understand

the world

• Whorf hypothesis: theory that language determines the nature of culture

• All languages have limited sets of words• Words provide the concepts of understanding the

world• Restricted word sets constrain the ability to understand

the world


High- and Low-Context Languages

• Low-context language: people state things directly and explicitly• Most northern European languages including

German, English, and the Scandinavian languages• High-context language: people state things indirectly

and implicitly• Asian and Arabic languages

• Low-context language: people state things directly and explicitly• Most northern European languages including

German, English, and the Scandinavian languages• High-context language: people state things indirectly

and implicitly• Asian and Arabic languages


Exhibit 12.1: Country Differences in High-Context and Low-Context Communication


Basic Communication Styles

• Direct communication: communication that comes to the point and lacks ambiguity

• Formal communication: communication that acknowledges rank, titles, and ceremony in prescribed social interaction

• Direct communication: communication that comes to the point and lacks ambiguity

• Formal communication: communication that acknowledges rank, titles, and ceremony in prescribed social interaction


Exhibit 12.2: Cultural Differences in Communication Styles


Nonverbal Communication

• Communication without words• Includes array of behaviors that enhance/supplement

spoken communication• Include

• Kinesics, proxemics, haptics, oculesics, and olfactics

• Communication without words• Includes array of behaviors that enhance/supplement

spoken communication• Include

• Kinesics, proxemics, haptics, oculesics, and olfactics


Kinesics

• Communication through body movements• E.g., facial expressions, body posture• Most Asian cultures use bowing to show respect • No universal code for what body movements mean• Easy to misinterpret gestures

• Communication through body movements• E.g., facial expressions, body posture• Most Asian cultures use bowing to show respect • No universal code for what body movements mean• Easy to misinterpret gestures


Proxemics

• Use of space to communicate• Each culture has appropriate distances for

communication• The personal bubble of space may range from 9

inches to over 20 inches• North Americans prefer more distance than Latin

and Arab cultures

• Use of space to communicate• Each culture has appropriate distances for

communication• The personal bubble of space may range from 9

inches to over 20 inches• North Americans prefer more distance than Latin

and Arab cultures


Seating in a Typical Japanese Office


Haptics or Touching

• Shaking hands, embracing, or kissing when greeting one another• No touching

• E.g., Japan, U.S., England, and many Northern European countries

• Moderate touching• E.g., Australia, China, Ireland, and India

• Touching• E.g., Latin American countries, Italy, and Greece

• Shaking hands, embracing, or kissing when greeting one another• No touching

• E.g., Japan, U.S., England, and many Northern European countries

• Moderate touching• E.g., Australia, China, Ireland, and India

• Touching• E.g., Latin American countries, Italy, and Greece


Oculesics

• Communication through eye contact or gaze• U.S. and Canada: people are very comfortable and

expect eye contact to be maintained • China and Japan: eye contact is considered very

rude and disrespectful

• Communication through eye contact or gaze• U.S. and Canada: people are very comfortable and

expect eye contact to be maintained • China and Japan: eye contact is considered very

rude and disrespectful


The Basics of Cross-Cultural Communication

• Olfactics: use of smells as a means of nonverbal communication• U.S.: find body odor offensive• Arab: consider body odors natural

• Olfactics: use of smells as a means of nonverbal communication• U.S.: find body odor offensive• Arab: consider body odors natural


Practical Issues in Cross-Cultural Business Communication

• Interpreter’s role: to provide a simultaneous translation of a foreign language • Require greater linguistic skills than speaking a

language or translating written documents• Have the technical knowledge and vocabulary to

deal with technical details common in business transactions

• Have to ensure the accuracy and common understanding of agreements

• Interpreter’s role: to provide a simultaneous translation of a foreign language • Require greater linguistic skills than speaking a

language or translating written documents• Have the technical knowledge and vocabulary to

deal with technical details common in business transactions

• Have to ensure the accuracy and common understanding of agreements


Tips for Successful Use of Interpreters

• Spend time with the interpreter • Go over technical and other issues with interpreter for

proper understanding• Insist on frequent interruptions when it’s necessary• Look for feedback and comprehension by watching the

eyes

• Spend time with the interpreter • Go over technical and other issues with interpreter for

proper understanding• Insist on frequent interruptions when it’s necessary• Look for feedback and comprehension by watching the

eyes


Tips for Successful use of Interpreters (cont.)

• Discuss the message beforehand• Request that your interpreter apologize for your

inability to speak in the local language• Confirm that all key components of the message have

been properly comprehended

• Discuss the message beforehand• Request that your interpreter apologize for your

inability to speak in the local language• Confirm that all key components of the message have

been properly comprehended


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• Avoid sports words or words borrowed from literature

• 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• Avoid sports words or words borrowed from literature


Communication with Nonnative Speakers (cont.)

• Avoid words or expressions that are pictures• Avoid slang• Mimic the cultural flavor of the nonnative speaker’s

language• Test your communication success• Repeat basic ideas using different words when your

counterpart does not understand• Confirm important aspects in writing

• Avoid words or expressions that are pictures• Avoid slang• Mimic the cultural flavor of the nonnative speaker’s

language• Test your communication success• Repeat basic ideas using different words when your

counterpart does not understand• Confirm important aspects in writing


Avoiding Attribution Errors

• Attribution: process by which we interpret the meaning of spoken words or nonverbal exchanges• Attribute meaning based on our taken-for-granted

cultural expectations• Easy to make mistakes of attribution• Need to observe carefully • Avoid subtleties of a foreign language• Avoid complex nonverbal behaviors

• Attribution: process by which we interpret the meaning of spoken words or nonverbal exchanges• Attribute meaning based on our taken-for-granted

cultural expectations• Easy to make mistakes of attribution• Need to observe carefully • Avoid subtleties of a foreign language• Avoid complex nonverbal behaviors


International Negotiation

• More complex than domestic negotiations• Differences in national cultures and differences in

political, legal, and economic systems • Steps in international negotiation

• Preparation, building the relationship, exchanging information, first offer, persuasion, concessions, agreement, and post agreement

• More complex than domestic negotiations• Differences in national cultures and differences in

political, legal, and economic systems • Steps in international negotiation

• Preparation, building the relationship, exchanging information, first offer, persuasion, concessions, agreement, and post agreement


Exhibit 12.3: Steps in International Negotiations


Step 1: Preparation

• Determine if the negotiation is possible• Know what your company wants• Know the other side• Send the proper team• What is the agenda?• Prepare for long negotiation• What is the environment like?• Plan a strategy

• Determine if the negotiation is possible• Know what your company wants• Know the other side• Send the proper team• What is the agenda?• Prepare for long negotiation• What is the environment like?• Plan a strategy


Cultural Differences in Key Negotiating Processes

• Negotiation goal—signing the contract or forming a relationship

• Formal or informal personal communication style• Direct or indirect communication style• Sensitivity to time—low or high• Forms of agreement—specific or general• Team organization—a team or one leader

• Negotiation goal—signing the contract or forming a relationship

• Formal or informal personal communication style• Direct or indirect communication style• Sensitivity to time—low or high• Forms of agreement—specific or general• Team organization—a team or one leader


Exhibit 12.4: Cultural Differences in Preference for Broad Agreements


Exhibit 12.5: Understanding Negotiators from Other Countries


Step 2: Building the Relationship

• First stage of the actual negotiation process• No focus on business• Partners get to know each other • Social and interpersonal exchange• Duration and importance vary by culture

• First stage of the actual negotiation process• 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

• Both parties exchange information on their needs for the agreement

• Parties exchange task-related information and first offer• Task-related information: actual details or the

proposed agreement• First offer: first proposal by parties of what they

expect from the agreement

• Both parties exchange information on their needs for the agreement

• Parties exchange task-related information and first offer• Task-related information: actual details or the

proposed agreement• First offer: first proposal by parties of what they

expect from the agreement


Exhibit 12.6: Information Exchange and First-Offer Strategies


Step 4: Persuasion

• Stage when each side in the negotiation attempts to get the other side to agree to its position• Heart of the negotiation process• Numerous tactics used

• Stage when each side in the negotiation attempts to get the other side to agree to its position• Heart of the negotiation process• Numerous tactics used


Verbal Negotiation Tactics

• Promise • Threat• Recommendation• Warning• Reward• Punishment

• Promise • Threat• Recommendation• Warning• Reward• Punishment


Verbal Negotiation Tactics

• Normative appeal• Commitment• Question• Command• Refusal• Interruption

• Normative appeal• Commitment• Question• Command• Refusal• Interruption


Exhibit 12.7: Comparison of Brazilian, U.S., and Japanese Negotiators (in half-hour bargaining session)


Dirty Tricks

• Negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions

• Negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions


Ploys/Dirty Tricks and Responses

• Deliberate deception or bluffing—point out what you believe is happening

• Stalling—do not reveal when you plan to leave• Escalating authority—clarify decision making authority• Good-guy, bad-guy routine—do not make any

concessions

• Deliberate deception or bluffing—point out what you believe is happening

• Stalling—do not reveal when you plan to leave• Escalating authority—clarify decision making authority• Good-guy, bad-guy routine—do not make any

concessions


Ploys/Dirty tricks and Responses

• You are wealthy and we are poor—ignore the ploy• Old friends—keep a psychological distance

• You are wealthy and we are poor—ignore the ploy• Old friends—keep a psychological distance


Step 5 and 6: Concession and Agreement

• Final agreement: signed contract, agreeable to all sides

• Concession making: requires that each side relax some of its demands

• Final agreement: 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: each side makes very few concessions until the end of the negotiation

• Sequential approach: each side reciprocates concessions

• Holistic approach: each side makes very few concessions until the end of the negotiation


Basic Negotiation Strategies

• Competitive negotiation: each side tried to give as little as possible and tries to “win” for its side• The negotiation as a win-lose game

• Problem solving: negotiators seek out ground that is beneficial to both companies’ interests• Search for possible win-win situations

• Competitive negotiation: each side tried to give as little as possible and tries to “win” for its side• The negotiation as a win-lose game

• Problem solving: negotiators seek out ground that is beneficial to both companies’ interests• Search for possible win-win situations


Exhibit 12.8: Competitive and Problem-Solving Negotiation in the Negotiating Steps


Exhibit 12.9: Cultural Differences in Preference for a Problem-Solving Negotiation Strategy


Step 7: Post Agreement

• Commonly ignored step• Consists of an evaluation of the success of a

competed negotiation• Allows the garnering of insights from understanding

strengths and weaknesses of negotiation

• Commonly ignored step• Consists of an evaluation of the success of a

competed negotiation• Allows the garnering of insights from understanding

strengths and weaknesses of negotiation


The Successful International Negotiator: Personal Characteristics

• Tolerance of ambiguity• Flexibility and creativity• Humor• Stamina• Empathy• Curiosity• Bilingualism

• Tolerance of ambiguity• Flexibility and creativity• Humor• Stamina• Empathy• Curiosity• Bilingualism


Major Points Regarding Successful International Negotiation

• Few negotiations succeed without extensive preparation.

• Building personal relationships is a key step in a negotiation.

• Managers should be aware that first offers may differ by cultural background.

• Few negotiations succeed without extensive preparation.

• Building personal relationships is a key step in a negotiation.

• Managers should be aware that first offers may differ by cultural background.



4. Many tactics are used in persuasion.5. Know how counterpart views the concession-making

process.6. Culture and legal traditions influence the content and

force of law regarding business contracts.7. Competitive negotiation seldom leads to long-term

relationships.

4. Many tactics are used in persuasion.5. Know how counterpart views the concession-making

process.6. Culture and legal traditions influence the content and

force of law regarding business contracts.7. Competitive negotiation seldom leads to long-term

relationships.



8. Problem-solving negotiation is more flexible and probably more successful strategy.

9. Must be flexible, empathic, and physically tough.

8. Problem-solving negotiation is more flexible and probably more successful strategy.

9. Must be flexible, empathic, and physically tough.

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