hbm339 lecture 2a

8/8/2019 HBM339 Lecture 2a

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Times Mirror Higher Education Group, Inc., 1995 IRWIN

HBM339 Transnational Business PracticesHBM339 Transnational Business Practices

Cross CulturalCross Cultural

NegotiationsNegotiations


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The Meaning and Nature of Culture

A culture is a shared template for behavior and

interpretationAlthough people hardly ever notice their own culture, culture

supplies important boundaries on behavior. Culture is adaptive,

dynamic, and patterned. People learned culture either by

growing up in it as natives or through the process of

acculturation.

Culture consists primarily of values and norms Values are enduring beliefs about desirable outcomes that

transcend specific situations and shape ones behavior.

Norms are informal, usually unspoken rules that govern behavior.


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Culture

Beliefs - consistofa numberofmental orverbal statementsthatreflect a persons particularknowledge assessmentofsomething.

Values - arebasically beliefsexceptthatthey arerelatively fewinnumber,serve as a guideforculturally appropriatebehavior,areenduringordifficulttochange. They arenottiedtospecificobjectsorsituations and arewidely acceptedby membersofsociety.

Customs - aremodesofbehaviorthatconstituteculturallyapprovedoracceptablewaysofbehavinginspecificsituations.


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Elements of Culture

Material Culture

Social Institutions

Social Organization

Education Political Structures

Man and the Universe Belief Systems

Aesthetics

Graphic and Plastic Arts

Folklore

Music, Drama, and Dance

Language


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Australian Aesthetics


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Cultural Adaptation

Cultural Imperatives

Cultural Imperatives

Cultural Adiaphora

Cultural Adiaphora

Cultural Exclusives

Cultural Exclusives


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Contextual Background ofVarious Countries

High

Context

Implicit

Japanese

Arabian

LatinAmerican

Spanish

Italian

English (UK)

French

NorthAmerican (US)

Scandinavian

German

Swiss

Low

Context

Explicit


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Cultural Factors

Never touch the head of a Thai or Pass an object over it

The head is considered sacred in Thailand.

Avoid using triangular shapes in Hong Kong,

Korea, and Taiwan.

The triangle is considered a negative shape

The number 7 is considered bad luck in Kenya and good

luck in the Czech Republic and Magical connotation in

Benin,Africa

The number 10 is bad luck in Korea.

The number 4 means death in Japan

Red represents witchcraft and death in many Africancountries

Red is a positive color in Denmark


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Cultural Skills

Communicate Respect for People and their Culture

Tolerate Ambiguity

Display Empathy

Be Nonjudgmental

Recognize and Control Your SRC (Self-Reference Criterion)

Laugh Things Off


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Halls Silent Languages

Language of TimeLanguage of Time

Language of SpaceLanguage of Space

Language of ThingsLanguage of Things

Language of FriendshipLanguage of Friendship

Language ofAgreementsLanguage ofAgreements


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Cross Cultural Negotiation

Nontask Sounding

Task-related

Exchange of

Information

Considerable time

and expense devoted

to such efforts is the

practice in Japan.

This is the most

important step - high

first offers with long

explanations and in-depth clarifications.

Relatively shorter

period are typical.

Information is given

briefly and directly.

"Fair" First offers are

more typical.

FOUR STAGES OF BUSINESS NEGOTIATIONS

Japanese Americans


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Cross Cultural Negotiation

Persuasion

Concessions and

Agreement

The most important

minds are changed at

the negotiation table

and aggressivepersuasive tactics

used.

Concessions and

commitments are

made throughout - a

sequential approachto decision making.

Japanese Americans

Persuasion is accom-

plished primarily

behind the scenes.

Vertical statusrelations dictate

bargaining outcomes.

Concessions are

made only toward the

end of negotiations -

a holistic approach todecision making.

Progress is difficult to

measure for

Americans.


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Summary of Japanese and AmericanBusiness Negotiation Styles

Language

Nonverbal behaviors

Values

Americans have less time to

formulate answers and

observe Japanese nonverbal

responses because of a lack

of knowledge of Japanese.

American business people

tend to "fill" silent periods

with arguments or

concessions.

Speaking one's mind is

important. Buyer/sellerrelationships are horizontal.

Most Japanese executives

understand English,

although interpreters are

often used.

The Japanese interpersonal

communication style

includes less eye contact,

fewer negative facial

expressions, and more

periods of silence.

Tatemae is important.Vertical buyer/sellers

relationship with sellers

depending on good will of

buyers (amae) is typical.

Category AmericansJapanese


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Cultural Differences between Japaneseand American Individual Lifestyles

Clear expression of joy

and sorrow

Unequivocal expressionof Yes/No

Strong self-assertion

Strong personality

Excellent negotiating

skills

Priority of self-interest

Cultural

Background

Reticence

Modesty

Reserve

Punctiliousness

Politeness

Obligation

Ambiguous expression of

Joy/Sorrow

Equivocal expression ofYes/No

Weak self-assertion

Weak personality

Poor negotiating skills

Priority of harmony with

others

Japanese

A Culture of Self-restraint

Americans

A Culture of Self-expression

SOURCE: Norihiko Shimizu, Todays Taboos may be gone Tomorrow,

Tokyo Business, February 1995, p.50.


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Cultural Differences between Japaneseand American Social Life

Dignity of individuals

Individual work ethic

Great individual freedom

Respect for rules

An open and transparent

society

Multi-cultural society

A society excelling in creativity and

versatilityIndividual decisions over consensus

A society which pursues the ideal

Human relations oriented

Dependence on the group

Lack of individual freedom

Low regard for rules

A closed society, lacking in

transparency

Mono-cultural society

An orderly and uniform society

Dependence on consensus

A society which pursues harmony

with reality

Japanese Society

In the Same Boat Concept

American Society

Dignity of Individuals

SOURCE: Norihiko Shimizu, Todays Taboos may be gone Tomorrow,



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Cultural Differences between Japaneseand American Business

Game concept: Business is a game in

pursuit of profits under the rules of laws

and contracts

Efficiency-oriented and approximateaccuracy simplicity, clarity, and quickness

Quantity-oriented

Short-term performance evaluation

Easy layoffs, dismissals of employees, and

selling of businesses

Japanese BusinessAmerican Business

Mutual trust-oriented business:

business is based on trusting relationship

among people rather than

the rules of game

Highly precision-oriented andperfectionism-high dependency on human

awareness

Quality-oriented

Mid-to-long term evaluations

Job security

SOURCE: Norihiko Shimizu, Todays Taboos may be gone tomorrow,



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Cultural Differences between Japaneseand American Business

Top down management

Low mutual dependence between

employers and employees

Control of business by stockholders and

the management

Management by "force"

Heavy dependence on machinery and

technology, vs. Light dependence on

human resources

Limited loyalty and incentive-oriented work

ethics

Excellent software-based technology

development

Heavy dependence on human resources

bottom-up management and teamwork

High mutual dependence between

employers and employees

Joint management of business by

Employees and Employees

Management by "motivation"

Heavy dependence on human resources

Strong loyalty and fewer incentives

Inadequate software development ability

Japanese BusinessAmerican Business

SOURCE: Norihiko Shimizu, Todays Taboos may be gone tomorrow,

Tokyo Business, February 1995, p.51

hbm339 lecture 2a

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