Cross Cultural Communication & Negotiation across Cultures

Unit 4

BASICS OF CROSS-CULTURAL COMMUNICATION

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

100 80 60 40 20 0
N SA U tian en rg A n ai Sp o ic ex M a i er ig G K U il az Br a di In ny a m er C n pa Ja e c an Fr na hi

% Direct

% Formal

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 Ensure 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

INTERNATIONAL NEGOTIATION
More complex than domestic negotiations Differences in national cultures and differences in political, legal, and economic systems often separate potential business partners

Negotiation
the process that is influenced not just by hard facts but by the personal values, skills, perceptions, attitudes and emotions of the parties at the bargaining table. time bound activity. Timing is a critical factor in negotiation. It plays an important role in influencing the overall climate, and directly affects the ultimate outcome of the discussions

Negotiation
a voluntary activity in the sense that either party can break away or refuse to enter discussion at any time.

a win-win situation. Each negotiating party feels that he or she has won in the hardest way. implies that both the parties are serious about the deal and are willing to enter a contract after the deal is struck.

Negotiation

The process in which two or more parties communicate and exchange goods or services in an attempt to rich a mutually agreeable solution

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Cultural Differences in Negotiations

Negotiating styles vary among national cultures; for effective cross-cultural negotiation, you need to understand other partys communication patterns, time orientations, social behavior and idiosyncratic national issues.

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Successful Negotiators Characteristics

US
Preparation & planning skill Thinking under pressure Judgment & intelligence Verbally expressive Product knowledge Perceive & exploit power Integrity

Japanese
Dedication to job Perceive & exploit power Win respect & confidence Integrity Demonstrate listening skills Broad perspective Verbally expressive

Taiwanese
Persistence & determination Win respect & confidence Preparation & planning skill Product knowledge Interesting Judgment & intelligence

Brazilian
Preparation & planning skill Thinking under pressure Judgment & intelligence Verbally expressive Product knowledge Perceive & exploit power Competitive

Cultural Differences in Negotiations

Cultural context significantly influences: History & identity in relation to conflict

Time frame (short/long; deadlines) Emphasis on rationality/emotion/ideals The amount and type of preparation for bargaining Participants: few essential or the more the merrier; young professional or respectable elder The relative emphasis on task versus interpersonal relationships and formal vs. informal mechanisms (e.g., lawyers)
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Differences in Negotiations
Where the negotiation should be conducted (business/leisure) and emphasis on entertainment Communication patterns (verbal/nonverbal); direct vs. non-direct rejection The tactics used:
Extent of bargaining
Initial offersextreme or moderate Nonverbal behavior

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Verbal Tactics (per hour session)

Behavior Promise Normative Commitment Self-Disclosure US 8 2 13 36 Brazilian 3 1 8 39 Japanese 7 4 15 34

Command Nos Profit level

Initial concessions

6 9 57.3
7.1

14 83.4 75.2
9.4

8 5.7 61.5
6.5

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Nonverbal Tactics
Behavior
Silent periods (per 30 min.)
Conversational overlaps (per 10 min.) Facial gazing (minutes per 10 min.) Touching (per 30 min.)

US 3.5 10.3 3.3 0

Brazilian 0 28.6 5.2 4.7

Japanese 5.5 12.6 1.3 0

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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 stylesdirect or indirect Sensitivity to timelow or high

Cultural Differences in Key Negotiating Processes, Continued

Forms of agreementspecific or broad(ex. 3.5) Team organizationa team or one leader

Exhibit 3.5 Preferences for Broad Agreements

50 40 30 20 10 0
SA U il az Br tina en rg A na hi C ce an Fr a di In ny a m er G n pa Ja N K U n ai Sp o ic ex M a i er ig

% Preference for Broad Agreements

STEP 2: BUILDING THE RELATIONSHIP

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

Promise Threat Recommendation Warning Reward Punishment

Negotiation Tactics, Continued

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

100 80 60 40 20 0
K U SA U a di In ce an Fr ina t en rg A na hi C n pa Ja M n ai Sp il az Br ia er ig y N an m er G o ic ex

% Win-Win

THE SUCCESSFUL INTERNATIONAL NEGOTIATOR: PERSONAL CHARACTERISTICS

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