01 e = Cross-culture negotiation and decision making -chapt

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Cross-Cultural Negotiation and Decision

Making

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Chapter 5 - Overview



_Negotiation



_{The negotiation process}



_{Understanding negotiation styles}



_{Managing negotiation}

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Important Differences in the Negotiation

Process



_{The amount and type of preparation for a}

negotiation



_{The relative emphasis on tasks versus}

interpersonal relationships



_{The reliance on general principles rather than}

specific issues



_{The number of people present and the extent of}

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What is Negotiation?



_{Negotiation describes the process of discussion}

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The Negotiation Process

Preparation

Relationship building

Exchange of task-related information

Persuasion

Concessions and

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Stakeholders in Cross-Cultural Negotiations

Home (HQ) Country

Firm

Negotiators Host _country

Home consumers All citizens

Special interest groups

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Variables in the Negotiation Process

(Exhibit 5-3)

 _{Basic conception of negotiation process:}_{Is it a competitive process or a}

problem-solving approach?

 _{Negotiator selection criteria:}_{Is selection based on experience, status,}

expertise, personal attributes, or some other characteristic?

 _{Significance of type of issues:}_{Is it specific, such as price, or is the focus}

on relationships or the format of talks?

 _{Concern with protocol:}_{What is the importance of procedures, social}

behaviors, and so forth in the negotiation process?

 _{Complexity of communicative context:}What degree of reliance is placed on nonverbal cues to interpret information?

 _{Nature of persuasive arguments:}_{How do the parties attempt to influence}

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Variables in the Negotiation Process

(contd.)

 _{Role of individuals’ aspirations:}_{Are motivations based on individual,}

company, or community goals?

 _{Bases of trust:}_{Is trust based on past experience, intuition, or rules?}

 _{Risk-taking propensity:}_{How much do the parties try to avoid uncertainty}

in trading information or making a contract?

 _{Value of time:}_{What is each party’s attitude toward time? How fast should}

negotiations proceed, and what degree of flexibility is there?

 _{Decision-making system:}_{How does each team reach decisions – by}

individual determination, by majority opinion, or by group consensus?

 _{Form of satisfactory agreement:}_{Is agreement based on trust (perhaps just}

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Negotiation Styles

 _{For North Americans, negotiations are businesslike; their} factual appeals are based on what they believe is

objective information, presented with the assumption that it is understood by the other side on a logical basis.

 _{Arabs use}_{affective appeals}_{based on emotions and}

subjective feelings.

 _{Russians employ}_{axiomatic appeals}_{– that is, their}

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Profile of a Successful American Negotiator

 _{Knows when to compromise}

 _{Takes a firm stand at the beginning of the negotiation}  _{Refuses to make concessions beforehand}

 _{Keeps his or her cards close to his or her chest}

 _{Accepts compromises only when the negotiation is}

deadlocked

 _{Sets up the general principles and delegates the detail}

work to associates

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Profile of a Successful American Negotiator

(contd.)

 _{Respects the “opponents”}

 _{States his or her position as clearly as possible}

 _{Knows when he or she wishes a negotiation to move on}  _{Is fully briefed about the negotiated issues}

 _{Has a good sense of timing and is consistent}

 _{Makes the other party reveal his or her position while}

keeping his or her own position hidden as long as possible

 _{Lets the other negotiator come forward first and looks for}

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Profile of a Successful Indian Negotiator

 _{Looks for and says the truth}

 _{Is not afraid of speaking up and has no fears}  _{Exercises self-control}

 _{Seeks solutions that will please all the parties involved}  _{Respects the other party}

 _{Neither uses violence nor insults}

 _{Is ready to change his or her mind and differ with himself}

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Profile of a Successful Indian Negotiator

(contd.)

 _{Puts things into perspective and switches easily from the small} picture to the big one

 _{Is humble and trusts the opponent}

 _{Is able to withdraw, use silence, and learn from within}

 _{Relies on himself or herself, his or her own resources and strengths}  _{Appeals to the other party’s spiritual identity}

 _{Is tenacious, patient, and persistent}

 _{Learns from the opponent and avoids the use of secrets}

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Profile of a Successful Arab Negotiator

 _{Protects all the parties’ honor, self-respect, and dignity}  _{Avoids direct confrontation between opponents}

 _{Is respected and trusted by all}

 _{Does not put the parties involved in a situation where}

they have to show weakness or admit defeat

 _{Has the necessary prestige to be listened to}

 _{Is creative enough to come up with honorable solutions}

for all parties

 _{Is impartial and can understand the positions of the}

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Profile of a Successful Arab Negotiator

(contd.)

 _{Is able to resist any kind of pressure that the opponents could try to} exercise on him

 _{Uses references to people who are highly respected by the opponents} to persuade them to change their minds on some issues

 _{Can keep secrets and in so doing gains the confidence of the} negotiating parties

 _{Controls his temper and emotions}

 _{Can use conference as mediating devices}

 _{Knows that the opponent will have problems in carrying out the} decisions made during the negotiation

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Profile of a Successful Swedish Negotiator

 _{Very quiet and thoughtful}

 _{Punctual (concerned with time)}  _{Extremely polite}

 _{Straightforward (they get straight down to business)}  _{Eager to be productive and efficient}

 _Heavy-going

 _{Down-to-earth and overcautious}  _{Rather flexible}

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Profile of a Successful Swedish Negotiator

(contd.)

 _{Slow at reacting to new (unexpected) proposals}  _{Informal and familiar}

 _Conceited

 _{Perfectionist}

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Profile of a Successful Italian Negotiator

 _{Has a sense of drama (acting is a main part of the culture)}

 _{Does not hide his or her emotions (which are partly sincere and} partly feigned)

 _{Reads facial expressions and gestures very well}  _{Has a feeling for history}

 _{Does not trust anybody}

 _{Is concerned about the bella figura, or the “good impression,” he or} she can create among those who watch his or her behavior

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Profile of a Successful Italian Negotiator

(contd.)

 _{Is always on the qui vive, the “lookout”}  _{Never embraces definite opinions}

 _{Is able to come up with new ways to immobilize and eventually} destroy his or her opponents

 _{Handles confrontation of power with subtlety and tact}  _{Has a flair for intrigue}

 _{Knows how to use flattery}

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Managing Negotiation



_“The

_{software of negotiation}

_{– that is, the nature}

and the appearance of the relationship between

the people pursuing common goals – need to be

carefully addressed in the negotiation process.”

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Cross-Cultural Negotiation Variables

(Exhibit 5-8)

Culture

Goals

National/corporate Principles versus specific details

Negotiating styles

objective/subjective/axiomatic Negotiating behavior

defense/attack/trust

deception/pressure/concessions Verbal and nonverbal behavior Attitudes toward time/scheduling

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Negotiation Support Systems

 _{Negotiation Support Systems (NSS) can provide support}

for the negotiation process by:

 _{Increasing the likelihood that an agreement is reached}

when a zone of agreement exists (solutions that both parties would accept)

 _{Decreasing the direct and indirect costs of negotiations,}

such as costs caused by time delays (strikes, violence), and attorneys’ fees, among others

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Stages in the Rational Decision-Making

Process



_{Defining the problem}



_{Gathering and analyzing relevant data}



_{Considering alternative solutions}

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Cultural Variables Affecting

Decision-Making

 _{Objective (basing decisions on rationality) versus}

subjective (basing decisions on emotions) approach

 _{Risk tolerance}

 _{Locus of control – internal (managers in control of}

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Cultural Variables in the Decision-Making

Process

(Exhibit 5-11)

Problem Data Consideration of Decision Implementation Definition gathering alternative solutions

Objective/subjective perspective

Internal/external locus of control Risk tolerance Past/future orientation

Individualism/collectivism Locus of decision making

Utilitarianism/moral ideals