5. Cross-cultural Negotiation Flashcards
1
Q
negotiation
A
process of discussion by which two or more parties aim for mutually acceptable agreement
2
Q
negotiations by global managers involve
A
- specific plans for strategies and continuing operations
- negotiating with government-owned companies
- negotiating operational details (staffing, raw materials, profits, etc)
- decision making processes
3
Q
differences between nations include
A
- amount and type of preparation
- tasks vs interpersonal relationships
- general principles vs specific issues
- number of people present and their influence
4
Q
stakeholders in CCN are
A
- Home (HQ) country - HQ employees, home consumers, home government, etc
- Firm negotiators - investors, alliance partners, special interest groups
- Host country - host government, host local employees, host consumers, etc
5
Q
language communication in CCN
A
- may be required to communicate in language of host country to be effective in business
- multilingualism may be necessary to be effective in the host country
- lack of foreign-language proficiency may be due to ethnocentrism
- complacency about being monolingual may be due to the increasing use of English in business
6
Q
ethnocentrism
A
tendency to be more inwardly focused on one’s own culture
7
Q
10 most widely spoken languages in the world
A
- Chinese
- English
- Hindu
- Spanish
- Russian
- Arabic
- Bengali
- Portuguese
- Malay
- French
8
Q
Percentage of world output tied to language group
A
- English 33%
- Chinese 10%
- Spanish 7%
- German 7%
- French 5%
- Arabic 3%
- Hindi 2%
- Others 33%
9
Q
Negotiation process
A
- Preparation
- Relationship building
- Exchange of task-related information
- Persuasion
- Concessions and agreement
10
Q
- Preparation
A
- develop profile of counterparts in host country
- find out likely demands, team composition and counterpart’s authority
- choose a negotiation site
11
Q
- Relationship building
A
- getting to know contacts and building mutual trust
- non-task sounding
- use intermediary
12
Q
- Exchanging task-related information
A
- cultural differences remain an issue so must show understanding of the other viewpoint:
- French tend to enjoy debate and conflict
- Mexicans tend to be suspicious and indirect
- Chinese tend to ask many questions but provide ambiguous responses
13
Q
- Persuasion
A
- psychological/physical discomfort (dirty tricks)
- false/misleading information
- ambiguous authority
- rudeness/threats/delays
- nonverbal messages
- individualism vs collectivism
14
Q
- Concessions and agreement
A
- Russians and Chinese start with extreme positions
- Swedes start with what they will accept
- sometimes, starting with extremes is most effective
- linear vs holistic approach to addressing issues
- relative importance of contracts: contract-focused vs relationship focused
15
Q
Negotiation styles - Japanese
A
- emotion: hide emotions
- power: subtle power plays
- approach: step-by-step
- group good is the aim
16
Q
negotiation styles - North American
A
- emotion: deal impersonally
- power: litigation > conciliation
- approach: methodological organisation
- aim: profit
17
Q
negotiation styles - Latin American
A
- emotion: emotionally passive
- power: great power plays
- approach: impulsive, spontaneous
- aim: group/individual good
18
Q
successful negotiators - Americans
A
- stand firm at beginning but know when to compromise
- accept compromise only when there is a deadlock
- refuse to make concessions beforehand
- keep cards close to their chest
- keep a maximum number of options open before negotiation
- operate in good faith and wait for the party to make the first move
- state their position as clearly as possible
- respect the ‘opponents’ are fully briefed about the negotiated issues
- have a good sense of timing and consistency
19
Q
successful negotiators - Indians
A
- look for and say the truth
- not afraid to speak up
- exercise self-control
- respect the other party
- look for solutions acceptable to all parties
- will change minds, even at the risk of seeming inconsistent and unpredictable
- humble and trusts the opponent
20
Q
successful negotiators around the world - Arabs
A
- protect honour, self-respect, dignity and thus are trusted and respected
- avoid direct confrontation
- come up with creative, honourable solutions
- are impartial and can resist pressure
- can keep secrets
- control temper and emotions
21
Q
successful negotiators around the world - Swedes
A
- quiet, thoughtful, polite and straightforward
- overcautious but flexible
- slow to react to new proposals
- eager to be productive and efficient
- able to hide emotions, afraid of confrontation
22
Q
successful negotiators around the world - Italians
A
- have a sense of drama, do not hide emotions
- good at reading facial expressions and gestures
- want to make a good impression and use flattery, but are distrusting
- handle confrontation with subtlety and tact
23
Q
successful negotiators around the world - Brazilians
A
- emphasise preparation and planning
- tend to have product knowledge, sound judgement and competitive spirit
- value an ability to think during pressure situations
- tend to be verbally expressive during negotiations
- tend to have an ability to perceive and exploit power during negotiations
24
Q
why negotiation is important
A
person-related conflict invites negative, relation-oriented responses
25
cross-cultural negotiation variables
- culture
- goals
- negotiation styles
- task vs interpersonal relationships
- trust level and duration relations
- composition of teams
- culture
26
successful negotiators do:
- consider a wide range of options and pay attention to areas of common ground
- tend to make double as many comments regarding long-term issues
- more likely to set upper and lower limits regarding specific points
- make fewer irritating comments
- make counter proposals less frequently
- use fewer reasons to back up arguments
- active listening
27
face saving - Asian countries
- frankness in Asia is seen as rude
- the norm is to be subtle and use high-context communication
- common rule is to compliment but never criticise even if requested specifically
- likely response to something that would embarrass you or demean their culture/country is laughter
- if you do not get an answer to your question do not push for one
- never show frustration or anger
- do not be in a rush (seen as an attack on the face of others)
28
ways to say 'no' in Asia
"that would be very hard to do"
"it is very difficult"
"I will consider it"
"yes, but..."
silence/delay
change of subject
29
working with translators
- avoid using counterpart's interpreter
- brief the translator prior to negotiations
- monitor the translator's agenda
- speak in short segments and pause briefly
30
instrumental-oriented conflict
to negotiate on the basis of factual information and logical analysis
31
expressive-oriented conflict
to handle a situation indirectly and implicitly, without clear delineation of the situation by the person handling it
32
low-context conflict area
- explicit and direct, linear presentation of facts
- individualistic, short-term oriented
- task-oriented, up-front, impatient
33
high-context conflict area
- implicit, circular logic
- collective, decisions by consensus, long-term oriented
- face and relationship-oriented, non-confrontational, patient
34
influence of culture on decision making
- international managers must understand the influence of culture on decision-making styles and processes
- culture affects decision making through the broader context of the nation's institutional culture
- culture produces patterns of decision making
- culture affects each individual decision-maker's perception or interpretation of a situation
35
influence of culture on decision making
- individualism vs collectivism
- objective vs subjective
- risk tolerance vs risk avoidance
- uncertainty vs familiarity
36
approaches to decision making
- utilitarianism vs moral idealism
- autocratic vs participative
- slow-paced vs fast-paced
37
cultural variables in the decision-making process
- risk tolerance: problem definition, consideration of alternative solutions, decision
- past/future orientation: consideration of alternative solutions, decision
- objective/subjective perspective: problem definition, data gathering, consideration of alternative solutions
- internal/external locus of control: consideration of alternative solutions, decision, implementation
- culture: all
38
decision-making procedure - Japanese company
-- Nemawashi Process (informal consultation) --
1. Proposal - initiator works to gain informal consensus on proposal in section and department
2. Circulation - Department heads, section chiefs, supervisors meet to discuss, consult experts, request any additional information from initiator, etc until department consensus is attained.
-- Ringi (formal authorisation procedure) --
2. ...formal proposal formed from department consensus which states the problem and details of plan for solution.
3. Approval - levels of management (seal of approval gained from corresponding one/s)
4. Record - President/top management gives final approval
