Chapter 7: Negotiation in Global Context Flashcards
What does culture provide and influence?
Provides meaning to what is observed
Influences the choice of norms for fairness that will seal the final agreement
What sort of managers are better positioned to compete successfully in the world market?
Managers with the skills to understand and adapt to different cultures
What are the 2 types of negotiation cultures
- Rule-based negotiation cultures
- Relationship-based negotiation cultures
What are 3 characteristics of a rule-based negotiation culture
- mostly found in Western cultures
- Deals are drawn up as contracts of agreements enforced by a legal system
- Rules are inherently logical and reasonable, and this logic is universal
What are 4 characteristics about relationship-based negotiation cultures
- often found in Asian cultures
- Based on loyalty, obligation
- The traditional preference for building relationships rather than making deals
- Bargaining across the table tends to be regarded as confrontation rather than negotiation
What is cultural intelligence
One’s capability to asapt to new cultural contexts
What is the abbreviation for cultural intelligence
CQ
What does it mean to have a high CQ
You are more successful in international encounters
What is one of the biggest challenges facing international negotiators?
To ensure that they fully understand the views and positions of both parties and to make efficient adaptations to facilitate successful negotiation.
What does the CQ exist out of (3)
- Cognitive Facets
- Motivational Facets
- Behavioral Dimensions
What do cognitive facets refer to?
to one’s specific knowledge of how to gain and comprehend various types of cues (signs) provided by a new cultural context.
What does motivational facets mean?
Emphasizes the inclination or commitment to act on the cognitive facet of CQ. Only having the knowledge of a new cultural context is not enough, the person should also be proactive to engage in new cultural circumstances
What does behavioral dimensions refer to?
Responding to the needs in a new cultural context, such as language, gesture, tone, and communication style. One must put this knowledge and effort into action.
The cross-cultural negotiation process exists out of 2 main phases these are..
non-task-related interaction
task-related interaction
What are the 3 first stages in the cross-cultural negotiation process that fall within the non-task-related interaction?
- Status Distinction
- Impression formation accurcay
- Interpersonal Attraction
What are the 4 stages that fall within task-related interaction?
- Exchange of information
- Persuasion and bargaining strategy
- Concession-making and agreement
- Negotiation outcome
What happens in the ‘impression formation accuracy phase’? (2)
- initial contact between negotiators
- Instant opinion is formed based on minimal information
What are 5 steps for helping firms prepare their salespeople for diverse cultural markets
- Build awareness about how cultural differences impact them in the sales organization
- Motivate salespeople and managers to rethink their behavior and attitude towards customers.
- Allow salespeople to examine their own biases in a psychologically safe environment
- Examine how stereotypes are developed, and how they can create misunderstandings between buyers and sellers.
- Identify diversity issues that need to be addressed in the international sales organization.
What are 3 steps to improve the selling firm’s cross-cultural communication and negotiation competencies
- Assessing communication competencies of salespersons: technical and standard language competencies + behavioral competencies
- Assessing communication competencies of negotiators in the buying firm: as in step 1 (language and behavioral). It will not be always possible to find this information about the buying firm’s employees
- Matching communication and negotiation competencies of buying and selling firms
What does Gap 1 represent in the Gap model?
Cultural Distance
How can Gap 1 be reduced?
By adaptation of behavior from each part, as a result of the skills and experience
between which 2 things is Gap 2 placed?
Actual seller behavior and actual buyer behavior
How can Gap 2 be reduced?
Through market research and the education of salespeople
What 2 things can you educate salespeople on
Questioning Skills
Listening Skills
