Exam 2 Flashcards
What is culture?
the socially transmitted behavior patterns, norms, beliefs and values of a given community.
2 groups of cultural negotiation styles
The first describe and analyze the negotiating style of a particular culture
The second approach is cross-cultural and comparative. It seeks to identify certain basic elements in negotiation style and to determine how they are reflected in various cultures
Salacuse: 10 negotiation factors:
- negotiating goals (contract or relationship?);
- attitudes to the negotiating process (win/win or win/lose?);
- personal styles (formal or informal?);
- styles of communication (direct or indirect?);
- time sensitivity (high or low?);
- emotionalism (high or low?);
- agreement form (specific or general?);
- agreement building process (bottom up or top down?
- negotiating team organization(one leader or consensus?)
- risk taking (high or low?)
- negotiating goals (contract or relationship?)
Spain a contract that strictly binds and determines interaction
India: goal of a negotion is a relationship between two sides
not so big difference in other countries (China, USA etc)
Negotiating Attitude: Win-Lose or Win-Win?
win-win: negotiations seen as collaborative and problem solving (integrative bargaining) (Japanese, china)
win-lose: negotiation confrontational (distributive bargaining) (spanish, brazil)
Personal Style: Informal or Formal?
influences the interaction in a negotiation
formal: uses titles, no private life conv., (Germany)
informal: first name basis, try to build a personal relationship (USA)
Communication: Direct or Indirect?
indirect: Japanese, french, reaction to proposal gained by interpreting indefinite comments, gestures and other signs
direct: clear and definite response to proposals and questions
Sensitivity to Time: High or Low?
promptness in meeting deadlines,
amount of time devoted to a negotiation
Emotionalism: High or Low?
tendency to display emotions, more passive o hot headed,
Brazil high, germany low
Form of Agreement: General or Specific?
americans: detailed contracts(because contract determines future business)
chinese: contract in form of general principals (because relationship)
Building An Agreement: Bottom Up or Top Down?
negotiation as an inductive(Japanese, brazil) or deductive(french) process
Does it start from agreement on general principles and proceed to specific items, or does it begin with agreement on specifics, such as price, delivery date…
Team Organization: One Leader or Group Consensus?
- how they make decisions
- one leaer with complete authority (brazilians)
- Team negotiation and decision makeing by consensus(france)
Risk Taking: High or Low?
taking risks in negotiations: try new approaches, tolerate uncertainties, (france high risk) (Japan low risk)
How organisations manage cultural differences
ethnocentric: HQ decides
polycentric: HQ what-locals how
regiocentric- regional HQ buffer
Geocentric: input from HQ, locals and across subsidiaries
Ethnocentric view on culture:
- culture is irrelevant,
- standardisation
- top down communication
- key challenge: gaining acceptance
- key concern: infelxibility
polycentric and regiocentric view on culture:
- culture as threat
- expected benefit: localisation, responisveness
- top down bottom up reporting
- key challenge: achieving coherence
- key concern: fragmentation
geocentric
- culture as opportunity and source of competitive advantage
- innovation and learning
- commnication: all channels
- key challenge: leveraging differences
- key concern: confusion, friction
cultural diversity as strategic advantage:
- marketing, knowledge of local markets
- resources: host country elites
- cost: reduces cost from turnover of non host country manager
- improves decision making
- enhaces creativity and flexibility
cultural dimension negotiation goal:
individualists: goal to maximise own gain
collectivists. :mximise welfare of the group
cultural dimension negotiation influence: Egalitarianism versus Hierarchy
egalitarianism: not many social obligation, ones value is based on the reousrces one can offer
Hierarchy: social order important in determining conflict management, subordinates defer to superiors, superiors look out for subordinates
cultural dimension negotiation cmmunication: direct vs indirect:
direct: explicit direct info
indirect: siutuational norms, story telling
contract format universal:
- rely on contract to communicate terms of agreement and to define relationship between parties
- often lawyers involved
contract format particular:
- legal contract as starting point for agreement
- circumstances change as do the terms of agreement
- strict regulations offend cause they show no trust
Reasons why to avoid bribery:
- unethical (cultural variable) and corrupts the bribed person and the briber
- corporate ethics: many companies forbid it
- illegal payments can be a major business expense
- local laws
- if you dont get what you paid for there are no legal ways to complain
- opens the company up to blackmail and threats
- if companys pay once demands will be repeated
- the more one is willing to pay the more there is to pay