1、Unit 7Cultural Variations in Negotiation StylesNegotiationManagements ability to negotiate productively effects their ability to implement strategiesNegotiation is the process of discussion by which two or more parties aim to reach a mutually acceptable agreementNegotiating across borders is more co
2、mplex because of the number of stakeholders involvedThe Negotiation ProcessStage One Preparation Negotiator must familiarize themselves with The entire context and background of their counterparts To the specific subjects to be negotiated Differences in culture,language,and environmentManagers must
3、have an understanding of their own negotiating styleStage One-PreparationManagers should find out as much as possible about The kinds of demands that might be made The composition of the opposing team The relative authority that the members possessDevelop a profile of their counterpartsThey consider
4、 different variables during this process as wellThe Negotiation ProcessRelationship building taking time to build mutual trust before starting business discussions May require go-betweens Be prepared to wait for the other party to start business negotiationsExchanging task related information during
5、 this stage each side makes a presentation and states its position,normally followed by a question-and-answer session Role reversal:showing an understanding of the other partys viewpoint and needsThe Negotiation ProcessPersuasion during this stage both parties try to persuade the other to accept mor
6、e of their position while giving up some of their own;there are recognizable tactics for this stage Stressful tacticsConcessions and Agreements at this point each side will make various concessions so that an agreement can be reached and signedUnderstanding Negotiation StylesUnderstanding Negotiatio
7、n StylesFor 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.Russi
8、ans employ axiomatic appeals that is,their appeals are based on the ideals generally accepted in their society.Profile of an American NegotiatorKnows when to compromiseTakes a firm stand at the beginning of the negotiationRefuses to make concessions beforehandKeeps his or her cards close to his or h
9、er chestAccepts compromises only when the negotiation is deadlockedSets up the general principles and delegates the detail work to associatesKeeps a maximum of options open before negotiationOperates in good faithProfile of an American NegotiatorRespects the“opponents”States his or her position as c
10、learly as possibleKnows when he or she wishes a negotiation to move onIs fully briefed about the negotiated issuesHas a good sense of timing and is consistentMakes the other party reveal his or her position while keeping his or her own position hidden as long as possibleLets the other negotiator com
11、e forward first and looks for the best dealProfile of an Indian NegotiatorLooks for and says the truthIs not afraid of speaking up and has no fearsExercises self-controlSeeks solutions that will please all the parties involvedRespects the other partyNeither uses violence nor insultsIs ready to chang
12、e his or her mind and differ with himself or herself at the risk of being seen as inconsistent and unpredictableProfile of an Indian NegotiatorPuts things into perspective and switches easily from the small picture to the big oneIs humble and trusts the opponentIs able to withdraw,use silence,and le
13、arn from withinRelies on himself or herself,his or her own resources and strengthsAppeals to the other partys spiritual identityIs tenacious,patient,and persistentLearns from the opponent and avoids the use of secretsGoes beyond logical reasoning and trusts his or her instinct as well as faithProfil
14、e of an Arab Negotiator Protects all the parties honor,self-respect,and dignityAvoids direct confrontation between opponentsIs respected and trusted by allDoes not put the parties involved in a situation where they have to show weakness or admit defeatHas the necessary prestige to be listened toIs c
15、reative enough to come up with honorable solutions for all partiesIs impartial and can understand the positions of the various parties without leaning toward one or the otherProfile of an Arab NegotiatorIs able to resist any kind of pressure that the opponents could try to exercise on himUses refere
16、nces to people who are highly respected by the opponents to persuade them to change their minds on some issuesCan keep secrets and in so doing gains the confidence of the negotiating partiesControls his temper and emotionsCan use conference as mediating devicesKnows that the opponent will have probl
17、ems in carrying out the decisions made during the negotiationIs able to cope with the Arab disregard for timeManaging NegotiationManaging NegotiationSuccessful management of intercultural negotiations requires the manager To gain specific knowledge of the parties in the upcoming meeting To prepare a
18、ccordingly to adjust to and control the situation To be innovativeA problem solving approach is essential to successful cross-cultural negotiations Treat everyone with respect,avoid making anyone feel uncomfortable,dont criticize or blame others in a personal way such that they lose faceUsing the We
19、b to Support NegotiationsNegotiation 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
20、 costs caused by time delays(strikes,violence),and attorneys fees,among othersMaximizing the chances for optimal outcomesComparative Management in Focus:Negotiating with the ChineseThe Chinese think in terms of process that has no culmination.Americans think in terms of concrete solutions to specifi
21、c problems.The Chinese approach is impersonal,patient and aloof.To Americans,Chinese leaders seem polite but aloof and condescending.To the Chinese,Americans appear erratic and somewhat frivolous.Henry Kissinger,Newsweek,May,2001Comparative Management in Focus:Negotiating with the ChineseBusiness pe
22、ople have two major areas of conflict when negotiating with the Chinese Amount of detail about product characteristics Apparent insincerity about reaching an agreementChinese negotiation process is affected by three cultural norms Politeness and emotional restraint Emphasis on social obligations Bel
23、ief in the interconnection of work,family,and friendshipComparative Management in Focus:Negotiating with the ChineseTips to foreigners conducting business in China Practice patience Accept prolonged periods of stalemate Refrain from exaggerated expectations Discount Chinese rhetoric about future pro
24、spects Expect the Chinese to try to manipulate by shaming Resist the temptation to believe that difficulties are your fault Try to understand Chinese cultural traitsManaging ConflictDecision MakingStages in the Rational Decision Making Model Defining the problem Gathering and analyzing relevant data
25、 Considering alternative solutions Deciding on the best solution Implementing the decisionCultural Variables Affecting Decision MakingObjective(basing decisions on rationality)versus subjective(basing decisions on emotions)approachRisk toleranceLocus of control internal(managers in control of events
26、),or external(managers have little control over events)Cultural Variables Affecting Decision MakingComparative Management in Focus:Decision Making in JapanRingi system:time to decide vs.time to implementLooking AheadChapter 6-Formulating Strategy Reasons for going international Strategic Formulation Process Steps in Developing International and Global StrategiesStakeholders ReturnTwelve Variables in the Negotiation ProcessPersuasion TacticsReturn
