NEGOTIATING INTERNATIONALLY

Slide 15.1 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 The nature of negotiation

The ‘western’ approach:

• Negotiating is a problem-solving exercise
• Focus is on what happens between parties
• Two types of negotiation strategy predominate:
• the distributive (win-lose)
• the integrative (win-win) strategy
• Implicit is the assumption that the participants in
negotiations share similar approaches, attitudes and
principles

Slide 15.2 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 The nature of negotiation (Continued)

• In an international context the assumptions and

expectations of the west may not be shared
• Even if behaviour displayed by both parties is similar
in nature, it may reflect different motives

Slide 15.3 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Key facets of negotiation

NEGOTIATION FACET KEY ELEMENTS KEY CONCEPTS

Interpersonal orientation Harmony, self-interest

Behavioural Power orientation Formal power, (informal) influence

predispositions of the
parties Negotiation party’s degree of
Willingness to take risks delegated decision-making, and
(lack of) uncertainty
Negotiation strategies Trust or mistrust as basis
Underlying concept of
negotiation Logical, finite process or ongoing
Strategic time-frame
dialogue
Work towards specific, concrete
Styles of negotiation goals, or more towards principles,
Negotiation concepts
process
Iron-cast deal or less explicit
Outcome orientations
agreement
Table 15.1 Facets of negotiation
Source: Usunier, 2003 (adapted)

Slide 15.4 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Cross-cultural negotiation in practice:
the USA and China (1)

Interpersonal orientation: fundamental opposition

• For the Chinese, a negotiation
is just part of developing a
• The USA sees the deal as the life-long relationship
main objective of any
negotiation • Need to establish a good
rapport before talking of a
deal

Americans might feel that the wish by their Chinese

counterparts to establish friendship is one way to get a better
deal later on in the negotiation(s)

Slide 15.5 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Cross-cultural negotiation in practice:
the USA and China (2)

Power orientation
• Often difficult to know who
the Chinese team leader is
• The consensus-building
• Clear hierarchy in US team process occurs also within the
• Risk-taking seen as inherent Chinese team (parties both
to getting the best deal from within as well as
possible outside company)
• Will resist pressure from the
American side until all
Chinese parties satisfied.
• Any risk-taking must be
carefully orchestrated

Slide 15.6 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Cross-cultural negotiation in practice:
the USA and China (3)

Style of negotiation
• US concerned with specifics, • Gaining trust + confidence
the information which allows more important for Chinese
them to pursue their way of than facts and figures
negotiating • May not have information
• Need to gain a clearer idea asked for (possible face
of the other party’s concerns loss)
and interests to establish or • Collection of information is
modify their goals becoming more systematic
• Younger managers more in
tune with western
behaviour norms

Slide 15.7 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Cross-cultural negotiation in practice:
the USA and China (4)

Outcome orientations
• For US negotiators, a detailed • Chinese tend to avoid legalistic
contract is the ideal details
conclusion to a negotiation: • Prefer short contracts which
signed, sealed and delivered show commitment to project
• In the final phase detailed • A contract is only a formal
points are hammered out: moment in development of a
relationship
• Implementation
• Further negotiations will happen
• Legal aspects using the goodwill and
friendship established

Slide 15.8 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Negotiation in practice: USA and China (5)

• The Chinese and American negotiators therefore face

innumerable potential difficulties

• How can both sides resolve this dilemma? One

possible way to deal with apparently conflicting
cultural values is to use Weiss’s strategic framework

Slide 15.9 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Background to Weiss’ framework

When in Rome, do as the Romans do?

• To what extent should a negotiator adapt to the cultural
values of the other party. Are international negotiators
expected to adapt totally?
• This is a simplistic approach
• It does not account for the dominant role of one or the other
partner
• Is it ever possible to ‘do as’ the Romans?
• It wrongly assumes that a ‘Roman’ will always act as a
Roman with a non-Roman in Rome!

Slide 15.10 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Background to Weiss’ framework (Continued)

• Stephen Weiss (1994) considers a ‘one-size-fits-all’

approach to be inappropriate
• Weiss proposes instead a range of strategies which are
• culturally responsive
• reflect the skills of the individuals involved
• take account of the circumstances in which they are
working

Slide 15.11 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Background to Weiss’ framework

• One basic aim in any communicative event: to make

sense of the interaction
• In negotiations this means that the least both parties
must be able to do is:
• recognize each other’s ideas and the types of behaviour
evident
• detect common and differing standpoints as well as changes
made to these during the negotiating process
• ensure that communication is maintained as the negotiation
proceeds

Slide 15.12 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Background to Weiss’ framework (Continued)

• However, the knowledge and skills required to perform

these crucial acts is often limited
• What is needed, Weiss says, is a strategic framework
which allows the parties to
• make sense of the negotiating process as best as they can,
• use their own attributes
• (where necessary) use the skills of others

Slide 15.13 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Which strategies to use?

Which strategy is:

• the most feasible, i.e. the extent to which it will fit with
the counterpart’s possible approach
• the most appropriate in terms of the relationship and
circumstances surrounding the interaction
• the most acceptable in terms of the manager’s own
values

Slide 15.14 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Which strategies to use? (Continued)

Choosing the strategy therefore involves:

• considerable reflection on one’s own culture as well as
careful investigation into the counterpart’s culture
• both parties considering their relationship as individuals
as well as members of different cultures

Slide 15.15 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 The five steps

The five steps which Weiss proposes for selecting a

negotiating strategy take account of these complexities
1. Reflect on your culture's negotiation script
2. Learn the negotiation script of the counterpart's
culture
3. Consider the relationship and circumstances
4. Predict and influence the counterpart's approach
5. Choose your strategy

Slide 15.16 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 Conclusion

One key facet of negotiating: what do participants

consider important in the negotiating process?
• Is it basically seen as a question of problem- solving?
• Is it seen as just one aspect of beginning or
continuing a harmonious, mutually beneficial
relationship?

Slide 15.17 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009