14.04.

2011

Cross-cultural comparison of negotiations style

Dace L kasa 619102 (Latvia)

Content - Introduction - S&K - Comparison- Conclusion 1. Introduction

- Negotiation in general - Negotiation process - Negotiation styles

2. Skills and Knowledge

- Negotiation skills - Knowledge about cultural and cross-cultural communication

3. Cross-cultural negotiation`s comparison

- Power distance - Countries comparison

4. Conclusion

Content - Introduction - S&K - Comparison- Conclusion

Ability to achieve the aim

Ability to understand the differences of other cultures

Ability to negotiate

Content - Introduction - S&K - Comparison- Conclusion

Negotiation can take a place between two individuals who are representing their own interests, such as an individual and her lawyer who are negotiating a representation deal

IS an effort to influence or persuade

International negotiations One of the most difficult and important tasks facing international managers is negotiations. But in the same time it is way how to deal with other part of the world increase, expand, challenge etc.

Content - Introduction - S&K - Comparison- Conclusion

Negotiation styles
1. Avoidance of negotiations and conflicts
! Appropriate when emotions are too high

2. Competitive ( hard style )

! Appropriate in an emergency

3. Compromising ( soft style )

! Appropriate when relationship is more important than the issue

4. Collaborative ( Harvard method )

! Appropriate to produce both sides as winners
cf: Budjac Corvette, Barbara A. (2007) p.61

Content - Introduction - S&K - Comparison- Conclusion

Negotiation process

The basic stages

Preparation

Opening Session
- Ground rules - Framework - Initial Offers - Posturing

Bargaining

Settlement

-Identify all the issues -Set priorities -Develop support arguments

- Single-issue negotiations - Multipleissue negotiations

- Impasse - Third-party intervention - The closing

cf: Michael R.Carrell, Christina Heavrin Negotiating Essentials (2008) p. 31

Content - Introduction - S&K - Comparison- Conclusion

1. Lead a conversation -flexibility 2. Control over emotions -emotional intelligence 3. Ability to position itself -intelligence -confidence -professionalism

1. About cultural communication 2. About cross-cultural communication -understanding cultural differences

Content - Introduction - S&K - Comparison- Conclusion

Iceberg - model by Schein

art World known people/ facts literature classical music etiquette Country`s traditions, fests, main things Behaviour, values, standards

High culture

Folk culture

religion dress

Deep culture
decision making

relationships Body language / gestures

Content - Introduction - S&K - Comparison- Conclusion Self - identity Relationships

A sense of self which can be manifested .anywhere from independence to interdependence .Organize relationship between individuals according to age, sex, status or degree of kinship Verbal and nonverbal, like languages and dialects combination with body language Communication and gestures It can Time be viewed as a cycle (constantly reoccurring) or as a lineal (sequential event) consciousness Accepted by the individual or Values and normssocial environment established by the Different reasoning process and an accepted system for learning (one culture .might emphasize abstract thinking while another rote memory )

Communication Time consciousness Values and norms Mental process and learning

Content - Introduction - S&K - Comparison- Conclusion

Hofstede`s Cross-Cultural Comparison

100

91 54 40 46

95 62

92 46

80 29

50

PDI

IDV

MAS

UAI

LTO

Japan United States

PDI power distance IDV individualism-collectivism LTO long-term orientation

UAI uncertainly avoidance MA masculinity-femininity

cf: Michael R.Carrell, Christina Heavrin Negotiating Essentials (2008) p.225

Content - Introduction - S&K - Comparison- Conclusion

There are many differences in the negotiation process from culture to culture and they Involve language, cultural conditioning, negotiating styles, approaches to problem solving, implicit assumption, gestures and facial expressions, and the role of ceremony and formality

Content - Introduction - S&K - Comparison- Conclusion

Power distance indicates the extent to which a society accepts that power in institutions and organizations is distributed. Uncertainly avoidance indicated the extent to which a society feels threatened by uncertain or ambiguous situation

cf: Mead, R.Richard; Andrews, Tim G. International Management (2009) p. 40,41

Content - Introduction - S&K - Comparison- Conclusion

East Asian Countries 1. Equity is more important than wealth 2. Saving and conserving resources is highly valued 3. Group is the most important part of society 4. Highly disciplined 5. Personal conflicts are to be avoid

United States of America 1. Wealth is more important than a equity 2. Individual is the most important part of the group and the person is emphasized for motivation 3. Informality and competence is very important 4. Conflict is energy

Content - Introduction - S&K - Comparison- Conclusion

Negotiating Business Chinese rank among the toughest negotiators in the world. In addition, China probably is one of the most difficult countries for an outsider to understand and adapt to. 1. They place emphasis on trust and mutual connection 2. The Chinese stick to their world 3. They are interested in long-range benefit 4. They are sensitive to national slights and still addicted to propagandistic slogans and codes 5. In negotiations with the Chinese nothing should be considered final until it has been actually realized 6. The Chinese posture becomes rigid whenever they feel their own goals are being compromised

Content - Introduction - S&K - Comparison- Conclusion

Language and communication

1. Indirect and vague is more acceptable and ambiguous terminology 2. Sentences frequently are left unfinished so that other person may conclude on his/her own mind 3. Shadowy context, never quite definite 4. The language is capable of delicate nuances of states of mind and relationships 5. There is a formal politeness for official negotiations and ordinary business communication

Tips for Business Interaction with the Japanese

1. Saving face and achieving harmony are more important than achieving higher sales and profit 2. Third part introduction are important 3. Avoid direct communication on money 4. Use business cards with your titles 5. Never put a Japanese in a position where he must admit failure 6. The logical, cognitive, or intellectual approach to them is insufficient

Content - Introduction - S&K - Comparison- Conclusion

Business attitude
1. Usually impatient 2. Often appear to make a contract on the assumption 3. A written contract is sometimes of little value

Business interaction
1. Extremely indirect 2. Don`t like to be pressured and hurried 3. Avoid passing gifts or food by using left hand (it is considered as unclean hand)

Content - Introduction - S&K - Comparison- Conclusion

Business attitude
1. 2. 3. 4. 5. 6. 7. Trade between people is highly respected Bargaining is a Middle Eastern art The businessman does business with the man not with the company or contract Decisions make top man in company Being on time for appointment or keeping appointment is unusual Noisy, but hospitable style of communication Based on the Arab male-dominated society

Business attitude
1. 2. 3. 4. Not oriented towards competition It is not proper to show characteristics of self-centeredness Often criticize nearest persons, institutions Like to argue, discuss; putting a lot of emotions in conversation

Content - Introduction - S&K - Comparison- Conclusion

Conclusion
For every manager is important to have a good business a profitable business. Expanding in local market can be profitable but not if there are more possibilities to grow. The first step of expanding, of entering in new market basically of everything is negotiations. Good negotiator understands cultural differences other culture values, norms, communication, relationship etc.

Content - Introduction - S&K - Comparison- Conclusion

Conclusion
Preparation for negotiations Good manners Things which emphasize East culture West culture
Develope your negotiator skills

Topics to avoid

Learn more about country and negotiation style there

Refferences
1. Michael R.Carrell, Christina Heavrin Negotiating Essentials (New Jersey: Person Education, 2008) 2. Mead, R.Richard; Andrews, Tim G. International Management (2009) 3. Philip R.Harris, Robert T.Moran Managing Cultural Differences 3rd edition 4. Kamal Fatehi International Management: a cross cultural approach (1996)

THANK YOU FOR YOUR ATTENTION

Dace Lukasa 619102 / Latvia 14.04.2011