Cross-cultural negotiations AN

Cross-cultural negotiations: 

Cross-cultural negotiations MGT 348 Gilead Cohort Alfred Ngaw

Agenda: 

Agenda Background Dynamics Environmental context Cultural norms Hofstede’s models Strategies and tactics How to respond Behaviors Do’s and Don’ts

Environmental Context: 

Environmental Context Factors that make international negotiations more challenging than domestic negotiations include: Political and legal pluralism International economics Foreign governments and bureaucracies Instability Ideology Culture External stakeholders Lewicki, Saunders, and Barry, 5th edition

Dynamics: 

Dynamics Lewicki, Saunders, and Barry, 5th edition

Hofstede’s Model of Cultural Dimensions: 

Hofstede’s Model of Cultural Dimensions Individualism/collectivism Power distance Career success/quality of life Uncertainty avoidance Lewicki, Saunders, and Barry, 5th edition

Cultural Norms: 

Cultural Norms Lewicki, Saunders, and Barry, 5th edition

Strategies and Tactics: 

Strategies and Tactics Playing the Orphan Feigning inferiority in order to gain sympathy and/or concessions Response: Have clear predefined goals Behave in kind Intelligence gathering Guarding proprietary information Response: Understand what is confidential and what can be shared prior to meetings Engholm et al.

Strategies and Tactics (continued): 

Strategies and Tactics (continued) Buyer-Seller relationships There are cultural expectations between buyers and sellers Response: Understand the imbalance between buyers/sellers Delays Wearing down your opponent in order to win Response: Maintain an open time frame, never rush Stand firm in your expectations Engholm et al.

Behavior: 

Behavior Language “Compromise” Directness in communication Straightforward or aggressive Decision processes Individual vs. group Speed and timing Herbig, et al Tung, et al

Behavior (continued): 

Behavior (continued) Status Use of titles vs. first names Personal relationships Relationships vs. contracts Build nurturing relationships Non-verbal communication Handshakes vs. bowing Body language Herbig, et al Tung, et al

Summary: 

Summary Recognize differences Be culturally sensitive Be culturally neutral

References: 

References Lewicki, Saunders, and Barry, 5th edition Engholm, Christopher.  (1992, July). Asian Bargaining Tactics: Counterstrategies for Survival (Part 2). East Asian Executive Reports, 14(7), 9.  Retrieved December 11, 2011, from ABI/INFORM Global. (Document ID: 350499). Herbig, Paul A., & Kramer, Hugh E.. (1992). The Role of Cross-Cultural Negotiations in International Marketing. Marketing Intelligence & Planning, 10(2), 10.  Retrieved December 11, 2011, from ABI/INFORM Global. (Document ID: 615953). Tung, Rosalie L..  (1991). Handshakes Across the Sea: Cross-Cultural Negotiating for Business Success. Organizational Dynamics, 19(3), 30.  Retrieved December 11, 2011, from ABI/INFORM Global. (Document ID: 704651).