Xia Guan_Narrated PPT_Culture and Negotiation

CULTURE AND NEGOTIATION: 

CULTURE AND NEGOTIATION MGT348: Negotiation in Business Fall Term 2011, Gilead MBA Cohort Teacher: Tom Cushing Student: Xia Guan

Culture: 

Culture Inherited Learned Inherited and Learned Universal Specific to Group or Category Specific to Individual Three Levels of Uniqueness in Human Mental Programming

Negotiation: 

Negotiation Negotiation is to reach AGREEMENT Elements of Negotiations Positions Interests Critical in Negotiations Understand the common ground Understand the value system Understand the protocol Understand the style

Negotiation: 

Negotiation The Continuum of Negotiation Styles

Impact of Culture on Negotiation: 

Impact of Culture on Negotiation Culture determines value system What’s important in the culture What’s acceptable and what’s not Culture determines the style How do you express yourself How do you ensure your message gets cross Culture determines the expectation Expected outcome from negotiation

Impact of Culture on Negotiation: 

Impact of Culture on Negotiation Culture differences : Non -verbal cues Facial Expressions and Eye Contact Personal Space Touch Beckoning with the Fingers Crossed Legs Other Gestures Other Areas of Misunderstanding: lack of attention to time and timing, interpersonal relationships, dress, silence and the use of certain words and phrases. Smile Eye Contact Arabian Y Asian Y European Y Y American Y Y Japanese Y South African Y Y

Impact of Culture on Negotiation: 

Impact of Culture on Negotiation Negotiation Factors Goal Contract Relationship Attitudes Win/Lose Win/Win Personal Styles Informal Formal Communications Direct Indirect Time Sensitivity High Low Emotionalism High Low Agreement Form Specific General Agreement Building Bottom Up Top Down Team Organization One Leader Consensus Risk Taking High Low Culture impact on negotiation style

Japanese vs. US Cultures: 

Japanese vs. US Cultures Culture Differences Stability Japan – stable US – changing Complexity Japan – high-context, implicit US – low-context, explicit Composition Japan – homogeneous US – diverse Acceptance Japan – openly hostile US – friendly and cooperative towards strangers

Japanese vs. US Communication: 

Japanese vs. US Communication Communication Differences in Non-Verbal Channels Occulesics Japan – avoid direct eye-contact US – direct eye contact to confirm active listening Hepatics Japan – avoid physical contact US – shake hands, embrace Kinesics Japan – nodding to acknowledge, not necessarily agree. “yes” to negative questions. US – nodding means agree. “yes” to negative questions means positive. Proxemics Japan – keep away from “private space” US – being close means sincerity Chronemics Japan – comfortable with silence, no obligation to “take turns” US – expect “turn taking”, expect response

Japanese Negotiation Process: 

Japanese Negotiation Process Negotiation Process Pre-Negotiation Japanese prefer an agenda and invest heavily in collecting information Negotiation Assessment Japanese assess prior relationships and invest in building up relationship Bargaining and Concession Making Japanese are very patient and persistent, often slow down tactics Closure Eleventh hour concessions Post-Negotiation Agreements can be reviewed

Chinese Culture: 

Chinese Culture Chinese culture is similar to Japanese culture Relationship Patiencey Indirect Homogeneous Chinese culture has its uniqueness Survival instinct Deeply distrust foreigners Rapid international exposure

Chinese Negotiation Style: 

Chinese Negotiation Style Chinese Culture Heritage (Confucianism, Taoism, & War Stratagems) China’s Guo Qing 国情 (Soviet Union’s style of governance, planned economy, rapid change, etc) International exposure Cultural Roots of Chinese Business Negotiating Style

Conclusion: 

Conclusion Culture impacts negotiation Understand culture differences is critical in international negotiation L earn the culture of the counterparty Adjust styles Learn the language, verbal and non-verbal Prepare for the un-prepared

References: 

References Paul R. Horst, Jr. (2007). Cross-Cultural Negotiations. Faure, Guy-Olivier & Gunnar Sjostedt (1993). Culture and Negotiation: An Introduction. Faure, Guy-Olivier (2002). International Negotiation: The Culture Dimension. Cohen, Raymond (1997). Negotiating Across Cultures. Hofstede , Geert H (1997). Cultures and Organizations: Software of the Mind. Dasgupta , Anjan (2005). Cultural Dynamics in International Negotiations. Straker , D. (2006). The Spectrum of Negotiation Styles. Pruitt, Dean (2002). Strategy in Negotiation. Spoelstra , Manie . Negotiation Across Cultural Boundaries. Retrieved on 2011 , from http://www.negotiationtraining.com.au/articles/social-ethics / Salacuse , Jeswald W (1998). Ten Ways the Culture Affects Negotiation Style: Some Survey Results. Berton , Peter (1998). How Unique is Japanese Negotiating Behavior? Bovee , Courtland L. & Thill , John V. (1992). Business Communication Today. Sebenius , James K. & Qian , Cheng (Jason) (2008). Culture Notes on Chinese Negotiating Behavior. Phatak , A. & Habib , M. (1996). The Dynamics of International Business Negotiations.