Homework help

Chjapter13.ppt

Home >Engineering homework help >Homework help

Chapter

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

International Negotiation and
Cross-Cultural Communication

Learning Objectives (1 of 2)

Understand the basics of verbal and nonverbal communication that may influence cross-cultural management and negotiation.
Describe the basic international negotiation processes from preparation to closing the deal.
Explain the basic tactics of international negotiations.
Recognize and respond to “dirty tricks” in international negotiations.

Learning Objectives (2 of 2)

Know the differences between the problem-solving and competitive approaches to international negotiation.
Identify the personal characteristics of the successful international negotiator.

International Negotiation

International Negotiation: the process of making business deals across cultures; it precedes any multinational project
Without successful negotiation and the accompanying cross-cultural communication, there are seldom successful business transactions.
As the world becomes increasingly global, companies will need to become adept at such negotiations.

The Basics of Cross-Cultural Communication (1 of 2)

Successful international negotiation requires successful cross-cultural communication.
Negotiators must understand all components of culturally different communication styles, both verbal and nonverbal, including:
Subtle gestures of hand and face
The use of silence
What is said or not said

The Basics of Cross-Cultural Communication (2 of 2)

Mistakes often go unnoticed by the communicator, but they can do damage to international relationships and negotiations.
Major issues in cross-cultural communication:
Relationship between language and culture
Cultural differences in communication styles
Nonverbal communication
How and when to use interpreters
Speaking to nonnative speakers of your language
Cross-cultural communication errors from faulty attributions

Language and Culture (1 of 2)

Language is so essential to culture that many consider linguistic groups synonymous with cultural groups.
Whorf hypothesis: the theory that a society’s language determines the nature of its culture
Words provide the concepts of understanding the world; language structures the way we think about it.
All languages have limited sets of words.
Restricted word sets constrain the ability to conceptualize the world.

Language and Culture (2 of 2)

Languages are critical because people from different countries use language to negotiate.
A common language is needed for such negotiations.
Common languages allow foreign direct investment and international trade to flourish.
Languages are powerful in that they have the capacity of lowering transaction costs for people from different countries by facilitating understanding between people.
It is therefore critical for multinationals to assess the language proficiency of their employees.

High- and Low-Context Languages (1 of 2)

Low-context Language: people state things directly and explicitly, and you need not understand the context.
Examples: Most northern European languages including German, English, and the Scandinavian languages
High-context Language: people state things indirectly and implicitly.
Asian and Arabic languages
Communications may have multiple meanings depending on the context

Exhibit 13.1:
Country Differences in High-Context and Low-Context Communication

High- and Low-Context Languages (2 of 2)

Steps to ensure that the multinational has the employees with the necessary language skills

Adopt a common language (a lingua franca)

Pay attention to employees with strong growth potential

Provide necessary language training for these employees

Provide language training during work hours

Basic Communication Styles (1 of 2)

Other cultural differences in communication can influence cross-cultural interactions & negotiations.
Direct Communication: communication that asks questions, states opinions, comes to the point and lacks ambiguity
Indirect Communication: people attempt to state their opinions or ask questions by implied meaning, believing direct communication is impolite

Basic Communication Styles (2 of 2)

Formal Communication: communication that acknowledges rank, titles, and ceremony in prescribed social interaction
People in the U.S. are among the least formal in communication, casually using first names, and dispensing with titles.
Most other cultures communicate with more formality, especially in business settings, taking care to acknowledge rank and titles when addressing others.

Exhibit 13.2:
Cultural Differences in
Communication Styles

Nonverbal Communication

Nonverbal Communication means communicating without words.
One may communicate without speaking; people gesture, smile, hug, and engage in other behaviors that supplement or enhance spoken communication.
Such nonverbal communication includes:
Kinesics, proxemics, haptics, oculesics, and olfactics

Kinesics

Kinesics means communication through body movements.
Every culture uses posture, facial expressions, hand gestures and movement to communicate non-verbally.
Most Asian cultures use bowing to show respect.
It’s easy to misinterpret the meaning of body movements in another culture.
The safest strategy is to minimize their use.

Proxemics

Proxemics focuses on how people use space to communicate.
Each culture has an appropriate distance for various levels of communication; violations of space may be uncomfortable or even offensive.
The personal bubble of space may range from 9 inches to over 20 inches.
North Americans prefer 20 inches, while Latin and Middle East cultures prefer less.

Haptics or Touching, Oculesics, and Olfactics (1 of 3)

Haptics or touching is communication through body contact, and is related to proxemics.
The type of touching deemed appropriate is deeply rooted in cultural values. Generally:
No touching cultures are Japan, U.S., England, and many Northern European countries;
Moderate touching cultures are Australia, China, Ireland, and India.
Touching cultures are Latin American countries, Italy and Greece.

Haptics or Touching, Oculesics, and Olfactics (2 of 3)

Oculesics refers to communication through eye contact or gazing; the degree of comfort with eye contact varies widely:
U.S. and Canada: People are very comfortable and expect eye contact to be maintained for a short moment during conversations.
China and Japan: Eye contact is considered very rude and disrespectful; respect is shown by avoiding eye contact.

Haptics or Touching, Oculesics, and Olfactics (3 of 3)

Olfactics is the use of smells as means of nonverbal communication.
U.S. and U.K: These cultures are uncomfortable with body odors, and may find it offensive.
Arabs are much more accepting of body odors, and consider them natural.
Negotiators must be aware of these perspectives and accept and adapt to them.

Using Interpreters (1 of 4)

The role of an Interpreter is to provide a simultaneous translation of a foreign language.
This requires greater linguistic skills than speaking a language or translating written documents.
The Interpreter must have the technical knowledge and vocabulary to deal with technical details common in business transactions.
Even if a negotiator understands both languages, its best to have an interpreter to ensure the accuracy and common understanding of agreements.

Using Interpreters (2 of 4)

Even with interpreters, the intended message is not always conveyed efficiently.
There is a significant gap between translation and communication.
Cultural context must be considered for communication to be effective.

Using Interpreters (3 of 4)

Tips for the successful use of interpreters:
Spend time with the interpreter, so s/he gets to know your accent and general approach to conversation.
Go over technical and other issues with the interpreter to make sure they are properly understood.
Insist on frequent interruptions for translations rather than translations at the end of statements.
Learn about appropriate communication styles and etiquette from the interpreter.

Using Interpreters (4 of 4)

Tips for the successful use of interpreters (cont.):
Look for feedback and comprehension by watching the listener’s eyes.
Discuss the message beforehand with the interpreter if it is complex.
Request that your interpreter apologize for your inability to speak in the local language.
Confirm through a concluding session with the interpreter that all key components of the message have been properly comprehended.

Communication with Nonnative Speakers (1 of 2)

Tips to make communication easier and more accurate
Use the most common words with their most common meanings.
Select words with few alternative meanings.
Strictly follow the rules of grammar.
Speak with clear breaks between words.
Avoid sports words or words borrowed from literature.
Avoid words or expressions that are pictures.
Avoid slang.

Communication with Nonnative Speakers (1 of 2)

Tips to make communication easier and more accurate
Mimic the cultural flavor of the nonnative speaker’s language.
Summarize.
Test your communication success.
Repeat basic ideas using different words when your counterpart does not understand.
Confirm important aspects in writing.

International Negotiation (1 of 2)

International negotiation is more complex than domestic negotiation.
Differences in national cultures, & political, legal, and economic systems can separate business partners.
Most international businesspeople find it necessary to modify the negotiation styles of their home country.
To succeed, they must develop a style of negotiation based on the flexible application of sound principles.

International Negotiation (2 of 2)

Aspects of negotiation affected by cross-cultural differences
The purpose of the negotiation
Risk taking
Communication styles
Form of agreements
Emotions
Negotiation style

Steps in International Negotiations

Steps in international negotiation:
Preparation
Building the relationship
Exchanging information
First offer
Persuasion,
Concessions,
Agreement
Post agreement.

Exhibit 13.3:
Steps in International Negotiations

Step 1: Preparation (1 of 3)

Essential questions and issues to consider before a negotiation
Determine if the negotiation is possible.
Know exactly what your company wants.
Be aware of what can be compromised.
Know the other side.
Send the proper team.
Understand the agenda.
Prepare for a long negotiation.

Step 1: Preparation (2 of 3)

Key negotiation style differences among cultures
What is the Negotiation goal - signing the contract or forming a relationship?
Should you use a formal or informal personal communication style?
Should you use a direct or indirect communication style?
Is sensitivity to time low or high?
What form of agreement - specific or general?

Step 1: Preparation (3 of 3)

Key negotiation style differences among cultures (cont.)
What is the team organization - a team or one leader?
What is the attitude towards negotiation - win-lose or win-win?
What is the appropriate emotional display - high or low emotions?
Latin Americans and the Spanish show their emotions through negotiations.
Japanese and Germans tend to be more reserved.

Exhibit 13.4:
Cultural Differences in
Preference for Broad Agreements

Step 2:
Building the Relationship

At this stage, negotiators do not focus on the business issues, but on social and interpersonal matters.
Negotiation partners get to know one another.
They develop opinions regarding the personalities of the negotiators, including whether they can be trusted.
The duration, importance of this stage vary by culture.
U.S. negotiators are notorious in their attempts to get down to business after brief socializing.

Step 3:
Exchanging Information
and the First Offer

Parties exchange task-related information on their needs for the agreement, which pertains to the actual details of the proposed agreement.
Typically, both sides make a formal presentation of what they desire out of the relationship.
Then, both sides usually present their first offer, which is their first proposal of what they expect from the agreement.

Exhibit 13.6:
Information Exchange
and First-Offer Strategies

Step 4:
Persuasion

In the persuasion stage, each side in the negotiation attempts to get the other side to agree to its position.
This is the heart of the negotiation process.
Numerous tactics are used, but two general types:
Standard verbal and nonverbal negotiation tactics, and
Some dirty tricks

Verbal and Nonverbal Negotiation Tactics (1 of 2)

Verbal communication tactics common in international negotiations include:
Promise
Threat
Recommendation
Warning
Reward
Punishment

Verbal and Nonverbal Negotiation Tactics (2 of 2)

Verbal communication tactics common in international negotiations include (con’t.)
Normative appeal
Commitment
Self disclosure
Question
Command
Refusal
Interruption

Exhibit 13.7:
Comparison of Brazilian, U.S.,
and Japanese Negotiators

Dirty Tricks in International Negotiations (1 of 2)

All negotiators want to get the best deal for their company, and they use a range of tactics to do that.
However, people from different cultures consider some negotiating tactics dirty tricks: negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions.
Cultures differ on the norms and values that determine acceptable strategies for negotiation; some examples follow.

Dirty Tricks in International Negotiations (2 of 2)

Dirty tricks and possible response tactics:
Deliberate deception or bluffing - Point out what you believe is happening.
Stalling – Don’t reveal when you plan to leave.
Escalating authority - Clarify decision making authority.
Good-guy, bad-guy routine – Don’t make any concessions.
You are wealthy, we are poor – Ignore the ploy and focus on the mutual benefits of potential agreement.
Old friends – Keep a psychological distance.

Step 5 and 6:
Concessions and Agreement
(1 of 2)

Concession Making requires that each side relax some of its demands to meet the other party’s needs.
Styles of concession making differ among cultures:
Sequential approach: Each side reciprocates concessions made by the other side.
Common in North America
Holistic approach: Each side makes very few, if any, concessions until the end of the negotiation
Common in Asia

Step 5 and 6:
Concessions and Agreement
(2 of 2)

Successful negotiations result in the Final agreement: the signed contract, agreeable to all sides.
The agreement must be consistent with the chosen legal system or systems.
The safest contracts are legally binding in the legal systems of all the signers.
Most important, people from different national and business cultures must understand the contract in principle, and have a true commitment beyond legal.

Basic Negotiating Strategies

There are two basic negotiating strategies:
Competitive Negotiation: Each side tries to give as little as possible and win the maximum for its side.
Seeks win-lose resolution; uses dirty tricks.
Seldom leads to long-term relationships or trust.
Problem solving: Negotiators seek mutually satisfactory ground beneficial to both parties.
Search for possible win-win situations; no dirty tricks.
Builds long term relationships; more successful strategy.

Exhibit 13.9:
Cultural Differences in Preference for a Problem-Solving Negotiation Strategy

Step 7:
Postagreement

A commonly ignored step by U.S. negotiators is the postagreement phase, which consists of an evaluation of the success of a completed negotiation.
Postagreement analysis can be beneficial because it allows the garnering of insights into the strengths and weaknesses of the approach used during negotiation.
Postagreement analysis can also enable members of the negotiating team to develop a closer relationship with their counterparts.

The Successful International Negotiator: Personal Characteristics (1 of 2)

Personal success characteristics enhance negotiators’ abilities to adjust to cross-cultural negotiations:
Tolerance of ambiguity
Flexibility and creativity
Humor
Stamina
Empathy
Curiosity
Bilingualism

The Successful International Negotiator: Personal Characteristics
(2 of 2)

A final key personal skill that international negotiators need to succeed is cultural intelligence, which is the ability to successfully deal with uncertainties and adapt to the challenges in a new cross-cultural setting.
A person with high cultural intelligence has the skills to learn aspects of a new culture and willing to challenge their own assumptions about the new cultures and ultimately behave differently based on new mental frameworks appropriate for the new culture.

Summary and Conclusions

Chapter 13 examined the negotiating process and other elements of cross-cultural communication.
International negotiation involves several steps, including preparation, building the relationship, persuasion, making concessions and reaching agreement.
Successful negotiators prepare and understand these steps and adapt them to local host countries.