Intercultural Negotiation Process

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Intercultural Negotiation Process

• Lecture 8

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In business, you dont get what you deserve
You get what you negotiate (Chester Karass) .

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Related Vocabulary

• Negotiations/talks (noun)
• Negotiate (verb)
• Deal (noun)
• Concession (noun) make a concession
• Concede (verb)
• Firms- business term for companies

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Related Vocabulary

• Mutual (like mutually profitable)
• Interpreter/translator
• Flexible
• Agreement
• Contract
• Long-term/Short-term

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Negotiating

• When?
• - When two sides would like to cooperate, but
  it is not clear what each side should give or do
• Why?
• - To come to an agreement that is satisfying for
  both sides

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Before the Negotiation

• Come up with clear goals
• -should be flexible to a degree
• Study needed manners and culture
• Study other sides situation, goals, and team

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Selecting the location

• Disadvantages of negotiating in the others
  company
• - Guests are polite
• May miss families
• May be reliant on host company for things
• The fairest way (both must wish for talks)
• -neither side is at home

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What makes a good intercultural negotiator?

• Patient
• Understanding
• A Good listener
• Polite, inoffensive
• Flexible-be willing to change with the unexpected
• Aware of cultures influence on ones actions

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The Right Negotiating Team

• Depends on the culture
• -Who would have the most influence?
• -Who would be least likely to offend but most
  likely to succeed?
• Depends on character
• -Previous slide

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For a successful negotiation we need

• Trust
• A good persuasive argument
• Direct honesty
• Credibility
• Time

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During the Negotiation

• Keep cultural differences in mind
• Communicate goals clearly
• Emphasis shared goals
• Understand limits of other side

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During the Negotiation

• Slowly decrease differences to reach agreement
• Be ready to concede a little if necessary
• Dont focus on win-lose, but on win-win
• Be willing to change your original plans given
  new information

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During the Negotiation

• Have flexible goals and a time plan, but do not
  tell the other side
• Have good relations with other sides members
  informally
• Be ready to leave if the other side is unwilling
  to give you a good deal
• Never become negatively emotional

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Soon before Agreement

• Are both sides really capable of doing this in
  the long-term?
• Do not expect that a contract means the same
  thing in both cultures.
• -strong in US, Britain, Germany, France
• -not as strong in China, Japan, other European
  countries

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Common Problems in Talks between Chinese and
Americans

• Americans tend to focus on making the deal
• -limited focus on building trust/relationships
• -may view business more simply than
• - often in a hurry to go home

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Common Problems in Talks between Chinese and
Americans

• Chinese- tend to be in less of a hurry
• -probably most talks take place in China
• -usually they do not negotiate on a time
  schedule
• Common Result
• - Relations between companies worse than they
  could be
• - Americans concede more than they must
  (Chinese have power of time)

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Common Problems in Talks between Chinese and
Americans

• Americans tend to focus on legal issues
• -may overestimate the meaning of some legal
  agreements and laws in China
• Chinese focus on other forms of protection
• -trust, relationships between companies,
  relationships between governments

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• Common Result
• -Chinese focus on relationship protections
• -Americans focus on legal protections
• -Neither is well-protected

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Common Problems in Talks between Chinese and
Americans

• American lack of knowledge of Chinas high
  concern for face
• Informality vs. formality
• In America, you are trustworthy until you are
  shown to be untrustworthy
• In China, you are untrustworthy until you are
  shown to be trustworthy

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• Americans may not understand Chinese indirect
  ways of saying no or dont know
• Americans are not used to haggling
• -may seem inflexible
• -may offer best price at beginning
• Americans often know less details about the other
  sides company

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Solving these problems

• US companies often send Chinese-Americans
• Both sides should work to understand the others
  cultural situation
• Both sides must be flexible with their beliefs
  and behavior

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Homework

• Think about cultural differences
• Review chapter 5 on Question and Answer Sessions