Negotiating Across Cultures
Negotiating Across Cultures
L5
What’s Complex about CC Negotiations? • You are negotiating main and sub levels of issues at the same time • Main à what is actually being negotiated • Sub à issues involve cultural differences, why do they want that, what is/isn’t negotiable, who really decides, what is being communicated Metaphors and Negotiation USA: Sports
Japan: Family
Problems
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Task oriented Conflict is normal and overt Discrete activity (beginning and end are separate)
-
Relationally oriented Conflict is avoided and covert Continuous activity
Scrips
-
Universalistic rules Reciprocity (turn taking) Aggressive behaviour Person and task separate
-
Particularist rules Status dictates action Face saving is critical Person inseparable from task
Feelings (Outcomes)
-
Outcomes by skill, explicit Satisfaction derived from winning
-
Outcomes by roles Satisfaction from role fulfilment
Four Stages of Negotiation 1. Non-task sounding or relationship building a. Meeting for first time b. Learning about counterpart 2. Task-related exchange of information a. Discuss needs and wants 3. Persuasion 4. Making concessions and reaching agreement Negotiation Strategies • Problem solving o Cooperative, flexible and LTO • Contending o Competitive, rigid, STO • Yielding o Cooperative, flexible, LTO • Compromising o Moderately competitive, moderately flexible, STO Negotiation Stages for Cultures • Low-context cultures à conflict is handled more directly and explicitly • High-context cultures à conflict is handled more indirectly and implicitly • High context cultures o 1 and 2 most important stages o Getting to know people, building trust, knowing what they want
•
Low context cultures o 3 and 4 most important stages o Care about making agreement Low Context
1 Relationship Building
-
Briefly exchange social niceties Will get to the point Not overtly concerned with status of the other group
High Context -
Want to know all about you and company Long presentations, meetings to get to know you Careful attention to age, rank, status Among longer stages Older, higher status team member has advantage
2 Information Exchange
-
Fairly brief stage Young, ambitious, likely to do well
-
3 Persuasion
-
Argumentative ‘Get to the point’ negotiating style Cost-benefit approach Face saving not very important Written contract Decision is impersonal Profit motive determines agreement
-
Declarative The least important stage Face saving very important
-
Less emphasis on contracts Deal is sealed with contextual variables Good setting necessary for final agreement
4 Concessions and Agreement
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Factors to Consider when Negotiating • Factors affected by cultural dimensions and culture o Communication style o Language o Participants o Business etiquette and socialising o Cultural sensitivities and history o Status hierarchical differences • Other factors o Location o Physical arrangements o Time frame Cultural Dimensions and Negotiations • Individualists versus collectivists o I à key goal to maximise own gain o C à key goal to maximise welfare of the collective • Egalitarians versus hierarchists o E à don’t perceive social obligations o H à regard social order to be important in determining conflict management strategies, subordinates expected to defer to superiors • Direct versus indirect o I à engage in tacit information exchange such as storytelling, inference making o D à
Culture and Customers
L11
Pamela Young Introduction • Acceptance that cultures impact customers preferences, needs and behaviours • What kind of cultures o Ethnicity o Countries o Ages o Religion • Every group has a culture and customers can belong to many groups Culture Circuit • Energy flows from one part to the other • Helps us to understand cultures and customers
Country Culture Driving Social Behaviour
Organisational Culture Driving employee performance
Each Culture is founded on Assumptions (Energy Source) • Assumptions are hidden below the surface • Hidden, unseen and unconscious • Iceberg below (assumptions under the waterline)
Individual Culture Driving our own behaviour
Artefacts Behaviours Attitudes Values and Beliefs Assumptions
Understanding the Market: Know your Geographic Region • Australia • Asia – South East, North East • China – Mainland or HK • Europe – UK, Eastern, Western • America – North, Mid, South • Differences in culture, language and religion
L5
What’s Complex about CC Negotiations? • You are negotiating main and sub levels of issues at the same time • Main à what is actually being negotiated • Sub à issues involve cultural differences, why do they want that, what is/isn’t negotiable, who really decides, what is being communicated Metaphors and Negotiation USA: Sports
Japan: Family
Problems
-
Task oriented Conflict is normal and overt Discrete activity (beginning and end are separate)
-
Relationally oriented Conflict is avoided and covert Continuous activity
Scrips
-
Universalistic rules Reciprocity (turn taking) Aggressive behaviour Person and task separate
-
Particularist rules Status dictates action Face saving is critical Person inseparable from task
Feelings (Outcomes)
-
Outcomes by skill, explicit Satisfaction derived from winning
-
Outcomes by roles Satisfaction from role fulfilment
Four Stages of Negotiation 1. Non-task sounding or relationship building a. Meeting for first time b. Learning about counterpart 2. Task-related exchange of information a. Discuss needs and wants 3. Persuasion 4. Making concessions and reaching agreement Negotiation Strategies • Problem solving o Cooperative, flexible and LTO • Contending o Competitive, rigid, STO • Yielding o Cooperative, flexible, LTO • Compromising o Moderately competitive, moderately flexible, STO Negotiation Stages for Cultures • Low-context cultures à conflict is handled more directly and explicitly • High-context cultures à conflict is handled more indirectly and implicitly • High context cultures o 1 and 2 most important stages o Getting to know people, building trust, knowing what they want
•
Low context cultures o 3 and 4 most important stages o Care about making agreement Low Context
1 Relationship Building
-
Briefly exchange social niceties Will get to the point Not overtly concerned with status of the other group
High Context -
Want to know all about you and company Long presentations, meetings to get to know you Careful attention to age, rank, status Among longer stages Older, higher status team member has advantage
2 Information Exchange
-
Fairly brief stage Young, ambitious, likely to do well
-
3 Persuasion
-
Argumentative ‘Get to the point’ negotiating style Cost-benefit approach Face saving not very important Written contract Decision is impersonal Profit motive determines agreement
-
Declarative The least important stage Face saving very important
-
Less emphasis on contracts Deal is sealed with contextual variables Good setting necessary for final agreement
4 Concessions and Agreement
-
Factors to Consider when Negotiating • Factors affected by cultural dimensions and culture o Communication style o Language o Participants o Business etiquette and socialising o Cultural sensitivities and history o Status hierarchical differences • Other factors o Location o Physical arrangements o Time frame Cultural Dimensions and Negotiations • Individualists versus collectivists o I à key goal to maximise own gain o C à key goal to maximise welfare of the collective • Egalitarians versus hierarchists o E à don’t perceive social obligations o H à regard social order to be important in determining conflict management strategies, subordinates expected to defer to superiors • Direct versus indirect o I à engage in tacit information exchange such as storytelling, inference making o D à
Culture and Customers
L11
Pamela Young Introduction • Acceptance that cultures impact customers preferences, needs and behaviours • What kind of cultures o Ethnicity o Countries o Ages o Religion • Every group has a culture and customers can belong to many groups Culture Circuit • Energy flows from one part to the other • Helps us to understand cultures and customers
Country Culture Driving Social Behaviour
Organisational Culture Driving employee performance
Each Culture is founded on Assumptions (Energy Source) • Assumptions are hidden below the surface • Hidden, unseen and unconscious • Iceberg below (assumptions under the waterline)
Individual Culture Driving our own behaviour
Artefacts Behaviours Attitudes Values and Beliefs Assumptions
Understanding the Market: Know your Geographic Region • Australia • Asia – South East, North East • China – Mainland or HK • Europe – UK, Eastern, Western • America – North, Mid, South • Differences in culture, language and religion
