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Copyright2008byJamesK.SebeniusandCheng(Jason)QianWorkingpapersareindraftform.Thisworkingpaperisdistributedforpurposesofcommentanddiscussiononly.Itmaynotbereproducedwithoutpermissionofthecopyrightholder.Copiesofworkingpapersareavailablefromtheauthor.EtiquetteandProcessPuzzlesofNegotiatingBusinessinChina:AQuestionnaireJamesK.SebeniusCheng(Jason)QianWorkingPaper09-077Copyright2008byJamesK.SebeniusandCheng(Jason)Qian.Workingpapersareindraftform.Thisworkingpaperisdistributedforpurposesofcommentanddiscussiononly.Itmaynotbereproducedwithoutpermissionofthecopyrightholder.Copiesofworkingpapersareavailablefromtheauthor.ETIQUETTEANDPROCESSPUZZLESOFNEGOTIATINGBUSINESSINCHINA:AQUESTIONNAIREJamesK.Sebenius()Cheng(Jason)Qian(JQIANHBS.EDU)HARVARDBUSINESSSCHOOL,BOSTON,MAUSADecember24,2008JamesK.SebeniusandCheng(Jason)Qian1Culturaldifferencescanaffectnegotiationsinmanyways,frominfluencingthebasicmotivationsandperceptionsoftheplayerstoguidingthesurfaceaspects,suchasetiquette,protocol,andprocess,ofbusinessinteractions.Navigatingthechallengesofthesesurfacebehavioralissuesisusefultoplumbsomeofthedeeperculturalfactorsanddifferencesingovernanceanddecision-makingofcross-borderbusinessnegotiation.Assuggestedbyaniceberganalogy,thoughetiquette,protocol,anddeportmentcomprisethevisibletip,theymightbelinkedtomoredeeplyrooted,lessobviousforcesthatarefullycapableofsinkingtheship.Thisworkingpaper,throughaquestionnaireformatintendedasaninstrumenttocollectdatafromarangeofpeoplewithvaryingChina-relatednegotiatingexperience-presentsaseriesofsituationsofatypicalSino-foreignbusinessnegotiationtoaddressboththesurfaceandtherootculturalfactors.ThisquestionnairewillservenotonlytoevaluatesubjectsappreciationforChinesecultureasitbearsonnegotiation,butalsotobetterunderstandingoftheprocessaspectsofcross-bordernegotiationingeneral.NavigatingtheChineseEtiquetteMazeAstheseniorvicepresidentinchargeofthebusinessdevelopmentunitofafastgrowingcompany,youarelookingforthefirsttimeforlong-termsuppliersinChina.AmongseveralcandidatesonyourradarscreenthatappeartobeagoodfitfortheproposedsupplycontractisacompanylocatedinJinan,acityinnortheastChina.Thefindingsofyourconsultantsduediligencebeingconsistentwithyourownassessmentthatarelationshipwiththissuppliercouldimproveyourcompanysperformance,youdecidethatyouandseveralassociateswillvisitthefirmwithinnextcoupleofweekstoexplorethepossibilityofnegotiatingasupplycontract.Youarewellpreparedforthenegotiationsfromacorporateperspective,butlesssureofyourselfwithregardtoissuesofprotocolandetiquetteinaChinesebusinesssetting.Nonetheless,yourcolleaguesarecountingonyoutoleadthemgracefullythroughtheupcomingsessions.Readthefollowingscenariosandselectwhatyoubelievetobethemostappropriateresponseineachsituation.Feelfreetoaddtoeachscenario,asanadditional“f”option,yourownresponseoranycommentsorobservations.1)YouarequitecertainthatyourcompanyandtheJinansupplierhavenopriorknowledgeofeachother.Whatwouldbethemosteffectivewaytoestablishcontactwiththisprospectivesupplier?a)ColdcalltheChinesesuppliertoexpressyourcompanysinterestinvisitingwithinnexttwoweekstoexploreabusinesscollaboration,thenmakeyourowntravelarrangements.b)IdentifyandaskanintermediaryorfriendinChinawhoisknowntotheJinanfirmtointroduceyouandarrangeameetingduringyourtrip.c)LeverageyourlocalcontactsGuanxi(personalnetwork)toestablishconnectionswithintheChinesefirm,thenasktheinsiderstodeliveryourmessagetotheappropriateexecutivesandwaittobecontactedbythem.JamesK.SebeniusandCheng(Jason)Qian2d)MakeotherimportanttasksforwhichyouaretravelingtoJinanyourfirstpriority,thencalltheChinesecompanytoarrangeabriefmeetingbeforeyouleave.e)ContacttheChinesecompanyviae-mailandfax,sendasmuchinformationaspossibleaboutyourcompanyandwhatyouhopetoachieve(e.g.,yourcompanysbrochure,aletterofintent,andsoforth),andwaittobecontacted.f)_.2)AmeetinghasbeensetwiththeJinansupplierandyouarepreparingthetrip.Whowouldyouhavetoaccompanyyou?a)Noone.Youlltravelalonetosavemoneyandbemoreflexible,andtrustthattheChinesecompanywillhaveinterpreters.b)Youlltakewithyouindividualswhocanadviceyournegotiationandhelpyoucraftacontract,suchasyourcorporatecounselandanaccountant.c)YoulltakewithyouaChinesecolleaguewhocanplaythedualroleofnegotiatorandinterpreter.d)YoullengagetheservicesofandtakealongaprofessionalChineseinterpreter.e)YoullbeaccompaniedbyyourCEOforsymbolicpurposes.f)_.3)Givenlimitedresourcesandtimetoprepareforpreliminarynegotiations,whatisyourtoppriority?a)Performa“Strengths,Weaknesses,Opportunities,Threats”analysisoftheChinesecompanysbusiness.b)Thoroughlyinvestigatethebackgroundsofthepeople(negotiatorsanddecisionmakers)withwhomyouwillbedealing.c)Polishandrehearseyourpresentation.d)Briefandarrangeappropriatenegotiatingrolesforeachofyourteammembers.e)Consult“Chinaexperts”orexpatriatesregardinghowtoconductbusinesswiththeChinese.f)_.4)Upondeplaning,youandyourcolleaguesaresurprisedtofindarepresentativeoftheChinesecompanywaitingtoprovideyourtransportation.Onthewaytohotel,thisindividualcasuallyinquiresaboutyourplans(e.g.,howlongyouplantostay,whatotheractivitiesortasksyouexpecttooccupyyou,andsoforth)andyourexperiencedoingbusinessinChina.Howdoyourespond?a)Tellthisindividual,frankly,thatyouarevisitingJinanforthefirsttimeandwillstayonlyfourdays.Expressyourhopethatsomeactivitiesorsightseeingmightbearrangedforyou.JamesK.SebeniusandCheng(Jason)Qian3b)Talkonlyaboutpartsofyourplanthatarerelatedto,andaboutthemajortopicsyouwishtodiscussat,thescheduledmeeting.c)Togiveanimpressionthatyouarenotanewcomerwhocouldbeeasilytakenadvantageof,boastthatyouareaveteranofdoingbusinessinChinaandveryfamiliarwithlocalcustoms.Inthemeantime,youprivatelydecidetospendtherestofthedaytakingatourbyyourowntobecomeacquaintedwiththehistoryandcultureofthecityandregion.d)Usejetlagasanexcusetosayaslittleaspossible.e)Beingawarethatnegotiationhasalreadybeguninformally,strategicallydisclosesomeinformationthatwillsubsequentlyworkinyourfavor.f)_.5)Thenextday,youandyourcolleaguesarriveatthecompanysofficepunctuallyat10:00a.m.Thereceptionistgreetsyou,informsyouthatthepersonwithwhomyouaretomeetisinameetingthatisrunninglate,andoffersyouaseatinawaitingarea.Almostfortyminuteshavepassedandyouveheardnothingfurtherfromthereceptionist.Whatshouldyoudo?a)Demonstratethatyourtimeisvaluablebyaskingthereceptionisttoinformthepersonwithwhomyouweretomeetthatyouwillmeethim/heratyourhotelpunctuallyat10:00a.m.thefollowingmorning,andleave.b)Waitpatientlyandregisternocomplaint.c)TrytojudgewhetheryourChinesecounterpartisindeeddetainedinameetingorisreluctanttomeetwithyou(youhavebeengiventounderstandthatChinesewillputoffameetingforwhichtheyareunprepared),andtactfullyaskthereceptionistifthemeetingisstilltobeheld.d)Tactfullyregisteryourimpatiencewiththereceptionist.e)Wait,butresolvetoregisteryourdispleasureatbeingkeptwaitinglateratakeypointinthenegotiations.f)_.6)YouareinformedthatthemeetingcannowtakeplaceandareescortedtoaconferenceroomwhereyourChinesehostsarewaitingforyou.Uponenteringtheroom,whatshouldyoudo?a)GreeteachpersonintheChinesedelegationwithafirmhandshaketodemonstrateyourseriousnessabouttheimpendingproceedingsandtoavoidanyimplicationofhierarchyoneitherside.b)WaitforyourassistantorinterpretertogreetyourChinesehostsandformallyintroduceyoutoeachofthem.c)Standstiffly,withoutsmiling,andawaitcuesfromyourChinesehosts.d)Determinewhichofyourhostsissenior,andgreetthatpersonfirstwithamoderatelyfirmhandshakeandusingthecorrecttitlewhenaddressinghim/her.JamesK.SebeniusandCheng(Jason)Qian4e)Ignoringtherest,godirectlytoyourcontactpersonortoindividualsyouknowand,addressingthembyname,greetthemwithahugorhandshakeandapatontheshouldertoshowintimacy.f)_.7)Aftergreetingshavebeenexchanged,howshouldyouofferyourbusinesscard?a)CasuallyhandonecardtoeachmemberoftheChinesedelegation.b)Handasinglecardtotheseniormemberofthedelegationandignoretheothers.c)PlaceasmanybusinesscardsastherearemembersoftheChinesedelegationattheendoftheconferencetableandletthemtakeoneornotattheirdiscretion.d)Holdingafewofyourbusinesscardsinyourlefthand,presentonetoeachmemberoftheChinesedelegationwithyourrighthand,ensuringthatnodirecteyecontactismade.e)Usingbothhands,presentonecardatatime,printedsidefacingawayfromyou,toindividualstowhomhavebeenformallyintroducedbytheprincipleChinesehost.f)_.8)Whatdoyouintendtodowithseveralgiftsyouhavebrought(anexpensivecrystalclockwrappedinoceanbluegiftpaperwithapurpleribbon,anelegantSwissArmyKnifewithablackleathercase,andahandengravedsilvercigarettelighterinaredsilk-coveredboxtiedwithgoldenribbons)?a)PresenttheclocktotheprinciplehostasagiftfortheChinesecompanytosignifyattheoutsetofthenegotiationsyoursincereinterestinpursuingalong-termbusinesspartnership.b)IgnoringtheotherChinesehosts,presenttheclocktotheprinciplehostasapersonalgiftattheconclusionofthenegotiationstosignifyyourearnestdesireforlong-termfriendship.c)IgnoringtheotherseniorChinesehosts,presenttheSwissArmyKnifetotheprincipleChinesehostprivately(ideallyduringthewelcomingbanquet),indicatingthatthegiftisexpensiveconsistentwithyourhostsstatus.d)Presentthesilvercigarettelightertotheprinciplehostpublicly,attheconclusionofthenegotiations,asagiftfortheChinesecompany.e)Withholdthemforthetimebeing,thisbeingjusttheinitialcontact,andnothingbeingcertainyet.f)_.9)TheheadoftheChinesedelegationoffersyoutheseatofhonorattheheadoftheconferencetable,thatis,thechairinthemiddleofthetablefacingthedoor.Whatshouldyoudo?a)Undernocircumstancesaccepttheoffer.JamesK.SebeniusandCheng(Jason)Qian5b)Graciouslyaccepttheseat.c)Explainthatyouarehonoredbythegesture,butprefertoallowanothermemberofyourdelegationtotakethehonoredseat(therebydemonstratingthatyouvalueallmembersofyourteamequally).d)Politelyrefusetheseatseveraltimesbeforeacquiescing.e)Insistthatyourhosttakethehonoredseat.f)_.10)Astaffmemberarrivesandoffersyoutea,whichyougreatlydislike.Whatshouldyoudo?a)Indicatethatyouwouldpreferadifferentbeverage.b)Acceptthetea.c)Politelydecline,andremoveabottleofEvianspringwaterfromyourbriefcase.d)Riseandaccepttheteawithaslightbow.e)Acceptthetea,andimmediatelyofferittoanothermemberofyourparty.f)_.11)Whenallhavebeenintroducedandseated,whatshouldyou,astheprincipleguest,dobeforetheformalmeetingstarts?a)Taketheleadbyinitiatingasubstantivediscussionofthepotentialforcollaboration,andthenproceedwithyourcompanyspresentation.b)Waitforyourhoststobegintheconversation,andfollowtheirleadwithoutinterrupting.c)Solicitfromyourhostsinformationabouttheircompanyanditsbusinessinterests.d)Setalighttonefortheconversationbymakingjokesorrelatingapersonal“bad”butfunnyexperienceinChina.e)Establishrapportbyinitiatingconversationsaboutnon-businesstopics,suchasfamily,theweather,sightseeing,andsoforth,andengagingin“smalltalk”withtheprincipleChinesehost.f)_.12)Whentalking,howshouldyouaddressthoseintheroom?a)Speakdirectlyto,andmaintainconstanteyecontactwith,theChineseinterpretertoensurethatyouareheardclearlyandyourwordsaretranslatedaccurately.b)LookatandspeakdirectlytoyourprinciplehostasifyourEnglishwerebeingunderstoodperfectly,andconcealingyourfrustrationatthelackofspontaneousreactionfromyourChinesecounterpart.c)SpeaktoandmaintaineyecontactwiththeChinesehostsittingclosesttoyou.d)Faceyourprinciplehost,butwithdowncasteyes(toavoiddirecteyecontact).JamesK.SebeniusandCheng(Jason)Qian6e)AddresstheentireChinesegroup,shiftingyoureyesfromonepersontoanothertomaintainasenseofconnectionwithyouraudience.f)_.13)Astheatmospheregraduallywarms,yourChinesehostsbegintoaskpersonalquestions,suchas“Howoldareyou?”,“Fromwhichschooldidyougraduate?”,“Whatisyoursalary”,“Whatdoesyourspousedo?”andsoforth.Youfindthesequestionsaboutwhatyouconsidertobeprivatemattersuncomfortable.Whatshouldyoudo?a)Answerhonestly,understandingthatthisisaChinesewayofexpressingconcernandintimacy,andanecessarysteptowardsdevelopingapersonalrelationship.b)Declinetoanswerthequestionsandaskyourhoststorespectyourprivacy.c)Selectivelyanswerthelessprivatequestions,andaskyourChinesehostssimilarquestions.d)Trytododgethequestionsbychangingthesubject.e)Answerthequestions,butfeelatlibertytoprevaricate.f)_.14)Thegrouphasbeenchattingfreelyforalmostanhour.Eagertogettothebusinessathand,andwithyourhostsstillshowingnosignofdoingso,whatshouldyoudo?a)Interruptyourhostsandproposethattheconversationbeshiftedtothediscussionofbusiness.b)Listenwithoutcomplaining,andwithoutcontributingtotheconversation.c)Listenwithoutcomplaining,contributingtotheconversationoccasionally.d)Showyourimpatiencewithbodylanguage.e)Politelyinquirewhetheritwouldntbeagoodideatogetdowntobusiness,andtosticktothemeetingagendainsubsequentsessions.f)_.SolvingtheDeeperCulturalandProcessPuzzlesinChineseBusiness15)Earlierintheconversation,youhadclearlystatedthepurposeofyourtripandyourChinesehostshadseemedquiteinterested.Now,theygiveyouthefloor(forabout45minutes).Whatshouldyoudo?a)Beginyourpresentationimmediatelyinordertotakefullestadvantageofthetimeallotted.Makeyourpointsorargumentssystematicallyandconsistently,discouraginginterruptionsanddeclininganyopportunitiestobreak.b)Dividethepresentationintoseveralparts(each10-15minutes)andpauseaftereachparttogivetheChineseanopportunitytocommentorraisequestions.c)SummarizethestructureofthepresentationandinvitesuggestionsfromyourChinesehostsabouthowbestwaytodeliverit.Followtheirsuggestions;JamesK.SebeniusandCheng(Jason)Qian7d)Brieflystateeachissueandattendantpoints,andlettheChinesecommentfullybeforemovingontothenext.Interruptorbreakinasnecessaryinordertoclarifyordefendyourpoints.e)Courteouslydeclineseveraltimes,insistingthatrespect(andperhapsadesiretohavethemshowtheirhand)dictatesthatyouletyourChinesehostspresenttheirproposalfirst.f)_.16)YourChinesehostsevidencelittleinterestinthespecificsofthepotentialcollaboration(schedulesandagendas,forexample),preferringtotalkonlyaboutvague,appealingsoundingandnon-controversialgeneralitieslikemutualunderstanding,trust,longtermcooperation,andgeneratingsynergies.Whatisyou

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