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Chapter10

InterculturalNegotiationProcessCopyright©2014PearsonEducation,Inc.2ObjectivesDefinetheinterculturalnegotiationprocessUnderstandthestepsinthenegotiationprocessLearnhowtoavoidmistakescommonlymadeininterculturalnegotiationsBecomeknowledgeableaboutinterculturalnegotiationmodelsUnderstandnegotiationstrategies,includingconflictresolutionUnderstandvarioustradeagreementsthataffectinterculturalnegotiationsCopyright©2014PearsonEducation,Inc.3DefinitionInterculturalnegotiationinvolvesdiscussionsofcommonandconflictinginterestsbetweenpersonsofdifferentculturalbackgroundswhoworktoreachanagreementofmutualbenefit.Copyright©2014PearsonEducation,Inc.4“Inbusiness,youdon'tgetwhatyoudeserve,yougetwhatyounegotiate.”

Whytake“no”forananswer?Successfulpeopledon't.Theygetwhattheywantbynegotiatingbetterdealsforbothparties.

Copyright©2014PearsonEducation,Inc.5winningameansofgettingwhatyouwantfromothersgainingthefavorofpeoplefromwhomyouwantthingsmanagingpowerandinformationtimeandopportunitymanagementmoreofanartthanasciencesellingtheleasttroublesomemethodofsettlingdisputesNegotiationis...Copyright©2014PearsonEducation,Inc.6StepsintheNegotiationProcessPreparationandSiteSelectionTeamSelectionRelationshipBuildingOpeningTalksDiscussionsAgreementCopyright©2014PearsonEducation,Inc.7PreparationandSiteSelectionHiringaconsultantinthecountryNegotiatingresourcevideosandwrittenmaterialsarehelpfulChoosingasite—hereortherecanbeimportantCopyright©2014PearsonEducation,Inc.8TeamSelection

howteamisselectedbackgroundofplayersexpectationsofothernegotiators,theirstyle,andtherolestheyhaveplayedinpastnegotiationsenvironmentfreeoftensionCopyright©2014PearsonEducation,Inc.9RelationshipBuildingTimerequiredIntermediariesoragentsFriendshipversusbusinessrelationshipCopyright©2014PearsonEducation,Inc.10OpeningTalksShouldtheystartpromptlyorshouldyouengageinsmalltalk?Isanagendaproperornot?Whoshouldbepresent?Copyright©2014PearsonEducation,Inc.11DiscussionsVarietyofbehaviorsandnormsEmotionsConcessionsCopyright©2014PearsonEducation,Inc.12AgreementClosenegotiationsproperly.Expectdelays.Gettaxandlegaladvice.Expectalongwaituntilfinalapproval.Understandthatcontractsarenotalwaysconsideredfinal.Copyright©2014PearsonEducation,Inc.13CommonNegotiationMistakesMakingnegativeinitialimpressionFailingtolistenandtalkingtoomuchAssumingunderstandingbytheothercultureFailingtoaskimportantquestionsShowingdiscomfortwithsilenceUsingunfamiliarandslangwordsInterruptingthespeakerFailingtoreadthenonverbalcuesFailingtonotekeypointsMakingstatementsthatareirritatingorcontradictoryFailingtopreparealistofquestionsfordiscussionBeingeasilydistractedFailingtostartwithconditionaloffersFailingtosummarizeandrestatetoensureunderstandingHearingonlywhatyouwanttohearFailingtousefirst-classsupportingmaterialsCopyright©2014PearsonEducation,Inc.14InterculturalNegotiationModelsProblem-solving

approach—considersnationalandorganizationalculturaldifferencesCompetitive

approach—individualisticandpersuasiveorientationCompromising—seeksamiddlegroundForcing—makestheotherpartycomplyLegalism—useslegaldocumentationtoforcethepartnertocomplyCopyright©2014PearsonEducation,Inc.15Four-StageNegotiationModelInvestigativePresentationBargainingAgreementCopyright©2014PearsonEducation,Inc.16NegotiationStrategiesPeopleactonbasisoftheirownbestinterestsTruthinnegotiationsFaithFactFeelingU.S.negotiatorsmakefeweradjustmentstotheiropponentInclude:preparation,tactics,conflictresolutionandmediation,andobservation,analysis,andevaluationCopyright©2014PearsonEducation,Inc.17TradeAgreementsValidatedlicense—specificexporterandspecificproductsFreetradezonesortradeblocs—productsenterwithoutcustomsdutiesCopyright©2014PearsonEducation,Inc.18NAFTABenefitsToeliminatebarrierstotradeandfacilitatecross-bordermovementofgoodsandservicesTopromotefaircompetitionToincreaseinvestmentopportunitiesToprovideadequateandeffectiveprotectionforintellectualpropertyTodevelopeffectiveproceduresforhandlingdisputesToexpandcooperationandincreasebenefitstothethreecountries

(Canada,Mexico,U.S.)Copyright©2014PearsonEducation,Inc.19TheU.S.Negotiator’sGlobalReportCardPreparation B-Synergisticapproach(win-win) DCulturalI.Q. DAdaptingthenegotiating processtothehostcountryenvironment DPatience DListening DLinguisticabilities FUsinglanguagethatissimple andaccessible CHighaspirations B+Personalintegrity A-Buildingsolidrelationships D Competency GradeCopyright©2014PearsonEducation,Inc.20StatementsCharacteristicof

U.S.NegotiatingStyle"Icanhandlethismyself."(toexpressindividualism)."PleasecallmeSteve."(tomakepeoplefeelrelaxedbybeinginformal)."PardonmyFrench."(toexcuseprofanity)."Let'sgettothepoint."(tospeedupdecisions)."Speakup;whatdoyouthink?"(toavoidsilence)."Adealisadeal."(toindicateanexpectationthattheagreementwillbehonored).Copyright©2014PearsonEducation,Inc.21ChinaReserved;knownforgoodmannersandhospitalityGivesmall,inexpensivepresentsDonotliketobetouchedConsidermutualrelation-shipsandtrustveryimportantTechnicalcompetenceofnegotiatorsnecessaryPrefertouseanintermediaryRarelyuselawyersAmpleroomforcompromiseCopyright©2014PearsonEducation,Inc.22FranceTheFrenchhaveasenseofpridesometimesinterpretedassupremacy.Frenchlogic("Cartesian"logic)proceedsfromwhatisknowninapoint-by-pointfashionuntilagreementisreached.Protocol,manners,status,education,family,andindividualaccomplishmentsarekeystosuccesswiththeFrench.Copyright©2014PearsonEducation,Inc.23GermanyProtocolisimportantandformal.Dressisconservative;correctpostureandmannersarerequired.Usetitleswhenaddressingmembersofthenegotiatingteam;usepleaseandthankyouoften.Germansprefertokeepadistancebetweenthemselvesandtheotherteamnegotiators.IncludetechnicalpeopleaspartofthenegotiationteamasGermansaredetailoriented.Punctualityisexpected.Contractsarefirmguidelines

tobefollowedexactly.Copyright©2014PearsonEducation,Inc.24IndiaBriberyiscommon;havingconnectionsisimportant.Avoidusingthelefthandingreetingsandeating.Requestpermissionbeforesmoking,entering,orsitting.Buildingrelationshipsisimportant;anintroductionisnecessary.Intermediariesarecommon.Usetitlestoconveyrespect.Knowledgeoflocalaffairsisimportant.Negotiationprocesscanbelong.Copyright©2014PearsonEducation,Inc.25JapanBusinessetiquetteisveryimportant.Meetingshouldbearrangedbyanintermediarywhohasarelationshipwithbothparties.Negotiatingpartiesusuallyconsistoffivepeople.Businesscardexchangeiscommon.Subtleandcomplexverbalandnonverbalcuesareusedtoavoidhavingsomeonelosefaceorlosethegroupharmony.Negotiatingpracticesarebasedonthekeiretsusystem(acompanygroupformedbytheprincipalcompanyandthepartnercompanies);akeiretsugroupisviewedasalong-termcommitment.TheJapaneseusemoresilenceandlesseyecontactthandopeopleoftheU.S.Viewcontractsasflexibleinstruments.Aresuspiciousofanegotiatingteamthatincludeslawyers.Copyright©2014PearsonEducation,Inc.26LatinAmericaRelationshipsareimportant.Briberyiscommon.Governmentisveryinvolvedinbusiness.Negotiatorschosenbasedonfamilyconnections,politicalinfluence,education,andgender(femalesshouldbeinthebackground).Latinosareveryindividualisticbutgrouporientedconcerningfamilyandfriends.Socialcompetenceisimportant;willaskaboutone'shealthandfamily.Mostagreementsareconsummatedoverlunch.Numerousmeetingsisthenorm;timeisnotseenasimportant.Avoidgestures.Copyright©2014PearsonEducation,Inc.27NigeriaNigeriansareskillfulnegotiators;viewnegotiationasacompetitiveprocess.Whenselectingnegotiators,considerage(equatedwithwisdom),gender,culturalbackground,andeducationalcredentials.Developingapersonalrelationshipisimportant.Tim

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