Transcript Chap15.ppt

Understanding Cross-cultural Management
CHAPTER 15
NEGOTIATING INTERNATIONALLY
• Concept 15.1: Approaches to negotiating in an
international context
Slide 15.1
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
The nature of negotiation
The ‘western’ approach:
• Negotiating is a problem-solving exercise
• Focus is on what happens between parties
• Two types of negotiation strategy predominate:
– the distributive (win-lose)
– the integrative (win-win) strategy
• Implicit is the assumption that the participants in
negotiations share similar approaches, attitudes and
principles
Slide 15.2
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
The nature of negotiation (Continued)
• In an international context the assumptions and
expectations of the west may not be shared
• Even if behaviour displayed by both parties is
similar in nature, it may reflect different motives
• The very act of negotiating can be a concept
which is fundamentally alien to other cultures,
e.g. for Japanese negotiators.
• Meetings are to establish
relationship_ceremonial. The real negotiation
is behind the scene
Slide 15.3
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Key facets of negotiation
NEGOTIATION FACET
Behavioural
predispositions of the
parties. Japan high
uncertainty but not
risk adverse
Underlying concept of
negotiation
Negotiation
process
KEY ELEMENTS
KEY CONCEPTS
Interpersonal orientation
Harmony, self-interest
Power orientation
Formal power, (informal)
influence
Willingness to take risks
Negotiation party’s degree of
delegated decision-making,
and (lack of) uncertainty.
Negotiation strategies
Trust or mistrust as basis
Strategic time-frame
Logical, finite process or
ongoing dialogue
Styles of negotiation
Work towards specific,
concrete goals, or more
towards principles, concepts
Outcome orientations
Iron-cast deal or less explicit
agreement
Table 15.1 Facets of negotiation
Source: Usunier, 2003 (adapted)
Slide 15.4
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Cross-cultural negotiation in practice:
the USA and China (1)
Interpersonal orientation: fundamental opposition
• The USA sees the deal as • For the Chinese, a
negotiation is just part of
the main objective of any
developing a life-long
negotiation
relationship
• Very focused bottom-line
• Need to establish a good
approach
rapport before talking of a
deal
Americans might feel that the wish by their Chinese
counterparts to establish friendship is one way to get a
better deal later on in the negotiation(s)
Slide 15.5
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Cross-cultural negotiation in practice:
the USA and China (2)
Power orientation
• Often difficult to know who
• Clear hierarchy in US team
the Chinese team leader is
• Deference shown, even if
• The consensus-building
the language used is
process occurs also within
informal
the Chinese team (parties
• The boss will probably be
both from within as well as
outside company)
given much leeway –
• Will resist pressure from
already discussed with HQ
the American side until all
• Risk-taking seen as inherent
Chinese parties satisfied.
to getting the best deal
• Any risk-taking must be
possible
carefully orchestrated
Slide 15.6
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Cross-cultural negotiation in practice:
the USA and China (3)
Style of negotiation
• US concerned with
• Gaining trust + confidence
specifics, the information
more important for Chinese
which allows them to
than facts and figures
pursue their way of
• May not have information
negotiating
asked for (possible face
• Need to gain a clearer idea loss)
of the other party’s
• Collection of information is
concerns and interests to
becoming more systematic
establish or modify their
• Younger managers more in
goals
tune with western
• Ready to give a lot of
behaviour norms
information if this part of an
exchange
Slide 15.7
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Cross-cultural negotiation in practice:
the USA and China (4)
Outcome orientations
• For US negotiators, a
detailed contract is the
ideal conclusion to a
negotiation: signed,
sealed and delivered
• In the final phase detailed
points are hammered out:
– Implementation
– Legal aspects
Slide 15.8
• Chinese tend to avoid
legalistic details
• Prefer short contracts which
show commitment to project
• A contract is only a formal
moment in development of a
relationship
• Further negotiations will
happen using the goodwill
and friendship established
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Cross-cultural negotiation in practice:
the USA and China (5)
• The Chinese and American negotiators
therefore face innumerable potential difficulties
• The opposition in expectations and attitudes are
clear, the expected frustrations and irritations
evident
• How can both sides resolve this dilemma? One
possible way to deal with apparently conflicting
cultural values is to use Weiss’s strategic
framework
Slide 15.9
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Background to Weiss’ framework
When in Rome, do as the Romans do?
• To what extent should a negotiator adapt to the
cultural values of the other party. Are
international negotiators expected to adapt
totally?
• This is a simplistic approach
– It does not account for the dominant role of one or the
other partner
– Is it ever possible to ‘do as’ the Romans?
– It wrongly assumes that a ‘Roman’ will always act as a
Roman with a non-Roman in Rome!
Slide 15.10
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Background to Weiss’ framework
(Continued)
• Stephen Weiss (1994) considers a ‘one-size-fitsall’ approach to be inappropriate
• Weiss proposes instead a range of strategies
which are
–culturally responsive
–reflect the skills of the individuals
involved
–take account of the circumstances in
which they are working
Slide 15.11
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Background to Weiss’ framework
(Continued)
• One basic aim in any communicative event: to
make sense of the interaction
• In negotiations this means that the least both
parties must be able to do is:
– recognize each other’s ideas and the types of
behaviour evident
– detect common and differing standpoints as
well as changes made to these during the
negotiating process
– ensure that communication is maintained as
the negotiation proceeds
Slide 15.12
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Background to Weiss’ framework
(Continued)
• However, the knowledge and skills required to
perform these crucial acts is often limited
• What is needed, Weiss says, is a strategic
framework which allows the parties to
–make sense of the negotiating
process as best as they can,
–use their own attributes
–(where necessary) use the skills of
others
Slide 15.13
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Weiss’ Strategic Framework
High
Induce counterpart
to follow one’s own script
Improvise an
approach
(Effect symphony)
Adapt to the
counterpart’s script
(Co-ordinate adjustment
of both parties)
Counterpart’s
familiarity
with
Negotiator’s
culture
Employ agent
or advisor
(Involve mediator)
Embrace the counterpart’s
script
Low
Low
Brackets indicate a joint strategy,
which requires deliberate
consultation with counterpart.
At each level of familiarity, a
negotiator can consider feasible
strategies designated at that level
and any lower level
High
Negotiator’s
familiarity
with
Counterpart’s
culture
Table 15.2 Strategic frame for negotiating Weiss (1994a, Figure 2, p. 54) ‘Culturally responsive strategies and their feasibility’
Source: Source text here
Slide 15.14
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Which strategies to use?
Which strategy is:
• the most feasible, i.e. the extent to which it will fit
with the counterpart’s possible approach
• the most appropriate in terms of the relationship
and circumstances surrounding the interaction
• the most acceptable in terms of the manager’s
own values
Slide 15.15
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Which strategies to use? (Continued)
Choosing the strategy therefore involves:
• considerable reflection on one’s own culture as
well as careful investigation into the counterpart’s
culture
• both parties considering their relationship as
individuals as well as members of different
cultures
Slide 15.16
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
The five steps
The five steps which Weiss proposes for
selecting a negotiating strategy take account of
these complexities
1. Reflect on your culture's negotiation script
2. Learn the negotiation script of the counterpart's
culture
3. Consider the relationship and circumstances
4. Predict and influence the counterpart's approach
5. Choose your strategy
Slide 15.17
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Conclusion
One key facet of negotiating: what do participants
consider important in the negotiating process?
• Is it basically seen as a question of problemsolving?
• Is it seen as just one aspect of beginning or
continuing a harmonious, mutually beneficial
relationship?
Slide 15.18
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009