Professional Documents
Culture Documents
IBNMOD2
IBNMOD2
IBNMOD2
Time Time has different meaning and importance in different cultures. While ‘time is
money” in the Western culture, it has no such value attached to it in many cultures in
Asia, Latin America and Africa. This influences the pace of negotiations and the
punctuality in meetings. For negotiators, it is important to have advance information on
the opposite party’s behavior regarding time. This will help them to plan their time as
well as to have patience and not to get irritated during the process.
Individual vs. Collective Behavior These are rather clear behavioral aspects in
different cultures. As indicated by Hofstede’s study of 69 countries, we can place
different countries on different scales. Even countries in Western Europe have clear
differences in this respect (Hofstede G. 1980). In cases of negotiation, it is important to
have knowledge of this cultural attribute, as it will help us to understand the behavior
of the other party and to formulate an effective strategy. Knowing whether the opposite
party is looking for a collective solution or an individual benefit will help in
formulation of arguments and presentations.
Pattern of Communication Different cultures have different communication patterns
as regards direct vs. indirect and explicit vs. implicit communication. These are related
to culture as well as the contextual background of languages (Hall 1960). Some
languages are traditionally vague and people from outside find it difficult to
communicate with people with such language backgrounds. Indicators such as
“maybe”, “perhaps”, “rather”, “I’ll consider it” and “inconvenient” are some examples
of ambiguity in international communica- tion and conversation. “Maybe” and
“inconvenient” can mean impossible in some cultures. In some cultures even “yes”
means “may be” and “perhaps” means “no”. Some languages, for example some Arabic
and some Asian languages, traditionally contain exaggerations, fantastic metaphors and
repeti- tion, which can be misleading for foreigners. It is, therefore, important to be
aware of these aspects and read between the lines. This is even more important in non-
verbal communication, the personal space, handshakes, ways of greeting each other,
communication between males and females, signs of irritation, etc., are important
aspects of communication patterns, and knowl- edge of these can improve the
negotiation process and effectiveness.
Patterns of Cross Cultural Business Behavior are about interpreting human behavior, that
varies from culture to culture. But that shouldn’t be an obstacle for trade and/or doing
business with each other. By getting to know each other’s culture and letting go of
stereotypes, organisations are more open to each other.
Four dimensions
This is the most important dimension according to Richard Gesteland. The difference is used
as a basis for different cultures in business. The business, deal-focused are very task-oriented.
They have no difficulty communicating with foreign cultures. To them it’s about the
negotiations and the eventual transaction. Many problems are solved by phone or email and
disagreements tend to be solved in writing rather than orally. This group consists mainly of
Scandinavian and Germanic countries, North-America, Australia and New Zealand.
In the case of relationship-focused cultures, the negotiators find interaction more important
than closing the deal. The interaction with the business partner needs to be right first, and
there should be a foundation of trust. These cultures have an indirect communication style
aimed at not offending the other party or creating the impression that there’s a lack of trust.
Examples of this group are the Arab world, most of Africa, Latin America and Asia.
There’s a risk of conflict between these two opposites. People from relationship-focused
culture often think negotiating partners from deal-focused cultures are harsh, pushy and
aggressive. People from the deal-focused culture, think that the other culture is often vague
and therefore unreliable and not decisive enough. By being aware of this difference in
advance, deal-focused people can prepare by spending more time on negotiation and not
expecting results right away. Relationship-focused would do well to indicate how important it
is for them to have time to consider an offer to avoid annoying the other party.
Informal cultures are not being disrespectful, but do not put as much stock in difference in
status and position. Everybody is equal and everyone has the chance or opportunity to
advance. The United States, Australia, Canada, New Zealand, Denmark, Norway and Iceland
are informal cultures.
These opposites can also experience conflict, for instance when a person from an informal
culture gets too friendly and pats the CEO of a multinational from a formal culture on the
back. Painful situations like that can be avoided by gathering knowledge beforehand,
preventing it from being an obstacle to further business.
Rigid cultures need everything to go exactly according to schedule with great precision.
Arriving late is not the done thing and missing deadlines or meetings running late is
unthinkable. Clear examples of this are Scandinavian and Germanic countries, North
America and Japan.
Very different are the countries with a fluid attitude to time. People and interpersonal
relations are considered more important than time, making deadlines or sticking to schedules.
These polychrome cultures can be found in the Arab world, much of Africa, Latin American
and South-east Asia.
Conflicts about time are unpleasant and often difficult to solve. After all, people from a rigid-
time culture think in terms of ‘time is money’. Schedule overruns caused by the other party
undermine trust. On the other hand, people from a fluid-time culture can be very surprised by
a strong reaction to schedule overruns by the other party. ‘The job needs to get done, right?’
Here again it is important to come to clear agreements, avoid tight deadlines and evaluate
along the way.
4. Expressive cultures versus conservative / reserved cultures
Expressive cultures are characterised by communicating loudly and with a lot of gestures.
They do their best to avoid awkward silences and there is little consideration for personal
space during conversations; people stand close together, often touch each other and look each
other in the eyes. This is characteristic of Mediterranean countries, Southern Europe and
Latin America.
People in reserved cultures tend to speak more calmly. General and continuous eye contact is
avoided and they use little if any hand and arm gestures. This is characteristic of Southeast
Asia and Northern Europe.
Both cultures can get annoyed by the other party’s behaviour. This is often expressed in non-
verbal ways when the reserved party is keeping their distance or literally taking a step back.
For this it’s also important to know who the negotiating party is and what is and what is not
accepted in their culture. Acting modestly can make it easier to do business and come to an
agreement.
Cultural groups
To distinguish between cultures, Gesteland has divided the most important countries in eight
groups that have the characteristics of the dimensions mentioned earlier:
Prepare carefully
Engage the right people within your organization, define your objectives clearly, and
review any history of dealings with your counterparty
Learn all you can about your negotiating partners and the reality of the commercial
context in which they operate. Imagine their likely interests, priorities, limitations and
scope of authority
Be ready to explore with your counterparty the various legal rules available to govern
your deal
Take cultural differences into account
Educate yourself on the local business practices of your negotiating partner
Be sensitive to your own culturally-rooted habits and assumptions about how to
conduct business Develop a practice that encourages you continually to question your
assumptions and probe for assumptions your negotiating partner may be making about
you
Keep in mind the value of being able to deal well with difference
Make early agreements with a negotiating partner about a process to guide the logistics of the
negotiation, which paves the way for making agreements about more substantive topics: Decide
early on with your negotiating partner on procedural questions such as timeline, venues and
agendas for meetings, language of proceedings, attendees at meetings and drafting
responsibilities
Deals are often on-going commitments that evolve over time as circumstances change.
A good working relationship between the parties will make it easier to address both
sides’ future needs efficiently and effectively
Acting with transparency and the genuine desire to understand and find solutions can
help focus discussions on substance
Negotiation partners need not be friends to create a productive working environment
Much of the Japanese culture and the basis of Japanese working relationships can be
explained by the principle of wa meaning "Peace and harmony". This principle is one
aspect of the value they attribute to amae meaning "indulgent love", a concept
probably originating in the Shinto religion which focuses on spiritual and physical
harmony. The Japanese identify strongly with their working groups, where the
emphasis is on cooperation, participative management, consensus on problem-
solving and decision making based on a patient and long-term perspective. Open
expression or conflict is discouraged, and it is of utmost importance to avoid
embarrassment or shame i.e. to lose face as a result of not fulfilling one's obligations.
The culture of collectivism and shared responsibility underlies the Japanese ringi
system of decision making.
The Japanese are calm, quiet, patient negotiators and are accustomed to long
detailed negotiating sessions. They want to get to know those on the other side and
spend sometime in non-task sounding i.e. general polite conversation and informal
communication before meeting. Because of Japanese culture of politeness and
hiding of emotions, they are unable to get straight-forward eye contact but maintain
smiling faces even in serious situations. The persons negotiating with the Japanese
should avoid anything that resembles boasting because the Japanese value humility
and like to avoid physical contact. They would like to leave the room rather than
give a direct negative answer. They view decisions carefully in the light of long-
term consequences, and are objective and analytic and take time for reflection.
India
Indian negotiators generally exhibit firmness for a good cause. This approach
combines with strength with the love for truth. Successful Indian negotiators look
for and say truth and are not afraid of speaking up. They generally exercise self-
control, seek solutions which will please all the parties involved. They respect the
other party and do not use any violence or insult. They are ready to change their
minds and may even differ with themselves at the risk of being seen inconsistent
and unpredictable. They are generally humble and trust the opposite partly, and are
tenacious, patient and persistent.
Italy
Italian negotiators, in general, have a sense of drama and do not hide their emotions.
They read facial expressions and gestures very well and usually do not trust
anybody. They believe in the individual initiative and . not so much in team work.
They feel good when they have to oblige. They generally do not have definite
opinions. They are quite capable of giving up with new ways to immobilise and
eventually destroy the opposite party. They in general have flair for intrigue and
flattery.
Russia
Historically, Russian negotiators have been secretive about themselves, their motives
and. their goals for negotiations. This could be attributed to the type of economic and
social system that prevailed in the Russia which kept them isolated from the
international business community. They have a general distrust of foreigners.The
negotiating behaviour of the Russian has been variously described by Westerners as
rigid, stubborn, inflexible, confrontational and competitive. Within the Western ethical
systems, it is considered positive to seek compromises in order to resolve conflicts and
come to an agreement. However, within Russian ethical system the very word "deal" has
negative connotations, and any one seeking compromise is considered cowardly, week
and unworthy.Because of historical reasons, the word "profit" has a negative
connotation and implies exploitation. The Russian negotiators do not view negotiation
as a means of achieving higher profits for their organisations nor as a vehicle for
furthering personal goals. "Instead they view the negotiation process as an opportunity
for "right" to succeed over the American perspective.Historically, Russians have been
extremely reliable in honouring their contractual agreements. Although they drive a very
hard bargain in contract negotiations, they faithfully abide by its provisions and expect
the other party to do the same. They have an excellent record of honouring their
financial commitments.Russians enter into negotiations well prepared. They are well-
versed in the specific details of the matter being presented. They put a lot of emphasis
on protocol and expect to deal with top executives.
Sweden
Swedish negotiators are very quiet, thoughtful, punctual and extremely polite. They
are straight-forward and get straight down to business, and tend to be productive
and efficient. They adopt down-to-earth approach, and are quite good at holding
emotions and feelings. They are informal and afraid of confrontation. However,
they are quite slow at reacting to new (unexpected) proposals.