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Cross-Cultural Comparison of Negotiations Style
Cross-Cultural Comparison of Negotiations Style
2011
4. Conclusion
Ability to negotiate
Negotiation can take a place between two individuals who are representing their own interests, such as an individual and her lawyer who are negotiating a representation deal
International negotiations One of the most difficult and important tasks facing international managers is negotiations. But in the same time it is way how to deal with other part of the world increase, expand, challenge etc.
Negotiation styles
1. Avoidance of negotiations and conflicts
! Appropriate when emotions are too high
Negotiation process
Preparation
Opening Session
- Ground rules - Framework - Initial Offers - Posturing
Bargaining
Settlement
1. Lead a conversation -flexibility 2. Control over emotions -emotional intelligence 3. Ability to position itself -intelligence -confidence -professionalism
High culture
Folk culture
religion dress
Deep culture
decision making
Communication Time consciousness Values and norms Mental process and learning
91 54 40 46
95 62
92 46
80 29
50
PDI
IDV
MAS
UAI
LTO
There are many differences in the negotiation process from culture to culture and they Involve language, cultural conditioning, negotiating styles, approaches to problem solving, implicit assumption, gestures and facial expressions, and the role of ceremony and formality
East Asian Countries 1. Equity is more important than wealth 2. Saving and conserving resources is highly valued 3. Group is the most important part of society 4. Highly disciplined 5. Personal conflicts are to be avoid
United States of America 1. Wealth is more important than a equity 2. Individual is the most important part of the group and the person is emphasized for motivation 3. Informality and competence is very important 4. Conflict is energy
Negotiating Business Chinese rank among the toughest negotiators in the world. In addition, China probably is one of the most difficult countries for an outsider to understand and adapt to. 1. They place emphasis on trust and mutual connection 2. The Chinese stick to their world 3. They are interested in long-range benefit 4. They are sensitive to national slights and still addicted to propagandistic slogans and codes 5. In negotiations with the Chinese nothing should be considered final until it has been actually realized 6. The Chinese posture becomes rigid whenever they feel their own goals are being compromised
Business attitude
1. Usually impatient 2. Often appear to make a contract on the assumption 3. A written contract is sometimes of little value
Business interaction
1. Extremely indirect 2. Don`t like to be pressured and hurried 3. Avoid passing gifts or food by using left hand (it is considered as unclean hand)
Business attitude
1. 2. 3. 4. 5. 6. 7. Trade between people is highly respected Bargaining is a Middle Eastern art The businessman does business with the man not with the company or contract Decisions make top man in company Being on time for appointment or keeping appointment is unusual Noisy, but hospitable style of communication Based on the Arab male-dominated society
Business attitude
1. 2. 3. 4. Not oriented towards competition It is not proper to show characteristics of self-centeredness Often criticize nearest persons, institutions Like to argue, discuss; putting a lot of emotions in conversation
Conclusion
For every manager is important to have a good business a profitable business. Expanding in local market can be profitable but not if there are more possibilities to grow. The first step of expanding, of entering in new market basically of everything is negotiations. Good negotiator understands cultural differences other culture values, norms, communication, relationship etc.
Conclusion
Preparation for negotiations Good manners Things which emphasize East culture West culture
Develope your negotiator skills
Topics to avoid
Refferences
1. Michael R.Carrell, Christina Heavrin Negotiating Essentials (New Jersey: Person Education, 2008) 2. Mead, R.Richard; Andrews, Tim G. International Management (2009) 3. Philip R.Harris, Robert T.Moran Managing Cultural Differences 3rd edition 4. Kamal Fatehi International Management: a cross cultural approach (1996)