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Unit7CulturalVariationsinNegotiationStyles©2006PrenticeHall5-2NegotiationManagement’sabilitytonegotiateproductivelyeffectstheirabilitytoimplementstrategiesNegotiationistheprocessofdiscussionbywhichtwoormorepartiesaimtoreachamutuallyacceptableagreementNegotiatingacrossbordersismorecomplexbecauseofthenumberofstakeholdersinvolved©2006PrenticeHall5-3TheNegotiationProcess©2006PrenticeHall5-4StageOne–PreparationNegotiatormustfamiliarizethemselveswith–Theentirecontextandbackgroundoftheircounterparts–Tothespecificsubjectstobenegotiated–Differencesinculture,language,andenvironmentManagersmusthaveanunderstandingoftheirownnegotiatingstyle©2006PrenticeHall5-5StageOne-PreparationManagersshouldfindoutasmuchaspossibleabout–Thekindsofdemandsthatmightbemade–Thecompositionoftheopposingteam–TherelativeauthoritythatthememberspossessDevelopaprofileoftheircounterpartsTheyconsiderdifferentvariablesduringthisprocessaswell©2006PrenticeHall5-6TheNegotiationProcessRelationshipbuilding–takingtimetobuildmutualtrustbeforestartingbusinessdiscussions–Mayrequirego-betweens–BepreparedtowaitfortheotherpartytostartbusinessnegotiationsExchangingtaskrelatedinformation–duringthisstageeachsidemakesapresentationandstatesitsposition,normallyfollowedbyaquestion-and-answersession–Rolereversal:showinganunderstandingoftheotherparty’sviewpointandneeds©2006PrenticeHall5-7TheNegotiationProcessPersuasion–duringthisstagebothpartiestrytopersuadetheothertoacceptmoreoftheirpositionwhilegivingupsomeoftheirown;therearerecognizabletacticsforthisstage–StressfultacticsConcessionsandAgreements–atthispointeachsidewillmakevariousconcessionssothatanagreementcanbereachedandsigned©2006PrenticeHall5-8UnderstandingNegotiationStyles©2006PrenticeHall5-9UnderstandingNegotiationStylesForNorthAmericans,negotiationsarebusinesslike;theirfactualappealsarebasedonwhattheybelieveisobjectiveinformation,presentedwiththeassumptionthatitisunderstoodbytheothersideonalogicalbasis.Arabsuseaffectiveappealsbasedonemotionsandsubjectivefeelings.Russiansemployaxiomaticappeals–thatis,theirappealsarebasedontheidealsgenerallyacceptedintheirsociety.©2006PrenticeHall5-10ProfileofanAmericanNegotiatorKnowswhentocompromiseTakesafirmstandatthebeginningofthenegotiationRefusestomakeconcessionsbeforehandKeepshisorhercardsclosetohisorherchestAcceptscompromisesonlywhenthenegotiationisdeadlockedSetsupthegeneralprinciplesanddelegatesthedetailworktoassociatesKeepsamaximumofoptionsopenbeforenegotiationOperatesingoodfaith©2006PrenticeHall5-11ProfileofanAmericanNegotiatorRespectsthe“opponents”StateshisorherpositionasclearlyaspossibleKnowswhenheorshewishesanegotiationtomoveonIsfullybriefedaboutthenegotiatedissuesHasagoodsenseoftimingandisconsistentMakestheotherpartyrevealhisorherpositionwhilekeepinghisorherownpositionhiddenaslongaspossibleLetstheothernegotiatorcomeforwardfirstandlooksforthebestdeal©2006PrenticeHall5-12ProfileofanIndianNegotiatorLooksforandsaysthetruthIsnotafraidofspeakingupandhasnofearsExercisesself-controlSeekssolutionsthatwillpleaseallthepartiesinvolvedRespectstheotherpartyNeitherusesviolencenorinsultsIsreadytochangehisorhermindanddifferwithhimselforherselfattheriskofbeingseenasinconsistentandunpredictable©2006PrenticeHall5-13ProfileofanIndianNegotiatorPutsthingsintoperspectiveandswitcheseasilyfromthesmallpicturetothebigoneIshumbleandtruststheopponentIsabletowithdraw,usesilence,andlearnfromwithinReliesonhimselforherself,hisorherownresourcesandstrengthsAppealstotheotherparty’sspiritualidentityIstenacious,patient,andpersistentLearnsfromtheopponentandavoidstheuseofsecretsGoesbeyondlogicalreasoningandtrustshisorherinstinctaswellasfaith©2006PrenticeHall5-14ProfileofanArabNegotiatorProtectsalltheparties’honor,self-respect,anddignityAvoidsdirectconfrontationbetweenopponentsIsrespectedandtrustedbyallDoesnotputthepartiesinvolvedinasituationwheretheyhavetoshowweaknessoradmitdefeatHasthenecessaryprestigetobelistenedtoIscreativeenoughtocomeupwithhonorablesolutionsforallpartiesIsimpartialandcanunderstandthepositionsofthevariouspartieswithoutleaningtowardoneortheother©2006PrenticeHall5-15ProfileofanArabNegotiatorIsabletoresistanykindofpressurethattheopponentscouldtrytoexerciseonhimUsesreferencestopeoplewhoarehighlyrespectedbytheopponentstopersuadethemtochangetheirmindsonsomeissuesCankeepsecretsandinsodoinggainstheconfidenceofthenegotiatingpartiesControlshistemperandemotionsCanuseconferenceasmediatingdevicesKnowsthattheopponentwillhaveproblemsincarryingoutthedecisionsmadeduringthenegotiationIsabletocopewiththeArabdisregardfortime©2006PrenticeHall5-16ManagingNegotiation©2006PrenticeHall5-17ManagingNegotiationSuccessfulmanagementofinterculturalnegotiationsrequiresthemanager–Togainspecificknowledgeofthepartiesintheupcomingmeeting–Toprepareaccordinglytoadjusttoandcontrolthesituation–TobeinnovativeAproblemsolvingapproachisessentialtosuccessfulcross-culturalnegotiations–Treateveryonewithrespect,avoidmakinganyonefeeluncomfortable,don’tcriticizeorblameothersinapersonalwaysuchthattheyloseface©2006PrenticeHall5-18Usingthe