Intercultural Negotiation Process Lecture 8

“In business, you don’t get what you deserve; You get what you negotiate (Chester Karass) .”

Related Vocabulary Negotiations/talks (noun) Negotiate (verb) Deal (noun) Concession (noun) make a concession Concede (verb) Firms- business term for companies

Related Vocabulary Mutual (like mutually profitable) Interpreter/translator Flexible Agreement Contract Long-term/Short-term

Negotiating When? - When two sides would like to cooperate, but it is not clear what each side should give or do Why? - To come to an agreement that is satisfying for both sides

Before the Negotiation Come up with clear goals -should be flexible to a degree Study needed manners and culture Study other sides situation, goals, and team

Selecting the location Disadvantages of negotiating in the other’s company - Guests are polite May miss families May be reliant on host company for things The fairest way (both must wish for talks) -neither side is at home

What makes a good intercultural negotiator? Patient Understanding A Good listener Polite, inoffensive Flexible-be willing to change with the unexpected Aware of culture’s influence on one’s actions

The Right Negotiating Team… Depends on the culture -Who would have the most influence? -Who would be least likely to offend but most likely to succeed? Depends on character -Previous slide

For a successful negotiation we need… Trust A good persuasive argument Direct honesty Credibility Time

During the Negotiation Keep cultural differences in mind Communicate goals clearly Emphasis shared goals Understand limits of other side

During the Negotiation Slowly decrease differences to reach agreement Be ready to concede a little if necessary Don’t focus on win-lose, but on win-win Be willing to change your original plans given new information

During the Negotiation Have flexible goals and a time plan, but do not tell the other side Have good relations with other side’s members informally Be ready to leave if the other side is unwilling to give you a good deal Never become negatively emotional

Soon before Agreement… Are both sides really capable of doing this in the long-term? Do not expect that a contract means the same thing in both cultures. -strong in US, Britain, Germany, France -not as strong in China, Japan, other European countries

Common “Problems” in Talks between Chinese and Americans Americans tend to focus on making the deal -limited focus on building trust/relationships -may view business more simply than - often in a hurry to go home

Common “Problems” in Talks between Chinese and Americans Chinese- tend to be in less of a hurry -probably most talks take place in China -usually they do not negotiate on a time schedule Common Result - Relations between companies worse than they could be - Americans concede more than they must (Chinese have power of time)

Common “Problems” in Talks between Chinese and Americans Americans tend to focus on legal issues -may overestimate the meaning of some legal agreements and laws in China Chinese focus on other forms of protection -trust, relationships between companies, relationships between governments

Common Result -Chinese focus on relationship protections -Americans focus on legal protections -Neither is well-protected

Common “Problems” in Talks between Chinese and Americans American lack of knowledge of China’s high concern for “face” Informality vs. formality In America, you are trustworthy until you are shown to be untrustworthy In China, you are untrustworthy until you are shown to be trustworthy

Americans may not understand Chinese indirect ways of saying “no” or “don’t know” Americans are not used to haggling -may seem inflexible -may offer best price at beginning Americans often know less details about the other sides company

Solving these problems US companies often send Chinese-Americans Both sides should work to understand the other’s cultural situation Both sides must be flexible with their beliefs and behavior

Homework Think about cultural differences Review chapter 5 on Question and Answer Sessions