Negotiations and Culture Why do they do that?

Introduction  Cultural Factors Affecting Negotiation  Specific Cultural Considerations –with Americans –with Germans –with Japanese –with Koreans

Cultural Factors Affecting Negotiation  Negotiating Goal (One–time or relationship)  Win-lose or Win-Win  Formal or Informal  Risk Aversion (High or Low)

Cultural Factors Affecting Negotiation  Direct or Indirect  Time Consciousness  Open or Closed Displays of Emotion

Cultural Factors Affecting Negotiation  General or Specific Agreement Form  Bottom Up or Top Down Agreement Building  Team Organization and Decision Making Power

Specific Cultural Considerations  Negotiating with Americans  Negotiating with Germans  Negotiating with Japanese  Negotiating with Koreans

Negotiating with Americans  very individualistic (cowboy mentality)  prefer informality immediately and try to be very friendly  like to use humor wherever possible  very direct from the beginning of the negotiation and then make offers and counter offers  take calculated risks but will not overextend themselves  consider proposals on a monetary investment return basis rather than relationship basis  very conscious of time and don’t like silence or lulls

Negotiating with Germans  prefer formal attire and regimented procedures  strongly favor hierarchy in their order of speaking and seating  prefer logical argumentations instead of personal appeals to support their position  like to prepare in advance for disagreement by having several responses for your possible counter-arguments  like to look for common ground but do not concede in arguments easily  each team member has a specialty and will be the one to address their issue of expertise alone

Negotiating with Germans  like to go over details many times in order to avoid misunderstanding  do not like to be rushed  will negotiate very aggressively on price but will only provide a token amount of business initially  stress formality by using surnames only and prefer to use academic titles  jokes or humor are out of place in the negotiation itself but welcomed in social settings

Negotiating with Japanese  like to negotiate in teams with individual specialties  senior staff members will lead but not usually speak  always refer back to head office before making a decision  like to go over the same information many times so there is no misunderstanding  expect quick action once decision is made  will break off negotiations that do not follow protocol  will cancel a meeting if conditions have changed

Negotiating with Koreans  will focus on difficulties when they want to withdraw  prefer to sign exclusive long-term agreements  will break a relationship suddenly if they find a better offer  more aggressive than most Asians  emphasize price over durability  willing to experiment and take risks  adaptable and accepting of last-minute changes

Conclusion In international negotiations culture has become another factor in preparation for success. Once you overcome the hurdle of understanding your own culture in-depth, it becomes easier to understand the motivations and behavior of those from other cultures.

Bibliography  Cohen, Raymond Negotiating Across Cultures: International Communication In An Interdependent World, Revised (Washington, D.C.: United States Institute of Peace, 1997).  Lewis, C.S. Mere Christianity (London: Collins, 1952; Harper: San Francisco, 2001).  Lewis, Richard D. When Cultures Collide: Managing Successfully Across Cultures, Second Edition (London: Nicholas Brealey Publishing, 2000)  Rosen, Robert et al, Global Literacies: Lessons On Business Leadership And National Cultures (New York: Simon and Schuster, 2000).  Salacuse, Jeswald W. "Negotiating: The Top Ten Ways That Culture Can Affect Your Negotiations," Ivey Business Journal (University of Western Ontario; London, Ontario) 69, 4 (March/April 2005). 