1. Negotiation and Conflict Resolution
Chapter 4
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Comparative Management, Dr. Yang

2. Comparative Management, Dr. Yang
Learning Objectives
Define negotiation and understand the basic negotiation process
Explain how culture influences the negotiation process
Consider the impact of situational factors and negotiating tactics on negotiation outcomes
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3. Learning Objectives (cont.)
Analyze the differences between intra-cultural and cross-cultural negotiations
Discuss the role of culture in the conflict resolution process
Appreciate how approaches to conflict influence negotiation
Identify ways to become a better cross-cultural negotiator
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4. Comparative Management, Dr. Yang
Negotiation
The process of bargaining between two or more parties to reach a solution that is mutually acceptable
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5. The Negotiation Process
Preparation
Relationship-Building
Information Exchange
Persuasion
Agreement
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6. How Culture Influence the Negotiation Process?
Degree of Consensus
Bargaining ranges
Concept of winning
Perception of negotiation process
Comparative Management, Dr. Yang

7. Comparative Management, Dr. Yang
Situational Factors
Geographical Location
Room Arrangements
Selection of Negotiators
Time Limits
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8. Comparative Management, Dr. Yang
Verbal Tactics
Initial Offer
Verbal Negotiating Behaviors:
Promises
Threats
Recommendations
Warnings
Rewards
Punishments
Normative appeals
Commitments
Self-disclosure
Questions
Commands
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9. Comparative Management, Dr. Yang
Cross-Cultural Negotiation at the Climate Change Conference of Industrial Countries, Kyoto, 1997
U.S. delegation called the White House to report the impasse
U.S. Vice President Al Gore called Japan’s Prime Minister Ryutaro Hashimoto at 2 a.m.
Al Gore’s cross-cultural communication worked!
Issues of concern: Global warming
Goal: To reduce emission by assigned percentage points by 2012:
Japan – To cut 6% below the 1996 level
U.S. - 7%
EU - 8%
Japan’s limit: 5%
Comparative Management, Dr. Yang

10. Comparative Management, Dr. Yang
Nonverbal Tactics
Silence
Conversational Overlaps
Facial Gazing
Touching
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Comparative Management, Dr. Yang

11. Conflict Characteristics of Low- and High-Context Cultures
Key
Questions Low-Context Conflict High-Context Conflict
Analytic, linear logic;
instrumental oriented;
dichotomy between conflict
and conflict parties
Individualistic oriented; low
collective normative
expectations; violations of
individual expectations create
conflict potentials
Synthetic, spiral logic;
expressive oriented; integration
of conflict and conflict parties
Group oriented; high collective
normative expectations;
violations of collective
expectations create conflict
potentials
Why:
e.g., Why do we need a contract or need to reach an agreement?
When:
e.g., When do conflicts occur?
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12. Comparative Management, Dr. Yang
Conflict Characteristics of Low and High-Context Cultures
Key
Questions Low-Context Conflict High-Context Conflict
Revealment; direct, confrontational attitude; action and solution oriented
Explicit communication codes; line-logic style; rational-factual rhetoric; open, direct strategies
Concealment; indirect, non-confrontational attitude; “face” and relationship oriented
Implicit communication codes, point-logic style: intuitive-affective rhetoric; ambiguous, indirect strategies
What:
e.g., What to say or not to say?
How:
e.g., How to express yourself or make a proposal?
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13. Becoming a Better Cross-Cultural Negotiator
Understand your negotiating partner
Consider situational specifics
Decide how to handle actual negotiations
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14. Convergence or Divergence?
Greater knowledge and understanding of culture
If moderate adaptation proves effective
Ingrained cultural patterns of behavior
Perception that own culture helps to negotiate effectively
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15. Implications for Managers
Cross-cultural negotiations constitute an important part of international manager’s job
Understanding dynamics of negotiation process and the influence of culture can help improve negotiating outcomes
Moderate adaptation may be most effective
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Comparative Management, Dr. Yang