1. © Bahaudin G. Mujtaba Cross Cultural Management and Negotiation Practices Dr. Bahaudin G. Mujtaba Chapter 11 – Negotiation, Diversity and Communication

2. © Bahaudin G. Mujtaba Cross Cultural Management and Negotiation Practices (Bahaudin G. Mujtaba, 2007) PART I – Culture and Management Chapter 1 – Culture and International Management Chapter 2 – Cultural Dimensions and Research Chapter 3 – Motivational and Generational Values Chapter 4 – Cross Cultural Management Chapter 5 – Cultures and Sub-Cultures in the Caribbean Chapter 6 – Expanding Abroad: Pakistan and Ecuador Chapter 7 – Culture, Ethics and Corporation PART II – Negotiation Challenges and Strategies Chapter 8 – Negotiation Fundamentals Chapter 9 – Success in Negotiations Chapter 10 – Negotiation Model and Steps Chapter 11 – Negotiation, Diversity and Communication Chapter 12 – Negotiation Differences: Saudi Arabia, Japan, Germany, China, and Brazil Chapter 13 – Negotiations: Afghanistan, the USA, and Brazil PART III – Skills and Expatriate Training Chapter 14 – Communication: Listening to Understand Chapter 15 – Global Integration and Conflict Management Chapter 16 – Expatriate Training and Development PART IV – Cases Chapter 17 – Cases (22)

3. © Bahaudin G. Mujtaba Chapter Topics Chapter 11 – Negotiation, Diversity and Communication –Cultural Diversity and Negotiation Challenges –Communication Skills for International Professionals –Gender Diversity in the Construction Industry –Negotiating on the Internet

4. © Bahaudin G. Mujtaba Cultural Diversity and Negotiations Challenges Conducting business in other countries can be difficult and tedious. Culture plays a vital role in the success or failure of negotiations. Negotiators must research the region’s culture prior to any negotiations. The most successful negotiations involve negotiators who go the extra mile to learn about the region’s culture, norms, values, traditions, and business ethics expectations prior to the start of the negotiation process.

5. © Bahaudin G. Mujtaba Formal logic Formal logic: identify entities according to what they are and what they are not (Ford & Backoff, 1988, p.4). There are three principles that sustain the formal logic: the principle of identity, the principle of non- contradiction, and the principle of the excluded middle.

6. © Bahaudin G. Mujtaba Dialectic logic Dialectic logic: it manages contradiction and recognizes its positive contribution to negotiation outcomes. There are three principles that offer a framework for understanding dialectic logic. The first principle is focused on the changes that begin internally can influence external factors. The second principle shows that change is developmental, and the final principle describes two types of change: evolutionary and revolutionary.

7. © Bahaudin G. Mujtaba Cross-Cultural Blunders A cross-cultural blunder is basically any unintentional decision that negatively affects the foreign operations of a firm. The negative impact can be a loss of revenues, loss of reputation, or simply a loss of brand image. While the word blunder naturally carries a negative connotation, cross-cultural blunders in business have, in some cases, positively surprised companies with increased sales; however, most blunders have resulted in loss of money, reputation and sometimes irreparable damage to business relationships. Such negative blunders in a cross-cultural work environment are usually attributable to their lack of knowledge in cultural differences.

8. © Bahaudin G. Mujtaba Avoid blunders According to Ricks (1999), an effective expatriate manager must possess special abilities and traits if he or she is to avoid blundering. Among the most important characteristics are: –An ability to get along well with people –An awareness of cultural differences –Open-mindedness –Tolerance of foreign cultures –Adaptability to new cultures, ideas and challenges –An ability to adjust quickly to new conditions –An interest in facts, not blind assumptions –Previous business experience, specifically with foreign cultures –An ability to learn foreign languages.

9. © Bahaudin G. Mujtaba Two Levels of Communication There are two levels of communication present in negotiations, pragmatic and logical. However, there must also be a discussion about problems that arise in cross-cultural communications and how these issues can be improved. –Pragmatic communication is a combination of the semantics, syntax and style of the communicator. –Logical communication is a more practical tangible item such as a specific price. Every person comprehends communication on both levels; however, the challenges arise in pragmatic understanding, as it is not concrete and can be interpreted in many different ways.

10. © Bahaudin G. Mujtaba Women in the Construction Industry Women’s need for professional development, career planning, and networking opportunities to support their growth is important. Gender inequity is ingrained in this industry and is based on societal expectations and attitudes. Organizations such as Women Working in Corrections and Juvenile Justice and the Association of Women Executives in Corrections (AWEC) address issues that affect women in this industry. AWEC focuses on leadership, career advancement, and common issues faced by women executives in the industry

11. © Bahaudin G. Mujtaba Negotiating on the Internet In today’s “global village-like” world, by offering new ways of communication, the Internet is one of the major tools that make our world even smaller than it presently is. In fact, the Internet is not just for “know-how” or knowledge acquisition anymore. However, the merits that it brings have not been fully revealed yet, and it still surprises a vast majority of people by its seemingly unlimited possibilities. Being very a user-friendly, inexpensive way of communication, the negotiations on the Internet are very up-to-date especially in the companies which seek to extend their operations abroad. By registering a company’s website on the Internet, the company may obtain customers from all parts of the world. This might be the first step to building a truly international company.

12. © Bahaudin G. Mujtaba Application of e-Negotiations in Practice The incredible growth of telecommunication enables both simple and very complex exchanges of information that assist in the company’s decision. E-negotiations involve serious information technology development. It requires considerable IT knowledge from company employees and advanced specialized software. In a professional environment, such software is called e-negotiation systems which are capable of supporting, aiding or replacing one or more negotiators, mediators or facilitators. Therefore, the process of adopting a nontraditional practice of negotiations by businesspeople is an interesting topic to investigate. It is even more interesting to determine to what extent e-negotiations are influenced by negotiators’ culture. It is interesting to explore how generic, not situational perceptions that had been formulated long before entering the negotiation process, influence the communication with representatives from other cultures.

13. © Bahaudin G. Mujtaba It’s what is inside that makes a difference! Learn well, take chances, and remember that together we can move the world!

14. © Bahaudin G. Mujtaba Reference Mujtaba, B. G. (2007). Cross Cultural Management and Negotiation Practices. ISBN: 978-0-9774211-2-1. ILEAD Academy, LLC; Davie, Florida.

15. © Bahaudin G. Mujtaba