Chapter19InventiveNegotiationswithInternationalCustomers,Partners,andRegulators?McGraw-HillEducation.Allrightsreserved.Authorizedonlyforinstructoruseintheclassroom.

NoreproductionorfurtherdistributionpermittedwithoutthepriorwrittenconsentofMcGraw-HillEducation.LearningObjectives1of2

19-1 Theproblemsassociatedwithculturalstereotypes19-2 Howcultureinfluencesbehaviorsatthenegotiationtable19-3 Commonkindsofproblemsthatcropupduringinternationalbusinessnegotiations19-4 Thesimilaritiesanddifferencesincommunicationbehaviorsinseveralcountries19-5 HowdifferencesinvaluesandthinkingprocessesaffectinternationalnegotiationsLearningObjectives2of2

19-6 Importantfactorsinselectinganegotiationteam19-7 Howtoprepareforinternationalnegotiations19-8 Managingallaspectsofthenegotiationprocess19-9 Theimportanceoffollow-upcommunicationsandprocedures19-10ThebasicsofinventiveinternationalnegotiationsTheDangersofStereotypesCulturalStereotypesNegotiationsarenotconductedbetweenstereotypes,theyareconductedbetweenpeopleBehavioratnegotiationtablenotjustinfluencedbyculture,butalsoindividualpersonalitiesandbackgroundsConsiderculturesofyourbusinesspartners,buttreatthemasindividualsThePervasiveImpactofCultureon

NegotiationBehavior1of10RegionalgeneralizationsareoftenincorrectJapaneseandKoreannegotiationstylesaresimilarinsomeways,butinotherways,theycouldnotbemoredifferentJapanisanexceptionalplaceOnalmosteverydimensionofnegotiationstyle,theJapaneseareneartheextremesofthescaleThePervasiveImpactofCultureon

NegotiationBehavior2of10CulturaldifferencescauseproblemsininternationalbusinessnegotiationsLanguageNonverbalbehaviorsValuesThinkinganddecision-makingprocessesProblemsloweronlistaremoreseriousbecausetheyaremoresubtleThePervasiveImpactofCultureon

NegotiationBehavior3of10DifferencesinLanguageandNonverbalBehaviorsJapaneseexecutiveshavelanguageadvantage;aisatsuAmericanmanagersmostcommonlycomplainthatforeignpartnersbreakintosideconversationFrequentlyamisconception;usualpurposeofsideconversationistostraightenouttranslationproblemStatusinJapanJapanesenegotiatorsexchangebusinesscardsatthefrontendofameeting.Evenmoreimportantthanthenonverbaldemonstrationofrespectinthe“littleritual”istheall-importantinformationabouttherelativestatusofthenegotiators,clearlycommunicatedbyjobtitleandcompany.Japaneseexecutivesliterallydonotknowhowtotalktooneanotheruntilthestatusrelationshipisdetermined,becauseproperuseofthelanguagedependsonknowledgeoftherelativestatusofthenegotiators.?PhotodiscGreen/GettyImagesExhibit19.1VerbalNegotiationTactics(The“What”ofCommunications)1of3

BargainingBehaviorDefinitionPromiseAstatementinwhichthesourceindicatesitsintentiontoprovidethetargetwithareinforcingconsequence,whichthesourceanticipatesthetargetwillevaluateaspleasant,positive,orrewarding.ThreatSameaspromise,exceptthatthereinforcingconsequencesarethoughttobenoxious,unpleasant,orpunishing.RecommendationAstatementinwhichthesourcepredictsthatapleasantenvironmentalconsequencewilloccurtothetarget.Itsoccurrenceisnotunderthesource’scontrol.WarningSameasrecommendation,exceptthattheconsequencesarethoughttobeunpleasant.FromWilliamHernandezRequejoandJohnL.Graham,GlobalNegotiation:TheNewRules(NewYork:PalgraveMacmillan,2009).ReproducedwithpermissionofPalgraveMacmillan.Exhibit19.1VerbalNegotiationTactics(The“What”ofCommunications)2of3

BargainingBehaviorDefinitionRewardAstatementbythesourcethatisthoughttocreatepleasantconsequencesforthetarget.PunishmentSameasreward,exceptthattheconsequencesarethoughttobeunpleasant.NormativeAppealsAstatementinwhichthesourceindicatesthatthetarget’spast,present,orfuturebehaviorwillconformwithsocialnormsorisinviolationofsocialnorms.Exhibit19.1VerbalNegotiationTactics(The“What”ofCommunications)3of3

BargainingBehaviorDefinitionCommitmentAstatementbythesourcetotheeffectthatitsfuturebidswillnotgobeloworaboveacertainlevel.Self-disclosureAstatementinwhichthesourcerevealsinformationaboutitself.QuestionAstatementinwhichthesourceasksthetargettorevealinformationaboutitself.CommandAstatementinwhichthesourcesuggeststhatthetargetperformacertainbehavior.ThePervasiveImpactofCultureon

NegotiationBehavior4of10DifferencesinLanguageandNonverbalBehaviorscontinuedJapaneseareleastaggressiveormostpoliteKoreannegotiatorsuseconsiderablymorepunishmentandcommandsthandoJapaneseNegotiatorsfromNorthernChinaemphasizeaskingquestionsTaiwanesenegotiatorsexhibitbehaviorsimilartoKoreansThePervasiveImpactofCultureon

NegotiationBehavior5of10DifferencesinLanguageandNonverbalBehaviorscontinuedRussiansdifferentthananyotherEuropeangroupbutsimilartoJapanesenegotiationstyleIsraelinegotiatorsinterruptmostfrequentlyGermansdifficulttocharacterizebecausetheyfallincenterofalmostallcontinuaBritishnegotiatorssimilartoAmericansinallrespectsThePervasiveImpactofCultureon

NegotiationBehavior6of10DifferencesinLanguageandNonverbalBehaviorscontinuedSpanishnegotiatorsusemanycommandsFrenchnegotiatorsareperhapsmostaggressiveandusemostthreatsandwarningsBraziliannegotiatorsaresimilarlyaggressiveMexicannegotiationbehaviorisquitedifferentfromthatofLatinAmericaandSpain;mostsimilartoU.S.ThePervasiveImpactofCultureon

NegotiationBehavior7of10DifferencesinLanguageandNonverbalBehaviorscontinuedFrench-speakingCanadiansbehavesimilartoFrenchinthattheyusethreatsandwarningsEnglish-speakingCanadiansusethelowestamountofaggressivepersuasivetacticsAmericansfallinmiddleofmostcontinua;onlydistinguishingfactoristheyinterruptotherslessThePervasiveImpactofCultureon

NegotiationBehavior8of10DifferencesinValuesFivevaluesheldbyAmericansfrequentlycausemisunderstandingsininternationalnegotiations:Information-orientationObjectivity:separatingpeoplefromtheproblemCompetitivenessEqualityPunctualityThePervasiveImpactofCultureon

NegotiationBehavior9of10DifferencesinThinkingandDecision-MakingProcessesWesternersgenerallydividelargetasksintosmallertasksandsettleoneissueatatimeAsiansgenerallydiscusseachissueinsamemeetingbutinnoapparentorderWesternsequentialapproachandEasternholisticapproachdonotmixwellThePervasiveImpactofCultureon

NegotiationBehavior10of10DifferencesinThinkingandDecision-MakingProcessescontinuedImportantsignalsofprogress:Higher-levelforeignersbeingincludedindiscussionsQuestionsbeginningtofocusonspecificareasofdealSofteningofattitudesandpositionsonsomeoftheissuesIncreasedtalkamongforeignpartnersinownlanguage—oftenmeanstheyaretryingtodecidesomethingIncreasedbargaininganduseoflower-level,informal,andotherchannelsofcommunicationImplicationsforManagersandNegotiators1of11Fourstepsleadtomoreefficientandeffectivecross-culturalbusinessnegotiations:SelectionofappropriatenegotiationteamManagementofpreliminaries:training,preparations,andmanipulationofnegotiationsettingsManagementofnegotiationprocessAppropriatefollow-upproceduresandpracticesImplicationsforManagersandNegotiators2of11NegotiationTeamsLargenumberofskilledinternationalnegotiatorsinworldHavelivedinforeigncountriesandspeakforeignlanguagesImportanttraitstolookforinselectingteamWillingnesstouseteamassistanceStronglisteningskillsInfluenceatheadquartersGendershouldnotbeusedasselectioncriteriaImplicationsforManagersandNegotiators3of11NegotiationPreliminariesManyU.S.companiestrainemployeesindomesticnegotiation,butfewtrainininternationalnegotiationNegotiatorsneedinformationspecifictoculturesinwhichtheyworkImplicationsforManagersandNegotiators4of11NegotiationPreliminariescontinued

ChecklistforpreparationAssessmentofthesituationandthepeopleFactstoconfirmduringnegotiationAgendaBestalternativetoanegotiatedagreement(BATNA)ConcessionstrategiesTeamassignmentsChesterKarrassThroughhisbooksandtrainingcourses,ChesterKarrasshastaughtmorepeopletonegotiatethananyoneelseintheworld.Hisfirmoffersseminarsindozensofcountriesandadvertisesinin-flightmagazines,hereinSpanish.UsedbypermissionofKARRASS,LTD.BeverlyHills,CA.ImplicationsforManagersandNegotiators5of11NegotiationPreliminaries:AspectsofSettingLocation:speaksloudlyaboutpowerrelationsPhysicalarrangements:canaffectcooperativenesssubtlyNumberofparties:viewsaboutwhoshouldattendvaryNumberofparticipantsAudiences(newsmedia,competitors,vendors,etc.)Communicationschannels:electronicmediapossibleTimelimitsImplicationsforManagersandNegotiators6of11AttheNegotiationTableMostdifficultaspectisconductingthemeetingExpectationsofnegotiationprocessdifferbycultureStagesofnegotiationsNontasksoundingTask-relatedexchangeofinformationPersuasionConcessionsandagreementImplicationsforManagersandNegotiators7of11AttheNegotiationTablecontinuedNontasksoundingispreliminarysmalltalkusedtohelpnegotiatorslearnhowtheothersidefeelsthatdayAmericansalwaysdiscusstopicsotherthanbusinessatbeginning(weather,sport,politics)butnotforlongProvidesimportantcuesaboutappropriatecommunicationstylesJudgmentsmadeaboutparticipantsduringthisstageImplicationsforManagersandNegotiators8of11AttheNegotiationTablecontinuedTask-relatedinformationexchangeExcellenttacticto“drain”informationfromcounterpartsExchanginginformationacrosslanguagebarrierscanbedifficultInmanycultures,negativefeedbackisdifficulttoobtainAggressivefirstoffersshouldbemetwithquestions,notangerImplicationsforManagersandNegotiators9of11AttheNegotiationTablecontinuedPersuasionNoclearseparationbetweeninformationexchangeandpersuasionstepsinJapanStepsclearlyseparatedinAmerica:objectionshandledfirstininformationexchangeMostpowerfulpersuasivetechniqueisaskingmorequestionsThirdpartiesandinformalchannelsofcommunicationareimportantmediumsofpersuasioninrelationship-orientedcountriesBananaSaleApproachYouwanthimonyourside!BananasalespeoplesuchasthisfellowinAgra,India,areknownworldwidefortheirnegotiationskills—they’rehawkingaperishableproductthatshowsthewear.InJapantheyevenhaveanegotiationstrategynamedforthem:Outrageouslyhighfirstoffersarederogatedas“banananotatakiuri,”thebananasaleapproach.?JohnGrahamImplicationsforManagersandNegotiators10of11AttheNegotiationTablecontinuedConcessionsandAgreementDifferencesinsequentialversusholisticdecision-makingstylesareapparentinthisstepAmericansoftenmakeconcessionsearlyManyculturesdonotreciprocatequickly;concessionsarenotmadeuntiltheendofnegotiationsAmericansoftengetfrustratedwhenothersaresimplyfollowingadifferent(andvalid)approachtoconcessionmakingImplicationsforManagersandNegotiators11of11AfterNegotiationsAmericanstendtouselaw-bindingcontractsOthercountries,particularlyrelationship-orientedones,donotdependonlegalsystemstosettledisputesTheworddisputesdoesnotreflecthowbusinessrelationshipsshouldworkBothsidesshouldconsidermutualbenefitsofrelationshipFollow-upcommunicationsimportantInventiveInternationalNegotiationsInventioninNegotiationsUseofcreativeprocessesinnegotiationsJoinbrainstormingandinformalside-barnegotiationsUseofcollaborativeratherthancompetitiveapproachLong-term,mutuallybeneficialcommercialandpersonalrelationshipsare