Negociación y Administración Intercultural

Vivian Kadelbach Vivian.Kadelbach@anahuac.mx

Universidad Anahuac, México Norte

Model of cultural assumptions

Assumption Negotiation Features

Diversity has no impact • International follows domestic • What works locally will be applied internationally

Multidomestic (ethnocentric)

Diversity causes only problems • Every country is unique • Every subsidiary administers negotiations locally

International (polycentric)

Diversity can either lead to benefits or cause problems

• The intent is to design a regionally integrated negotiation strategy

Multinational (regiocentric)

Diversity can simultaneously cause problems and lead to benefits

• Everybody negotiates similarly • Cultural differences & similarities impact negotiations

Global/ Transnational

(geocentric)

Cultural allies & islands

• Most business people think in terms of geographic regions rather than cultural allies & islands

• Regions are arbitrary • Each region is diverse in terms of

culture, politics, economics, social structure etc.

• At a macro level there are defining characteristics setting them apart from each other

Cultural allies

Group I: Australia, Canada, Great Britain, New Zealand, Singapore, United States Common traits: preference for family over work, and the least “cosmopolitan” (multilingual, having international experience)

Cultural allies (cont’d)

Group II: Argentina, Brazil, Italy, Mexico, Spain, Venezuela Common traits: more privately held companies, fewer joint ventures, higher reliance on trade policy for international protection

Cultural allies (cont’d)

Group III: Austria, Belgium, Finland, France, Germany, the Netherlands, Sweden Common traits: most cosmopolitan, more close partnerships, more pessimistic about future

Cultural islands

Japan: Strongest work ethic, greatest concern about work ethic of the rest of the work force, strongly in favor of “free trade” South Korea: Favors protectionism, country ahead of company, strong sense of corporate responsibility toward employees, more optimistic about future India: More optimistic about future, strongly favors protectionism Hungary: Organizationally different from companies in other countries, very focused on economic regeneration

Cultural regions around the globe

• Africa • Asia • Europe • Latin America • Middle East • North America

Understanding of the predominant

belief systems in a region

Primary belief systems

• Buddhism • Christianity • Confucianism • Hinduism • Islam • Judaism • Shintoism • Sikhism • Taoism • Zen

Africa

• “forgotten continent” (except for SA) • Few investment opportunities • Demand for major natural resources

has decreased • Many countries were formed as a result

of colonialism • Cultures are more often associated

with traditional kingdoms or tribes • Culturally: mix of Islamic, Christian and

traditional indigenous beliefs

Africa (cont’d)

• Environment: constraint, low per capita income, minimal education opportunities, lack of infrastructures, small middle class, dependence on foreign aid, change has been externally driven

• Time: fluid, relationships have priorities over schedules & deadlines, no concern over the future, respect for traditions

• Action: more being than doing oriented, change is not valued for its own sake, importance of relationships, leisure & family are important

Africa (cont’d)

• Communication: high context, indirect, and inexpressive, politeness & protocol are highly valued, generous hospitality, status & seniority are important, proud of achievements, reserved

• Space: personal space is closer, space is more public, reliance on friendship & trust, friendly touching is common

• Power: home to authoritarian leaders, authority is rarely questioned, free expression is not given a high value, relationships with top officials are key, age = wisdom, loyalty is highly valued

Africa (cont’d)

• Individualism: collectivist culture, extended family & tribes are powerful groups that shape individual behavior, nepotism, corruption

• Competitiveness: emphasis placed on material success & prosperity, southern African economic community to create bigger markets for local products etc., outside of this competitiveness is low to moderate

• Structure: life is neither rigid nor highly regulated, red tape, bureaucracies are large & inefficient

• Thinking: socioeconomic progress & effectiveness are impeded by decision making based on symbolic & mythological thought, confusion of symbol & substance

Asia

• Wide cultural diversity • Profound economic opportunity • Competitive challenge • Largest continental land mass (over

30%) & highest percentage of world’s population (over 56%)

• Region of deep contrast • Highest economic growth since WWII • Ancient philosophical & religious

traditions

Asia

• Environment: harmony/constraint mixes due to predominant philosophies, close attention to change in circumstance, decision making may take longer, implementation is faster

• Time: single focused (less developed countries: multi-focused), strong past & long term future orientation, sense of urgency lower, high sense of personal identification with history, collectivist, long term oriented

• Action: being & doing orientation, emphasis on hard work & relationships, entertainment is key

Asia

• Communication: formalities are important, inside & outside group, indirect, high context, self controlled

• Space: public office spaces, personal space requirements more distant that LA, touching avoided, private offices are rare, sitting positions reveal power

• Power: hierarchy or “soft authoritarianism” and “authoritarian pluralism”, paternalistic authority, large difference between power levels between managers & subordinates

• Individualism: not highly valued, entrepreneurial spirit in HK, Taiwan, China, loyalty to work organization, collectivist orientation

Asia (cont’d)

• Competitiveness: variations across countries, Japan, HK, Philippines are highly competitive, seniority and collectivism are still key

• Structure: values regarding structure vary, high value on structure, order & control, high value placed on structure = stronger value placed on consensus, low value on legalism

• Thinking: difficult for Westerners to comprehend, be open minded and flexible

Europe

• Radical change over the past 2 decades • Patchwork of cultures • Increased economic cooperation but deep

cultural identities that shape the continent • Cultural divisions:

• North: Norway, Sweden, Denmark, Finland, Iceland

• West: France, Germany, UK, Ireland, Belgium, Netherlands)

• South: Italy, Spain, Portugal, Greece • East: Russia, Poland, Hungary,

Romania, Bulgaria, Baltic States

Europe (cont’d)

• Environment: mix of mastery, harmony & constraint, risk averse, suspicious of change, history weighs heavily

• Time: respect for tradition, progress & change are not that important, long-term goals, no short-term future urgency, single-focus orientation to time (except for south), time is important (more fluid in the south)

• Action: quality of life, family is important, leisure time & vacations, achievement is valued but activity is not, business is given lower priority, split between work & social life

Europe (cont’d)

• Communication: large variations, indirect (UK), direct & confrontational (France), expressive (south), high level of formality, respect is key, once trust is built, formalities are dropped

• Space: Personal space requirements vary, • Power: power orientation varies, hierarchy is

pronounced, power flows from the top down, workforce is well trained & educated, long tenure with the same company

Europe (cont’d)

• Individualism: high value on individualism, acceptable to be an individual, but within the context of strong group affiliations, decision making is group oriented, loyalty is a key success factor

• Competitiveness: competitiveness is valued, some northern countries value quality of life & interdependence

• Structure: high value on structure in southern Europe, Belgium, France & Germany, risk aversity

• Thinking: different thinking styles - from deductive, holistic (French) to pragmatic, linear (UK) > in general more deductive & holistic

Latin America

• Common mistake is to think of the region as homogeneous

• Cultural heritage derived from Spain, Portugal and other European countries

• Ambivalent attitude toward the US • Nationalism and cultural pride • Strong emphasis on obligations to family &

friends • Hierarchical power structures

Latin America (cont’d)

• Environment: belief that human beings are controlled by forces of nature & the environment, hard work, fate & luck determine success, adjustment rather than change

• Time: history & tradition are highly valued, multifocus, past & present orientation, overlap between business, family & social, time is fluid

• Action: being orientation, trust is critical, leisure & companionship are key

Latin America

• Communication: high context, implicit meaning, formal, indirect, serious, subjective, expressive, argumentative at times

• Space: closer distances, physical contact is more frequent, offices are more public, at higher levels they become private

• Power: high value on hierarchy & rank, leadership style is autocratic & authoritarian, managers demand respect due to rank, little questioning of authority, conflicts are resolved by those in power, face saving

Latin America

• Individualism: highly valued but within the context of loyalty to and involvement with groups, individual is defined by unique qualities of character & connection, nepotism, loyalty, workers execute tasks under manager’s direction

• Competitiveness: varies, concern for quality of life

• Structure: ambivalent, uncertainty, change, risk are generally avoided, centralized or authoritative decision making, emphasis on particular vs. universal

• Thinking: deductive & holistic, less concerned with facts & figures than with concepts & ideas, decisions based on intuition & judgment

Middle East

• Very complex region • Tension between traditional religious belief & new

cultural practices • Many of the elites have been educated in the West • Influence of French culture in former colonies • Middle Eastern culture & religion are inseparable • Religion is the primary cultural factor shaping

perceptions and influencing behavior • Every Arab country in the region (except Lebanon)

recognizes Islam as its state religion • Jewish & Christian strands weave themselves

through the region

Middle East

• Environment: belief that human beings are controlled by forces in nature & the environment; emphasis on fate and will of God

• Time: strongly rooted in the past; preserving traditions & customs; slower pace of business; multifocused; flexibility regarding deadlines & schedules; interruptions in meetings are common

• Action: more being than doing; who a person is is key; relationships & religion come before business; privacy regarding female family members

Middle East

• Communication: face-to-face discussion; display of emotions indicates sincerity; speaking tone depends on person’s social position; negotiation & bargaining are highly developed; indirect communication (except Israel); politeness is important; dramatic gestures; exaggerated language; direct eye contact; touching & embracing among men; formality is critical; “dos & taboos” related to Islam are critical

• Space: close distance; looking into eyes; body language (don’t show sole of feet; don’t show back; don’t use left hand; don’t sneeze loudly in public); elaborate codes for body language

Middle East

• Power: value of hierarchical position; status & affiliation based on familial connections; highly bureaucratic organizational structure; power & authority at the top; authoritarian leadership; rigid chain of command; top manager makes decisions; centralized business structures; leaders deal with intermediaries or contact makers

• Individualism: low value on individualism; working your way up in an organization is not common; decisions are in the hands of a few powerful men

Middle East

• Competitiveness: mix between concerns for quality of life & material success; success in business depends on education & being a member of a well known family; rituals of negotiation; bargaining is key; initial demands are likely to be high with concessions being made

• Structure: highly valued; preserved by autocratic decision making; well defined roles & responsibilities; uncertain or ambiguous situations can appear as threatening; broad contracts; women are not involved in business dealings

• Thinking: deductive & systemic with a high degree of intuition; big picture over details; language over ideas over facts

North America

• Predominant cultures of North America (US & Canada) are rooted in Europe

• Today, new immigrants from Asia and Latin America are changing this picture

• In a globalized world, its diverse population could be its greatest asset

• Immigrants eventually assimilate but also bring lasting cultural traits that affect the wider population

• Separate cultural distinctiveness of Canada is a source of continual debate

North America

• Environment: human beings are superior to, and set apart from the rest of the environment; take control & shape nature to their purposes; self-help worldview is unique; ideas as levers of change; culture driven by entrepreneurship; seeking change

• Time: time is valued; present is most important; time is a limited resource; efficiency & punctuality are valued; single focus orientation; short term future is critical; short term profitability

• Action: “doers”; doing-oriented culture; results, behaviors & actions speak louder than words; getting things done

North America

• Communication: low-context cultures; task accomplishment rather than relationships; informal; direct; instrumental; focus on accuracy and getting fast results; freedom to express opinions; conflict is part of life and is appreciated

• Space: private space orientation • Power: no high value placed on hierarchy; respect

authority of higher management levels; maintain professional distance; decisions based on input from various levels; create flatter structures; eliminate bureaucracy; empower employees

• Individualism: individualism is key; rewards are based on performance rather than need; negotiations often alone and not in teams

North America

• Competitiveness: highly competitive; material success & achievement are key; competition is a given

• Structure: low value on structure; uncertainty is not feared; creation of flexible structures & empowerment; tendency toward legalism; detailed contracts

• Thinking: inductive & linear; conceptual arguments without supporting quantitative data lack credibility; practicality & efficiency are stressed over intellectual correctness & theory; “will it work?”; thought rooted in concrete evidence rather than intuition