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Transcript of Negotiating Across Cultures Understanding and Adjusting to Different Values Dr. Melanie...
Negotiating Across Cultures
Understanding and Adjusting to Different Values
Dr. Melanie Billings-Yun
Slide 2
Cultural Differences in Negotiation
National/regional differences Collectivism/Individualism Power distance High- vs. low-context speech Ethical values
Institutional values Business vs. government
Copyright © 2012 by Melanie Billings-Yun.
Slide 3
Series10
102030405060708090
100In-donesia
China
Korea
Malaysia
UAE
Japan
India
Germany
France
USA
Collectivism/Individualism
Group Loyalty Self-Orientation
Source: Geert Hofstede, Cultures and Organizations
Copyright © 2012 by Melanie Billings-Yun.
Slide 4
Effect on Negotiation
Individualistic Aim to win Polarizing Pride (internal) Give trust easily Make decisions
based on personal opinions
Fast-paced, decisive
Collectivistic Prefer harmony Compromising Face (external) Need to earn trust Pass information to
group for decision Slow-paced,
tentativeMost Western
culturesMost non-Western
culturesCopyright © 2012 by Melanie Billings-Yun.
Slide 5
Series10
102030405060708090
100German
USA
Japan
Korea
France
India
Indo
China
UAE
Malay
Power Distance
Equal Rights Social Hierarchy
Source: Geert Hofstede, Cultures and Organizations
Copyright © 2012 by Melanie Billings-Yun.
Slide 6
Effect on Negotiation
High Power Distance
Status/rank valued Power persuades Form is essential Resistance to
change Agreement at the
top is normally sufficient
Low Power Distance Expertise/talent
valued Reason persuades Substance over form Change accepted Agreements must be
sold to all stakeholdersAnglo-Saxon, Germanic and Nordic
countries
Two-thirds of all countries
Copyright © 2012 by Melanie Billings-Yun.
Slide 7
High vs. Low Context Speech
Low
High
High
LowHigh
Low
High
High
Copyright © 2012 by Melanie Billings-Yun.
Slide 8
Effect on Negotiation
High Context Indirect/ non-
verbal Circular Intuitive Past-oriented Avoid
disagreement
Low Context Direct / verbal Linear Rational Future-oriented Open
disagreement
Europe, North America, Australia
and NZ
Asia, South America, Africa and Middle
East
Copyright © 2012 by Melanie Billings-Yun.
Slide 9
Culture and Ethical Values
Particularism Relationships
paramount Emotional persuasion Goal is relationship A good partner honors
changing circumstances
Loyalty to in-group
Universalism Rules paramount Logical persuasion Goal is contract A good partner
honors his contract/word
Equal treatment for allAsia, South America,
Africa and Middle East
Western countries and Singapore
Copyright © 2012 by Melanie Billings-Yun.
Slide 10
Which Are You?Question one:
You are riding in a car driven by a close friend. He hits a pedestrian. You know he was going at least 75 km/hr in an area of the city where the maximum is 50 km/hr. There are no other witnesses. His lawyer says that if you testify under oath that his speed was only 50 km, it may save your friend from serious consequences.
What right does your friend have to expect you to protect him?
1.As a close friend, he has a definite right to expect me to testify that he was only going 50 km/hr.
2.He has some right to expect me to testify that he was going 50.
3.He has no right to expect me to testify that he was going 50.
Copyright © 2012 by Melanie Billings-Yun.
Slide 11
Culture and Ethical Values
Series10
20
40
60
80
100Korea
China
India
Indo
Malay
Japan
Sing
France
German
USA
Source: Fons Trompenaars and Charles Hampden-Turner, Riding the Waves of Culture
Respondents who feel he has no rightCopyright © 2012 by Melanie Billings-Yun.
Negotiating with Chinese Build trust slowly and incrementally
* Upheavals of past century have undermined trust-based system
* Focus on long-term mutual benefits and step-by-step growth
Build personal connections at all levels* China is a big country with overlapping authority
centers* Favors received must be reciprocated
Respect for seniority* A junior speaking out in front of a senior is
considered quite rude Be precise on technical issues
* Chinese pay close attention to details; errors destroy trust
Check for understanding and problems* Great concern for face means an unwillingness to
speak out
Slide 12Copyright © 2012 by Melanie Billings-Yun.
Negotiating with Thais Build your credibility
* Thais value seniority, luxury and a calm, professional demeanor
Be polite in a ‘Thai’ way* If Thais give you a compliment, deny it and
compliment back* Speak gently and try to avoid direct confrontation
Prefer indirect communication style* Dislike negative speech therefore difficult to get
honest feedback* Do not like detailed contracts; will not feel bound by
them Focus on information
* Prefer detailed instructions to avoid later error* Back up your assertions with expert opinions * Build up consensus with informal informational
meetings
Slide 13Copyright © 2012 by Melanie Billings-Yun.
Negotiating with Americans
Be frank and honest* They will feel betrayed or lied to if you agree only to
be polite* Are comfortable with open disagreement
Be direct* Not trained to pick up subtle signals
Be open* Americans like to “lay their cards on the table”* But are also quite competitive
Be informal and friendly, but firm Don’t be offended by detailed contracts Respect their time and space needs
* Get to the point quickly* Don’t overwhelm their need for free time Slide 14Copyright © 2012 by Melanie Billings-Yun.
Businesses and GovernmentsHave Different Interests Business
Profit Expansion Investment
opportunities
Government Providing public service Maintaining public goals
Economic growth Resource maintenance Sovereignty
Covering program costs Satisfying voter demands Re-election Historical reputation
Slide 15Copyright © 2012 by Melanie Billings-Yun.
And Differing Constituencies Business
Shareholders Consumers Employees
Government Voters Contributors/
Supporters Local business Unions Consumer groups Environmentalists Other lobbies
Other governments Media
Slide 16Copyright © 2012 by Melanie Billings-Yun.
Steps to Influencing Governments Identify entire influence network
Build coalitions Understand the power of media
Focus on your goals, not your politics Power shifts over time
Build relationships with key players Approach relationships as a 2-way street But don’t confuse access with influence Or that you’re the only influencer Relationships will never win over voter opposition
Put in the time in advance of needing anything Be patient!
Slide 17Copyright © 2012 by Melanie Billings-Yun.
Slide 18
Dealing with Cultural Differences Learn about the other culture
* A local expert will start you on the right foot.
Be clear and precise in meanings * Don’t assume they understand and don’t leave
concerns unspoken. Problems not dealt with now will come back to bite you later.
Get to know the other side carefully* Is this the right fit? Best to find out if you can work
together before you have committed yourself
Cross-cultural negotiation shouldn’t be rushed* Don’t let the other side force you into making unwise
agreements or include terms that you don’t understand
Copyright © 2012 by Melanie Billings-Yun.