Cross Cultural Communication & Negotiation

7/30/2019 Cross Cultural Communication & Negotiation

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Group Members:-

Pankaj Dhapola (130)Pankaj Gupta (117)Rohit Kumar (165)

Deepanshu Chugh(173)Monika Arya(158)

Parul(167)


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Communication is the exchange of

meaning from sender to receiver

Source Encoding Channel Decoding Receiver

Message Message Message Message

Feedback

The Communication Model


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The thought & behaviour patterns that

member of a society learns through

language & other forms of symbolic

interaction.

Cultures change gradually picking new

ideas and dropping old ones.


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Dimensions

Of

Culture


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Context is the information that surrounds a

communication and helps to convey the

message.

Low Context Culture Messages people

convey are explicit & clear, use actual

words to convey information.

High Context Culture Indirectcommunication, much information

transmitted through non-verbal

communication


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HighContext

Low

Context

ChineseKoreanVietnameseArabGreekSpanishItalianEnglishFrenchNorth AmericanScandinavianGermanSwiss


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8 to 10Public distance

Social distance 4 to 8

Personal distance 18 to 4

Intimate distance 18


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Asians do not need appointment while

Americans, Europeans & Africans need

prior appointment to meet someone.

Friday in the middle East is Just like

Sunday in the West.

There is lack of punctuality in Asian,African culture but Chinese & Swedish

people are very punctual.


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USA is very legalistic society & Americans

are very specific in term of agreement.

Opposite in Asian countries, They keep

quiet in case of disagreement.


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In global organisations, it is polite to

schedule business dinners after 8 p.m

which allows muslims to complete their

evening prayer before dining.

Roman Catholics, Northern Africa, middle

east, Malaysia etc. have enforcedprohibition of liquor.


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Hofstedes

Dimensionsof

Culture


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Culture in Western countries is

individualism and employees prefer to

work individually

USA, Australia & UK follow Individualism

Indonesia, Thailand, Japan & India followfollow Collectivism


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It denotes the relationship between

superiors & subordinates.

High power distance societies likeMorocco prefer little consultation between

superior & subordinates.

In low power distance societies like Israel,Sweden,Germany etc participative &

democratic styles are appropriate.


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Employees in countries with high score of

uncertainty prefer methodological system

while in low scores prefer flexible work.

People in Switzerland, Netherlands &

Canada think of future while Countries like

Russia, Poland think of Present.


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Hoftstede defines Masculinity as the degree

to which the dominant values of society are

Success, Money & Material Things While

Femininity as caring for others and quality oflife.

Japan, Mexico, UK, Germany, USA &

Australia follow Masculinity Whereas

Sweden, Netherland, Denmark follow

Femininity


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Cross Cultural Literacy

Work Attitude

Attitude towards Time

Management Styles

Competitive Advantage

Business Ethics


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Negotiation

The negotiation process

Understanding negotiation styles

Managing negotiation

Decision making


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The amount and type of preparation for anegotiation

The relative emphasis on tasks versusinterpersonal relationships

The reliance on general principles rather than

specific issues

The number of people present and the extentof their influence


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Negotiation describes the process of

discussion between two or more parties

aimed at reaching a mutually acceptable

agreement


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Preparation

Relationship building

Exchange of task-relatedinformation

Persuasion

Concessions

andagreement


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Home (HQ)

Country

Firm

NegotiatorsHost country

Home consumers All citizens

Special interest groups

Host local employees

Host consumers

HQ employees

Suppliers

Home government

Investors

Alliance partners

Contractors

Host government

Distributors

Expatriate employees


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Basic conception of negotiation process: Is it a competitiveprocess or a problem-solving approach?

Negotiator selection criteria: Is selection based onexperience, status, expertise, personal attributes, or some othercharacteristic?

Significance of type of issues: Is it specific, such as price, oris the focus on relationships or the format of talks?

Concern with protocol: What is the importance of procedures,social behaviors, and so forth in the negotiation process?

Complexity of communicative context: What degree ofreliance is placed on nonverbal cues to interpret information?

Nature of persuasive arguments: How do the partiesattempt to influence each other? Do they rely on rationalarguments, or accepted tradition, or on emotion?


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Role of individuals aspirations:Are motivations based on individual,company, or community goals?

Bases of trust: Is trust based on past experience, intuition, or rules?

Risk-taking propensity: How much do the parties try to avoiduncertainty in trading information or making a contract?

Value of time: What is each partys attitude toward time? How fastshould negotiations proceed, and what degree of flexibility is there?

Decision-making system: How does each team reach decisions by

individual determination, by majority opinion, or by group consensus?

Form of satisfactory agreement: Is agreement based on trust(perhaps just a handshake), the credibility of parties,commitment, or a legally binding contract?


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For North Americans, negotiations are businesslike; theirfactual appeals are based on what theybelieve is objective information, presented with theassumption that it is understood by the other side

on a logical basis.

Arabs use affective appeals based on emotionsand subjective feelings.

Russians employ axiomatic appeals that is, theirappeals are based on the ideals generally acceptedin their society.


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Knows when to compromise

Takes a firm stand at the beginning of the negotiation

Refuses to make concessions beforehand

Keeps his or her cards close to his or her chest

Accepts compromises only when the negotiation isdeadlocked

Sets up the general principles and delegates the detailwork to associates

Keeps a maximum of options open before negotiation

Operates in good faith


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Respects the opponents

States his or her position as clearly as possible

Knows when he or she wishes a negotiation to move on

Is fully briefed about the negotiated issues

Has a good sense of timing and is consistent

Makes the other party reveal his or her position whilekeeping his or her own position hidden as long as

possible

Lets the other negotiator come forward first andlooks for the best deal


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Looks for and says the truth

Is not afraid of speaking up and has no fears

Exercises self-control

Seeks solutions that will please all the parties involved

Respects the other party

Neither uses violence nor insults

Is ready to change his or her mind and differ withhimself or herself at the risk of being seen asinconsistent and unpredictable


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Looks for and says the truth

Is not afraid of speaking up and has no fears

Exercises self-control

Seeks solutions that will please all the parties involved

Respects the other party

Neither uses violence nor insults

Is ready to change his or her mind and differ with himself orherself at the risk of being seen as inconsistent andunpredictable


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Puts things into perspective and switches easily from the small pictureto the big one

Is humble and trusts the opponent

Is able to withdraw, use silence, and learn from within

Relies on himself or herself, his or her own resources and strengths

Appeals to the other partys spiritual identity

Is tenacious, patient, and persistent

Learns from the opponent and avoids the use of secrets

Goes beyond logical reasoning and trusts his or her instinct as well asfaith


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Protects all the parties honor, self-respect, and dignity

Avoids direct confrontation between opponents

Is respected and trusted by all

Does not put the parties involved in a situation where theyhave to show weakness or admit defeat

Has the necessary prestige to be listened to

Is creative enough to come up with honorable solutions for allparties

Is impartial and can understand the positions of the variousparties without leaning toward one or the other


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Is able to resist any kind of pressure that the opponents could try toexercise on him

Uses references to people who are highly respected by theopponents to persuade them to change their minds on some issues

Can keep secrets and in so doing gains the confidence of thenegotiating parties

Controls his temper and emotions

Can use conference as mediating devices

Knows that the opponent will have problems in carrying out thedecisions made during the negotiation

Is able to cope with the Arab disregard for time


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Very quiet and thoughtful

Punctual (concerned with time)

Extremely polite

Straightforward (they get straight down to business)

Eager to be productive and efficient

Heavy-going

Down-to-earth and overcautious

Rather flexible

Able to and quite good at holding emotions and feelings


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Slow at reacting to new (unexpected)proposals

Informal and familiar

Conceited

Perfectionist

Afraid of confrontations

Very private


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The software of negotiation that is, the

nature and the appearance of the

relationship between the people pursuing

common goals need to be carefullyaddressed in the negotiation process.

Tse, Francis, and Walls


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National/corporatePrinciples versus specific details

Negotiating stylesobjective/subjective/axiomatic

Negotiating behavior

defense/attack/trust

deception/pressure/concessions

Verbal and nonverbal behavior

Attitudes toward time/scheduling

Composition of teams

Level of preparation

Culture

Task versus

interpersonal

relationships

Trust level

and duration

relations

Culture

Culture


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Negotiation Support Systems (NSS) can providesupport for the negotiation process by:

Increasing the likelihood that an agreement isreached when a zone of agreement exists (solutionsthat both parties would accept)

Decreasing the direct and indirect costs ofnegotiations, such as costs caused by time delays(strikes, violence), and attorneys fees, among others

Maximizing the chances for optimal outcomes


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Antecedent Factors

Etiquette

Harmony

Face

Economic conditions

Politics pervasiveness

Constituent shadow

Negotiators

Profile

Cognition

Personality

Team commitment

Open-mindedness

Adaptive orientation

International

BusinessNegotiations

Behavior

Process

Outcomes


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Defining the problem

Gathering and analyzing relevant data

Considering alternative solutions

Deciding on the best solution

Implementing the decision


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Objective (basing decisions on rationality)

versus subjective (basing decisions on

emotions) approach

Risk tolerance

Locus of control internal (managers incontrol of events), or external (managers

have little control over events)


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Problem Data Consideration of Decision

Implementation

Definition gathering alternative solutions

Objective/subjective

perspective

Internal/external

locus of control

Risk tolerance Past/future orientation

Utilitarianism/moral idealsIndividualism/collectivism

Locus of decision making


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Cross Cultural Communication & Negotiation