Negotiating Across Cultures Understanding and Adjusting to Different Values Dr. Melanie Billings-Yun

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


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


Slide 6


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


Slide 7

High vs. Low Context Speech

Low

High

High

LowHigh

Low

High

High


Slide 8


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


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


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.


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


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


And Differing Constituencies Business

Shareholders Consumers Employees

Government Voters Contributors/

Supporters Local business Unions Consumer groups Environmentalists Other lobbies

Other governments Media


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 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


Documents

Negotiating Across Cultures Understanding and Adjusting to Different Values Dr. Melanie Billings-Yun