International Considerations
International negotiations can be complicated, and it is important to understand who will attend the negotiation and how it will be organized. A good understanding of what will occur needs to be known upfront. Having a good understanding of the people and what country they are from will help to understand how to approach the negotiations. Read this section. The second chart is interesting because you can see the vast differences in how people from North America, Japan, Taiwan, and Brazil might respond to preparing for a meeting and their focus. Understanding and considering these differences is important when planning an international negotiation. This section addressed international considerations and how they may affect the negotiation process. What information should be considered when a negotiation occurs between a Japanese and an American company? What about other countries or cultures?
Cultural Differences in International Negotiations
In view of the increased emphasis on international industrial competitiveness, it is important to understand what happens when the two parties to a negotiation come from different cultures or countries. A knowledge of cultural differences can assist the manager both in understanding the other party's position and in striking the best possible deal given the circumstances.
A good way to start this analysis is by recognizing how different cultures approach the art of persuasion; that is, how do people in different countries try to win you over to their side in a dispute? Although we cannot possibly examine all cultures, consider the results of a study of differences in persuasion techniques for North America, the Middle East, and the former Soviet Union. As can be seen in Table 14.5, Americans, Arabs, and Russians have significantly different approaches to persuasion. Americans tend to enter into a discussion emphasizing facts and figures, whereas Arabs may focus on emotions. The Russians may talk about ideals.
Moreover, in a negotiation situation, the American is ever-conscious of deadlines, whereas the Arab takes a more casual approach, and the Russian is often unconcerned about time. Americans make small concessions early in the bargaining process to establish a relationship. Arabs, on the other hand, make concessions throughout the bargaining process, and the Russians try not to make any concessions at all. Clearly, this study has only highlighted trends, and exceptions can be easily found. Even so, a knowledge of such differences, however general, can greatly facilitate improved interpersonal relations and bargaining success for both parties.
| National Styles of Persuasion | |||
|---|---|---|---|
| North Americans | Arabs | Russians | |
| Primary negotiating style and process | Factual: appeals made to logic | Affective: appeals made to emotions | Axiomatic: appeals made to Ideals |
| Conflict: opponent's arguments countered with | Objective facts | Subjective feelings | Asserted ideals |
| Making concessions | Small concessions made early to establish a relationship | Concessions made throughout as a part of the bargaining process | Few, if any, small concessions made |
| Response to opponent's concessions | Usually reciprocate opponent's concessions | Almost always reciprocate opponent's concessions | Opponent's concessions viewed as weakness and almost never reciprocated |
| Relationship | Short-term | Long-term | No continuing relationship |
| Authority | Broad | Broad | Limited |
| Initial position | Moderate | Extreme | Extreme |
| Deadline | Very important | Casual | Ignored |
Table 14.5
We can also examine the personal characteristics of negotiators from different countries. A study by John Graham focused on the key characteristics of negotiators from different countries, in this case the United States, Japan, Taiwan, and Brazil. Results of the study are shown in Table 14.6, which shows the rank order of the defining characteristics. Again, we can see major differences in negotiators from around the world. Each has certain strengths, yet these strengths vary considerably from country to country. Americans are seen as prepared and organized, thinking well under pressure, whereas Japanese are seen as more dedicated and shrewd. Taiwanese negotiators were found in the study to be highly persistent and determined, working hard to win the opponent's respect, and the Brazilians were amazingly similar to the Americans.
| Key Individual Characteristics of Negotiators (Rank Order) | |||
|---|---|---|---|
| American Managers | Japanese Managers | Chinese Managers (Taiwan) | Brazilian Managers |
| Preparation and planning skill | Dedication to job | Persistence and determination | Preparation and planning skill |
| Thinking under pressure | Perceive and exploit power | Win respect and confidence | Thinking under pressure |
| Judgment and intelligence | Win respect and confidence | Preparation and planning skill | Judgment and intelligence |
| Verbal expressiveness | Integrity | Product knowledge | Verbal expressiveness |
| Product knowledge | Listening skill | Interesting | Product knowledge |
| Perceive and exploit power | Broad perspective | Judgment and intelligence | Perceive and exploit power |
| Integrity | Verbal expressiveness | Competition | |
Table 14.6
Finally, we should note that negotiators from different countries differ markedly in their verbal and nonverbal communication patterns. In one study (again among Americans, representing North America; Japanese, representing East Asia; and Brazilians, representing South America), observers counted the number of times each negotiator did certain things within a given time limit. The results are shown in Table 14.7. As can be seen, these negotiators use both verbal and nonverbal communication in very different ways. Note, for example, that Brazilians on average said "no" 83 times within a 30-minute segment, compared to 5 times for Japanese and 9 times for Americans. On the other hand, Japanese appealed to ideals and societal norms and simply sat in silence more than the others. Such differences affect not only the negotiation process but also, in many cases, the outcomes. That is, if a negotiator from one culture has annoyed or insulted the opponent (intentionally or unintentionally), the opponent may resist doing business with that person or may fail to offer attractive terms. Hence, again we see the value of better understanding cultural variations in negotiations, as in other matters.
| Communication Patterns during Negotiations for Three Cultures | |||
|---|---|---|---|
| Tactic | Japan | United States | Brazil |
| Verbal Communication | |||
| Making promises | 7 | 8 | 3 |
| Making threats | 4 | 4 | 2 |
| Making recommendations | 7 | 4 | 5 |
| Appealing to ideals and norms | 4 | 2 | 1 |
| Giving a command | 8 | 6 | 14 |
| Saying "no" | 5 | 9 | 83 |
| Making initial concessions | 6 | 7 | 9 |
| Nonverbal Communication | |||
| Periods of silence | 6 | 3 | 0 |
| Interrupting opponent | 12 | 10 | 29 |
| Looking directly into opponent's eyes | 1 | 3 | 5 |
| Touching opponent | 0 | 0 | 5 |
Table 14.7
Source: J. Stewart Black and David S. Bright; OpenStax, https://openstax.org/books/organizational-behavior/pages/14-4-negotiation-behavior
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