by Culture is one important factor that affects how executives organize themselves to negotiate a deal. Some cultures emphasize the individual while others stress the group. These values may influence the organization of each side in a negotiation.
High side of Culture
Used to maintain face and group harmony, Allusive rather than direct, Nonverbal cues, Nuances of meaning, Disapproval is most severe sanction, Language as a social instrument/preserving and promoting social interests, prefer inaccuracy and evasion to painful precision, Confidence can never be assumed; an outsider owes you nothing, Probing and small talk precede a request; rebuff causes embarrassment.
Low side of culture
Used to maintain face and group harmony, Allusive rather than direct, Nonverbal cues, Nuances of meaning, Disapproval is most severe sanction, Language as a social instrument/preserving and promoting social interests, prefer inaccuracy and evasion to painful precision, Confidence can never be assumed; an outsider owes you nothing, Probing and small talk precede a request; rebuff causes embarrassment.
The primary purpose of this section is to demonstrate the extent of cultural differences in negotiation styles and how these differences can cause problems in international business negotiations. The reader will note that national culture does not determine negotiation behavior. Rather, national culture is one of many factors that influence behavior at the negotiation table, albeit an important one. For example, gender, organizational culture, international experience, industry or regional background can all be important influences as well. Of course, stereotypes of all kinds are dangerous, and international negotiators must get to know the people they are working with, not just their culture, country, or company.
One extreme is the negotiating team with a supreme leader who has complete authority to decide all matters. Many American teams tend to follow this approach. Other cultures, notably the Japanese and the Chinese, stress team negotiation and consensus decision making. When you negotiate with such a team, it may not be apparent who the leader is and who has the authority to commit the side. In the first type, the negotiating team is usually small; in the second it is often large. For example, in negotiations in China on a major deal, it would not be uncommon for the Americans to arrive at the table with three people and for the Chinese to show up with ten. Similarly, the one-leader team is usually prepared to make commitments more quickly than a negotiating team organized on the basis of consensus. As a result, the consensus type of organization usually takes more time to negotiate a deal.
The following are a few steps to consider:
- Don’t rush the negotiating process. A negotiation that is moving too fast for one of the parties only heightens that person’s perception of the risks in the proposed deal.
- Devote attention to proposing rules and mechanisms that will reduce the apparent risks in the deal for the other side.
- Make sure that your counterpart has sufficient information about you, your company, and the proposed deal.
- Focus your efforts on building a relationship and fostering trust between the parties.
- Consider restructuring the deal so that the deal proceeds step by step in a series of increments, rather than all at once.
Negotiating styles, like personalities, have a wide range of variation. The ten negotiating traits discussed above can be placed on a spectrum or continuum, as illustrated in the chart below. Its purpose is to identify specific negotiating traits affected by culture and to show the possible variation that each traitor factor may take. With this knowledge, you may be better able to understand the negotiating styles and approaches of counterparts from other cultures. Equally important, it may help you to determine how your own negotiating style appears to those same counterparts.
- Uncertainty Avoidance
Uncertainty avoidance refers to the extent to which someone is comfortable with unstructured or uncertain situations. Some cultures are uncomfortable with ambiguity; in negotiations, businesspeople would seek rules and regulations to guide them. Other cultures are low in uncertainty avoidance, and more relaxed about negotiations. Americans tend to be comfortable with uncertainty.
- Power Distance
In some countries, the levels of power are distinct and understood internally but may not be apparent to outsiders. For example, in Russia, power tends to be concentrated at the top. Executives or government officials may negotiate an agreement, only to have it re-negotiated by higher-level officials.
- Individualism/Collectivism
People in a culture may think of themselves in terms of the individual or as members of a connected group, or collective. In the United States, people score highly in individualism while Pacific Rim countries, such as China and Japan, tend to be more collectivist. This thought process influences the way societies are organized and decisions are made.
- Masculinity/Femininity
The third element refers to the extent to which societies endorse what is considered traditional or stereotypical masculine and feminine characteristics. For example, aggressiveness and competition are often considered “male” characteristics, while a focus on relationships and cooperation are traditional “female” characteristics. Many Scandinavian countries score higher on quality of life in relationships while other cultures, such as the United States and Mexico, score higher on the competition.
These elements describe cultural values in a general way and certainly not all people in a given culture will adhere to each and every aspect. These can, however, be broad descriptions of how different cultures approach negotiations.
