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Module 2
1-2
• Asian Versus America• Iceberg• Saner
2
1-3
3
Negotiation
The Impact of culture on Negotiation
Negotiation Factors
GoalAttitudesPersonal StylesCommunicationsTime SensitivityEmotionalismAgreement FormAgreement buildingTeam OrganizationRisk Taking
ContractWin/LoseInformalDirectHighHighSpecificBottom UpOne leaderHigh
RelationshipWin/Win
FormalIndirect
LowLow
GeneralTop
ConsensusLow
Western Asian
Source http://fletcher.tufts.edu/salacuse/topten.html
1-4
4
The American Way
Communication Patterns in Negotiation
Messag
e Succes
s
All the information
on the table
All the information
on the table
ConfrontsprovokesBecomeVocal &
animated
ConfrontsprovokesBecomeVocal &
animated
Argument the way of Commu-nication
Argument the way of Commu-nication
ConcessionConciliationSummary
ConcessionConciliationSummary
Wishes to close the deal effectively on his terms (win-lose) Wishes to close the deal effectively on his terms (win-lose)
Express itall
directly
Express itall
directly
1-5
05/09/08 5
Communication Patterns in Negotiation
Messag
e Succes
s
Some information
on the table
Some information
on the table
Express it implicitlyExpress it implicitly
ConfrontsChallenges Considers
options
ConfrontsChallenges Considers
options
Eatingand
Drinkingthe way
of commu-nication
Eatingand
Drinkingthe way
of commu-nication
MakingFriends
Concession
MakingFriends
Concession
Wishes to close the deal and establish long-term relationship (win-win)
The Chinese Way
1-6
05/09/08 6
American
•Individualist orientation
•Informal and egalitarian
•Task orientation
•Willing to confront directly,
criticize, discuss controversial
topics, and press personal
opinions
•Written rules apply to everyone
American
•Individualist orientation
•Informal and egalitarian
•Task orientation
•Willing to confront directly,
criticize, discuss controversial
topics, and press personal
opinions
•Written rules apply to everyone
Chinese
•Collectivist orientation
•Formal and hierarchical
•Relationship-orientation
•Avoid direct confrontation,
open criticism, and
controversial topics.
•Faith in personal relationships
than in written rules
Chinese
•Collectivist orientation
•Formal and hierarchical
•Relationship-orientation
•Avoid direct confrontation,
open criticism, and
controversial topics.
•Faith in personal relationships
than in written rules
American vs. ChineseAmerican vs. Chinese
Asian business style vs. othersAsian business style vs. others
1-7
05/09/08 7
Work Ethics
Rationale:• Fear of failure• Desire for familial betterment• Material gains• Social esteem• Security during old age
Work Ethics
Rationale:• Fear of failure• Desire for familial betterment• Material gains• Social esteem• Security during old age
Entrepreneurial Ethics
Attributes:•Trustworthiness• Reliability• Frugality• Building of relationships• Creativity
Entrepreneurial Ethics
Attributes:•Trustworthiness• Reliability• Frugality• Building of relationships• Creativity
Overseas ChineseBusiness Ethics
and Success
Overseas Chinese Business Ethics
Asian business style vs. others
1-8
05/09/08 8
Culture A Culture B
BehaviorsComportamientos
CustomsCostumbres
BeliefsCreencias
ValuesValores
assumptionsSuposiciones
1-9
ProfessionalProfesional
FunctionalFuncional
CompanyCompañía
IndustryIndustria
Regional/ NationalRegional/Nacional
05/09/08
9
1-10
05/09/08 10
1-11
05/09/08 11
1-12
05/09/08 12
1-13
• Wall Street One– http://youtube.com/
watch?v=Pxsn5Mm6fzA
• Wall Street Two– http://youtube.com/
watch?v=RBKuESaGa00
05/09/08 13
1-14
05/09/08 14
1-15
05/09/08
15
• Nature of decision -making: degree of risk vs speed of feedback (payoff). Naturaleza de la decisión tomada: Grado del riesgo versus la velocidad de la retroalimentación.
degr
ee o
f ri
skhigh
low
speed of feedbackhigh low
biotechnologybond trading
retailing Accountingconsultants
1-16
05/09/08 16
1-17
05/09/08 17
1-18
05/09/08 18
1-19
05/09/08 19
05/09/08 20
1-21
05/09/08 21
1-22
22
1-23
23
1-24
24
1-25
05/09/08 25
1-26
• High Uncertainty Avoidance (80).
• PDI suggests inequality accepted
• MAS: Work to Live
• Low Individualism (13)
• Collectivist05/09/08
26
1-27
• One – http://www.youtube.com/watch?v=WQnXJZXaxcI
• Two – http://www.youtube.com/watch?
v=Az0_2pGnOAA
• Three
05/09/08 27
1-28
• High Individual.
• PDI suggests inequality accepted
• MAS: live to work
• Low Individualism (13)
• Collectivist05/09/08
28
1-29
• One– http://www.youtube.com/watch?v=002AY4cb5uw
• Two– http://www.youtube.com/watch?v=e-5JA7Z8KLI
• Three– http://www.youtube.com/watch?v=avqLJ2DG0pA
• Four– http://www.youtube.com/watch?
v=Gr6PbjvSgEs&mode=related&search=
05/09/08 29
1-30
• Highest PDI in world inequality accepted
• MAS, UAI, IDV middle
05/09/08
30
1-31
• One– http://www.youtube.com/watch?v=ot9Jp6-mB-8– http://www.youtube.com/watch?
v=ci2D1ig4df4&mode=related&search=
• Two
05/09/08 31
1-32
05/09/08 32
1-33
Mobile America
Foggy Japanese
Clinical French
Vague British
05/09/08
33
1-34
• Apart from the Koreans (who seem to like everybody’s jokes), few Orientals are amused by American or (most) European jokes. The Confucian and Buddhist preoccupation with truth, sincerity, kindliness and politeness automatically eliminates humour techniques such as sarcasm, satire, exaggeration and parody, and finds little merit in crazy homour or jokes about religion, sex and underprivileged minorities. Sick or black humour is definitely out.
05/09/08 34
1-35
Values
Symbols
Behaviors
05/09/08
35
1-36
• One– http://www.youtube.com/
watch?v=dVcRecCk8sw• Two
– http://www.youtube.com/watch?v=UlAkOhH9eek
• Three– http://www.youtube.com/
watch?v=m9yFYnKF6D8• Four
– http://www.youtube.com/watch?v=D-B52PV876I&mode=related&search=
05/09/08 36
1-37
• High Uncertainty.
• PDI average
• MAS: live to work
05/09/08
37
1-38
• One– http://www.youtube.com/
watch?v=ahp8pyPuSEg&mode=related&search=
• Two– http://www.youtube.com/
watch?v=QzM0qgi-6hs
• Three– http://www.youtube.com/
watch?v=FpIXXkRDXzA&mode=related&search=
05/09/08 38
1-39
• Long-term Orientation (LTO) highest-ranking factor (118)
• Individualism (IDV) lower than any other Asian country
• 20 compared to an average of 24
• Low Individualism ranking is manifest in a close and committed member 'group', – family, – extended family, – extended relationship 05/09/08
39
1-40
• High Individual.
• PDI lover side
• MAS: Work to Live
05/09/08
40
1-41
• High correlation between the Muslim religion with Power Distance (PDI) and Uncertainty Avoidance (UAI) scores
• High PDI – Lack of significant upward
mobility of its citizen • Combination of these two
create societies that are– highly rule-oriented with laws,
rules, regulations, and controls in order to reduce the amount of uncertainty,
– inequalities of power and wealth have been allowed to grow05/09/08
41
1-42
• two highest rankings being equal at 64 - Power Distance (PDI) and Uncertainty Avoidance (UAI).
• Buddhist and Shinto countries have the closest correlation Uncertainty Avoidance Index (UAI)
• Same correlation that the majority of Catholic countries have demonstrated
05/09/08
42
1-43
Edward HALL
3 variables of Culture
1- High-context and Low-context cultures
2- Dimensions of time3- Relationship of Man
with Nature and Space
Edward HALL
• 3 variables de la Cultura
1 Culturas de alto y bajo contexto
2 Dimensiones del tiempo3 Relaciones del hombre
con la naturaleza y el espacio.
05/09/08 43
1-44
Edward HALL
1- High-context and Low-context cultures
• High-context communication style– Vagueness common (implicit
style)– Tact & diplomacy prioritised – Important to read between the
lines/pick up signals– Harmony and “face” important
• Low-context communication style– Directness common (explicit
style)– Clarity & honesty appreciated – Things can be taken on face
value
1. Culturas de alto y bajo contexto
• Estilo de comunicación de alto contexto
-La ambigüedad es común (estilo implícito)
-Táctica y diplomacia priorizada-Importancia de leer entre líneas-Armonía
• Estilo de comunicación de bajo contexto
-Lo directo es lo común (estilo explicito)
-Claridad y honestidad es apreciada-Las cosas pueden ser tomadas por su
“face value”
05/09/08 44
1-45
Edward HALL
2- Dimensions of time
* Time orientation toward the Past, Present, or Future
* Time is linear or circular* Monochronic and
polychronic time
2 Dimensiones del tiempo
• Orientación en el tiempo dirigida hacia el pasado, presento o futuro
• El tiempo es lineal o circular
• Tiempo mono-crónico o poli-crónico.
05/09/08 45
1-46
• Polychronic/Synchronic cultures• fluid time, circular• including past, present and
future• relationships more important
than deadlines• do several things at once
• Monochronic/Sequential cultures• fixed time, linear• deadlines, tight schedules,
systematic• do one thing at a time
• Culturas poli-crónicas/sincrónicas
-Tiempo fluido, circular-incluyendo pasado, presente y
futuro.-Hacer varias cosas al tiempo
• Culturas mono-crónicas/secuenciales
-Tiempo fijo, lineal-Plazos, agendas apretadas,
sistemáticas-Hacer una sola cosa al tiempo
05/09/08 46
1-47
The U.S., British, German, Swiss, and Scandinavian cultures are relatively monochronic,
Latin American, African, Middle Eastern, and Southern European societies are polychronic.
Las culturas norteamericanas, británicas, alemanas y escandinavas son relativamente mono-crónicas.
Las culturas Latinoamericanas, africanas, el medio este y de europa del sur son sociedades poli-crónicas.
05/09/08 47
1-48
Edward HALL
3- Relationship of man with Nature and Space
* Mastery, Harmony, Subjugation to nature
* Proxemic : Intimity, Personnal or Social areas
• 3 Relaciones del hombre con la naturaleza y el espacio
-”Mastery”, armonía, subyugación de la naturaleza.
-”Proxemic”: intimidad, áreas personal y social.
05/09/08 48
1-49
• Deal-focused cultures
• direct approach to customer possible
• the best product gets the order
• contract protects the two parties
• Relationship-focused cultures
• introduction by third party essential
• time needed to develop relationship
• mutual trust is essential 05/09/08 49
1-50
• Ascription-based cultures– Status ascribed (given) to
certain groups• Older males• Members of important
families• People with the right
background• Achievement-based cultures
– Status has to be won/earned/achieved• Young people in high
positions • People evaluated on results
05/09/08 50
1-51
• Formal communication style– Use of titles (academic or
professional)– Politeness & protocol
important– Common in ascriptive cultures
• Informal communication style– Little use of titles or polite
forms– Speaking plainly is encouraged– Common in achievement-based cultures
05/09/08 51
1-52
05/09/08 52
1-53
• Cultural Chauvinism
• Ethnocentrity
05/09/08 53
1-54
05/09/08 54
1-55
05/09/08 55
Cultural Chauvinism
Level of Cultural Awareness
Ethnocentrism
Tolerance
Minimization
Understanding
Description
1-56
05/09/08 56
Complete unawareness of other cultures, which leads negotiators to attribute ignorance and bad
intentions to other side
Cultural Chauvinism
Level of Cultural Awareness
Ethnocentrism
Tolerance
Description
Minimization
Understanding
1-57
05/09/08 57
Awareness of ethnic, religious, racial, or national differences,
along with a conviction that one’s own way is the “right” one
Cultural Chauvinism
Level of Cultural Awareness
Ethnocentrism
Tolerance
Description
Minimization
Understanding
1-58
05/09/08 58
Awareness and appreciation of differences, still feeling one’s own
way is more “realistic” - leads negotiators to try to “educate” or
“develop” other side
Cultural Chauvinism
Level of Cultural Awareness
Ethnocentrism
Tolerance
Description
Minimization
Understanding
1-59
05/09/08 59
Awareness of other cultures, with focus on similarities across
cultures, may lead negotiator to ignore important difference
relevant to a negotiation
Cultural Chauvinism
Level of Cultural Awareness
Ethnocentrism
Tolerance
Description
Minimization
Understanding
1-60
05/09/08 60
Realization that one’s own way is only one of many, and that others
are not abnormal in any way
Cultural Chauvinism
Level of Cultural Awareness
Ethnocentrism
Tolerance
Description
Minimization
Understanding