Cultural Differences in Negotiation:

Negotiating styles clearly vary across national cultures. The French like
conflict. They frequently gain recognition and develop their reputations by
thinking and acting against others. As a result, the French tend to take a long
time in negotiating agreement and they aren’t overly concerned about whether
their opponents like or dislike them. The Chinese also draw out negotiations but
that’s because they believe negotiations never end. Just when you think you’ve
pinned down every detail and reached a final solution with a Chinese executive
that executive might smile and start the process all over again. The Chinese and
the Japanese too negotiate to develop a relationship and a commitment to work
together rather than to tie up every loose end. Compared to American
negotiators the Japanese communicate indirectly and adapt their behaviors to
the situations. Americans are known around the world for their impatience and
their desire to be liked. Astute negotiators from other countries often turn these
characteristics to their advantage by dragging out negotiations and making
friendship conditional in the final settlement.

The cultural context of negotiation significantly influences the amount and type
of preparation for bargaining the relative emphasis on task versus interpersonal
relationships, the tactics used, and even where the negotiation should be
conducted. To further illustrate some of these differences, let’s look at two
studies that compare the influences of cultures on business negotiations

The first study compared North Americans, Arabs and Russians. Among the
factors looked at were their negotiating style, how they responded to an
opponent’s arguments, their approach to making concessions and how they
handled negotiating deadlines. North Americans tried it persuade by relying in
facts and appealing to logic. They countered opponents’ arguments with
objective facts. They made small concessions early in the negotiation to
establish a relationship and usually reciprocated opponent’s concessions. North
Americans treated deadlines as very important. The Arabs tried to persuade by
appealing to emotion. They countered opponents’ arguments with subjective
feelings. They made concessions throughout the bargaining process and almost
always reciprocated opponents’ concessions. Arabs approached deadlines very
casually. The Russian based their arguments on asserted ideals. They made few,
if any, concessions. Any concessions offered by an opponent was viewed as a
weakness and almost never reciprocated. Finally the Russians tended to ignore
deadlines.

The second study looked at verbal and nonverbal negotiation tactics exhibited
by North Americans, Japanese, and Brazilians during half hour bargaining
sessions. Some of the differences were particularly interesting. For instance, the
Brazilians on average said ‘NO’ 83 times, compared to 5 times for the Japanese
and 9 times for the North Americans. The Japanese displayed more than 5
periods of silence lasting longer than 10 seconds during the 30 minute sessions.
North Americans averaged 3.5 such periods; the Brazilians had none. The
Japanese and North Americans interrupted their opponent about the same
number of times, but the Brazilians interrupted 2.5 to 3 times more often that of
the North Americans and the Japanese, Finally the Japanese and the North
Americans had no physical contact with their opponents during negotiations
except for handshaking, but the Brazilians touched each other almost five times
every half hour.

Now that you know more about the different types of bargaining strategies, the
negotiations process in general, and contemporary issues in negotiations, do you
think you could negotiate with the best of them? Take the self assessments to
learn about your negotiating style.
Why American Managers might have Trouble in Cross Cultural Negotiations?

1. Italians, Germans and French don’t soften up executives with praise before
they criticize. Americans do, and to any European this seems manipulative.
2. Israelis accustomed to fast paced meetings, have no patience for American
small talk.
3. British executives often complain that their US counterparts chatter too
much.
4. Indian executives are used to interrupting one another. When Americans
listen without asking for clarification or posting questions, Indians can feel
Americans aren’t paying attention.
5. Americans often mix their business and personal lives. They think nothing for
instance about asking a colleague a question like, how was your week end? In
many cultures such question is seen as intrusive because business and private
are totally compartmentalized.