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CROSS-CULTURAL DIMENSION OF

NEGOTIATION

HELEN PENG
CONTENTS

• What Makes International Negotiation Different?


• The Hosted Model for Understanding Cultural Dif
ferences in Business Management
Cross-Cultural Dimension of Negotiation
Let us not be blind to our differences-but let us also direct attention to our common
interests and the means by which those differences can be resolved.
-- John Fitzgerald Kennedy, Former President of U.S. A.
PHATHAK AND HABIB TWO OVERALL CO
NTEXTS- THE ENVIRONMENTAL CONTEXT AND IMMEDIA
TE CONTEXT
WHAT MAKES INTERNATIONAL NEGOTIATION DIFFE
RENT?

• International Economics  Immediate context


• Foreign Government and bureaucraci  Relative bargaining power
es  Levels of conflict
• Instability  Relationship between negotiators
• Ideology  Desired outcomes
• Culture  Immediate stakeholders
• External Stakeholders
TEN WAYS THROUGH WHICH CULTURE CAN INFLUENCE NEGOTIATION
WHAT MAKES INTERNATIONAL
NEGOTIATION DIFFERENT?
• Characteristics of Culture
• Definition of negotiation
1. Communication (both verbal and non-verbal)
• Negotiation Opportunity 2. Language uses (labels to convey meaning)
• Selection of Negotiators 3. Dress and appearance (Identify a culture)
• Protocol 4. Food and feeding habits
• Communication 5. Tim and time consciousness
6. Rewards and recognitions
• Time Sensitivity
7. Relationships
• Risk Propensity
8. Values and norms
• Groups versus Individuals
9. Sense of self and space
• Emotionalism 10. Mental process and learning
11. Beliefs and attitudes
THE HOSTED MODEL FOR UNDERSTANDING CULTURAL DI
FFERENCES IN BUSINESS MANAGEMENT

• Power distance
• Masculinity/femininity
• Uncertainty avoidance
• Individualism/collectivism
• Time orientation
• How does this framework help the n • Recognize that the other party may
egotiators? not share your view of what consti
• China tutes power
• Buyer/Seller Relationship • Avoid attribution errors
• Advice for cross cultural negotiat • Find out how to show respect in th
ions e other culture
• Advice for international negotiato • An example: know your options for
rs change
• Anticipate differences in strategy • Conclusion: We suggested that negotiators l
earn to analyze cultural differences to identify
and tactics that may cause misunde differences in values that could expand the pie,
rstandings recognize different conceptions of power, avoid
attribution errors, find out how to show respect
• Analyses cultural differences to i in other cultures, and assess options for change
dentify differences in values that , including interaction, assimilation, separatio
n, and marginalization.
expand the pie

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