NT Lesson10 CrossBorderNegotiation StudentsNotes

8/12/2019 NT Lesson10 CrossBorderNegotiation StudentsNotes

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Cross-Border Negotiations

Power Point by Prof. Dr. Carmen Paunescu

2011



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Key Learning:

Map the players and the process

Cross-cultural etiquette and behaviour

How negotiation-specific expectations shape

the process



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Map the players and the process

Many international negotiations fail because

of the differences in governance and decision

making processes across cultures

role of individuals vs. group importance of time and relationship

importance of harmony vs. assertiveness etc.



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Who are the players?

Representatives of the two parties

Extra players (GOs and NGOs)



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Who decides what?

Understand each player ’s role – who owns

which decision?

even if the party claims effective control over

company’s shares and powerful allies, if they fail to

gain commitment from personnel and key managers

in the company, the deal won’t work

Recognize who has formal decision rights

parent company, stakeholders etc.



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Cross-Cultural etiquette and

behaviour (2)

Touching

What are the attitudes toward body contact?

Eye contact Is direct eye contact polite? Is it expected?

Deportment

How should I carry myself? Formally? Cassually?

Emotions Is is rude, embarassing, or usual to display

emotions?



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Cross-Cultural etiquette and

behaviour (3)

Silence

Is silence akward? Insulting? Expected? Respectful?

Eating

What are the proper manners for dining? Are certain foods

taboo?

Body language

Are certain gestures or forms of body language rude?

Punctuality

Should I be punctual and expect my counterparts to be as

well? Are schedules and agendas fluid?



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Relationships

Is the culture relationship-focused or deal-

focused?

Relationship-focused (collectivist) cultures: Italy,

Spain, France, Romania

Deal-focused (individualistic) cultures: Nordiccountries in Europe, Germany, USA



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Communications

Are communications indirect and high context

or direct and low context?

Do communications require detailed or concise

information?



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High to Low Context

Communication

High-context cultures place value on bodylanguage and nonverbal cues

• Place value on being part of a group

• Considers good of whole rather than individualachievement

Low-context cultures rely heavily on spoken word

• Rewards individual achievement• Values independence



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Time

Is the culture generally considered to be

monochronic or polichronic?

The monochronic time systems: time is linear.

Time has a past, present and future

The polychronic time system: time is cyclical, non-linear



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Monochronic cultures

People generally concentrate on one thing at a

time, adhere to time commitments and are

accustomed to short-term relationships.

Time is to be spent, saved, made up or wasted.

e.g.: Western culture (individualistic cultures).



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Polichronic cultures

People tolerate the simultaneous occurrence ofmany events.

There is a priority of relationships over materialthings.

Plans change often.

People may be highly distractible; they are likely

to hold open meetings and have unstructuredmeetings.

e.g.: Latin cultures (collectivit cultures).



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Space

Do people prefer a lot of personal space or notso much?

High-contact cultures are mostly located in warmerclimates and prefer a close sensory involvement.

They are more collectivist; e.g., prefer to stand

close and touch a great deal.

Low-contact cultures prefer less sensory

involvement. They are more individualistic.



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Distribution of power

Degree of equality or inequality, hierarchal ordemocratic

Are significant power disparities accepted?

Are organizations run mostly from top down oris power more widely and more horizontally

distributed?



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Tolerance for uncertainty

Degree of tolerance for ambiguity, strict laws

and rulemaking, or more relaxed

How confortable are people with uncertainty orunstructured situations, processes, or

agreements?



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Individualism vs. Collectivism

Individual or group achievements moreadmired

Does the culture emphasize the individual orthe group?



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Harmony vs. Assertiveness

Assertiveness (bold actions) or nurturing(care, quality results), distributive orintegrative bargaining

Does the culture emphasize interpersonalharmony or assertiveness?



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Underlying view of the process

People view the negotiation process ascolaborative (win-win) or competitive (win-lose)

Some people seek mutual advantages,others won’t



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Approach to building agreement

U.S. negotiators seek agreement on specificsfirst, building up toward an overall deal

French negotiators seek agreement ongeneral principles, later working through thedetails

Westerners often proceed by breaking thewhole into parts and reasoning incrementally



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Form of agreement

What level of details is required?

Fairly broad agreement that focuses on

general principles and not detailed rulesor

A detailed contract in which as manycontingencies as possible are foreseen



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Implementation of agreement

Is adherence to an agreement expected orcontingent?

In many cultures, agreement is a starting point inwhat is expected to be an evolving relationship;renegotiation may occur under the assumptionsthat all contingencies cannot possible be foreseen

U.S. negotiators expect to stick to the letter of thecontract, treating renegotiation as a very unusual,even aberrant, event.

M t St l Whi h M Aff t



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Management Styles Which May AffectNegotiating Styles

NT Lesson10 CrossBorderNegotiation StudentsNotes

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