Cross-Cultural Negotiation: Values and Tactics

Conceptualizing Culture and Negotiation

Culture can be understood in several ways:

  • Culture as Learned Behavior: Different cultures have distinct learned behaviors.
  • Culture as Shared Values: Understanding central values and norms is crucial.
  • Culture as Dialectic: Acknowledging variations within cultures.
  • Culture in Context: Cultural values are context-dependent.

Schwartz’s 10 Cultural Values

  1. Self-Direction: The freedom to choose, create, and explore.
  2. Stimulation: Excitement, novelty, and challenge in life.
  3. Hedonism: Pleasure or sensuous gratification for oneself.
  4. Achievement: Personal success demonstrated through competence according to social standards.
  5. Power: Control or dominance over people and resources.
  6. Security: Safety, harmony, and stability of society, relationships, and self.
  7. Conformity: Restraint of actions, inclinations, and impulses likely to upset or harm others.
  8. Tradition: Respect, commitment, and acceptance of the customs and ideas of one’s culture.
  9. Benevolence: Preserving and enhancing the welfare of those with whom one is in frequent personal contact.
  10. Universalism: Understanding, appreciation, and tolerance for all people and nature.

Steps of International Negotiation

  1. Preparation:
    • Define your goals and your counterpart’s potential goals.
    • Identify potential compromises.
    • Determine your negotiation attitude (win-lose or win-win).
    • Assemble your team and create an agenda.
    • Plan for a potentially long negotiation.
    • Consider the environment.
    • Develop a strategy.
    • Choose a communication style (formal/informal, direct/indirect).
    • Decide on the form of agreement (specific or general).
    • Determine team organization (team or leader).
  2. Relationship Building:
    • This is the first stage in a real negotiation.
    • The focus is not on business.
    • Get to know the culture.
    • Partners get to know each other.
    • Engage in social and interpersonal exchange.
  3. Exchanging Information and the First Offer:
    • Exchange information.
    • Exchange task-related details.
    • Present the first offer (expectations from the agreement).
    • Consider the opening offer and potential give-and-take.
  4. Persuasion:
    • Make your counterpart accept your position and agreement.
    • Tactics: Verbal negotiation, non-verbal communication, “dirty tricks” (pressure tactics), and ploys and responses, including stalling.
  5. Concession:
    • Each side relaxes some of its demands.
    • Styles: Sequential (exchanging concessions) or holistic (few concessions).
    • Strategies:
      • Win-win: Each side seeks mutually beneficial ground.
      • Win-lose: Each party tries to concede as little as possible.
  6. Agreement:
    • The final agreement is signed (the contract).
    • Ensure clarity, specificity, and detail.
    • Anticipate contingencies and setbacks.
    • Establish procedures to resolve problems.
    • Address confidentiality or publicity.
  7. Post-Agreement:
    • Conduct an evaluation.
    • Gather ideas for future negotiations.

Negotiation Tactics

Verbal Tactics

  • Promises
  • Threats
  • Recommendations
  • Warnings
  • Rewards
  • Punishments
  • Normative appeals
  • Commitments
  • Logical levels
  • Pragmatic level
  • Self-disclosure
  • Questions
  • Commands

Types of Questions

  • Attention: “May I ask you a question?”
  • Information: “How much will this cost?”
  • Generating Thoughts: “Do you have any suggestions for improving this?”
  • Highlighting Difficulty: “Where did you get that dumb idea?”
  • Giving Information: “Didn’t you know we couldn’t afford this?”
  • Bringing the Discussion to a False Conclusion: “Don’t you think we have talked about this enough?”

Non-Verbal Tactics

  • Tone of voice
  • Facial expressions
  • Body distance
  • Dress
  • Gestures
  • Timing
  • Silences
  • Symbols
  • Multiple messages (often at a subconscious level)

Listening Skills

  • Passive acknowledgment
  • Active listening
  • Reactive listening

Perception

Perceptual Distortion

Interpersonal Skills

Interpersonal Styles:

  • Idea Expressive
  • Driver Action
  • Amiable People
  • Analytical Process