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1

What is culture?

the socially transmitted behavior patterns, norms, beliefs and values of a given community.

2

2 groups of cultural negotiation styles

The first describe and analyze the negotiating style of a particular culture
The second approach is cross-cultural and comparative. It seeks to identify certain basic elements in negotiation style and to determine how they are reflected in various cultures

3

Salacuse: 10 negotiation factors:

1. negotiating goals (contract or relationship?);
2. attitudes to the negotiating process (win/win or win/lose?);
3. personal styles (formal or informal?);
4. styles of communication (direct or indirect?);
5. time sensitivity (high or low?);
6. emotionalism (high or low?);
7. agreement form (specific or general?);
8. agreement building process (bottom up or top down?
9. negotiating team organization(one leader or consensus?)
10. risk taking (high or low?)

4

1. negotiating goals (contract or relationship?)

Spain a contract that strictly binds and determines interaction
India: goal of a negotion is a relationship between two sides
not so big difference in other countries (China, USA etc)

5

Negotiating Attitude: Win-Lose or Win-Win?

win-win: negotiations seen as collaborative and problem solving (integrative bargaining) (Japanese, china)
win-lose: negotiation confrontational (distributive bargaining) (spanish, brazil)

6

Personal Style: Informal or Formal?

influences the interaction in a negotiation
formal: uses titles, no private life conv., (Germany)
informal: first name basis, try to build a personal relationship (USA)

7

Communication: Direct or Indirect?

indirect: Japanese, french, reaction to proposal gained by interpreting indefinite comments, gestures and other signs
direct: clear and definite response to proposals and questions

8

Sensitivity to Time: High or Low?

promptness in meeting deadlines,
amount of time devoted to a negotiation

9

Emotionalism: High or Low?

tendency to display emotions, more passive o hot headed,
Brazil high, germany low

10

Form of Agreement: General or Specific?

americans: detailed contracts(because contract determines future business)
chinese: contract in form of general principals (because relationship)

11

Building An Agreement: Bottom Up or Top Down?

negotiation as an inductive(Japanese, brazil) or deductive(french) process
Does it start from agreement on general principles and proceed to specific items, or does it begin with agreement on specifics, such as price, delivery date...

12

Team Organization: One Leader or Group Consensus?

-how they make decisions
-one leaer with complete authority (brazilians)
-Team negotiation and decision makeing by consensus(france)

13

Risk Taking: High or Low?

taking risks in negotiations: try new approaches, tolerate uncertainties, (france high risk) (Japan low risk)

14

How organisations manage cultural differences

ethnocentric: HQ decides
polycentric: HQ what-locals how
regiocentric- regional HQ buffer
Geocentric: input from HQ, locals and across subsidiaries

15

Ethnocentric view on culture:

-culture is irrelevant,
-standardisation
-top down communication
-key challenge: gaining acceptance
-key concern: infelxibility

16

polycentric and regiocentric view on culture:

-culture as threat
-expected benefit: localisation, responisveness
-top down bottom up reporting
-key challenge: achieving coherence
-key concern: fragmentation

17

geocentric

-culture as opportunity and source of competitive advantage
-innovation and learning
-commnication: all channels
-key challenge: leveraging differences
-key concern: confusion, friction

18

cultural diversity as strategic advantage:

-marketing, knowledge of local markets
-resources: host country elites
-cost: reduces cost from turnover of non host country manager
-improves decision making
-enhaces creativity and flexibility

19

cultural dimension negotiation goal:

individualists: goal to maximise own gain
collectivists.:mximise welfare of the group

20

cultural dimension negotiation influence: Egalitarianism versus Hierarchy

egalitarianism: not many social obligation, ones value is based on the reousrces one can offer
Hierarchy: social order important in determining conflict management, subordinates defer to superiors, superiors look out for subordinates

21

cultural dimension negotiation cmmunication: direct vs indirect:

direct:explicit direct info
indirect: siutuational norms, story telling

22

contract format universal:

-rely on contract to communicate terms of agreement and to define relationship between parties
-often lawyers involved

23

contract format particular:

-legal contract as starting point for agreement
-circumstances change as do the terms of agreement
-strict regulations offend cause they show no trust

24

Reasons why to avoid bribery:

-unethical (cultural variable) and corrupts the bribed person and the briber
-corporate ethics: many companies forbid it
-illegal payments can be a major business expense
-local laws
-if you dont get what you paid for there are no legal ways to complain
-opens the company up to blackmail and threats
-if companys pay once demands will be repeated
-the more one is willing to pay the more there is to pay

25

bribery in poor countries

- more often bribery cause they need the money
-beauracratic red tape (venal officials have a lot of authority and can decide issues for a company)

26

How to avoid bribes:

-never assume you have to give bribes
-say no to paying bribes
-legal ways to avoid bribes ( payed visit to home office, training etc, donations, personal favours)
-avoid running out of time which makes you extra vulnerable
-showing representatives respect often makes them less demanding

27

culture and corruption:

-relationship focuse: personal connections are crucial, a pleasent social relationship will lead people to help you, small legal favours will improve relationship, the right personal contacts will save time and frustration
-strongly hierarchical, negotiate with the highest ranking official, go personally to the boss, they value to speak with the highest rank too,
-polychronic: relaxed attitute towards time
-collectivistic cultures are more likely to pay and accept bribes

28

what is corruption?

the abuse of public office for private gain
abuse of power inherent in a position of authority

29

bribery:

offering, receiving or giving somthing of value for the purpose of influencing the action of an official in the discharge of his or her public or legal duties

30

extortion:

the obtaining of property from another induced by wrongful use of actual or threatened force, violence fear under color of official right