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CHAPTERELEVENInternationalandCross-CulturalNegotiationMcGraw-Hill/IrwinCopyright?2011byTheMcGraw-HillCompanies,Inc.Allrightsreserved.11-2InternationalNegotiation:

ArtandScienceInternationalnegotiationsaremuchmorecomplexthandomesticnegotiations.Theychallengethenegotiatorstounderstandthescienceofnegotiationwhiledevelopingtheirartistry.Thescienceofnegotiationprovidesresearchevidencetosupportbroadtrendsthatoften,butnotalways,occurduringnegotiation.Theartofnegotiationisdecidingwhichstrategytoapplywhen,andchoosingwhichmodelsandperspectivestoapplytoincreasecross-culturalunderstanding.11-3WhatMakesInternationalNegotiationsDifferent?Twooverallcontextshaveaninfluenceoninternationalnegotiations:EnvironmentalcontextIncludesenvironmentalforcesthatneithernegotiatorcontrolsthatinfluencethenegotiationImmediatecontextIncludesfactorsoverwhichnegotiatorsappeartohavesomecontrol11-4EnvironmentalContextFactorsthatmakeinternationalnegotiationsmorechallengingthandomesticnegotiationsinclude:PoliticalandlegalpluralismInternationaleconomicsForeigngovernmentsandbureaucraciesInstabilityIdeologyCultureExternalstakeholders11-5ImmediateContext“Factorsoverwhichthenegotiatorshaveinfluenceandsomemeasureofcontrol”:RelativebargainingpowerLevelsofconflictRelationshipbetweennegotiatorsDesiredesImmediatestakeholders11-6TheContextsof

InternationalNegotiations11-7HowDoWeExplainInternationalNegotiationes?InternationalnegotiationscanbemuchmorecomplicatedSimpleargumentscannotexplainconflictinginternationalnegotiationesThechallengeisto:UnderstandthemultipleinfluencesofseveralfactorsonthenegotiationprocessUpdatethisunderstandingregularlyascircumstanceschange11-8ConceptualizingCulture

andNegotiationCultureaslearnedbehaviorAcatalogueofbehaviorstheforeignnegotiatorshouldexpectCultureassharedvaluesUnderstandingcentralvaluesandnormsIndividualism/collectivismPowerdistanceCareersuccess/qualityoflifeUncertaintyavoidance11-9Hofstede’sModelof

CulturalDimensionsIndividualism/collectivismPowerdistanceCareersuccess/qualityoflifeUncertaintyavoidance11-10Individualism/CollectivismDefinition:theextenttowhichthesocietyisorganizedaroundindividualsorthegroupIndividualism/collectivismorientationinfluencesabroadrangeofnegotiationprocesses,es,andpreferencesIndividualisticsocietiesmaybemorelikelytoswapnegotiators,usingwhatevershort-termcriteriaseemappropriateCollectivisticsocietiesfocusonrelationshipsandwillstaywiththesamenegotiatorforyears11-11PowerDistanceDefinition:“Theextenttowhichthelesspowerfulmembersoforganizationsandinstitutions(likethefamily)acceptandexpectthatpowerisdistributedunequally”Cultureswithstrongerpowerdistancewillbemorelikelytohavedecisionmakingconcentratedatthetopoftheculture.11-12CareerSuccess/QualityofLifeDefinition:culturesdifferintheextenttowhichtheyholdvaluesthatpromotecareersuccessorqualityoflife.Culturespromotingcareersuccessarecharacterizedbytheacquisitionofmoneyandthings,andnotcaringforothers.Culturespromotingqualityoflifearecharacterizedbyconcernforrelationshipsandnurturing.11-13UncertaintyAvoidanceDefinition:“Indicatestowhatextentacultureprogramsitsmemberstofeeleitherfortableorcomfortableinunstructuredsituations”Negotiatorsfromhighuncertaintyavoidanceculturesarelesscomfortablewithambiguoussituations--wantmorecertaintyondetails,etc.11-14Hofstede’sCulturesRankingintheTop1011-15ConceptualizingCulture

andNegotiationCultureasdialecticAllculturescontaindimensionsortensionsthatarecalleddialecticsExample:Judeo-Christianparables“toomanycooksspoilthebroth”and“twoheadsarebetterthanone”offerconflictingguidanceThiscanexplainvariationswithinculturesCultureincontextNohumanbehaviorisdeterminedbyasinglecauseAllbehaviormaybeunderstoodatmanydifferentlevelssimultaneously11-16Schwartz’s10CulturalValues11-17TheInfluenceofCultureonNegotiation:ManagerialPerspectivesDefinitionofnegotiationNegotiationopportunitySelectionofnegotiatorsProtocolCommunicationTimesensitivityRiskpropensityGroupsversusindividualsemphasisNatureofagreementsEmotionalism11-18CulturallyResponsiveNegotiationStrategiesWhenchoosingastrategy,negotiatorsshould:Beawareoftheirownandtheotherparty’scultureingeneralUnderstandthespecificfactorsinthecurrentrelationshipPredictortrytoinfluencetheotherparty’sapproachStrategiesarearrangedbasedontheleveloffamiliarity(low,moderate,high)thatanegotiatorhaswiththeotherparty’sculture11-19LowFamiliarityEmployagentsoradvisers(unilateralstrategy)Usefulfornegotiatorswhohavelittleawarenessoftheotherparty’scultureBringinamediator(jointstrategy)Encouragesonesideortheothertoadoptoneculture’sapproachesormediatorcultureapproachInducetheotherpartytouseyourapproach(jointstrategy)Theotherpartymayeirritatedorbeinsulted11-20ModerateFamiliarityAdapttotheothernegotiator’sapproach(unilateralstrategy)

InvolvesmakingconsciouschangestoyourapproachsoitismoreappealingtotheotherpartyCoordinateadjustment

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