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Negotiating Across Cultures Understanding and Adjusting to Different Values Dr. Melanie Billings-Yun.

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Presentation on theme: "Negotiating Across Cultures Understanding and Adjusting to Different Values Dr. Melanie Billings-Yun."— Presentation transcript:

1 Negotiating Across Cultures Understanding and Adjusting to Different Values Dr. Melanie Billings-Yun

2 Slide 2 Cultural Differences in Negotiation  National/regional differences Collectivism/Individualism Power distance High- vs. low-context speech Ethical values  Institutional values Business vs. government Copyright © 2012 by Melanie Billings-Yun.

3 Slide 3 Collectivism/Individualism Group Loyalty Self-Orientation Source: Geert Hofstede, Cultures and Organizations Copyright © 2012 by Melanie Billings-Yun.

4 Slide 4 Effect on Negotiation Individualistic  Aim to win  Polarizing  Pride (internal)  Give trust easily  Make decisions based on personal opinions  Fast-paced, decisive Collectivistic  Prefer harmony  Compromising  Face (external)  Need to earn trust  Pass information to group for decision  Slow-paced, tentative Most Western culturesMost non-Western cultures Copyright © 2012 by Melanie Billings-Yun.

5 Slide 5 Power Distance Equal Rights Social Hierarchy Source: Geert Hofstede, Cultures and Organizations Copyright © 2012 by Melanie Billings-Yun.

6 Slide 6 Effect on Negotiation High Power Distance  Status/rank valued  Power persuades  Form is essential  Resistance to change  Agreement at the top is normally sufficient Low Power Distance  Expertise/talent valued  Reason persuades  Substance over form  Change accepted  Agreements must be sold to all stakeholders Anglo-Saxon, Germanic and Nordic countries Two-thirds of all countries Copyright © 2012 by Melanie Billings-Yun.

7 Slide 7 High vs. Low Context Speech Low High High Low High Low High High Copyright © 2012 by Melanie Billings-Yun.

8 Slide 8 Effect on Negotiation High Context  Indirect/ non-verbal  Circular  Intuitive  Past-oriented  Avoid disagreement Low Context  Direct / verbal  Linear  Rational  Future-oriented  Open disagreement Europe, North America, Australia and NZ Asia, South America, Africa and Middle East Copyright © 2012 by Melanie Billings-Yun.

9 Slide 9 Culture and Ethical Values Particularism  Relationships paramount  Emotional persuasion  Goal is relationship  A good partner honors changing circumstances  Loyalty to in-group Universalism  Rules paramount  Logical persuasion  Goal is contract  A good partner honors his contract/word  Equal treatment for all Asia, South America, Africa and Middle East Western countries and Singapore Copyright © 2012 by Melanie Billings-Yun.

10 Slide 10 Which Are You? Question one: You are riding in a car driven by a close friend. He hits a pedestrian. You know he was going at least 75 km/hr in an area of the city where the maximum is 50 km/hr. There are no other witnesses. His lawyer says that if you testify under oath that his speed was only 50 km, it may save your friend from serious consequences. What right does your friend have to expect you to protect him? 1.As a close friend, he has a definite right to expect me to testify that he was only going 50 km/hr. 2.He has some right to expect me to testify that he was going He has no right to expect me to testify that he was going 50. Copyright © 2012 by Melanie Billings-Yun.

11 Slide 11 Culture and Ethical Values Source: Fons Trompenaars and Charles Hampden-Turner, Riding the Waves of Culture Respondents who feel he has no right Copyright © 2012 by Melanie Billings-Yun.

12 Negotiating with Chinese  Build trust slowly and incrementally  Upheavals of past century have undermined trust-based system  Focus on long-term mutual benefits and step-by-step growth  Build personal connections at all levels  China is a big country with overlapping authority centers  Favors received must be reciprocated  Respect for seniority  A junior speaking out in front of a senior is considered quite rude  Be precise on technical issues  Chinese pay close attention to details; errors destroy trust  Check for understanding and problems  Great concern for face means an unwillingness to speak out Slide 12 Copyright © 2012 by Melanie Billings-Yun.

13 Negotiating with Thais  Build your credibility  Thais value seniority, luxury and a calm, professional demeanor  Be polite in a ‘Thai’ way  If Thais give you a compliment, deny it and compliment back  Speak gently and try to avoid direct confrontation  Prefer indirect communication style  Dislike negative speech therefore difficult to get honest feedback  Do not like detailed contracts; will not feel bound by them  Focus on information  Prefer detailed instructions to avoid later error  Back up your assertions with expert opinions  Build up consensus with informal informational meetings Slide 13 Copyright © 2012 by Melanie Billings-Yun.

14 Negotiating with Americans  Be frank and honest *They will feel betrayed or lied to if you agree only to be polite *Are comfortable with open disagreement  Be direct *Not trained to pick up subtle signals  Be open *Americans like to “lay their cards on the table” *But are also quite competitive  Be informal and friendly, but firm  Don’t be offended by detailed contracts  Respect their time and space needs *Get to the point quickly *Don’t overwhelm their need for free time Slide 14 Copyright © 2012 by Melanie Billings-Yun.

15 Businesses and Governments Have Different Interests  Business  Profit  Expansion  Investment opportunities  Government  Providing public service  Maintaining public goals  Economic growth  Resource maintenance  Sovereignty  Covering program costs  Satisfying voter demands  Re-election  Historical reputation Slide 15 Copyright © 2012 by Melanie Billings-Yun.

16 And Differing Constituencies  Business  Shareholders  Consumers  Employees  Government  Voters  Contributors/Supporters  Local business  Unions  Consumer groups  Environmentalists  Other lobbies  Other governments  Media Slide 16 Copyright © 2012 by Melanie Billings-Yun.

17 Steps to Influencing Governments  Identify entire influence network Build coalitions Understand the power of media  Focus on your goals, not your politics Power shifts over time  Build relationships with key players Approach relationships as a 2-way street But don’t confuse access with influence Or that you’re the only influencer Relationships will never win over voter opposition  Put in the time in advance of needing anything  Be patient! Slide 17 Copyright © 2012 by Melanie Billings-Yun.

18 Slide 18 Dealing with Cultural Differences  Learn about the other culture  A local expert will start you on the right foot.  Be clear and precise in meanings  Don’t assume they understand and don’t leave concerns unspoken. Problems not dealt with now will come back to bite you later.  Get to know the other side carefully  Is this the right fit? Best to find out if you can work together before you have committed yourself  Cross-cultural negotiation shouldn’t be rushed  Don’t let the other side force you into making unwise agreements or include terms that you don’t understand Copyright © 2012 by Melanie Billings-Yun.


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