Etiquette in Business Negotiation

Contents  Greeting and Seeing off Etiquette Greeting and Seeing off Etiquette  Business Meeting Etiquette Business Meeting Etiquette  Dinner Party Etiquette and Dress Etiquette Dinner Party Etiquette and Dress Etiquette  Etiquette of Signing Agreement Etiquette of Signing Agreement

Greeting and Seeing Off Etiquette  Determine the level and size for greeting and seeing off Determine the level and size  Know well about the arrival and departure time Know well about the arrival and departure time  Prepare for the reception Prepare for the reception  Reception manners in different cultures Reception manners in different cultures  Tips for greeting Tips for greeting

Factors Influencing the Level and Size  the rank and the purpose of the negotiators  the relationship between the negotiators and you  usual practice

Who Receive the Guests Someone in the same business who has the same or similar rank, title or status. If the designated person cannot go, someone having similar position or a deputy of the designee can act on his behalf. Higher level and bigger size for greeting and seeing off may be arranged only when you have an exceptionally close relationship with the other party or you have a special reason to do so.

Seeing-off Time Be sure to arrive earlier at the hotel where the guests stay; Accompany the guests to the airport, train station or port when they are ready; Or go directly to the airport, train station or port to see them off;

Seeing-off Manners Before they get aboard, shake hands with and say goodbye to them; Wave hands to the guests when the plane, train or ship begins to move; Stay there until the plane, train or ship disappears from your sight.

Prepare for the Reception  Once you are notified of the date of their arrival, begin to prepare for accommodations.  Contact them before they set out.  Upon their arrival, take them to the hotel. Schedule for the next day can be arranged on the way to the hotel or when arriving at the hotel.

Reception Manners in Different Cultures  BrazilBrazil  Canada Canada  United Kingdom United Kingdom  Islamic greetings Islamic greetings

Greetings  How do they greet each other? With handshakes, kisses or hugs?  How to address them? By their first name, full name or their title?  What is the space we should keep with them when conversing? Eye contact?  What are good topics and what are taboo topics for them?

Brazil  How to greet a Brazilian?  (handshake, kiss, address)  Handshaking is common and often last for a long time. Shake hands for hello and goodbye; use good eye contact; when leaving a small group, be sure to shake hands with everyone present  When women meet, they exchange kisses by placing their cheeks together and kissing the air  First names are used often, but titles are also important

Small Talk Topics  Are Brazilians out-going and talkative?  Music and long, animated conversation are favorite Brazilian habits. When conversing, interruptions viewed as enthusiasm. Brazilians enjoy joking, informality, and friendships  Good topics: soccer, family, and children  Bad topics: Argentina, politics, poverty, religion, the Rain Forest  Portuguese is the language of Brazil

Canada  Handshakes  Use a firm handshake with good eye contact when meeting and leaving. Both French and English areas use and expect a firm handshake.  Men will wait for a woman to extend her hand for a handshake.  French Canadians will shake hands more frequently, even with a subsequent encounter the same day. Others may just nod or smile at a subsequent encounter on the same day.

 Use a person's title if he or she has one. Otherwise, use Mr., Mrs., Miss and the surname.  English is spoken in most of Canada. French is spoken in Quebec, and some area of Nova Scotia and New Brunswick  French Canadians may use their first name when talking to you on the telephone, but will generally use their full name when meeting you in person. Addressing

Conversations  Be open and friendly in your conversation. If you are naturally reserved in your behavior, you will appear confident and credible.  If your natural tendency is large sweeping arm gestures, restrain yourself when meeting and talking with Canadians — other than with French Canadians.  French Canadians stand closer and are more demonstrative when talking.

United Kingdom  Handshakes  A simple handshake is the standard greeting (for both men and women) for business occasions and for visiting a home.  Conversations  Privacy is very important to the English. Therefore asking personal questions or intensely staring at another person should be avoided.

Non-verbal Communication  Eye contact  Eye contact is seldom kept during British conversations.  Space  Personal space is important in England, and one should maintain a wide physical space when conversing. Furthermore, it is considered inappropriate to touch others in public.  To signal that something is to be kept confidential or secret, tap your nose.

Islamic Greetings  Greeting and handshaking  When Muslims greet each other, instead of saying, “ good morning ” or “ hello ” they say “ Assalamo Alaikum, ” which means “ May peace be upon you and may God's blessings be with you. ”  Shake hands upon greeting and leaving, and always using your right hand. The handshake is limp and lasts seconds.  For religious reasons (Muslim and Hindu) men and women do not touch in public in this culture.

 Presenting your business card follows introductions. A person's name is very important.  Present a business card to each person you are meeting. Offer your card with the printing positioned so the recipient can read it. Your right hand holds the card, with your left hand supporting your right wrist. Your card will be received with both hands.  Time is taken to carefully read the card.  Never carry your business cards, or place another person's business card in a back pocket. Business Cards

Tips  Before an event, use your address book or your "people database" to refresh your memory about the people you are likely to meet.  If you forget someone ’ s name, you can sometimes "cover" by introducing a person you do know first. "Do you know my Joe Smith, one of our account reps?" which will usually get the unknown person to introduce him or herself.  If this doesn ’ t work, an admission that you ’ ve had a mental block is preferable to obvious flailing around.

Business Meeting Etiquette  Courteous meeting  Political meeting  Businesslike meeting  Business meetings are one arena in which poor etiquette can have negative effects.  Comfort, trust, attentiveness and clear communication are results of good etiquette.

Business Meeting  Informal Meeting Informal Meeting  Informal meetings are generally more relaxed affairs and may not necessarily take place in the office or meeting room.  Formal Meeting Formal Meeting  Formal meeting such as management meetings, board meetings usually have a set format.  Meeting etiquettes in different cultures Meeting etiquettes in different cultures  Tips Tips

Informal Meeting  Meeting calling  Business etiquette demands that the person calling the meeting should be the most senior or the one with the most direct or urgent interest in the topic at hand.  The chair should decide the time, place and agenda. These details should be confirmed with everyone to make sure all are in agreement and no inconvenience is caused.

Tips  Communicate beforehand:  The objective 1. The expected duration ( Be sure to observe the ending time scrupulously, unless everyone agrees to continue.) 2. Items expected to be discussed

 Chair ’ s responsibilities  Make the purpose and time span of the meeting clear, and what is expected of them, i.e. preparation of documents.  The chair should strive to ensure the meeting is kept as short and effective as possible.  The Chair should appoint someone to record the proceedings; documenting major decisions or action points. How to Hold a Meeting

Meeting Manners  If the results of the meeting have an effect on others who were not present, it is considered proper business etiquette to inform them.  Punctuality is a must. Keeping people waiting is considered the height of poor etiquette as it abuses their time.

Formal Meeting  Preparations  Handouts for the meeting should be delivered at least three days prior to the meeting. Be prepared for the meeting.  Dress well and arrive in good time.  Always remember to switch off mobile phone.

Meeting Opening  If there is an established seating pattern, accept it. If you are unsure, ask.  Acknowledge any introductions or opening remarks with a brief recognition of the chair and other participants.  When discussions are under way it is good business etiquette to allow more senior figures to contribute first.

 Never interrupt anyone — even if you disagree strongly. Note what has been said and return to it later with the chair ’ s permission.  When speaking, be brief and ensure what you say is relevant.  Always address the chair unless it is clear that others are not doing so.  It is a serious breach of business etiquette to divulge information to others about a meeting. Keep it confidential. Meeting Discussion

Meeting Etiquettes in Different Cultures  Brazil Brazil  Indonesia Indonesia  Russia Russia  New Zealand New Zealand  Japan Japan

Questions  How long in advance should a meeting be noticed?  Is it necessary to be punctual in attending meetings?  What are the etiquettes should be kept in meeting?

Brazil  Time matters in meeting  Make appointments at least two weeks in advance. Never try to make impromptu calls at business or government offices.  Be prepared to commit long term resources (both in time and money) toward establishing strong relationships in Brazil.  Some regions have a casualness about both time and work. However San Paulo is not one of those, and in Rio casual refers to the personal and social events, not business. In these two cities, business meetings tend to start on time.

 Never start into business discussions before your host does. Business meetings normally begin with casual 'chatting' first.  Touching arms and elbows and backs very common  The O. K. hand signal a rude gesture in Brazil  To express appreciation, a Brazilian may appear to pinch his earlobe between thumb and forefinger  To invoke good luck, place your thumb between your index and middle finders while making a fist. This is also known as the "fig “  Flicking the fingertips underneath the chin indicates that you do not know the answer to a question Brazilian Body Language

Indonesia  Be on time for any meetings. The meetings traditionally start late, and your Indonesian business associates will probably arrive late. However, you are expected on time, and should never make any comment about the meeting starting late or any person arriving late.  Never stand with your back to an elderly person or a high ranking official. As you enter a room be aware of the people who will be in that room with you.  Always rise when your host/hostess enters the room.

Russia  As a foreigner, you are expected to be on time to all business appointments.  However, your Russian counterpart may be late. Do not expect an apology from a late Russian, and do not demonstrate any kind of attitude if your business appointments begin one or two hours late. This may also be a test of your patience.  Social events are more relaxed. It is acceptable for foreigners to be 15 to 30 minutes late.  Russians are known as great "sitters" during negotiations, this demonstrates their tremendous patience.

New Zealand  Always be on time or early for all appointments. Punctuality is part of the culture.  Maintain a reserved, formal demeanor, especially when first meeting someone. Take your lead to become more relaxed by following the behavior of your New Zealand hosts.  Normal business hours are Monday – Friday 8:30am-5:00pm and Saturday 9:00am-12:30pm.

Japan  Business cards exchange  In Japan, business cards are called meishi. Japanese give and receive meishi with both hands. It should be printed in your home language on one side and Japanese on the other.  Present the card with the Japanese language side up.  Take special care in handling cards that are given to you. Do not write on the card. Do not put the card in you pocket or wallet.  Upon receipt of the card, it is important to examine the card carefully as a show of respect.

 The customary greeting is the bow. However, some Japanese may greet you with a handshake, albeit a weak one. Do not misinterpret a weak handshake as an indication of character.  If you are greeted with a bow, return with a bow as low as the one you received. How low you bow determines the status of the relationship between you and the other individual. When you bow keep your eyes low and your palms flat next to your thighs. The business card should be given after the bow. This is very important to remember. Bows and Handshakes

Discussion  In introductions use the person ’ s last name plus the word san which means Mr. or Ms. The Japanese prefer to use last names. Do not request that they call you by your first name only.  Understand that the Japanese prefer not to use the word no. If you ask a question they may simply respond with a yes but clearly mean no. Understanding this is critical in the negotiation process.  In Asia the number 4 is bad luck, because in Japanese it sounds like the word ‘ shuh-shuh ’, which sounds like the word for death.

EXERCISES  Questions for Consideration  What is traditional Chinese greeting and meeting etiquette?

Dinner Party Etiquette  On invitation  Being time conscious  On arrival  Seating  Ready to eat  Communication  Toast  Taking off coat  At table

At Table 1. Maintain a natural sitting posture and keep proper distance between your body and the table. 2. Try to keep the table clean while eating. 3. Place your napkin on your lap; do not use napkin to clean your face or take food from your mouth. 4. When cutting meat, hold the knife in your right hand and the fork in your left hand, avoid making noise.

5. Cut the meat one piece at a time and eat it with the fork. 6. Put the knife and fork in the plate when you finish a course. 7. Do not use a spoon to eat; it is for soup only. 8. Be sure to sample all the food served to you. Finish the food in your plate. 9. Do not talk when you have food in the mouth. 10. Avoid talking to your neighbor when he or she has food in the mouth.

Food and Drink Taboos  Muslims: do not drink alcohol, not eat pork products, avoid shellfish.  Hindus: avoid beef and pork, strict vegetarians  Buddhists: strict vegetarians  Knowing the fundamental element of local business protocol shows you are a serious and committed potential partner.

Etiquette in Different Countries  Brazil Brazil  Argentina Argentina  Indonesia Indonesia  Japan Japan

 Midday the normal time for the main meal. A light meal is common at night, unless entertaining formally.  In Brazil, restaurant entertainment prevails versus at home.  If entertained in the home, it is polite to send flowers to the hostess the next day, with a thank-you note.  Purple flowers are extensively used at funerals, so be cautious when giving someone purple flowers. Violets are OK to give.  Tipping is typically 10% in Brazil. Brazil

Argentina  Business dinners are popular and are usually held in restaurants.  Tender beef and red wine are virtual national symbols. American beef and red wine compare poorly to theirs.  Long meals and conversation is the norm. Crossing the knife and fork signal "I am finished". When dining, keep your hands on the table, not in your lap.

Indonesia  Leaving food on your plate signifies you are impolite, so eat all the food you are served.  Only use your right hand for eating, when touching someone, or handling money/papers.  Talking is impolite while eating dinner.  Conversation is reserved for before or after the meal.

Japan  The word for toasting is kampai, pronounced 'kahm-pie'. When toasting, the glass is never left unfilled. Drinking is an important part of Japanese culture. It is a way to relieve business stress.  Never pour a drink yourself; always allow someone else to do it for you.  Most business entertaining is done in restaurants or bars after business hours. Often in karaoke or "hostess bars." Businesswomen should not attend "hostess bars. “  Let the host order the meal and pay. Business may be discussed at dinner during these events.

 Japanese rarely entertain in the home. If you are invited to the home of your Japanese host, consider it a great honor and display a tremendous amount of appreciation.  It is perfectly acceptable to slurp your noodles. Doing so will exhibit your enjoyment of your food. To do otherwise, indicates that your meal was not a pleasant one.  The number 14 is bad luck, because in Japanese it sounds like the word for death.  Tipping is not expected.

Dress Etiquette  Formal Business Dress Formal Business Dress  Business Casual Business Casual  Casual Casual  Dress codes in different countries Dress codes in different countries

Formal Business Dress  Both Men and Women  Should always wear a suit. Consider dark navy and gray.  Women  Should avoid wearing several pieces of jewelry  Make sure skirts are at least knee length.  Women should always wear hose, and shoes with heels.

Business Casual  Men:  Should avoid Khaki pants and “ loud print ” shirts.  Women:  Should consider wearing business skirts with appropriate blouses, such as silks, polyester, or rayon with attractive prints.

Casual  Men  Women

Dress Code  Latin America focus on style and quality of apparel and accessories.  Middle East judge one on quality and price of one ’ s briefcase, watch, pen and jewelry.  Germans feel comfortable with men whose shoes are brightly polished.  Americans pay attention to the condition of one ’ s teeth.  In Muslim countries, female visitors should dress so as to show little bare skin.

Dress Codes in Different Countries  Indonesia Indonesia  Japan Japan  Great Britain Great Britain  France France  Egypt Egypt

Indonesia  Women should wear long-sleeve blouses and skirts that cover the knee.  Women meeting in a more formal office should wear a suit with hosiery.  Women are limited to clothing colors that are muted or dark. Leave brightly colored clothing at home.  Women must always cover their upper arms when wearing a casual blouse.

Japan  Those who dress according to their status or position impress the Japanese. Dress to impress.  Casual dress is never appropriate in a business setting.  Shoes should be easy to remove, as you will do so often. Slip-ons are the best choice.

 Women ’ s dress should be conservative. Little emphasis should be placed on accessories. They should be minimal.  Women should not wear pants in a business situation. Japanese men tend to find it offensive.  Women should only wear low-heeled shoes to avoid towering over men.  A kimono should be wrapped left over right to do otherwise symbolizes death.

Great Britain  Dark suits, usually black, blue, or gray, are quite acceptable.  Men's shirts should not have pockets; if they do, the pockets should always be kept empty. Additionally, men should wear solid or patterned ties, while avoiding striped ties.  Men wear laced shoes, not loafers.  Businesswomen are not as limited to colors and styles as men are, though it is still important to maintain a conservative image.

France  The French are very conscientious of their appearance.  Patterned fabrics and dark colors are most acceptable, but avoid bright colors.  Women should also dress conservatively. Avoiding bright or gaudy colors is recommended.

Egypt  Foreigners are expected to abide by local standards of modesty however, do not adopt native clothing. Traditional clothes on foreigners may be offensive.  Men should wear long pants and a shirt, preferably long-sleeved, buttoned up to the collar. Men should also avoid wearing visible jewelry, particularly around the neck.  Women should always wear modest clothing in public.

Etiquette of Signing Agreement  Signing ceremony occasions Signing ceremony occasions  Preparation of signing ceremony Preparation of signing ceremony  Procedure of signing ceremony Procedure of signing ceremony  Business gifts Business gifts

Signing Ceremony Occasions 1. Two or more nations reach an agreement; 2. During his visit, the leader of a nation and the head of the host country agree upon certain topics and they decide to issue joint communiqu é or joint statement; 3. Local business, economic entities, manufacturers, cultural exchange organizations, import and export companies and the like reach an agreement.

Preparation of Signing Ceremony  1. Determine the signer.  2. Documentation preparation.  3. The arrangement of the signing hall.

Procedure of Signing Ceremony 1. Participants from both parties enter the signing hall at the same time. 2. The signers take their seat and others stand behind their signer. 3. The signers sign their own copy first. The signer ’ s assistant of each side stands by his/her signer, turning the pages of the document for him and pointing at the space for him to sign.

4. The assistants of both sides pass on the signed copy to the signer of the other party for signature. 5. After signing it, the signers exchange the signed copy and shake hands. 6. Champagne is served to celebrate the signing of the agreement.

Business Gifts  Is a gift expected? Is a gift expected  Gift choices Gift choices

A Gift is Expected  Europe — Czech Republic, Poland, Russia, Ukraine  Latin American — Bolivia, Columbia, Costa Rica  Pacific Rim — China, Hong Kong, Indonesia, Japan, Korea, Taiwan, Malaysia, Philippines, and Thailand

A gift is Expected on a Subsequent Visit  Countries in which a gift is not expected on the first visit, but would be expected on a subsequent visit:  Europe — Portugal, Spain  Latin American — Brazil, Chile, Guatemala, Nicaragua, Panama, Peru, Venezuela  Pacific Rim — Malaysia, Singapore  Scandinavia — Finland, Norway

A Gift is not Expected  Countries in which a gift is not expected, or gifts are less frequent exchanged:  Africa  Australia  Europe - England, France, Hungary, Italy  Latin America—Uruguay  Scandinavia—Denmark  Middle East—Pakistan, Saudi Arabia  United States

General Gift Categories  Locally Produced Product Locally Produced Product  Electronic Gadgets and Office Accessories Electronic Gadgets and Office Accessories  Liquor  Chocolate Chocolate  Flowers Flowers

Locally Produced Product  If you ’ re doing business in a country known for producing a particular product, don ’ t offer that item as a gift, especially if it were manufactured elsewhere.  leather and wine in Argentina;  leather in Brazil and Uruguay;  beer and wine in Germany;  wine in France and Italy;  vodka in Russia and Poland;  scissors in Finland;  silver in Mexico

Electronic Gadgets and Office Accessories  Business gifts that are useful for a businessperson, whether an executive or a staff member, are electronic items such as laser pointers, PDAs, calculators, and address books.  Desk and office accessories that make good gifts include fine quality pens, or pen and pencil sets, business card holders, good leather briefcases or leather organizers for use in the office or in a briefcase.

Chocolate  Universally, this is a good choice.  There are many fine quality chocolates that make exquisite gifts for a business meeting, for taking with you to someone ’ s home as a hostess gift, or for a thank you to a staff person who ’ s helped you on a project.  Because it can be boxed in various sizes, it also works if you need a gift for a large group.

Flowers  In Europe, the old European tradition of always giving an odd number of flowers is still followed today (all except 13 which is considered unlucky).  In some cultures a particular color or type of flower is associated with romance or funerals, and would not be chosen to give a hostess.  Red roses are frequently considered romantic. Funeral associations frequently occur with lilies or calla lilies, chrysanthemums, white roses, carnations, and white or purple flowers. In some Latin countries, yellow flowers symbolize contempt.

Argentina  Gifts to be avoided include personal items such as ties and shirts, leather, and knives.  High taxes on imported liquor make this a highly appreciated gift; the most popular are scotch and French champagne.  If the visitor is entertained in the Argentine home, he/she should arrange to send flowers or candy to his hostess. Bird-of-paradise flowers are highly prized