Pellegrino Riccardi Det Norske Veritas 16/04/2017 Intercultural Communication Consequences for International Business & Negotiations: Pellegrino Riccardi Det Norske Veritas Cultural Awareness Course (Pellegrino Riccardi 2003)

STAGES OF A NEGOTIATION Set the Scene Agree on the issues Bargaining xxxxxxx Agreement Set & maintain the climate Maximise Power Persuasion Resolving Deadlock

CULTURE shared patterns of behaviours 16/04/2017 CULTURE shared patterns of behaviours a system of values, beliefs, assumptions and norms, shared by a group of poeple collective programming of the mind Cultural Awareness Course (Pellegrino Riccardi 2003)

EXAMPLES OF HEROES FROM YOUR CULTURE 16/04/2017 EXAMPLES OF HEROES FROM YOUR CULTURE (alive or dead) HEROES VALUES Cultural Awareness Course (Pellegrino Riccardi 2003)

HEROES Norwegian VALUES 16/04/2017 HEROES Norwegian VALUES Cultural Awareness Course (Pellegrino Riccardi 2003)

16/04/2017 Cultural Awareness Course (Pellegrino Riccardi 2003)

How frequently, in your experience, does the following problem occur: employees being afraid to express their disagreement with their managers? Geert Hofstede

FATHER Protection Security Wisdom Direction MOTHER Pellegrino Rosa Antonio Giovanni Loyalty Respect Support Roberto

Small Power Distance cultures Inequalities between people should be minimised Privileges and status symbols are considered to be negative Powerful people try to appear less powerful than they are Little if any differences in the way people speak to each other

Large Power Distance cultures Power, status and privilege go together Subordinates expect direction and decisiveness The ideal boss is a “good father”

Percentage of respondents that feel that it is important for a boss to act and look like a boss

Create DOUBT in the other person Create MOVEMENT towards the goal 16/04/2017 Sources of POWER POWER is in the head Create DOUBT in the other person Create MOVEMENT towards the goal Cultural Awareness Course (Pellegrino Riccardi 2003)

Cultural Dilemma - VALUES 16/04/2017 Cultural Dilemma - VALUES You are the passenger in a car driven by a close friend. He hits a pedestrian. You know he was driving at 80 kms per hour in a 60 zone. There are no witnesses. His lawyer says that if you testify under oath in court that your friend was only driving at 60, it might save him from serious consequences. Does your friend have a right to expect you to protect him? Would you lie in court to ”save” your friend? Cultural Awareness Course (Pellegrino Riccardi 2003)

Negotiation Tactics Ask for more than you expect to get MPP (maximum plausible position) The consequences of making a “fair” opening offer? Never say yes to the first offer Play the reluctant seller/buyer It makes them think that they could have done better It makes them think that something must be wrong

Individualist cultures Laws and rights are the same for all (consistency) Honest people speak their mind Clear & explicit communication is preferred Task-focused You take responsibility for your own actions

Collectivist cultures Relationship-focused Harmony should always be maintained Protocol and rituals are important You treat people differently according to which group they belong to (discretion) Communication is discreet and cautious

Voice Conversation Patterns Reserved Cultures 1. _________ ___________ 2. ___________ ____________

Voice Conversation Overlap Expressive Cultures 1. _________ _ _ ___________ _ _ ___________ 2. _ _ ___________ _ _ ____________

Reserved meets Expressive Why does he keep interrupting me? He’s not interested in what I have to say Why doesn’t he say something? He’s not interested in what I have to say. _________ 2. _ _ _________________

Negotiation Tactics Do emotions belong in a negotiation? The Flinch – reacting to offers Melodramatics Skilled negotiators reveal inner feelings

Relationship-Focused VERY Relationship-Focused RF or DF? Deal-Focused Nordic and Germanic Europe North America Australia and New Zealand Relationship-Focused Central & Eastern Europe Latin Europe Hong Kong, Singapore VERY Relationship-Focused The Arab World Most of Africa Latin America and Asia

Time Monochronic (Sequential) cultures Order, precision, detail, agendas, deadlines, structure, action plans Tasks are dealt with systematically Polychronic (Synchronic) cultures Flexibility, focus more on people rather than only the task Can seem chaotic or unsystematic to monochronics

Time Pressure 80% of the concessions happen in the final 20% of the negotiation People become more flexible under time pressure The “tug boat” principle People are reluctant to walk away from a negotiation without a result after so much time and effort