Culture and Negotiations
Why do Japanese negotiators behave in the manner they do? How does culture affect negotiating behavior and outcomes?
MASTER THESIS Author’s name: Patrycja J. Krause Student’s number: 258891 Academic advisor: Søren O. Hilligsøe Faculty of English Aarhus School of Business May 2006
I would like to thank my Mom, Barbara, for her understanding, encouragement and eternal support, as well as my advisor, Søren O. Hilligsøe, for his academic help, advice and faith in me keeping my deadline!
Patrycja J. Krause Aarhus, May 2006
In loving memory of my Dad, Władysław, for showing me the world – this one is for you.
2
1. 2. 3. 4. 5. 5.1 5.2 5.3 5.4 5.5 6. 7. 8.
INTRODUCTION METHOD WHY JAPAN? DEFINITION
…show more content…
4
Otherwise, negotiators tend to create their own interpretation of the behavior of the other party, which without the necessarily cultural knowledge may lead to prejudices and ultimately lack of trust (Gudykunst & Kim, 2003: 125-160). For instance, trust in individualistic societies is based on the fact that a promise that will be implemented on a specific time or day, whereas trust in collectivistic societies is based on emotions and relationships as well as on sacrifice. The other party may thus think the Japanese negotiator do not want to reach an agreement within a week because they are difficult and want to sabotage the negotiation or untrustworthy, rather than the Japanese are relationship oriented rather than task oriented. They thus want to establish a relationship before they reach an agreement and need more time in order to reach an agreement because it is based on group consensus. The paper starts by giving a definition and an analysis of culture and values in general in order to delimit and define the cultural framework that is the fundament of this paper. The culture and values of Japan are then to be described and discussed in order to show which cultural factors and dimensions in Japan determine and influence the Japanese negotiator, as well as serving as a an introductory guide to Japanese culture and society - hopefully, the guide will present both useful and interesting knowledge to all those interested in cross-cultural negotiations and
2. Using the cross-cultural criteria defined in class, list the expected discrepancies in the behavior of the Korean and US negotiators.
French (Dupont, 1982); Mexicans (Fisher, 1980); Brazilians (Graham, 1983, 1985a); Middle Eastern Arabs (Muna, 1973; Wright, 1983); Chinese (Graham and Lin, 1987; Pye, 1982; Shenkar and Ronen, 1987; Tung 1984) and Japanese (Graham, 1984; Tung, 1984; Van Zandt, 1970)). Despite the rather rich literature pertaining to intra-cultural negotiation behaviours, there is little attention paid to inter-cultural or cross-cultural negotiation behaviour (Adler and Graham, 1989; Mintu and Calantone, 1991). International sales negotiations that occur across national boundaries are crosscultural (Adler, 1986), and a negotiation is cross-cultural “when the parties involved belong to different cultures and therefore do not share the same ways of thinking, feeling and behaving” (Casse, 1981, p. 152). Such cultural differences prevalent in cross-cultural negotiations can affect the process and its outcome (Hamner, 1980; Tse et al., 1988). Studies attempting a comparison of the various negotiation behaviours in different countries (Adler, 1986; Adler et al., 1987; Burt, 1989; Cambell et al., 1988; Copeland and Griggs, 1985; Foster, 1992; Graham et al., 1988; Harnett and Cummings, 1980; Hellweg et al., 1991; Herbig and Kramer, 1992; Weiss and Stripp, 1985) have mainly adopted an intra-cultural perspective and demonstrated that negotiation behaviours differ between cultures. Furthermore, a study by Druckman et
Griffey started expressing a desire to live closer to his relatives in his hometown of Cincinnati. Where his father and mother live, Ken and
North America’s culture certainly affect international business activities, the same happen among all countries and continents in the world. Culture and tradition have a particular role in person’s critical thinking, communication barriers and behavior. In the business environment negotiation is an important skill in where all parties needs to be pleased, at the end you have to give for you to be able to receive, either is entering into a contract or building a
Cultural Differences. Cultural differences affect the perceptions and behaviors of different parties in any international negotiation in different ways. These include the goal of the talks; different cultures view negotiations differently with some negotiators viewing them as an opportunity to get a signed contract between the involved parties. Others view negotiations as a start of a relationship between the two parties. The concept of win-lose or win-win scenarios deeply ingrained in different cultures and might affect the perceptions of the many negotiators. The time factor is also sensitive in negotiations with Europeans consider highly punctual while Latinos are usually late and the Americans are fast at cutting a deal (Craig et al., 1996). By reducing formalities, Americans maximize on time available which could be central to the Japanese. Display of emotions during negotiations varies from one culture to another with the Asians are hiding their feelings while the Latinos show how they feel. The cross-culture attributes and skills needed for successful negotiation International business refers to the performance of direct investment activities and trade across the national borders. Globalization has pushed firms to pursue markets across the national builders. The growing numbers of collaborations and transactions across
An important matter insists straight way attention and action. To my mind, the biggest difference between Americans and the people in other countries in terms of negotiating is that, Most Americans are very individualistic while the Japanese people view that it as an opportunity for sharing information. Although the Chinese people believes that “silence is golden; and the French like to be independent. They are deliberate inert in a negotiation, and all the people in the world want to be like
The negotiation style that I will consider in discussing the expenses related to maintaining quality patient care with the Chief Financial Officer (CFO) of my organization is the PN using its four basic points. Utilization of effective communication and active listening are important parts of negotiating skills. The first step is to separate the people from the problem, the issue here is the cost of maintaining quality of care. You need to understand that you and your CFO might have differing set of interests such as you may want to add more nursing staff to reach your goal, but your CFO is looking at maintaining the cost and at the same time provide quality of care by working smarter. The second step is to focus on
However, beneath the iceberg, we have value, beliefs, norms and assumptions. These are all important factors of the negotiator that a negotiator who is unfamiliar with the culture would not be aware of if they simply showed up to the negotiation without first conducting research (Thompson, 2014).
Mastering negotiations is an art and talent that requires knowledge, patients, honesty, control, likeability, flexibility, et cetera. In the film Bridge of Spies James Donovan is a New York attorney who is appointed to a case that involves a soviet spy, he is not a government employee, however, those in the United States believe he should have allegiance to the United States. In this analysis, I am going to discuss the negotiations between James Donovan and Rudolph Abel. Rudolph Abel and James Donovan at a surface level may not have much in common and likely have different ideologies. However, this analysis will show that differences amongst others can still result in a win-win negotiation for all involved. Mr. Abel is on trial in the
The mobilization of the union’s members to shut down the company’s operation was the basic weapon which won the strike for the Teamsters.
In this negotiation, we learned that it is important to research your opponent, to understand their culture, not only of their country or backgrounds, but also their company culture. When we are able to understand our opponent’s way of thinking about business and doing business we can then understand how to approach a negotiation situation with them. In this exercise, we learned that it is difficult for us to adjust when it involves breaking or acting in a way opposite of what we are accustomed to. We also learned that although my classmates live in the same country as we do, their upbringings may have similarities to their origin country and will therefore help them to communicate and adjust to that country’s norms and standards. We were surprised how we were able to stay in character although it was hard and it was surprising how people responded when they were unaware of your intentions and strategies. If we had to do this exercise again, what we can do is do more research on our opponents so that we would have an idea of what to expect in the negotiation table.
When Anne Burns, an American expatriate, moved to Jordan with her husband to promote female entrepreneurship through the non-profit organization ExportJordan, she had no idea that her American style of communication and negotiation would clash so severely with the Jordanian culture. As she settled into her new office aided by a western educated female employee named Hayat, she quickly ran into a number of minor differences such as men not shaking her hand. Major issues soon started happening, as evidenced by her less than warm welcome by Jafar, a male employee who warned her about her attitude and actions with cryptic phrases and obvious disapproval.
As Nisbett explained, Western Cultures practice erabi, whereas eastern cultures practice awase. Erabi focuses on arguing or defending a point and using that point to achieve the goal that you have in mind for the negotiation. People disagree about something and then spend great amounts of time and money proving
An effective negotiator is a strategic negotiator, who is able to switch back and forth between different phases of a negotiation without losing the goal in mind. An effective negotiator takes time to process what is happening during the negotiation and ensures that the right problem is being resolved while taking into consideration other party’s intrests to finding a common ground. Concequently those type of actions facilitate in the process of a negotiation by creating a cooperative environment and enhance the furture relationship between the parties (Fells 2012; Sebenius 2001). An effective negotiator aknowledges that no party is the same and as every negotiation, every negotiator is different from one another. These variations explain the DNA of negotiation that requires an effective negotiator to take into considerations the strands of the DNA, such as “reciprocity, trust, power, information exchange, ethics, and outcome” that vary from person to person (Fells 2012, pg 8).
Explain each stage of the negotiation process and the role that culture plays in each stage. Give example to support your answer