MGT 670F: Contemporary Issues in International Business

1. MGT 670F: Contemporary Issues in International Business Negotiating Japan Ryan Armstrong Gregory Kelly Kazuo Miura Jamie Ortiz Jeremy O’Brien

2. We all know about Japan… We’ve studied – • Bowing with Grace • Displaying Respect • The Meishi Pass • Pleasantries • Never-ending Spiral of Gift Giving

3. However, what sort of difficulties do we face? On the Home Front? • Privacy • Garbage • Friendship • Communication

4. In the Work Place? • Working Hours (zangyou) • Vacation (paid leave vs. sick days) • Parties • Vagueness (contracts, silence, attitudes…) • Certainly we have a Love / Hate Relationship

5. Indeed,not only do we struggle with the high-context society…

6. But also with…

7. The Two-Faces of Japan

8. Chrysanthemum and the Sword • Old vs. New • Ise Jingu • Traditional vs. Ultra-Modern • Temple and the Skyscraper • Self-condemning vs. Ethnocentric • Harmonious vs. Cutthroat • Senpai vs. Kohai • Isshoukenmei vs. Gamman • “I want to be different just like all my friends”

9. Negotiating Japan • Provide a framework for Negotiating Japan • Ishida Takeshi 1984 • "Conflict and its accomodation: Omote-ura and uchi-soto relations"

10. Negotiating in Japan • Omote: Public setting (outside) • Ura: Private setting (back) • Uchi: In-group • Soto: Out-group • Tatemae: Person’s public position • Honne: Person’s real intention

11. The Uchi-Soto Dimension • In-Group vs. Out-Group • A series of concentric circles

12. Maintaining Social Integrity and Avoiding Conflict • The flexibility of the border between uchi and soto • Village Head • Secton Chief

13. Problems • “We” and amae • Not all members feel the same • Owners vs. workers • Not “we” but “they”

14. Dependent Revolts • Motivated by the desire for amae • Attract attention for more benevolent treatment • Expression of ambivalent feelings • Exclude target of attack • Dependent on and in psychological sense trying to include

15. Conflict • Can be avoided • Enlarge in-group • Absorb opposing parties • Common enemy • “Conflict with out-groups increases internal cohesion”

16. Omote-Ura • Front Region • Public • Formal Arena • On Stage • Back Region • Private • Informal Arena • Backstage

17. Example • At the Office • A group gathered at an Izakaiya • Individuals at an Izakaiya

18. Omote “Dignified Part” Ura “Efficient Part” Walter Bagehot

19. Omote • Publicly Legitimate • Dramatized and Dignified Element • Formal and Rigid

20. Ura • Privately Allowed • Practical and Efficient Elements • Informal and Flexible

21. Hierarchy • The superior decides how much Ura is permitted • Even those at the same level use Omote-Ura • 2 JCHEMBAs at The Shack • + An Outsider

22. Another Management Tool Grid

23. OMOTE - SOTO • Setting: Formal meeting with out-group parties • Conflict avoidance - preserve harmony • No concessions should be made • Partial information exchange - tatemae

24. OMOTE - UCHI • Setting: Surface meeting with in-group members only (internal) • No conflict should exist, some might • Preserve tateshakai practices • Increased informational exchange • May discuss honne to determine tatemae

25. URA - SOTO • Setting: Informal meeting in public setting (Golf, dinner) • No conflict • No information exchange concerning negotiation topics • More information exchange to develop relationship

26. URA - UCHI • Setting: Informal meeting in a private setting (izakaya, private room) • Open conflict permissible • Full information exchange - Honne • The real deal – open conflict/dispute resolution

27. If you are a foreigner in Japan... • Need to resolve conflict within the organization; or • Need to resolve conflict with an outside organization.

28. Dispute resolution within your organization

29. Dispute resolution with an outside organization

30. Negotiating in Japan • Good luck… • … Let’s be careful out there.