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Intercultural Communication Consequences for International Business & Negotiations: Pellegrino Riccardi Det Norske Veritas
STAGES OF A NEGOTIATION Set the Scene Agree on the issues Bargaining xxxxxxx Agreement Set & maintain the climate Maximise Power Persuasion Resolving Deadlock
CULTURE sharedpatternsof behaviours a system of values, beliefs, assumptions and norms, shared by a group of poeple collectiveprogrammingof the mind
EXAMPLES OF HEROES FROM YOUR CULTURE (alive or dead) HEROES VALUES
HEROES Norwegian VALUES
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 Distancecultures • 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
Sources of POWER POWER is in the head CreateDOUBTin the other person Create MOVEMENT towards the goal
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?
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
VoiceConversation PatternsReserved Cultures 1. _________ ___________ 2. ___________ ____________
VoiceConversation OverlapExpressive Cultures 1. _________ _ _ ___________ _ _ ___________ 2. _ _ ___________ _ _ ____________
ReservedmeetsExpressive 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
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