Negotiation Across Cultural Differences
Negotiation is not only a difficult task because it involves so many different factors, but it also requires a lot of skill, particularly in the context of a global business. Cross-cultural negotiation is a challenge because of the complexity of the arguments. It’s also a crucial skill for managers, especially in a cross-cultural business context.
It is not easy to come to an understanding when there are cultural differences. Japanese culture avoids confrontation and is emotionally reserved. Japanese negotiators use indirect methods to communicate their disapproval, which can lead foreign businessmen believing that they are still being considered. In fact, the Japanese have rejected the proposals. There is friction when negotiators are in conflict. A French negotiator can feel frustrated if he is too direct or emotional, while a Chinese negotiator is more tolerant, listening and values relationship. French negotiators may be perceived as disrespectful or ignorant if they do not have cross-cultural awareness.
Secondly, different cultures have very different ways of negotiating and settling agreements. This is due in part to their decision-making styles. In a consensus culture, decision-making can take a lot of time because everyone is involved. In a culture that is top-down, decision-making power is given to a single person. Managers in a consensus culture, like China, will tend to negotiate at length and carefully read through contracts. American managers, however, will use a more concise and rapid approach to negotiate. The negotiating attitude also influences the way cultures approach negotiation. Chinese companies think of negotiations as win-win situations, while some others do not.
The difference in meaning is directly related to the different cultures. Top-down cultures prefer clear, detailed contracts that are free of ambiguity. Chinese culture places more emphasis on relationships and allows for flexibility on the contract. Third, while negotiations are more efficient in person than over e-mail or other electronic means, it’s becoming increasingly common to have them. It can be difficult to maintain negotiation dynamics and recognize cues. Brake suggests three main challenges of virtual communication: the lack context, the frequency and the insight.
It was only after a personal experience, where I worked with a design agency and they tried to negotiate a contract via email for a task that I was responsible for, did I realize their difficulty. They lacked context and understanding. Brake points out that emailed communication is good for simple collaborations. For example, exchanging instructions or reports. This was a complex negotiation that required rational decision making. Meeting face-to-face was the best option to overcome most technology barriers.
