SPOŁECZNA WYŻSZA SZKOŁA PRZEDSIĘBIORCZOŚCI I ZARZĄDZANIA W ŁODZI
KIERUNEK STUDIÓW: STOSUNKI MIĘDZYNARODOWE
Agata Grabka
Numer albumu: 19027
Katarzyna Domińczak
Numer albumu: 19063
Introduction:
Negotiations are bilateral process of communication between partners. It is process, in which each of sides wants to lead to decision beneficial for them.
Negotiations also take place to settle dispute, such as contract disputes, labour disputes r trade disputes.
The main goal of negotiation is understanding, making common decisions about purchase and sale of products and services, their amount, price, conditions and terms of payment and delivery.
Very often mercantile relations with enterprise require ability of negotiations and good communication.
Someone who takes part in negotiations is a negotiator, and someone who is good at getting what they want is a tough negotiator.
Another word for “negotiate” is bargain. This is also used to talk specifically about discussing and agreeing the price or something. And another name for negotiator is bargainer.
Preparing to negotiate:
Before negotiations begin, preparing and planning are very important.
First of all, you must get as much information as possible about situation. If dealing with people from another culture, find out about its etiquette and negotiations styles: the way people negotiate, what they consider to be acceptable an unacceptable behavior, and so on.
Secondly, you must work out your initial bargaining position. You must define your needs and objectives, so things that you wants to achieve. You should, also, decide your priorities.
Next, you should try to estimate the needs and objectives of the other side.
Very important is also preparing a fallback position, that are conditions that you will accept if your original objectives are not met.
Place, where you are going to meet is very important. You have a few options. So you can choose your own ground. It is very comfortable because you can be natural on your own area. You would also prefer to go to see the other side on their ground or choose meeting on neutral ground, for example in a hotel.
If you are negotiating as part of a negotiating team, you should consult your colleagues about places of negotiating, and allocate roles and responsibilities.
Beginning of negotiation:
At the beginning of the negotiation you should follow some very important steps.
When you already meet, obviously, you have to greet representatives of the other company and than introduce you colleagues. Offering a coffee and small talks are welcome, because in this way you create relaxing atmosphere. Now you can go to the meeting room and get down to the business. Very important, it is having a clear agenda and a timetable. We should make sure each point on the agenda is allocated the time it deserves and we should keep to the timetable.
We can pass on the right negotiations. First, we should give the background to the negotiations. We should talk about the situation, because it is a good way of reminding people of key facts and issues. Then we can kick off the negotiations themselves, by finding out more about the priorities of the other side (the things they think are most important) or talking about your our requirements.
Style of negotiations:
When you are negotiating with people from other cultures, it is important to think about what they consider as “normal” behavior. You will need think about some principal things, as body language, physical contact, conversational rules, relationship building, hierarchy or attitudes to time.
Negotiations across cultures:
“Culture” is the “way we do things here”. “Here” may be a country, an area, a social class or an organization, such as company or school.
On the world are millions or even billions different various groups. Each of them can have dissimilar behaviours, which consider as “normal” or sometimes only as “proper”. It is very easily to do something, what for us will be normal but for others will be wrong. Therefore, very important is getting to know areas of potential cultural misunderstanding.
In cross-cultural negotiations, above and beyond the issues of personal negotiation styles and techniques, one must consider the impact of cultural difference. This impact will often be tied to communication issues, increasing the possibilities of misunderstanding. Things that are said, left unsaid, or unclearly said can all create an extra layer of difficulty on top of the substantive issues to be discussed.
Cross cultural negotiations is about more than just how foreigners close deals. It involves looking at all factors that can influence the proceedings.
The main sphere of this misunderstanding is body language, which can be divided into a few categories, for example: facial expressions eye contact, touch, use of space, gestures, sounds and other actions.
Facial expression and eye contact:
They are major aspect of non-verbal communication. Facial expression and eye contact are also very important for a successful negotiation process. All of us – hundreds of times each day – read faces, but we don’t pay attention to this.
However, if we, for example, compare African, Arabian or Asian women with American women, we shall quickly establish that there are many cultural variations, and that the only behavior that has the same universal meaning seems to be the smile.
In some cultures eye contact is perceives as something improper or wrong. For example many Arabian and Africans will look down and avoid direct eye contact as a sign of respect. In cultures such as the Japanese, prolonged eye contact is considered rude and is generally avoided. In other cultures eye contact is sign of paying attention and interest. For Europeans and North Americans lack of eye contact is often an indication of lack of attention, and could be regarded as impolite. In South America eye contact is a sign of trustworthiness.
Personal Space:
Other issues of body language commonly worth considering are the aspects of “personal space” and physical contact. An individual's need for personal space varies from culture to culture.
Typically, to be comfortable, members of Western cultures desire a couple of feet of personal space. In some Asian cultures, more space may be desired. In Middle Eastern culture and some others, there may be much more physical contact as a norm, particularly between males. People of the opposite sex stand much further apart.
Japanese men stand four or five feet apart when having a discussion. Europeans and North Americans would probably regard having a conversation at this distance rather odd.
Contact between different genders however may be more limited in the Middle East than in Western norms.
All of these norms however, are subject to significant variation, however, dependent on the individuals in question and their exact relationship with one another. What works for good friends for example, may not work with strangers.
Touch:
Touching is significantly influenced by someone's background and culture. Some cultures, such as Arabs, may touch once or not at all, while North Americans could touch each other between two and four times an hour, according to some researchers. People from the United Kingdom, certain parts of Northern Europe and Asia touch far less, while in France and Italy people tend to touch far more frequently.
It is obvious that touch is a sensitive issue and, to be on the safe side, avoid touching during negotiation as far as possible.
Gestures:
Gestures in different cultures may be understanding in very various ways. For example, gestures such as a clenched fist or pointing the index finger, which is for many cultures sign of friendship, for others often reflect an aggressive or frustrated attitude. So, negotiators should avoid using these gestures.
Other gestures to avoid are 'thumbs up' and 'okay' signs. These have positive connotations in the UK and America, but in Iran and Spain the 'thumbs up' sign is considered obscene, while the 'okay' sign has a similar meaning in Greece, parts of Eastern Europe and Latin America. It could also mean 'worthless' or 'zero' in France.
In many regions of the world, to ask someone to approach you by beckoning with the upright forefinger is distinctly rude, as is the defiant gesture of disapproval indicated by the raising of a digit finger from a clasped fist on an extended arm.
Moving the head from side to side could indicate agreement in Asia, whereas elsewhere in the world a similar shaking of the head means the opposite.
There is a lesser gesture that could be more offensive than expected, namely when the foot on the upper crossed leg is pointed directly and frequently in the direction of people from especially the Middle East. The foot, when 'bounced on the knee' in the general direction of people from Islamic countries, can cause discomfort, perhaps even distaste, since it may symbolize, in body language terms, an accusing or threatening weapon. The solution is not to cross the legs when in such company and to take care in which direction the foot is pointed.
If you also keep your arms crossed over your chest and lean back in your chair besides just keeping your legs crossed, you could be demonstrating distaste or defensiveness.
Language:
In certain circumstances, language differences will require interpretative services on one or all sides. It is worth exploring the degree of language issues early on to prepare accordingly, before substantive discussions begin.
Deference and distance may be shown in language. Some language have many forms of address that you use to indicate how familiar you are with someone. English only has one form, “you”, but distance may be shown in other ways, for example, in whether first names or surnames are used.
For example in the English-speaking business world, people use first name, even with people they do not know very well. But if you are not sure, use Mr and the family name for men, and Mrs or Miss and the family name for women, depending on whether they are married or not.
Technical language is much harder to understand and translate and acronyms can be easily misunderstood. An acronym (PMO) may simply sound like an unknown word. Avoid acronyms where possible. Speaking slowly and enunciating can help.
In using translation, you will want to ensure that you are getting accurate and timely translation, so set clear ground-rules for your interpreters. Are they to summarize or to repeat word for word? Nothing is more disturbing than to hear a three minute speech translated with one short sentence.
In negotiations with people from another language group, rather than caucus in private, some people may simply start talking in their own language. One should be careful of such actions as you never know what language proficiency is on the other side of the table.
Relationship:
In Western culture, there may be varying degrees of comfort with personal relationships in a negotiation. Some people are inherently relationship builders by nature and want to get to know the other party before getting down to business. Others are more rational and “cut to the chase” by nature, and may see personal relationships as external to or even dangerous in a business deal.
Other cultures can approach relationships in different ways. South Americans for example are more likely to want to get to know you as a person before getting down to business. The same would be true of many Asian cultures.
Americans often see contracts as the answer to all questions in a business relationship, whereas Europeans, particularly from the south, may be more likely to see a contract merely as the starting point of the larger relationship.
In the Caribbean, personal ‘respect’ is a crucial value. The way you deal with people will be remembered for a long time, and reputation can be very important to doing business effectively.
Sounds and other Irritators:
Audible signs of nervousness such as clearing the throat, sighing or making 'phew' noises are easily recognizable. Cigarette smoking, jingling coins in the pocket, fidgeting in the chair, beads of perspiration or wringing hands are other signs of growing nervousness. More subtle indicators are pinching or picking at flesh or fingernails, tugging at the ears or clothes when seated, covering the mouth when speaking or simply not looking at the person being addressed. Some of these gestures can also imply suspicion. This is compounded if the negotiator edges away (or leans back) or if the feet or body is turned sideways towards the exit. More subtle indications are sideways glances, rubbing of the eyes, touching and rubbing of the nose or buttoning the coat while drawing away.
A lack of cooperation can be manifested through a stiffened back, or the authoritarian stance of hands grasped behind the back. Hands on the lapels of jackets will also send the same message.
Negotiators may be frustrated by any uncooperative behaviour. The frustration may materialize itself by audible sounds, taking short breaths or by clenching the hands tightly or making fist-like gestures. As this frustration increases, other more visible gestures may follow such as pointing the index finger, running hands through hair and rubbing of the neck. If negotiators are more self-controlled, they may hold their arms behind their backs, grip their wrists, or lock their ankles while sitting.
Other Areas of Misunderstanding:
Apart from nonverbal communication, other cultures could also be irritated by other habits and actions of negotiators such as the lack of attention to time and timing, to interpersonal relationships, dress, gift, etiquette, silence and the use of certain words and phrases.
Different cultures deal with time in very different ways. The inability of customers to keep to time is probably one of the most significant irritations in cross cultural negotiation. Those cultures that are less aware of exactness in time and timing, often cannot understand the preoccupation of Americans and others with time, and vice versa. South Americans and Africans may claim that the inability to be on time is only the unavoidable and unforeseen occurrence of other duties or unexpected duties placed on them by members of ruling families that draw them away from agreed meetings with Westerners.
An Arab, African or Spaniard seems to believe that the situation involving a family member would be understood as pause in negotiations, and they often fail to comprehend that such a reason would not be good enough for most Westerners. The Westerner would have been far less bothered if a phone call, rearranging the meeting, had been received.
In Western cultures, punctuality is generally seen as a positive, though in the extreme it can actually be seen as picky behaviour. In Japan and China, a failure to appear on time may be a serious breach of etiquette. In the Caribbean, the Arctic, South America or the Middle East, however, time is often seen as more fluid.
In Toronto, cutting to the chase may be quite acceptable, whereas in Tokyo, more time may need to be set aside for negotiations, to lay the groundwork for the relationships. Time might also be used as a weapon. In a Chinese negotiation, for example, the substantive discussions were delayed and delayed until two hours before the known departure time of a Canadian negotiator, putting added pressure on that negotiator to make concessions before leaving.
Whereas many North Americans see a “one issue at a time” approach as a rational one, a Saudi negotiating team may jump all over the map on the issues. Is it a strategy or a cultural trait? We often infer negative intention from actions that have a negative impact on us, but we need to be careful about such knee jerk reactions. By clarifying the process in advance, we are less likely to be surprised in a negative way.
‘Time’ is therefore a major area of culture clash. Precise habits are often regarded by some cultures as strange because it disregards the importance of the right ‘psychological timing’ in negotiation. Westerners will often plough ahead with unpopular subjects simply because the clock and agenda indicate that they should.
Western negotiators are often hopelessly unaware of the personal relationships and general local under currents that dominate decision making in some countries and cultures. They are therefore well advised to be patient. But they should always be ready to act very quickly once a decision to proceed has been taken. This can occur quite without warning. As a rough guide, 95% of time spent in Japanese business activity will be spent discussing, collecting information, and waiting, followed by a 5% period of intense work against impossible deadlines
Simple issues we take for granted can make a difference in cross-cultural settings. How do you greet someone, with what level of formality? First name jocularity may work wonderfully in USA., but is improper in China where formality is more the norm.
There are many questions, on which we have to answer ourselves before starting negotiations. For example, how should we dress to meet a senior government official in hot summer? Are gifts appropriate? Required? What are personal space norms? Are certain topics acceptable, and if so when can they be raised comfortably?
There may even be protocols that we will never be aware of. For example, in Belgium, failing to properly introduce everyone might ruffle feathers and in Saudi Arabia, showing the sole of your shoe to your host would be considered a breach of etiquette.
Lack of understanding of etiquette can lead to tension, discomfort, and mistrust.
Most international business people meet with a handshake. In some countries this is not appropriate between genders. Some may view a weak handshake as sign of weakness, while in Saudi Arabia, it would be quite normal for a visitor to be greeted by their male host with a very soft handshake and a kiss, then taken by the hand and walked hand in hand around a party being introduced to everyone. Such an activity would make many North American males a tad uncomfortable, but understanding the nature of the cultural norms can make the experience far less daunting. On the other side a firm handshake would be perceived as aggressive.
One of the most common and deeply felt value clashes that can occur between cultures is triggered by gender issues. In Saudi Arabia, for example, most Western companies will use male personnel in negotiations, out of concern that female negotiators will not be heard and respected in the same way by the Saudi Negotiators.
Many aspects of gender relations crop up under some of the other categories set out above, such as etiquette and relationship building. It is worth spending time to consider the impact of gender dynamics on either side of the table, before plowing ahead into unknown territory.
North American and European cultures generally values a rational, analytical, straight-forward approach to information, but at the same time, many North Americans typically keep their cards close to their chests and are reluctant to disclose. The approach to information often varies with the parties' personalities and their relationship at the time, as well as other factors. The greater the level of trust, the more likely that fuller disclosure will occur.
Other cultures may approach information and trust in different ways. Some cultures are more risk averse than others, though typically, our training suggests that most cultures world- wide have a broad component of risk-averse individuals and a small subset of risk-takers.
Public loss of temper could, in many cases, end all further discussion or association. A person who has been seen to lose his temper will, in many countries, be regarded with suspicion and this behaviour must be changed if the project is to go forward. The whole process of developing trust and a close and personal relationship will then have to start from the very beginning.
Most Westerners find silence embarrassing and will seek to fill a gap in conversation. Many cultures are wholly unembarrassed by silence and are content with being in another's company. Speech is not always essential on such occasions, and there can be long periods of silence, intermingled with periods of gossip and story telling. Many cultures are aware of, and are perhaps amused by, the stress that silence can cause in Westerners, and it is not unknown for negotiators deliberately to create an embarrassing period of silence when bargaining perhaps to encourage a concession from the other side. The solution is to be ready to fall silent, and to remain silent.
As a general rule a business visitor to a foreign country should dress well. Men should dress in a good suit and tie in most foreign countries. Be patient, be punctual, expect to wait, and do not be overly demonstrative in personality or mannerism. Businesswomen in Islamic countries should take care to dress with slightly lower hemlines than in the West and with the shoulders and arms covered down to the wrist.
Next area of misunderstanding in negotiation is gift-giving. Before we give our partners some gift we should answer ourselves some very important questions. Where gifts are exchanged should one give lavish gifts? Are they always reciprocated? Should they be wrapped? Are there some things that should be avoided?
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