HBM339 Transnational Business Practices

Cross Cultural
Negotiations

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

The Meaning and Nature of Culture

 A culture is a shared template for behavior and

interpretation
Although people hardly ever notice their own culture, culture
supplies important boundaries on behavior. Culture is adaptive,
dynamic, and patterned. People learned culture either by
growing up in it as natives or through the process of
acculturation.

 Culture consists primarily of values and norms

• Values are enduring beliefs about desirable outcomes that
transcend specific situations and shape one’s behavior.
• Norms are informal, usually unspoken rules that govern behavior.

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

Culture

Beliefs - consist of a number of mental or verbal statements that

reflect a person’s particular knowledge assessment of something.

Values - are basically beliefs except that they are relatively few
in number, serve as a guide for culturally appropriate behavior,
are enduring or difficult to change. They are not tied to specific
objects or situations and are widely accepted by members of
society.

Customs - are modes of behavior that constitute culturally

approved or acceptable ways of behaving in specific situations.

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

Elements of Culture

Material Culture
Social Institutions
 Social Organization
 Education
 Political Structures
Man and the Universe Belief Systems
Aesthetics
 Graphic and Plastic Arts
 Folklore
 Music, Drama, and Dance
Language

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

Australian Aesthetics

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

Cultural Adaptation

Cultural
CulturalImperatives
Imperatives

Cultural
CulturalAdiaphora
Adiaphora

Cultural
CulturalExclusives
Exclusives

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

Contextual Background of
Various Countries

High
Japanese Context
Arabian Implicit

Latin American

Spanish
Italian

English (UK)
French
North American (US)
Scandinavian
Low German
Context
Explicit Swiss

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

Cultural Factors

 Never touch the head of a Thai or Pass an object over it

 The head is considered sacred in Thailand.
 Avoid using triangular shapes in Hong Kong,
Korea, and Taiwan.
 The triangle is considered a negative shape
 The number 7 is considered bad luck in Kenya and good
luck in the Czech Republic and Magical connotation in
Benin, Africa
 The number 10 is bad luck in Korea.
 The number 4 means death in Japan
 Red represents witchcraft and death in many African
countries
 Red is a positive color in Denmark

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

 Cultural Skills

 Communicate Respect for People and their Culture

 Tolerate Ambiguity

 Display Empathy

 Be Nonjudgmental

 Recognize and Control Your SRC (Self-Reference Criterion)

 Laugh Things Off

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

Hall’s Silent Languages

Language
Languageof
ofTime
Time

Language
Languageof
ofSpace
Space

Language
Languageof
ofThings
Things

Language
Languageof
ofFriendship
Friendship

Language
Languageof
ofAgreements
Agreements

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

 Cross Cultural Negotiation

FOUR STAGES OF BUSINESS NEGOTIATIONS

Japanese Americans
Nontask Sounding Considerable time Relatively shorter
and expense devoted period are typical.
to such efforts is the
practice in Japan.
Task-related This is the most Information is given
Exchange of important step - high briefly and directly.
Information first offers with long "Fair" First offers are
explanations and in- more typical.
depth clarifications.

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

 Cross Cultural Negotiation

Japanese Americans
Persuasion Persuasion is accom- The most important
plished primarily minds are changed at
behind the scenes. the negotiation table
Vertical status and aggressive
relations dictate persuasive tactics
bargaining outcomes. used.
Concessions and Concessions are Concessions and
Agreement made only toward the commitments are
end of negotiations - made throughout - a
a holistic approach to sequential approach
decision making. to decision making.
Progress is difficult to
measure for
Americans.

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

 Summary of Japanese and American
Business Negotiation Styles
Category Japanese Americans
Language Most Japanese executives Americans have less time to
understand English, formulate answers and
although interpreters are observe Japanese
often used. nonverbal responses
because of a lack of
knowledge of Japanese.
Nonverbal behaviors The Japanese interpersonal American business people
communication style tend to "fill" silent periods
includes less eye contact, with arguments or
fewer negative facial concessions.
expressions, and more
periods of silence.
Values Tatemae is important. Speaking one's mind is
Vertical buyer/sellers important. Buyer/seller
relationship with sellers relationships are horizontal.
depending on good will of
buyers (amae) is typical.

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

 Cultural Differences between Japanese
and American Individual Lifestyles

Americans Japanese Cultural

A Culture of Self-expression A Culture of Self-restraint Background

Clear expression of joy Ambiguous expression of Reticence

and sorrow Joy/Sorrow
Unequivocal expression Equivocal expression of Modesty
of “Yes/No” “Yes/No”
Strong self-assertion Weak self-assertion Reserve
Strong personality Weak personality Punctiliousness
Excellent negotiating Poor negotiating skills Politeness
skills
Priority of self-interest Priority of harmony with Obligation
others

SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone Tomorrow,”

Tokyo Business, February 1995, p.50.

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

 Cultural Differences between Japanese
and American Social Life
American Society Japanese Society
Dignity of Individuals “In the Same Boat” Concept

Dignity of individuals Human relations oriented

Individual work ethic Dependence on the group
Great individual freedom Lack of individual freedom
Respect for rules Low regard for rules
An open and transparent A closed society, lacking in
society transparency
Multi-cultural society Mono-cultural society
A society excelling in creativity and An orderly and uniform society
versatility
Individual decisions over consensus Dependence on consensus
A society which pursues the ideal A society which pursues harmony
with reality
SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone Tomorrow,”
Tokyo Business, February 1995, p.50.

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

 Cultural Differences between Japanese
and American Business

American Business Japanese Business

Game concept: Business is a game in Mutual trust-oriented business:
pursuit of profits under the rules of laws business is based on trusting relationship
and contracts among people rather than
the rules of game
Efficiency-oriented and approximate Highly precision-oriented and
accuracy simplicity, clarity, and quickness perfectionism-high dependency on human
awareness
Quantity-oriented Quality-oriented
Short-term performance evaluation Mid-to-long term evaluations
Easy layoffs, dismissals of employees, and Job security
selling of businesses

SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone tomorrow,”

Tokyo Business, February 1995, p.51.

©Times Mirror Higher Education Group, Inc., 1995 IRWIN

 Cultural Differences between Japanese
and American Business

American Business Japanese Business

Top down management Heavy dependence on human resources
bottom-up management and teamwork
Low mutual dependence between High mutual dependence between
employers and employees employers and employees
Control of business by stockholders and Joint management of business by
the management Employees and Employees
Management by "force" Management by "motivation"
Heavy dependence on machinery and Heavy dependence on human resources
technology, vs. Light dependence on
human resources
Limited loyalty and incentive-oriented work Strong loyalty and fewer incentives
ethics
Excellent software-based technology Inadequate software development ability
development

SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone tomorrow,”

Tokyo Business, February 1995, p.51

©Times Mirror Higher Education Group, Inc., 1995 IRWIN