Tips on Negotiating Better in

Cross-Cultural Relationships
Track 3-World Class Negotiation Techniques

The 63rd Annual Southwest

Purchasing Conference
By

Thomas L. Tanel, C.P.M., CTL, CCA, CISCM ,

CATTAN Services Group, Inc.

College Station, TX
cattan@cattan.com
Created by CATTAN Services Group, Inc. 2009

Negotiating in the Global Arena

The Importance of Culture

Culture comes from the Latin word "colere",
meaning to build on, to cultivate, to foster.
Culture is a set of accepted behavior patterns,
values, assumptions, and shared common
experiences.
Culture defines social structure, decisionmaking practices, and communication styles.
Culture dictates behavior, etiquette, and
protocol.
Culture is something we learn.
Culture is communication.

Cultural Sensitivity
When negotiating make it a point to know
your counterparts.
Communicate in a form that will most likely
be understood as it is intended.
This means the negotiator must:
Be aware of their own culture
The recipients culture
The expectations surrounding the situation

How Culture Impacts Negotiation

By conditioning ones perception of
reality
By blocking out information
inconsistent or unfamiliar with
culturally grounded assumptions
By projecting meaning onto the
other partys words and actions
By pushing the ethnocentric
negotiator to an incorrect
attribution of motive

Cross-Cultural Negotiations
Involve

The Communication Process

Cultural communications are
deeper and more complex
than spoken or written
messages. The essence of
effective cross-cultural
communication has more to
do with releasing the right
responses than with sending
the right messages.
Hall and Hall

Halls Cultural Factors

Context
Time
Space

High and Low Context

In a high-context culture, there are many
contextual elements that help people to
understand the rules.
As a result, much is taken for granted.
In a low-context culture, very little is taken
for granted.
This means that more explanation is
needed.

High Context and Low Context Cultures

Source: Munter, M. Cross-cultural Communications for Managers, Business Horizons, May/June 1993.

Contrasting the Two Contexts

Factor

High-Context
Culture

Overtnessof
messages

Many covert and implicit

messages, with use of
metaphor and reading
between the lines.

Many overt and explicit

messages that are
simple and clear.

Inner locus of control

and personal acceptance
for failure.

Outer locus of control

and blame of others for
failure.

Much nonverbal
communication.

More focus on verbal

communication than
body language.

Locusofcontrol
andattribution
forfailure
Useofnon-verbal
communication

Low-Context
Culture

Contrasting the Two Contexts

Factor

High-Context
Culture

Low-Context
Culture

Expressionofreaction

Reserved, inward reactions.

Visible, external, outward

Reaction.

Cohesionand
separationofgroups

Strong distinction between

in-group and out-group.
Strong sense of family.

Flexible and open grouping

patterns, changing as
needed.

Strong people bonds with

affiliation to family and
community

Fragile bonds between

people with little
sense of loyalty.

High commitment to longterm relationships.

Relationship more important
than task.

Low commitment to
relationship.
Task more important than
relationships.

Time is open and flexible.

Process is more important
than product.

Time is highly organized.

Product is more important
than process.

Peoplebonds
Levelofcommitment
torelationships
Flexibility
oftime

Cultural Impact on Messages and

Context in Negotiations

Source: Adapted from Edward Halls book Beyond Culture, 1976.

Chronomics: Time Orientation and

Predictable Patterns
Monochronic or M-Time,
as Hall called it, means
doing one thing at a time.
Monochronic people tend
also to be low context.
In Polychronic cultures,
human interaction is
valued over time and
material things, leading to
a lesser concern for
'getting things done
Polychronic people tend
also to be high context.

ChronomicsCountry Comparison with

Differing Time Orientation Systems

Monochronic

Polychronic

Germany
Canada
Switzerland
Australia
United States
Scandinavia

Saudi Arabia
France
Egypt
Greece
Mexico
Philippines

Culture & Chronomics Decision Making:

Process Time versus Implementation Time
UNITED STATES
Process
Process

Implementation
Implementation
JAPAN

Process
Process

Implementation

Halls Cultural Space Orientation

Space orientations
differ across cultures,
according to Hall.

Space also relates to comfort with

eye contact and attributions related
to eye contact or lack of eye contact.
There are large differences in
spatial preferences according to
gender, age, generation,
socioeconomic class, and context.
These differences vary by group,
but should be considered in any
exploration of space as a variable in
negotiations.

Space and Proxemics

Hall was concerned about space and our
relationships within it.
He called the study of such space-Proxemics.
Some people need more space in all areas.
People who encroach into that space are seen
as a threat.
Some people are more territorial than others
with greater concern for ownership.

Edward Hall's Definitions of Space

Hall's most famous innovation has to do with the
definition of the informal, or personal spaces that
surround individuals:
Intimate space--the closest "bubble" of space
surrounding a person.
Social and consultative spaces--the spaces in which
people feel comfortable conducting routine social
interactions with acquaintances as well as strangers.
Public space--the area of space beyond which people
will perceive interactions as impersonal and relatively
anonymous.

Edward Hall's Theory of Proxemics

and Personal Space
The nature of the message communicated also affects interaction distances.
Average comfortable distances among North Americans are shown below:
Distance Between Faces

Tone of Voice

Type of Message

Very close (3-6")

Soft whisper

Top secret or Sensual

Close (8-12")

Audible whisper

Very confidential

Neutral (20-36")

Soft voice
Low volume

Personal subject matter

Neutral (4.5-5')

Full voice

Non-personal information

Across the room (8-20')

Loud voice

Talking to a group

Stretching the limits

(20-24' indoors and
up to 100' outdoors)

Loud hailing voice

Departures and arrivals

Derived from The Silent Language by Edward Hall (1959)

Proxemics: High Territoriality

Versus Low Territoriality
High territoriality people
seek to mark out the
areas which are theirs.
Territoriality also extends
to anything that is 'mine'
and ownership concerns
extend to material things.
Security thus becomes a
subject of great concern
for people with a high
need for ownership.
People with high
territoriality tend also to
be low context.

People with lower

territoriality have less
ownership of space and
boundaries are less
important to them.
They will share territory
and ownership with little
thought.
They also have less
concern for material
ownership.
People with low
territoriality tend also
to be high context.

Proxemics: High Territoriality

Versus Low Territoriality

Typical American Office

Typical Japanese Office

Geert Hofstede Model of

Cultural Dimension Analysis
Dr. Geert Hofstede conducted
perhaps the most comprehensive
study of how values in the
workplace are influenced by
culture.
From 1967 to 1973, while working
at IBM as a psychologist, he
collected and analyzed data from
over 100,000 individuals from forty
countries.

Geert Hofstede Dimension Analysis

Culture is more often a source
of conflict than of synergy.
Cultural differences are a
nuisance at best and often a
disaster."
--Dr. Geert Hofstede

Professor Geert Hofstedes

The Five Dimensions of Culture

Power/Distance (PD)
Individualism (IDV)
Masculinity (MAS)
Uncertainty Avoidance
Index (UAI)
Long Term Orientation
(LTO)

Hofstedes Model
Power/Distance (PD)

High PD

Low PD

Characteristics

Tips

Centralizedcompanies.
Stronghierarchies.
Largegapsincompensation,
authority,andrespect.

Acknowledgealeader's
power.
Beawarethatyoumayneed
togotothetopforanswers

Flatterorganizations.
Supervisorsandemployees
areconsideredalmostas
equals.

Useteamwork
Involveasmanypeopleas
possibleindecisionmaking.

Culture Dimension Score for 10

CountriesPower/Distance (PD)

Hofstedes Model
Individualism (IDV)

Characteristics

Tips

High IDV

Highvaluationonpeople'stime
andtheirneedforfreedom.
Anenjoymentofchallenges,andan
expectationofrewardsforhard
work.
Respectforprivacy.

Acknowledgeaccomplishments.
Don'taskfortoomuchpersonal
information.
Encouragedebateandexpression
ofownideas.

Low IDV

Emphasisonbuildingskillsand
becomingmastersofsomething.
Workforintrinsicrewards.
Harmonymoreimportantthan
honesty.

Showrespectforageandwisdom.
Suppressfeelingsandemotionsto
workinharmony.
Respecttraditionsandintroduce
changeslowly.

Culture Dimension Score for 10

CountriesIndividualism (IDV)

Hofstedes Model
Masculinity (MAS)

High MAS

Low MAS

Characteristics

Tips

Menaremasculineandwomenare
feminine.
Thereisawelldefineddistinction
betweenmen'sworkandwomen's
work.

Beawarethatpeoplemayexpect
maleandfemalerolestobedistinct.
Advisementoavoiddiscussing
emotionsormakingemotionally
baseddecisionsorarguments.

Awomancandoanythingaman
cando.
Powerfulandsuccessfulwomenare
admiredandrespected.

Avoidan"oldboys'club"mentality.
Ensurejobdesignandpracticesare
notdiscriminatorytoeithergender.
Treatmenandwomenequally.

Culture Dimension Score for 10

CountriesMasculinity (MAS)

Hofstedes Model
Uncertainty Avoidance Index (UAI)

High UAI

Low UAI

Characteristics

Tips

Veryformalbusinessconductwith
lotsofrulesandpolicies.
Needandexpectstructure.
Senseofnervousnessspurnshigh
levelsofemotionandexpression.
Differencesareavoided.

Beclearandconciseaboutyour
expectationsandparameters.
Planandprepare,communicateoften
andearly,providedetailedplansand
focusonthetacticalaspectsofajob
orproject.
Expressyouremotionsthroughhand
gesturesandraisedvoices.

Informalbusinessattitude.
Moreconcernwithlongtermstrategy
thanwhatishappeningonadaily
basis.
Acceptingofchangeandrisk.

Donotimposerulesorstructure
unnecessarily.
Minimizeyouremotionalresponseby
beingcalmandcontemplating
situationsbeforespeaking.
Expresscuriositywhenyoudiscover
differences.

Culture Dimension Score for 10 Countries

Uncertainty Avoidance Index (UAI)

Hofstedes Model
Long Term Orientation (LTO)

Characteristics

Tips

High LTO

Familyisthebasisofsociety.
Parentsandmenhavemore
authoritythanyoungpeopleand
women.
Strongworkethic.
Highvalueplacedoneducation
andtraining.

Showrespectfortraditions.
Donotdisplayextravaganceor
actfrivolously.
Rewardperseverance,loyalty,
andcommitment.
Avoiddoinganythingthatwould
causeanotherto"loseface".

Low LTO

Promotionofequality.
Highcreativity,individualism.
Treatothersasyouwouldliketo
betreated.
Self-actualizationissought.

Expecttolivebythesame
standardsandrulesyoucreate.
Berespectfulofothers.
Donothesitatetointroduce
necessarychanges.

Culture Dimension Score for 10

CountriesLong Term Orientation (LTO)

West versus East Cultural Values:

Halls and Hofstedes Data Applied
Dimensions

United
States

United
Kingdom

Singapore

Korea

Power
Distance

Small

Small

Large

Large

Individualism

Individualist

Individualist

Collectivist

Collectivist

Masculinity

Masculine

Masculine

Feminine

Feminine

Uncertainty
Avoidance

Weak

Weak

Strong

Strong

Time Perspective
& Orientation

Monochronic
Short-term

Monochronic
Short-term

Polychronic
Long-term

Polychronic
Long-term

Communication
Context

Low
Context

Low
Context

High
Context

High
Context

Principles of Paralanguage

Paralanguage refers to the vocal

aspect of communication.

Vocal elements of language vocal

elements involve sound and its
manipulation for certain desired or
undesired effects.

Verbal elements are the particular

words we choose when speaking.

Ingredients of Paralanguage:
Voice Qualifiers and Segregates
Voice Qualifier
Examples:

Voice Segregate
Examples:

Intensity
Pitch
Resonance
Tempo

Uh"
Um"
Uh-huh"
Silent pauses

Messages in the Voice

Infer Emotional States
Feeling

Intensity

Pitch

Resonance

Tempo Enunciation

Anger

Loud

High

Blaring

Fast

Clipped

Joy

Loud

High

Moderately
Blaring

Fast

Somewhat
Clipped

Sadness

Soft

Low

Booming

Slow

Slurred

Nonverbal Communication:
Kinesics and Proxemics Acts
Kinesics: The study of
nonverbal gestures, facial
expressions, eye contact,
and body posture.

Proxemics: The study of the

use of space, touch, and
distance as features of
nonverbal communication.

Other Non-Verbal Communication

1. Haptics

Touch, Arm and Hand

Movements

2. Paralanguage

Non-Verbal Elements of Speech

3. Paraverbal

Non-Lexical Aspects of Verbal

Communication

4. Olfactory

Smells

Non-Verbal Communication
Dangers of Overgeneralizations

We cannot assume everybody in a culture behaves the same

way

Infrequent actions should not be used to characterize a culture

We should not ignore that nonverbal behaviors are part of

complex communication processes

Silence: Is Also Part of

Nonverbal Communication
Sends nonverbal clues during
communication
Culturally determined
Igbos Tribe of Nigeria adage:
Its not the sound you hear that I will have
to dance to.

Silence As A Part of
Cultural Communication
The distribution of speaking and
silence in conversations is
influenced by the specific individual
participants.
But it is also something which is
observed and interpreted very
differently in different cultures.
Silence can shape sequences of
speech, carry meaning, and
organize the social relationships
between speakers.

Recent Cross-Cultural Negotiation

Lessons Learned
Greeks: Relationships are the linchpin of business dealings, since
Greeks prefer to do business with those they know and trust. Greeks
prefer face-to-face meetings rather than doing business by telephone or
in writing. Business is conducted slowly. Greeks are skilled negotiators
and they love to argue and debate.
Malaysians: Focus on the credibility of your organization and its
management and leadership. Negotiations will be lengthy and you
should have every detail of your proposal worked out before presenting
it. Building long-term relationships with individuals from Malaysia is a
long-term process. Remember to remind them frequently of your
offer---the repetition of key points in your proposal.
Argentineans: Decisions are made at the top and you often need
several meetings and extensive discussion to make deals. Argentines
are tough negotiators. Concessions will not come quickly or easily.
Good relationships with counterparts will shorten negotiations. Be
punctual for business appointments, but be prepared to wait for your
counterpart. Spanish is heavily influenced by Italian and is unlike
Spanish spoken anywhere else.

Recent Cross-Cultural Negotiation

Lessons Learned
Indians: The pace of business meetings in India is comparatively far
more relaxed than in the United States. Indians are somewhat lax
about time. The word No" has harsh implications in India. Remember
that hierarchy, titles and degrees are very important. More open to
unstructured ideas and situations but very literal in some respects.
Chinese: Be aware of their non-verbal messages and provide them
with enough information for their decision-making process which is
slow. Allow them to save face. The most important member of your
negotiation team should lead important meetings. Chinese value rank
and status as well as a long-term approach.
Arabs: Communications occur at a slow pace. "Yes" usually means
"possibly". Arabs will also employ some body contact to emphasize a
point or confirm that they have your attention. It is important not to
draw back, however. This may be interpreted as a rebuff or rejection of
what is being said. Respect is a value that is held very highly by the
Arab people. Be aware that they may use deceptive price-negotiation
strategiesdon't give away your minimum acceptable position too
soon or be taken in by their flattery.

Cross-Cultural TipsNot
Everyone Negotiates Like Americans
Cultural differences influence negotiations
Intercultural differences may cause
misperception and misunderstandings
Body language is important at the local
cultural level
Subculture issues may be present
Moderate adaptation to a counterparts
culture is perceived positively

Cross-Cultural Negotiation Degree

of Difficulty for Americans
Highest

Africa
Middle East
Far East
South America
Eastern Europe/Russia
Western Europe/Scandinavia
Australia/New Zealand

Lowest

Cross-Cultural TipsPerceptions
& Negotiations
Discovering the other sides interests is an
exercise in discovering perceptions.
Appreciating perceptions helps us
distinguish between people and problems.
Understanding perceptions can expand
the range of possible solutions to achieve
negotiations rapport with the other side.

THANKSQuestions???