Professional Documents
Culture Documents
Chapter 7
Cross-Cultural Communication
and Negotiation
International Management Ninth Edition Luthans | Doh
Negotiation Approaches
– Distributive Bargaining
• Negotiation that seeks to divide up a fixed amount of resources; a
win-lose situation. OR
• Two parties with opposing goals compete over a set value.
– Integrative Bargaining
• Negotiation that seeks one or more settlements that can create a
win-win solution
• two groups integrate interests, create value, invest in the
agreement (win-win scenario).
International Management Ninth Edition Luthans | Doh
• Personality Traits
– Extroverts and agreeable people weaker at distributive
negotiation – disagreeable introvert is best
– Intelligence is a weak indicator of effectiveness
• Mood and Emotion
– Ability to show anger helps in distributive bargaining
– Positive moods and emotions help integrative bargaining
• Gender
– Men and women negotiate the same way, but may
experience different outcomes
– Women and men take on gender stereotypes in
negotiations: tender and tough
– Women are less likely to negotiate
International Management Ninth Edition Luthans | Doh
Global Implications
• Conflict and Culture
– Japanese and U.S. managers view conflict differently
– U.S. managers more likely to use competing tactics
while Japanese managers are likely to use compromise
and avoidance
• Cultural Differences in Negotiations
– Multiple cross-cultural studies on negotiation styles, for
instance:
• American negotiators are more likely than Japanese bargainers
to make a first offer
• North Americans use facts to persuade, Arabs use emotion,
and Russians used asserted ideals
• Brazilians say “no” more often than Americans or Japanese
International Management Ninth Edition Luthans | Doh
Negotiation Tactics
• Location
– Most businesses will choose a neutral site.
• Time limits
– An important negotiation tactic when one party is
under a time constraint.
• Buyer-seller relationship
– Some trade favors, others expect buyer to get all.
International Management Ninth Edition Luthans | Doh
Negotiation Tactics
• Five general principles
1. Separate the people from the problem: see other’s side,
avoid blame, stay positive; recognize emotions.
2. Focus on interests over positions: gives insight into the
motivation behind why a particular position was chosen.
3. Generate a variety of options before settling on an
agreement: better for everyone to have many options.
4. Insist that the agreement be based on objective
criteria: emphasize the communal nature of the process.
5. Stand your ground: neither side should agree to terms
that will leave it worse off than its best alternative to a
negotiated agreement, or BATNA.
International Management Ninth Edition Luthans | Doh
Bargaining Behaviors
• Bargaining behaviors are both verbal and
nonverbal.
– Use of extreme behaviors: Some begin with an
extreme offer or request.
– Promises, threats, and other behaviors: often
greatly influenced by the culture
– Nonverbal behaviors: silent language (silent
period, facial gazing, touching, conversational
overlaps)
International Management Ninth Edition Luthans | Doh