Cultural differences in negotiation

Today we are going to talk about the cultural behavior and patterns of communication in negotiations. First, we will present some general aspects of cultural diversity and how can this influence the process of negotiation. Second, we will focus on one of the intercultural dimensions in vision of the researcher Geert Hofstede and will see how we can characterize a culture using his criteria. And finally, well refer to some of the most important, powerful and influential cultures in the world, and we will find how to act in such countries if we want success in business.

Cultural diversity is one of the characteristics of negotiation that takes place at the international level. International negotiations present a number of features as the role of distance or greater complexity and duration of the negotiation process. The main elements which distinguish international negotiation from national negotiation are: cultural differences between legal systems, as well as those between political and administrative systems. Culture can be a way of thinking of a community for a national culture (values, beliefs, rules, symbols, etc.), enterprise culture (shared values and rules of action promoted within a company), or professional culture (engineer, trader, etc.). International negotiator is defined by the intersection of several cultural spheres, such as those set out above, but national culture plays a decisive role in his thinking and his behavior. In present, there are many ways for a culture to be characterized, and that's why we want to present you one of the intercultural dimensions in vision of the researcher Geert Hofstede.

GEERT HOFSTEDE
Reporting to a group (IDV) Power distance (PDI) Uncertainty Avoidance (UAS) Gender orientation (MAS) Temporal orientation (LTO) Individualism High Inalt Masculinity Short time Collectivism Low Scazut Feminity Long time

Culture is the collective programming of the mind distinguishing the members of one group or category of people from others (Geert Hofstede)

Reporting to a group (IDV) A high degree of individualism shows that the accent is on the individual interests and the interpersonal relations between the members of these societies there are very weak. A low degree of individualism is in collectivity societies with very close relations between members. In those cultures, are created families and communities in which every member is responsible for the rest. In collectivist cultures, the first thing that puts a person's worth are family ties, religious beliefs, or membership of certain organizations. Uncertainty Avoidance (UAS) In cultures with high uncertainty avoidance, people feel threatened in unsafe situations, and they prefer stability. Are also shown fear in different situations, unusual risks, strict laws and rules. Instead, in a culture with a low degree of uncertainty avoidance, people are able to accept risks in future events. It is characterized by calm in unusual situations, tolerance and moderation. Power distance (PDI) The power distance expresses the equality or inequality among members of a society. A great value of power distance shows that within the company were left to develop in terms of inequalities of power. In those type of societies there is a caste system that does not allow citizens to climb the social ladder. A small value of power distance shows that the company removes the differences in power between citizens. In these companies are pursuing gender equality and opportunities for everyone. Gender orientation (MAS) Feminine values emphasize the environment (quality of life) and the social problems (solidarity and justice), while male values show a special insistence upon economic success, performance and efficiency. In fact, the index of masculinity is based on criteria such as professional life over the predominance of private life, ambition, or individual decisions. In contrast, in female cultures, work is what creates cooperation between employees, and work conditions (social climate, stress reduction, understanding between employees). Temporal orientation (LTO) Long-term orientation is characterized by perseverance, organization of relationship through statute and overseeing their operation, and holding the feeling of shame. Short-term orientation is characterized by personal safe and stability, respect for tradition, reciprocity in favors and gifts.

SUA VS. GERMANY The American negotiating style is probably the most influential in the world. The process of negotiation is characterized by a positive and informal attitude, they use aggressive tactics to increase the power and they are risks takers. American business people feel that a silence can be embarrassing and hence it must be filled up with conversation. The fact that Americans are likely to talk loudly is often interpretive in Europe as aggressive or uncultivated behavior. Four features that we can identify in relation to the American negotiator are: exuberance, professionalism, ability to do business and interest for packages. In part, these features can be found in American history, the pioneers who tried to find a new way to live, risking enormous through the expanding borders, being seriously affected by the commercial instincts of the Jewish inhabitants. Very often, the tempo of life has an impact on peoples behavior. For instance, Americans appear to be living and working at a rapid pace. This is due to the credo time is money and money talks. They do not like to waste time and are always punctual. They also have some weak points such as the need of efficiency, weak capacity of listening, cultural insensibility or an exaggerated legalism. The German negotiating style looks totally different. It is a very powerful style and the preparation for a negotiation is absolutely beautiful. German negotiator sees the deal that hoped to make and identifies the issues that considers it should be included in the negotiations. During the negotiation, he will show you the basics and offer clear, firm and affirmative. The pattern of negotiation is surprisingly like with some of the interpretations of the German character: direct, systematic, and well prepared. The disadvantages are that they are not open to compromise significantly, are inflexible and the decisions takes a lot of time. The process of negotiation is define by punctuality, reliability and protocol Ein Man, ein Wort!. It has a long term orientation, the activities are precisely planned and the details are very important.

JAPAN VS. FRANCE Asian negotiating style is characterized rather by Japanese and Chinese negotiating styles, which are pretty much alike. The Japanese negotiating style has 4 phases (according to the seasons): Information, knowing the positions and the interests of the partners, comparison of the two positions that confront and preparation and adoption of an agreement. First, the perception of time is different, being very common interruption and resumption of talks, with infinite and detailed preparations. The process of negotiation is subtle, rarely it is said ' no ', because they find a more polite way to refuse it ( so and so or its difficult). It is also well prepared, complex, indirect and they want to know very well the partners before starting the business. Also, the amount of silence that is perceived as right during a conversations is a major player in cross cultural confusion. A Japanese proverb says those who know do not speak- those who speak do not know. In Japan as well as in other Asian cultures, silence ensures the time for listening, contemplation and due consideration of what has been discussed. But, this way of speaking quietly might be understood as secretive to Americans. Weak points are that the negotiation is often interrupted, it takes a lot of time, the preparation is detailed, and the partner is often destabilized. French style: For a long time France was considered the homeland of culture, and that is why the French negotiators are proud of their origin and is indicated for their negotiating partners have extensive general knowledge. It is also good to know that the state plays a more important role than religion in French consciousness- "liberte, egalite, fraternite"- (slogan of the French Revolution) and "I am the state" (the famous quote of Ludocvic XIV). A French negotiator can be characterized as elegant, elastic in conversation, proud of nationality, with a vast culture, and is based on rational facts and conclusions, with a developed language. The weaknesses of the negotiation style are the emotional involvement, the critical attitude and the arrogance. Other characteristics of French negotiation process are: flexibility, a long term orientation, various negotiation team, not quick decisions or firmness.

THE GRAPHS
In the first chart we can see that both Germany and US have a low score on PDI, below worlds media, meaning that both cultures are focused on equal rights, superiors are always accessible and managers rely on individual employees and teams for their expertise. Also at IDV dimension both cultures are alike, we can clearly see that US, with a score of 91 on this dimension, is a highly individualistic culture. This translates into a society in which the expectation is that people look after themselves and their immediate families. The German society is also a truly individualistic one (67).. Another dimension that shows the similarity between the two cultures is masculinity, US with a score of 62 and Germany with 66, they are both considered a masculine society. There are values based on quotes like strive to be the best they can be and that the winner takes all. At UAI we can see a slightly difference between the two cultures. The US scores 46 on this dimension and therefore, American society is what one would describe as uncertainty accepting. Consequently, there is a larger degree of acceptance for new ideas, and innovative products . Germany is among the uncertainty avoidant countries (65). And finally at LTO dimension both cultures have a low score, below the worlds media. The United States scores 29 on this dimension and is a short-term oriented culture. American businesses measure their performance on a short-term basis, with profit and loss statements being issued on a quarterly basis. Western societies are almost the same. The second chart compares Japan and France cultures. As we can see at a score of 54, Japan is a mildly hierarchical society. With a score of 68, France scores high on the scale of the PDI, the attitude towards managers is more formal, the information flow is hierarchical. At the second dimension of IDV we can see the differencess between the two cultures. Japanese are experienced as collectivistic by Western standards and experienced as individualistic by Asian standards. At 71 France scores high on the individualistic index. This means that the French favor individual and private opinions, and taking care of themselves. Looking at the third dimension we can clearly see the big difference between Japan and France. At 95, Japan is one of the most masculine societies in the world. Notorious Japanese workaholic is another expression of their masculinity. With 43, France is a relatively Feminine country, with its famous welfare system (securit sociale), and cares for its quality of life. At UAI dimension both countries have a high score. At 92 Japan is one of the most uncertainty avoiding countries on earth. This is often attributed to the fact that Japan is constantly threatened by natural disasters This high need for uncertainty avoidance is one of the reasons why changes are so difficult to realize in Japan. And finally at LTO dimension, Japan is above average while France is below average (39). At 80 Japan scores as one of the long term oriented societies. The idea behind it is that the companies are not here to make money every quarter for the share holders, but to serve the stake holders and society at large for many generations to come. At 39 France is a short term oriented society. In terms of business this short term orientation focuses on quick. Theres not much focus on saving.

CONCLUSIONS

Globalization is a process that has affected every area of activity, including negotiating. Although there were few schools before diplomatic, international relations now involve more States and a whole range of cultures, each with values and lifestyle, or to perceive and transmit information. For a negotiator, cultural differences play a very important role in the negotiation process, they can be considered as factors multiples variable that not only add complexity to the negotiation and slows communication between partners, but can sometimes cause the results of negotiation. As businesses become more and more international, it is easy to go wrong. There may be one European Union market, but it does not mean that people, whether managers or professionals, behave the same in USA as they do in Germany or in Japan as in France. Therefore, when you conduct business abroad, or play host to foreign partners, it makes good business sense to be aware of cultural differences. By making an effort to close the cultural gap and get along with people who do not share your background, your views, your beliefs, your customs or your lifestyles, you will gain respect, increase credibility and foster successful business relationships. With so many differences across cultures, how can you manage to do business worldwide? There are neither simple answers nor general recipes for success. Perhaps you could start trying to exercise some commonsense, tolerance of difference as well as a bit of understanding; such a non-judgmental approach could save you the trouble of making a careless mistake, of giving offence and thus missing a business opportunity. It is difficult but well worth the effort!