ONE’S CULTURE MATTERS IN NEGOTIATION
The processes of noticing, interpreting and responding to events are all
influenced by an individual’s past experiences as well as by elements of the
situation itself
Past experiences are categorized and encoded into cognitive structures within
the individual; these structures can be referred to as schemas. Codified
responses to schemas are referred to as scripts
People are not computers and when people accept new ways of thinking their
prior way of interpreting situations is not erased
One’s first language will always be special, no matter how many languages one
learns.
The social experiences of one’s youth will retain a key place despite any
subsequent experiences with cultures quite different from the culture mix of one’s
first socialization.
Scripts and schemas are not immutable but those long in place shape
subsequent modifications
THE ICEBERG ANALOGY OF CULTURE
Symbols
Rituals
and heroes
Seen, Explicit
Unseen, Implicit
Values
and
Underlying Assumptions
Ways of perceiving, thinking and evaluating the world around us
Skills in International Negotiations and Communication
KEY UNDERLYING CULTURAL ASSUMPTIONS
At the unconscious level of social programming
Relationship
with Nature
1. Harmony ……………......Control/Mastery
Relationship
with people
2.
3.
4.
5.
6.
7.
Relationships .................Task
Hierarchy ……………......Equality
Shame…………………....Guilt
High Context Comm. ….Low Context
Polychronic time…….....Monochronic
Collectivism ………….....Individualism
Relationship
with God
8. Secular.............……......Spirituality, Religious
16 CULTURAL DIMENSIONS
1. Harmony ------------------------------------------2. Control/Mastery
- gauges the individual’s relationship with Nature
3. Relationship -------------------------------------4. Task
- measures the importance placed on relationships with others versus task accomplishments
5. Hierarchy------------------------------------------6. Equality
- gauges the emphasis placed on rank, status and other ascribed attributes over equality issues
7. Shame --------------------------------------------- 8. Guilt
- verifies if shame (outer driven, external locus of control or guilt (inner driven internal locus
of control is the principle that guides behaviour
9. High-------------------------------------------------10. Low context communication
- measures the extent to which cultures depend on the context: external environment, situation,
nonverbal signs to communicate
11. Polychronic-------------------------------------12.Monochronic time orientation
- verifies if the principle that guides behaviour is circular or sequential
13. We -------------------------------------------------14. - I
- measures the preference for interdependence with other people
15. Religious ----------------------------------------16. Secular
- verifies the degree in which religiosity, as opposed to secularity, is considered in work
related issues
UNDERLYING ASSUMPTIONS and VALUES
1. HARMONY
Live in harmony with nature and coexist with the non-physical aspects
of the unseen world
Less likely to challenge existing
boundaries
Difficult to be friends with those we
disagree with
Status quo
Flexible
Accommodating
Conflict avoidance
Cooperation
Ketenteraman
2. MASTERY /CONTROL
Take control over environment
and harness forces of nature to
meet one’s needs
Challenge existing boundaries
Can be friends with those we
disagree with
Firm
Demanding
Assertive
Confrontational
Competitive
UNDERLYING ASSUMPTIONS and VALUES
3. RELATIONSHIP
Having good relationships and
trust are important in doing
business with your partner.
Emphasis on social competencies
(being friendly, accommodating)
Build rapport and understanding
before the task gets down
Personable
Tolerant
Friendliness
Accommodating
Compromising
Kemesraan
4. TASK
Having a written contract is key to
doing business with your partner
Focus on cognitive competencies
(problem solving, critical thinking)
The task is the boss; relationships
are not so important
Impersonal
Objective
Task driven
Critical thinking
Non-negotiable
UNDERLYING ASSUMPTIONS and VALUES
5. HIERARCHY
Work, duties and responsibilities are
distributed according to seniority
Superiors addressed and respected
Tolerance of differences in status and
wealth
Subordinates accept directions from
superiors without questions
Respect for elders
Status and power
Protocol and
ceremonies
Politeness
Bersopan
6. EQUALITY
Most competent will be rewarded
Superiors addressed on first name basis
Differences in status and wealth minimised
Subordinates not afraid to question
instructions of superiors
Meritocracy
Egalitarian
Less ceremonies
UNDERLYING ASSUMPTIONS and VALUES
7. SHAME
External locus of control: Rely on external
sanctions (group, family, and team and authority) to
get things done
Concern with “ what will people say” if they do
something wrong
Face saving
Group
accountability
Malu
Truth depends on values, and religious teachings
8. GUILT
Internal locus of control: Do things own volition
and guided by inner conscience
Not concerned with “what others may say about
me”
Has a code of ethics - absolute sense of right
and wrong
Independent
Autonomous
Personal
accountability
UNDERLYING ASSUMPTIONS and VALUES
9. HIGH CONTEXT
What you see is not what you get - need
to consider the context Implicit and indirect
Behaviour and person cannot be
separated
Guarded in stating views and opinions
Indirect
Not so specific
Time waster
Face saving
Collective agreement
Berliku liku
10. LOW CONTEXT
Say what you mean mean what you say
explicit meaning and direct
Behaviour is separated from the person
Not afraid to speak up when they have
something to say
Direct
Specific
Time saver
Factual
Data-oriented
UNDERLYING ASSUMPTIONS and VALUES
11. POLYCHRONIC
Time as flexible and part of life
Do many things at one time
Circuitous, non-sequential
Non-linear
Punctuality and deadlines are not
absolute
Diffused
Analog
Flexible
Multi tasking
12. MONOCHRONIC
Time as a scarce and finite resource
Do one thing at a time
Sequential
Linear oriented
Punctual and adhere to schedules
and meeting datelines
Displaced
Digital
Focus on targets
Timeliness
Efficiency driven
UNDERLYING ASSUMPTIONS and VALUES
13. WE -Collectivism
Our way
Part of a group with common grounds
- ethnicity, language, religion
Group achievement more important
than personal goals
Value cooperation, interdependence
and collaboration and communal
responsibility
14. I- Individualism
My way
Unique and independent individuals
Personal goals more important
than group goals
Value competition, achievement,
and independence
We: Related self
Communitarianism
Concern for welfare
of others
Obedience, Loyalty,
Duty, Sacrifice
Kita, Kami
I: Separated self
Self-reliance
Self-actualization
Self-esteem
Privacy
Autonomy
Competition
UNDERLYING ASSUMPTIONS and VALUES
15. RELIGIOUS
Important to combine both religious and
material dimensions in one’s life
Workplace ethics are guided by one’s religion
Religious commitments be blended with
productive work
Religious
Work is a form
of worship
kerja sebagai
ibadah
16. SECULAR
Religion is separated from work matters
Workplace ethics influenced by code of
conduct and set of principles
Work targets more important than meeting
religious commitments
Work and religion
not to be mixed
16 UNDERLYING CULTURAL ASSUMPTIONS
. Cultural Dimensions
No
Country A
Country B
Country C
1. Harmony
2. Control/Mastery
3. Relationships
4. Task
5. Hierarchy
6. Equality
7. Shame
8. Guilt
9. High Context
10. Low Context
11. Polychronic time
12. Monochronic
13. We –Collectivism
14. Individualism
15. Religious
16. Secular
Not likely
1
2
More likely
3
4
5
Most likely
6
7
MANAGING IN MALAYSIA
Work has different meanings for people and
that they are most strongly motivated when
the demands made on them fit with their deep
seated values revered in their respective
cultures
Managers need to understand the values of
their local workforce and learn to balance the
hard values of the West with the soft values
of the East to achieve the best of both
worlds
An insensitive technocrat will not be
accepted however clever he maybe
West
- ambition,
aggressiveness,
achievement,
success,
Competitiveness,
risk taking,
forcefulness
East
- loyalty,
trust,
cooperation,
compassion,
tolerance,
spirituality and
moral behaviour
GOOD RELATIONS
China Guanxi
Taiwan
Wulun….unequal, mutual relationships
Jen…human heartedness..moral
superiority of leader
Human heartedness ….Renging
Harmony…..inhwa
Philipines
Kapwa
Camaraderie…pakikisama
Cooperation..bayanihan
Thailand
Krengchai, Dialogue
Malaysia/Indonesia/Brunei
Korea kibun
Halus Harmony..keselarasan
Honor…Kehormatan
Harmony , unity, cooperation
Japan wa
West
Empathy
Harmony – On/giri
PROUDS AND WISHES IN MALAYSIA
Prouds
Wishes
Confluence of all major religions
Tolerant and always willing to say yes
Appreciation of polar opposites cognitive dissonance
Tolerance for ambiguity
Laid back and never in a hurry
Religious oriented
Family oriented
Understanding not just tolerate others
Their values and beliefs
Appreciation of the arts and culture
Life long learning
Think read and speak up
Social consciousness in global issues
Balanced values of materialism with spirituality
Risk taking and enterprising
3 TYPES OF CULTURAL INTERFACE
Intracultural
Intercultural
Cross cultural
e.g Malay
Malay, Chinese, Indians
Malaysians and Foreigners
Group orientation
Politeness
Respect elders
Religious
Status conscious
Segregation of sexes
Compromising
openness
Patriotic
Give and Take
Slow, unhurried
Indirectness
Good manners
Collectivity
Respect authority
Respect others
Harmony
Protocol conscious
Preserving face
Hospitality
Tolerance
Rapport building
Code switching
Common grounds
Shared experience
Trust
Consultative
Individualistic
Informalities
Individual performance
Secular
Equality
Objectivity
Articulateness,
Directness
Specificity,
Proper English
Conflict resolution
Upfront
Achievement-oriented
Verbal skills
SOFT, GENTLE>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>UNASSERTIVE
What one culture values, the other abhors
SELF CENTRED<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<ASSERTIVE
Source: Going Glocal, Malaysian Institute of Management, Kuala Lumpur, 1996
NEGOTIATING ACROSS CULTURES
Different cultures deal with conflict differently
Ways of defining common interests also vary from
culture to culture
Misunderstandings can result in an agreement
based on confusion, risk avoidance or maintaining
surface harmony rather than on an authentic
meeting of minds
Skills in International Negotiations and Communication
NEGOTIATING ACROSS CULTURES
Understand the
other side’s
perspective the way they
perceive, think,
feel and act,
how they
process
information
and deal with
issues and
problems.
Know the
difference
between sending
the
right message
(conveying your
view
of facts and
issues)
and releasing the
desired response
(producing
understanding
and acceptance in
the other side)
Skills in International Negotiations and Communication
Build rapport and connect with
the other side as it can help
identify their needs and
concerns
Be aware that messages sent
from one cultural context may
be received and decoded
in another where the meaning
can be completely different.
Avoid imposing our
perspective on the other side
as this can lead to a
breakdown in negotiations
NEGOTIATING ACROSS CULTURES
Americans
- linear, fact driven and numbers oriented
- impatient and the contract is their central focus
Asians
- avoid conflict
- express opinions indirectly and maintain a face of surface harmony
when too direct can be seen as rude
French
- enjoy emphasising distinctions and differences
- blunt and logical approach to conflicting points of views that can seem
antagonistic to people from other cultures
Middle Easterners and Latinos
- passionate expression of differences
- save face and preserve dignity
Russians
a great deal of posturing and theatrics
Skills in International Negotiations and Communication
AMERICAN NEGOTIATORS ABROAD
• Are loose friends because of language and cultural myopia
• Shoot first and ask questions later
• Being informal and egalitarian can backfire if status and relations
are hierarchical
• Unable to speak the host party language
• Intolerant of opponent’s dependence on home office
• Prefer logical arguments rather than building trust and personal
relationships (non-task sounding)
• Expect honest information from others
• Unable to deal with silent periods
• Need for a definite conclusion and contract signing rather than
viewing negotiations as a means of establishing long term
commercial relations
• Has a tendency to settle issues one by one rather than using the
holistic approach
• Mistaking commitment as honoring the agreement
• Being constant and predictable
Skills in International Negotiations and Communication
GUIDELINES ACROSS CULTURES
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Check whether they think like you
Spend time on non-task sounding matters to establish personal relationships
Know the differences between your opponent’s social, political and economic systems and
yours
Know how the above differences affect his thinking, authority and negotiating methods
Know your opponent’s legal, technical and financial systems
Know how the above will affect our choice of tactics
Know the effects of ethical standards (right, wrong,reasonable)
Know the importance of face saving
Recognize the role of status
Understand the role of government in the affairs of your opponent
Identify the levels of approval
Ask questions, but don’t put pressure
Ensure there is a suitable communication system with Head Office
Identify the right leader for the situation
Make sure when using an interpreter he is skilled in both languages and negotiation.
Have a dummy run with him. Get him to translate gestures etc
Avoid using jargon
Confirm in writing and use words carefully to avoid ambiguity
Use team approach by using experts
Recognize differences in perceiving contractual differences and agreements
Make concessions only after issues are discussed.
Skills in International Negotiations and Communication
BEHAVIORS OF SUCCESSFUL NEGOTIATORS
• Have greater flexibility - wider range of influence styles
• Recognize that an agreement can only be reached through exchange
• Label their behaviors
- I want to propose.....
- I want to give three reasons why..
• Limit their reasons to two or three strongest points and repeat them if necessary
• Evaluate behavior they like positively attributing it to themselves
• Use incentives and find alternative currencies of value to the other party
• Summarize and test understanding
• Identify areas of agreement not on areas of conflict
• Avoid provoking the other party
• Use both verbal and nonverbal techniques to support ideas e.g. Use “ I”
language to convey that the speaker accepts responsibility for what he or she is
saying
• Maintain eye contact with others as eye contact communicates sincerity,
concern and involvement
• Show a relaxed attitude towards time and do not place unnecessary pressure on
themselves by creating artificial deadlines
• Have persistence and see a difficult task through its completion
• Value organizational goals above and over their own
Skills in International Negotiations and Communication
HOW DO MALAYSIANS NEGOTIATE?
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Like to bargain
They are polite, indirect, use give & take approach
Consensus driven
Too accommodating
They lack substance and not always well prepared
Have inferiority complex
Like to haggle for cheapest price but the best depending on the situation
Like to please the other party, too diplomatic,
Leaders are often autocratic, personal not professional, emotional, not assertive,
Too much win-win need to be aggressive at times
Need to set objective, parameters, bargaining – Singapore water situation
Not thorough
Sometimes they take it as another job,
Need good preparation, lead time, fall back position, short handed- developing
countries, specialized – Japanese, Malaysian
Tend to avoid conflict - saving face
Importance of activities outside the negotiating table– tea, lunches
If stakes high- not too accommodating, but generally respectful
Informal negotiations
Very arrogant
Malaysian negotiators not effective – long term, need to change for future success
CHARACTERISTICS OF THE MALAYSIAN NEGOTIATOR
- Are polychronic, sambil menyelam minum air, flexible datelines – Japanese not
-
as rigid as Americans
Observe the task as the boss
Importance of written contract/
Workplace ethics, control
Shame-driven
Relationship driven/
Harmony with others
Low context - not afraid to speak up/to the point//
Are direct in giving feedback
Focus on facts, mean what I say, say what I mean
Collaboration
Secularism
Monochronic
Equality, most competent
Critical thinking more values than social competencies
Collectivism, loyalty, group, collectivism, group achievement
Control over environment, situation
Possible to be friends with those we disagree
Task, more valued than social competencies
Individualism
Guilt driven
Secular, work place ethics, set of principles, code of conduct
NEGOTIATING WITH MALAYSIANS
Respect
Hierarchical differences, Respect seniors
Accommodating, Compromising, flexible
Indirect approach
Sentimental
Tongue/slang
Adaptive
Courteous, polite
Use Soft tone
Harmony
Take a lot of pain not to hurt others
Respect beliefs, religions
Help each other
Tactful
Take shoes off when entering a house
Eat using hands
Recognise peaceful coexistence
Regards race and religion as sensitive
subjects
Know Islam as foundation of work
Be tolerant
Proper dressing
Say thank you for favors made
Respect consensus
Avoid
Speak when food is served
Sneeze infront of others
Display intimacy between sexes in
public
Look down upon others
Be disrespectful
Show arrogance
Be rude when you are right
Come to my house uninvited
Be scantily dressed in public
Show with leg, put legs on table
Reveal too much of personal life
Boast one’s achievements
Make fun of our religious beliefs
Shout at older people
Talk loudly
CHECKLIST FOR MALAYSIAN NEGOTIATORS
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Do research : Obtain accurate Data, Facts,
figures and proper documentation
Know what competitors are doing
Build Common grounds
Have clarity in what we offer, demand
Deliver what we promise
Listen to the other party
Know the needs of the other culture
Strategise your styles & skills and when to use
appropriately
Know what the competitors are offering
CHECKLIST WHEN NEGOTIATING WITH
Japanese
- Avoid conflict
- Indirect approach
- Hierarchical
- Trust
- Manipulative
- Be polite but firm
- Be patient with
flexibility
- Time frame for
completion
- Authoritative
(empowerment
Americans
- Individualistic
- Task oriented
- Time driven
- Result driven
- Assertive/pushy
- Be well prepared
- Take the hard
approach
- Be logical rational
- Trust
- Say what you mean
direct
NEGOTIATING ACROSS CULTURES
Country
Values
Do’s
Don’ts
Philippines
Thailand
Nepalese
Straightforwardness
Humor
Flexibility
Family, Wealth
Buddhism. Language,
Independence
Culture and
practices
Knowledge of protocol
Go through ceremonies
Extend appropriate courtesies
to the hierarchy
Reciprocate gifts
Greet with putting two
hands together, bow heads
and say sawadee
Be friendly, smile
Be polite
Respect king
and nation
Look sharply at one’s spouse
Go to the residence
Call beyond office hours
Putting hands on head
Touchi8ng till we are
friends
Kiss or embrace in public
Use feet to point
Do things that are impolite
Criticise the religion
Enter house with
shoes on
Make fun in
public places
NEGOTIATING ACROSS CULTURES
Country
Sierra Leone
Values
Tanzania
Development trend
Importance of culture
Non-discriminating
Do’s
Welcome foreigners and
business persons
Respect for authority
Acknowledge blended
culture
Don’ts
Dress and behave
indecently
Be critical of my culture
Take advantage of them
Economically,
politically, socially
NEGOTIATING ACROSS CULTURES
Country
Guyanese
Gambian
Grenadian
Do’s
Appreciate diversity
in food
Oriental, African
American
Marriage based on
Islamic, Hindu and
Christian beliefs
English language
With 9 dialects each
for every tribe
Respect elders
Tolerate those who
are late
Stay indoors whn
raining
Recognise they are
church goers
Don’ts
Scorn them
Refuse to socialise
With them
Humiliate them
Be critical of elderly
people when they do
wrong
Ask us to work
weekends
Insist marriage
before family
NEGOTIATING ACROSS CULTURES
Country
Croats
Values
Fiji
Mauritius
Respect our elders
Harmony
Tolerance
Respect all cultures
Do’s
Show beauty of my
cultural heritage
Respect and adapt as
much as possible
Know rightful place in a village
community
Be willing to share and care for
each other and not expecting
anything in return
Request for beef and
pork dishes when
coming over o my
house
Don’ts
Be intolerant and
want priority
Play games with pride
Walk around the village with
no shirt – an insult
Use obscene language
Ignore the village chief when
visiting your friend
Meet him first to acknowledge
his presence
Dress indecently and
unreasonably
NEGOTIATING ACROSS CULTURES
Country
Myanmar
Pakistan
Bangladesh
India
Values
Religion
Subculture
Procedures
Religion
Family
Sense of
honor
Religion
Hospitality
Group
orientation
Joint family
Tolerance
Traditions
Hierarchical
History
Background
Do’s
Don’ts
Get more
Information
Take action
Against
subcultures
Know social sensibilities
Know history and geography
Be flexible
Give co0mpliments on culture
Be open
Be
courteous
Be
obnoxious
or irrational
Interfere with
Official
Documents
Propose things with hate
Religious remarks
Negative terms
Ask too many questions
At beginning
SO WHAT???
• Know our counterpart’s culture to discuss the issues better
•
Use Bridging – know their culture thus facilitate bridging in
•
Find common grounds
•
Formulate appropriate strategies by taking into consideration
cultural differences and value systems
•
Avoid taboo and cultural sensitivities
•
Avoid misunderstanding/misinterpretation of their responses either
verbally or bodily
•
Decide the tactics used based on culture preferences of our counter
party (soft, hard, principled based)
•
Be aware of one’s own culture to strengthen our negotiating position
TAKEAWAYS
Be humble and show respect
Give and take
Be alert, anticipate, think fast and be focus
Be open
Importance of knowledge and Information
Know wants and objectives
Be prepared
Importance of chit chat
Teamwork, cooperation
Work on culture tarps
Listening, Questioning and Communication and
presentation skills
Venue
Confidence, dressing, delivery
Professional and cool
Sincerity and Tolerance
Leader level headed
Ladies more meticulous