BUSINESS COMMUNICATION AND

NEGOTIATION SKILLS

Although cultural generalizations can be overly reductive, it can also be done fairly. "Determining
national characteristics is treading a minefield of inaccurate assessment and surprising exception.
There is, however, such a thing as a national norm.
Every culture has a different way of viewing the world and therefore a different way of negotiating.
Understanding how to properly integrate your own personal negotiation style into a cross-cultural
setting is vital for success in global markets.
The existence of cultural differences is an undisputed fact.

How Cultural Differences Influences Negotiations -:

1. Definition of Negotiation:
Different cultures have defined “negotiation” differently. For example, Americans look at negotiation
as a competitive process between proposals and counterproposals, whereas the Japanese people view
it as an opportunity for sharing information.

2. Selection of Negotiators
The standard for selecting negotiators may include credential, relationship, gender, age, experience,
and social status. Different cultures place different levels of weight on these criteria.

3. Rituals of Negotiation
Cultural differences among negotiators lead to significantly different rituals. For example, Americans
have a reputation for not placing a strong emphasis on an opponent’s gender or job title. Europeans,
on the other hand, are more formal in this matter. A mismatching of the titles of two negotiators is
viewed as a sign of disrespect.

4. Communication
Whether it is verbal or non-verbal expression, cultures influence communicative behaviors. In order to
avoid offending the opponent in an international negotiation, a negotiator should be especially aware
of the opponent’s unique communicative behaviors or habits.

5. Time
 The meaning of time varies with cultures. Countries that value traditions, especially those located in
a warmer climate, tend to have a slower pace of life. Most of the European and North American have
cultures, in which time is valuable, and the time spent in the past contributes towards the future. In
other cultures, time is circular, and the future cannot be changed. The future is also a replay of the past,
thus time has no value and planning is not needed. A culture’s definition of time influences how its
people negotiate.

6. Risk Tendency
Cultural differences also often determine negotiators’ willingness to take on risks. The bureaucratic
systems of certain cultures prefer to make decisions when sufficient information is available. The
Japanese principle in negotiating is to reduce the risk as much as possible and avoid face-to-face
conflicts. For cultures that are more entrepreneurial, such as the U.S., practicality and efficiency are
valued; therefore, people in such cultures are willing to make decisions even though they have not yet
fully acquired sufficient information.

7. Group and Individual

Cultural differences influence how much weight is placed on individualism or collectivism.
Emphasizing individuality, Americans value independence, boldness, and uniqueness. In an
individualistic country, a person is often responsible for the last decision, whereas the people in a
collectivistic country believe that the group comes before an individual, and individual needs are
secondary.

8. Natural Agreement
Culture has a deep influence on the formation of negotiations and agreements. “Agreement” does not
necessary mean the same thing in different cultures. In many studies, a memorandum is an agreement
is often used by the Chinese to represent the formalness of a relationship, whereas the Americans
believe that an agreement is reached through a logical framework; it is official and is based on the legal
system. Moreover, in certain cultures, reaching an agreement is based on who the negotiators are,
instead of what they can do.
Some examples of different negotiating cultures followed by different countries are:
 USA- Americans lay their cards on the table and resolve disagreements quickly with one or
both sides making concessions.
 Canada- Canadians are inclined to seek harmony but are similar to Americans in their
directness.
 United Kingdom- People in the UK tend to avoid confrontation in an understated, mannered,
and humorous style that can be either powerful or inefficient.
 Germans - Germans rely on logic but "tend to amass more evidence and labor their points more
than either the British or the French."
 French - When meeting with the French, be prepared for a vigorous, logical debate.
 Italians- Italians "regard their languages as instruments of eloquence" and take a verbose,
flexible approach to negotiations
 Spain- Like Italians, Spaniards will "pull out every stop if need be to achieve greater
expressiveness
 Switzerland- The Swiss tend to be straightforward, nonaggressive negotiators. They obtain
concessions by expressing confidence in the quality and value of their goods and services.
 Bulgaria- Bulgarians may take a circuitous approach to negotiations before seeking a mutually
beneficial resolution, which will often get screwed up by bureaucracy.
  Dutch- The Dutch are focused on facts and figures but "are also great talkers and rarely make
final decisions without a long 'Dutch' debate, sometimes approaching the danger zone of over-
analysis."
 China- The Chinese tend to be more direct than the Japanese and some other East Asians.
However, meetings are principally for information gathering, with the real decisions made
elsewhere.
 Singapore- Singaporeans generally take time to build a relationship, after which they can be
shrewd negotiators.
 Korea- Koreans tend to be energetic conversationalists who seek to close deals quickly,
occasionally stretching the truth.
 Israel- Israelis tend to proceed logically on most issues but emotionally on some.

How To Overcome These Drawbacks-

The following tips should serve you well prior to any future cross-cultural negotiation:
1) Learn a bit about the culture you are going to be negotiating with.
2) Understand their expectations from the negotiation process
3) Be clear with yourself about the stance and strategy you are going to take
4) Don’t jump to assumptions and conclusions in the negotiation process
5) If you sense confusion always clarify and re-check for understanding
6) Speak slower, avoid fancy language and keep it simple
7) Use your active listening skills
8) Explain the decision-making process from your side and ask for them to clarify theirs
9) Pay attention to potential gender dynamics
10) Keep it professional no matter how challenging it may get