Adaptation strategy & Decision making processes in different Cultures

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En provenance du cours de ESSEC Business School

International and Cross-Cultural Negotiation

94 notes

ESSEC Business School

International and Cross-Cultural Negotiation

94 notes

Cours 2 sur 4 dans Specialization Negotiation, Mediation and Conflict Resolution

All of us are aware that cultural differences are significant and that they affect how we interact with others in business and in leisure activities. But what is culture exactly, and how does it impact on negotiation, in particular? This course will help you to be more precise about different dimensions of culture, from one region or country to another, while helping you to avoid simplifications, clichés and stereotypes. It will also lead you to a better overall awareness of your own culture. In addition the course modules will guide you to a better understanding of when and how cultural differences are likely to influence the different dimensions of a negotiation - the people, problems and processes. Armed with that understanding, your awareness, preparation and strategy will be enhanced when you are faced with negotiators from cultures and regions different from your own. Your ability to anticipate and react, your negotiation flexibility, will be improved and refined. The course also gives you a concrete look at quite different national and regional negotiation styles (we look at the French, Chinese, North American and Middle Eastern). In addition, an examination of negotiation in two multicultural settings (European Union institutions, on the one hand, and the recent COP 21 climate conference in Paris, on the other) highlights the importance of well-designed negotiation processes for getting both efficiency and fairness.

À partir de la leçon

The impact of culture on the people dimension of negotiation

This module is concerned with maintaining an equilibrium in how much importance we give to culture, to context and to personality during cross-cultural negotiation. It provides you practical advice on how to keep a sensible balance between those elements and also examines different adaptation strategies that you can follow, depending on your familiarity with the other negotiator’s culture.

Key factors to design an Adaptation Negotiating Strategy5:28

5 Adaptation Negotiating Strategies (Part 1)3:58

5 Adaptation Negotiating Strategies (Part 2)3:11

Adaptation strategy & Decision making processes in different Cultures4:59

Rencontrer les enseignants

Aurélien Colson
Professor, ESSEC Business School - Director, IRENE Paris, Singapore & Brussels
Political Science
Alan Jenkins
Professor
Management

Good morning.

Having looked at five adaptation strategies,

I would now like to bring in the role of decision-making processes in different cultures.

In fact, we can say that the real purpose of any negotiation itself

is to influence wider organizational decision processes

so as to produce a meaningful and acceptable "yes".

For the intercultural negotiator, awareness

of the contrasts in cultures of decision-making

is very important

as is careful analysis of the other side's typical processes.

As we've already seen in discussing Hofstede's work,

differences between power distance and individualism-collectivism across cultures

are likely to influence team organization

and a number of assumptions that are made about negotiation in a given society.

Three major types of decision-making process can be identified: top-down processes,

consensus-based processes and delegated decision-making processes.

Firstly, let's take the top-down decision making process.

This may often be driven by the power of a "supreme leader"

who can have complete authority to decide almost all matters.

He or she may ultimately make the decision unilaterally and generally quickly.

However, this supreme leader may not be actually present at the negotiation table

or if part of a very large delegation, he or she may not be the spokesperson.

Nonetheless, the influence and importance of that person

will be very significant for the way negotiators behave.

This can be the case in cultures such as Asian countries - China,

Taiwan, Korea, Singapore, etc., Mexico,

Burkina Faso, Maasai culture.

Secondly, we have the consensus-based process.

Here it may not be at all apparent who has authority to actually take a decision.

Furthermore, in organizations where such processes are common,

negotiation will be complex and will take a long time

as continuing agreement among the members of a negotiating team

or with external stakeholders will be necessary.

There is likely to be a focus on building and maintaining good relationships

between the parties in such a situation.

We might also expect the demands from the other side for information will be frequent

and also focused on getting exhaustive detail about proposals,

approaches and possible concessions.

This can be the case in cultures like

the organization of the European Union,

in Japan or in African clan cultures such as in Somalia.

Finally, we have the typical delegated decision-making process,

one found in many Anglo-American and Northern European societies.

A delegate or representative is authorized or legitimated by a formal or legal process

to speak on behalf of,

and in some cases decide for, a figure or group in the background

who has ultimate power and authority.

The mandate between principal and agent reflects this in the negotiating process.

Usually the negotiator will have some leeway to negotiate with the principal both

the mandate itself, before the actual negotiation starts,

and the acceptability of any agreement reached

during and at the end of the negotiating process.

It will be a back-and-forth consultation process between agent and principal.

Agents will likely be trusted both for their skills and for their integrity.

Finally, one caveat.

Note that although identifying the players

and analyzing their decision-making process is crucial, it may not be enough

as many countries have webs of influence that are more powerful than the actual parties

making the agreement.

Even if those webs do not have the formal authority

of official organizations,

it is important not to underestimate the power of such informal influences

and to factor your understanding of them into one's negotiating approach

whenever possible.

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