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Which problems can occur while negotiating?

While negotiating whit people from different cultures, a lot of problems can occur due to situational factors, economic factors and cultural factors.

Within the situational factors, differences in language and in ethics are the most important challenges. An example: ‘Managers at one American company were startled when they discovered that the brand name of the cooking oil they were marketing in a Latin American country translated into Spanish as "Jackass Oil”.’ When you deal with people who speak a different language and you think there is a problem, the best thing to do is stop, listen and think before you act because it’s very possible you misinterpreted what had been said. Repeat what you think you heard so it can be confirmed you understood well. Also having an intermediary who is familiar with both languages can be a big help.

Ethical differences are a little trickier. If you want to be taken seriously in the business world it’s very important to maintain a high ethical standard. While there of course are a set of human values that are accepted worldwide, there is also a big moral grey area in which situational and cultural differences can cause problems. The challenge here is to deal with parties whose ethics and customs are remarkably different from your own. We will give a few examples. In western countries it’s normal to have direct eye contact with your business partner and to leave a certain distance while interacting. In other countries like China direct eye contact is considered rude and in the Middle East business people get up very close. In China and Japan it is considered very polite to give business gifts, but in the USA and the UK it has a negative effect. All these things can be learned through cross cultural training.

In addition to these situational factors, we also have culture and economic factors. These can have a great impact on the way we do business. Again an example: ‘A sales manager in Hong Kong tried to control employee's promptness at work. He insisted they come to work on time instead of 15 minutes late. They complied, but then left exactly on time instead of working into the evening as they previously had done. Much work was left unfinished until the manager relented and they returned to their usual time schedule.’ When we have a good understanding in cultural differences and accept that our partners may see things in a completely different way, we are more likely to obtain a positive reaction while negotiating. Also try not to make any assumptions if the person who you negotiate with has a background that looks like yours. Body language is very important as well because that determines your credibility. So when you negotiate abroad, try to learn the other’s culture or at least try to meet them halfway and convince the other parties to also take some elements of your own culture into account.

Bronnen:

-         http://www.kwintessential.co.uk/cultural-services/articles/crosscultural-blunders.html

-         http://www.calumcoburn.co.uk/articles/cross-cultural-negotiation/

-         http://www.buzzle.com/editorials/10-5-2004-60126.asp

-         University of Colorado, USA, “Cross-Cultural Communication Strategies”, Conflict Research Consortium

-         http://knowledge.insead.edu/CrossCulturalNegotiations080408.cfm?vid=39

-         Roger J. Volkema, Maria Tereza Leme Fleury (2002),  “Alternative Negotiating Conditions and the Choice of Negotiation Tactics: A Cross-cultrural Comparison”, Journal of Bussiness Ethics 36, 381-398