The Comparison Between Negotiation Style in China and USA - Research Paper Example

 Negotiation, the innovative approach for dispute resolution is also the art of satisfying diverse interests. The cultural diversity in every nook and corner of the world provide immense complication for negotiation. For example, negotiation in USA is entirely different from the same in Chinese perspective. Besides, Professor Hofstede’s four Dimensions (Power Distance (equality/inequality), ‘Individualism’ (individual rights), ‘Uncertainty Avoidance’ (tolerance) and ‘Masculinity’ (male domination)) are considered as significant in the field of negotiation. Thesis statement: A comparison in the light of Hofsted’s four Dimensions between negotiation in China and USA to disclose its significance in negotiation styles. The rich history of Chinese Culture deeply influenced the style of negotiation in China. The main components of Chinese Culture that influenced negotiation are agrarianism, hierarchy, morality, pictographic language and suspicion of foreigners. The rural population of China consists of 2/3 of the whole population. This rural population is based on cooperative way of peasant farming. This peculiar mode of Agrarian culture helps the Chinese people to have the collective way of thought and action. Besides, these agrarian values help the Chinese to develop and sustain obedience to hierarchical mode of cultural values. In China, morality is the foundation of relationships. The moral code of conduct that can be seen in Chinese society and relationships are well defined. The haggling characteristic of Chinese culture helps the Chinese to consider means as more important than goal in business negotiations. In addition, the Chinese make use of haggling way to settle disputes. In the work ‘The Chinese at the Negotiating Table: Style & Characteristics’, Wilhelm (1994) makes clear that the Chinese style of negotiation gives more importance to mediation and does not allow direct confrontation. The Chinese education is based on pictographic language which helps the students to memorize pictorial characters. For instance, Chinese education is based on pictorial representation of words which helps the students to perceive a thing as a whole, not as a part. The history of violent attacks from foreign countries forced the Chinese to be suspicious of the foreigners. In addition, internal problems, revolutions and the direct control of Chinese Communist Party over the government are the related factors which compel the Chinese culture to be suspicious of the foreigners. The four Dimensions of negotiation formulated by Professor Hofsted consists of ‘Power Distance’ (equality/inequality among people), ‘Individualism’ (reinforcement of individual rights in a society), ‘Uncertainty Avoidance’ (tolerance towards uncertainty), and ‘Masculinity’ (reinforcement of male achievement). When one tries to apply Hofsted’s four Dimensions in Chinese negotiation scenario, the similarities and dissimilarities become unveiled. For instance, one can easily identify that upward mobility of common people in Chinese society is limited. So the scope of first dimension or Power Distance is low in Chinese context. Besides, the scope of the second dimension, i.e. Individualism is also limited because the foundation of Chinese society is upon collective responsibility, not individual responsibility. The scope of fourth dimension or Uncertainty Avoidance is limited because the Chinese society is law oriented and rigid. The scope of fourth dimension or masculinity is unlimited because Chinese society is male oriented and these exist less scope for female folk beyond their private domain. Negotiation in China is deeply influenced by its culture. In China, the role of intermediary in business dealings is important. For instance, in China, business dealings are indirect and with the help of intermediaries. But negotiation or business deals in USA is based on trust and mutual understanding. In Chinese business scenario, utmost importance is given to obedience towards superiors. But in USA, business environment is less formal and it helps to save time. The Chinese businessmen consider business relations as harmonious which leads to cooperation and mutual understanding. Moreover, the Chinese take things as a whole and it leads to further complication in business negotiations. In Chinese negotiations, much importance is given to saving money and it leads to bargaining over prices. This eventually leads to lengthy discussions and negotiation becomes difficult. In business dealings or negotiations, the Chinese give much importance to reputation and social status. In addition, the work ethics of Chinese businessmen is entirely different from that of American. For instance, the Chinese mode of negotiation gives importance to endurance but the American mode gives importance to talent in business dealings. Besides, in China, the businessmen consider business dealing as long-term relationships. But in USA, business relations are short term deals. The rich history of American Culture, i.e. its multicultural, multiracial and multilingual diversity deeply influences its modes of negotiation. The diversity in beliefs and values in the American society is helpful to be dominant and aggressive in international negotiations. For instance, the history of USA as a colony of the Europeans, its struggle for independence, formation of the union of states, diversity in population etc helps it to be an amalgam of cultural characteristics that can be seen in other cultures. So, it is not difficult for an American businessman to be successful in the field of negotiation. For example, the culture or the social adhesive that binds the Americans into a single community is supportive to face the problem of cultural difference in international relations. Moreover, the diversity that one can identify in America helps the Americans to consider any deal as parts, not as a whole. This is so helpful to avoid future problems in negotiations. Besides, it helps to settle disputes completely without ambiguity on both sides. As a fact, responsibility in American business scenario gets an implied meaning, not collective, but individual. Utmost importance given to the individual negotiator helps him/her to be more aggressive than others. In addition, transparency is a unique factor of American culture and way of life. This factor helps the American negotiator to adopt direct approach in negotiations. The application of Hofstede’s four Dimensions of negotiation is helpful to have deeper understanding on American style/way of negotiation. The first dimension, i.e. ‘Power Distance’ in American society is low and it is symbolic of equality and equal opportunity provided to all. This is supportive for upward mobility in business hierarchy. In the American context, immense opportunity is provided to all to exhibit their skills without considering their caste, color or creed. The second dimension, i.e. ‘Individualism’ is high in American context which proves that individuals form relationships with others. These relationships may not be strong but it acts a unique bond which binds different tastes under the roof of American society. The third dimension, i.e. ‘Uncertainty Avoidance’ prove that Americans show tolerance towards experimentation and is ready to take risks. This peculiar outlook helps the American negotiators to evaluate the pros and cons of each and every business deal. The fourth and final dimension, i.e. ‘Masculinity’ is less in American context because it provides immense opportunity to all without considering their gender. For instance, there exists no barrier for a female for her upward mobility in business hierarchy but talent is important to attain the aim. In the work ‘Working the American way: how to communicate successfully with Americans at work’, Robert Day (2004) makes clear that the American society does not tolerate gender discrimination in workplace and women considers themselves as equal to men. The uniqueness in American negotiation is indebted to the importance given to trust in business world. As a multicultural society, the scope of trust is high in America. But the scope of trust in Chinese context is limited because they show less importance to trust in business dealings. In addition, the casual atmosphere in American business scenario, especially in negotiations is strange to the Chinese. The American style of negotiation provide less importance to focus on saving money in business negotiations because they consider lengthy discussions on concessions as wastrel of time. But in China, it is different and saving money is an important factor of business. The utmost importance given to talent than work ethics is an important factor behind the success of American style of negotiation. In addition, the individualistic approach, the argument culture, authoritarian and direct approach in information exchange, aggressiveness and impatience are other characteristics of American style of negotiation. The method of time saving by the means of quick meetings instead of long and lagging courting process is an essential part of American style of negotiation. So, one can see that the American style of negotiation is far ahead of other styles of negotiation. The comparison between the negotiations styles in China and USA proves that some findings are examinable. These are the findings. Values and ways of thought 1. The Chinese cultural values and ways of thought are based on collectivism but in USA it is based on individualism. 2. The Chinese culture is based on hierarchical mode of power but in USA it is in the form of egalitarian. 3. The Chinese approach is holistic but in USA it is reductionist. 4. In China, argument culture dominates but in USA haggling culture dominates. Negotiation 5. During negotiation, long meetings dominate in China but in USA quick meetings grab importance. 6. Negotiation is formal in China but in USA it is informal. 7. During negotiation, limited authority is provided to the representative but in USA full authority is given. 8. In China, indirect mode of negotiation is important but in USA direct mode is important. 9. The Chinese style of negotiation is based on questioning but in USA it is aggressive. 10. The Chinese style of negotiation is enduring but in USA it is impatient. 11. The Chinese style of negotiation gives importance to long term relationships but in USA it is short term and deal oriented. Summing, the comparison between negotiation style in China and USA in the light of Hofsted’s four Dimensions prove that the negotiation style in USA is far ahead of Chinese. But when one consider the cultural difference, values and historical perspective of both these nations, it is clear that all these factors deeply influenced the origin and development of negotiation styles. The difference in negotiation styles does not hinder business and other types of relations between China and USA. So, one can see that difference in negotiation style does not hinder international relations and the comparison between negotiation style in China and USA prove the same. References Wilhelm, A.D. (1994).The Chinese at the Negotiating Table: Style & Characteristics. Washington, DC: DIANE Publishing. Day, R. (2004). Working the American way: how to communicate successfully with Americans at work. Great Britain: How to Books Ltd. Read More