Impacts of Cultural Differences in Negotiation - Coursework Example

Impacts of cultural Differences in Negotiation: Special Reference to United States of America and China Student’s Name Institutional Affiliation Introduction The growing interdependence between states, companies and individuals has increased the import of understanding national culture. Culture, refers to the salient beliefs, behaviour, values and norms of a specified group of individuals. Culture to a large extent influences the way that individuals in a given community think, converse and conduct themselves. As such it affects how negotiations are conducted (Keith, 2011). Cultural differences have great influence on how negotiations are carried out. Important aspects of negotiation such as culture and history determine the mode and style of negotiations. In many states historical events have generated cultures that are diverse from each other. With time these culture and historical background have been interlinked with negotiation such that they determine whether a given negotiation will be successful or not (Shimutwikeni, 2010). This paper shall discuss and compare the impact of cultural differences on the negotiation process, with special reference to one of the most separate and diverse cultures, that of China and the United States of America. The Democratic Republic of China is today the largest economy and has witnessed massive improvements over the last two decades. China economic prosperity is pegged on trade and industrial activity. Negotiations form the basis through which agreements and contracts underlying trade are formed (Yafeng, 2006). US is also an important player in the global market and is one of China’s key trading partners. An in-depth knowledge of cultural diversity between China and the US is of paramount importance for all parties seeking to initiate successful negotiation in the two countries. Cultural mind-set developed by a given group of individuals in relation to negotiation strategies, is always consistent with their shared norms and values. Nevertheless, culture incorporates a large assortment of institutions, beliefs, behaviours and assumptions (Shimutwikeni, 2010). Cultural Context Education The nature of learning in China involves students adhering to strict instructions from their tutors. Under this mode of education there is no room for students to ask many questions. Consequently, this has led to the emergence of a culture where Chinese generally accept things as they look without intense probe. Americans on the other side adopt a system of education where constructive approach is applied. Students are encouraged to probe source of information as much as possible. As a result of diverse styles of education, negotiation involving parties from these countries are equally different (Graham & Lam, 2003). Chinese are more confident and make hurried inferences from information gathered during negotiations. Negotiators originating from these states have to be meticulous so as not to misconstrue written and spoken words that constitute the negotiations. Such negotiators have to hugely rely on the literal meaning of the words spoken to avoid wrong interpretation and inference. Communication Communication also forms an integral part of a negotiation. It is through communication that each party acquires knowledge and information on the position and perspective of the other. Americans use non -verbal communication such as, eye contact to show good intentions and interest. On the other hand Chinese avoid similar non-verbal communication to since they are construed to show disrespect and distrust (Slavik, 2004). Misinterpretation of body language can have disastrous effects on a negation, especially when one party feels the other is showing signs of mistrust and disrespect. Additionally, Americans prefer direct methods of communication while Chinese mainly use indirect methods of communication. In high context culture, such as Chinese culture, immense importance is attached to the collective group instead of individuals. This may be the hallmark of the socialist approach adopted by this country, but their effect on negotiations is profound (Fell, 2012). Colleagues and family members, in Chinese culture are expected to assist one another and there is a lot of mistrust levelled onto the authority. Chinese approach towards the atmosphere that should prevail during negotiation is quite different from how Americans expect it to be. Chinese negotiation, especially business oriented negotiations are carried out by a large group of individuals. As such, there are some aspects of negotiation that are of more importance than others (Lai-Ling, 2000). Personal relations, social context and body language are all very vital in a Chinese negotiation. A feeling of tension can invariably disintegrate an otherwise successful negotiation. Additionally, Chinese will stand for what is right and not necessarily what is legal; they will also sacrifice short term benefits for better and abundant long term results. The interest of the group lies at the heart of every negotiation and each member in the negotiation table will strive to ensure group benefits surpass individual benefits (Graham & Lam, 2003). American low context culture is very different from high context Chinese culture; the main point of departure is the focus on individual success without any interest on the welfare of the whole group. The main ingredient of capitalist societies, such as those found in America, is that every individual is entitled to advance his own personal economic agenda, provided he or she does not infringe on the rights of other members in the society. This capitalist policy has created a ‘man eat man society’, where individual interest supersedes group interest (Graham & Lam, 2003). Personal Style Culture also has significant control on the personal styles applied during negotiation. Personal styles can either be informal or formal depending on whether it a high or low context society. In high context society like the Chinese, formal style is used. The way that negotiators address their partners, by their titles, and staying away from discussing personal issues all highlight the formal style prevalent in Chinese negotiations. American negotiators tend to hurriedly create a conducive atmosphere and warm relations with their partners. They also address their partners in a more informal manner (Shimutwikeni, 2010). Sensitivity to Time The sensitivity to time varies depending on the attitude of each society to time. The aim of negotiation hugely determines the sensitivity to time. Americans go to the negotiation table with the hope to hurriedly seal a deal or make an agreement. Chinese go to the negotiation table with the hope of creating a long term relationship. This is in line with the teaching Confucius. America strive to a make negotiations as brief as possible to save time and make a deal fast. Chinese devote a lot time in the negotiation process since preference is not financial contract but building a strong long lasting relationship. Any effort to make a Chinese negotiation short can be misconstrued as a sign of concealing information and may invariably lead to mistrust (Shimutwikeni, 2010). Team Organization Cultural values are important factors that determine how the various teams in a negotiation are organized. Chinese attach immense powers on the group while Americans prefer a single person running the negotiation. That person will be accorded power and authority to make decision for the others not present in the negotiation. On their side, Chinese use a large group of individuals at a negotiation and decision is made through mutual agreement. Consequently it is very difficult to clearly pin point that is at the centre when it comes to decision making. In many cases, the actual decision makers do not take part in the negotiation and as such Chinese negotiation takes a lot of time (Meina, 2006). It is a behaviour that is pegged on the teaching of Confucius that highlights the importance of hierarchy and relationship in the Chinese culture. Americans attach little trust on their friends and family members to advance their interest. They use legal mechanisms to enforce agreements and contracts instead of trust pegged relationship. American will have very few individuals on the negotiation table and everything is discussed into details both spoken and written words, unlike the Chinese who use few words but with greater meaning. Americans follow what is legal instead of what is right or wrong (Saxon, 2009). In many cases their archetypal view of time horizon is less than that of Chinese. Chinese culture is pegged on four key elements that to a greater extent have served as the glue that hold them together for the last 5000 years (Graham & Lam, 2003). The most important of them all is the agrarian culture. Up to date majority of Chinese still reside in the countryside, where they practice grow rice and wheat. The cultural aspect of agrarian goes beyond just cultivation, historically cultivation in China has always been communal. As such the success of farming activity is pegged on the cooperation and relationship of the peasant farmers and everybody involved. The other foundation of Chinese culture is the teaching of Confucius. His philosophy about morality and society is still applicable in many parts of China up to date. The most important teaching of Confucius that shapes Chinese strategy of negotiation is the recommended relations between those in power and authority and their subject. The leader is always at the top and at no time should this balance be altered. Therefore Chinese attach a lot of importance on aspects such as respect and trust in negotiation. A simple sigh of disrespect can invariably injure a negotiation (Wilhelm, 2010). The nature of Chinese writing is also an important aspect that dictates the direction and ingredient of a typical Chinese successful negotiation. Their pictorial writing emphasizes on the importance of mastery of art and numerous letters. The exceedingly visual characters of their pictorial letters hugely influence their approach towards analysis of negotiation, it enables them to see the process as a whole and effectively make informed decisions (Graham & Lam, 2003). Americans are taught alphabets that are less pictorial and that are underline the reason why they give too much weight on the details during a contract. Chinese culture is also built on fear of non-natives. Past attacks from foreigners, that coerced them to build the great Chinese wall, have been the main reason behind this attitude towards foreigners (Akgums & Stephens, 2012). Important Chinese and Americans Cultural Elements The factors aforementioned give rise to various elements that hugely shape the nature of Chinese negotiation. The personal connection between and among individuals is a conspicuous aspect of Chinese negotiation. Chinese refer to it as guanxi and place importance on social capital within the realms of sound relationship with family members, friends and colleagues. Family connections have united individuals together for many years and form a crucial part of the Chinese life and culture. As such people from China will be loath to conduct any business or negotiation with a stranger or a person that they do not know, regardless of the economic benefits or the other party’s level of education, social status or achievements (Akgums & Stephens, 2012). These connections are created as one grows up in the normal Chinese setting and they are cemented through interaction in various spheres of life. As a result of this Chinese will always want to have a trusted intermediary when dealing with a party that is not known to them. In actual sense, Chinese will always have an intermediary when carrying out negotiations. Americans find it quite easy to trust individuals, even those that are not known to them, unless given enough reason not to do so. The intermediary is referred to as zhongjian ren and performs an array of function that makes a typical Chinese negotiation successful (Graham & Lam, 2003). Most importantly the intermediary interprets body signs that may otherwise make those on the negotiation table uncomfortable or embarrassed. Americans on their part have a different approach on the importance aspects of negotiations. Americans believe that a relationship can only emerge after a deal is sealed. Normally, building a sound relationship consumes time and the hasty nature of Americans does not give room for cultivation of such relationships. Personal relationship takes top priority according to Chinese; it is viewed as the basis through which trust is built (Akgums & Stephens, 2012). This paper has discussed the main differences between Chinese and Americans negotiation approaches, strategies and styles. A succinct understanding of these differences will go a long way in improving the negotiation between counterparts from the two countries. A combination of various elements such as, different systems of education, diverse ways of communication, Sensitivity to time, cultural context and the nature of team organization all give rise to different cultural setback. As aforementioned culture shape the thinking, communication and even behaviour of individuals in the society and as such influence the manner in which negotiations are conducted. References Akgums, A. (2012). Negotiation Between Chinese and Americans: Examining the Cultural Context and Salient Factors. The Journal of International Management Studies,Volume 7(1) April 2012. , 200 Fell, R. (2012). Effective Negotiation From research to results. New York; Cambridge University Press. Graham, L.J., and Lam, M.N. (2003). The Chinese Negotiation. London, Havard Business School Pub. Keith, D. (2011).Cross- Cultural Psychology: Contemporary Themes and Perspectives. Chichester: Wiley-Blackwell. Lai-Ling, M. (2000).Working with Chinese Expatriates in Business Negotiations: portraits, issues, and applications.Westport, Conn: Quorum publishers. Meina, L. (2006). Cultural Variations in how Emotion Influences Negotiation: Evaluating a Process-oriented Model from an Interaction-based, Cross-cultural Perspective. London: ProQuest publishers. Saxon, M. (2009). An American's Guide to Doing Business in China: Negotiating Contracts and Agreements, Understanding Culture and Customs, Marketing Products and Services. Cincinnati: F+W Media. Shimutwikeni, N. (2010). The Impact of Culture in International Business Negotiations: Special Reference to China and United States of America. 10. Slavik, H. (2004). Intercultural Communication andDdiplomacy. Malta; Geneva DiploFoundation Wilhelm, D. (2000). The Chinese at the Negotiating Table: style and Characteristics. Washington, D.C: National Defense University Press. Yafeng, X. (2006).Negotiating with the Enemy: U.S.-China Talks during the Cold War Bloomington: Indiana University Press. Read More

Chinese are more confident and make hurried inferences from information gathered during negotiations. Negotiators originating from these states have to be meticulous so as not to misconstrue written and spoken words that constitute the negotiations. Such negotiators have to hugely rely on the literal meaning of the words spoken to avoid wrong interpretation and inference. Communication Communication also forms an integral part of a negotiation. It is through communication that each party acquires knowledge and information on the position and perspective of the other.

Americans use non -verbal communication such as, eye contact to show good intentions and interest. On the other hand Chinese avoid similar non-verbal communication to since they are construed to show disrespect and distrust (Slavik, 2004). Misinterpretation of body language can have disastrous effects on a negation, especially when one party feels the other is showing signs of mistrust and disrespect. Additionally, Americans prefer direct methods of communication while Chinese mainly use indirect methods of communication.

In high context culture, such as Chinese culture, immense importance is attached to the collective group instead of individuals. This may be the hallmark of the socialist approach adopted by this country, but their effect on negotiations is profound (Fell, 2012). Colleagues and family members, in Chinese culture are expected to assist one another and there is a lot of mistrust levelled onto the authority. Chinese approach towards the atmosphere that should prevail during negotiation is quite different from how Americans expect it to be.

Chinese negotiation, especially business oriented negotiations are carried out by a large group of individuals. As such, there are some aspects of negotiation that are of more importance than others (Lai-Ling, 2000). Personal relations, social context and body language are all very vital in a Chinese negotiation. A feeling of tension can invariably disintegrate an otherwise successful negotiation. Additionally, Chinese will stand for what is right and not necessarily what is legal; they will also sacrifice short term benefits for better and abundant long term results.

The interest of the group lies at the heart of every negotiation and each member in the negotiation table will strive to ensure group benefits surpass individual benefits (Graham & Lam, 2003). American low context culture is very different from high context Chinese culture; the main point of departure is the focus on individual success without any interest on the welfare of the whole group. The main ingredient of capitalist societies, such as those found in America, is that every individual is entitled to advance his own personal economic agenda, provided he or she does not infringe on the rights of other members in the society.

This capitalist policy has created a ‘man eat man society’, where individual interest supersedes group interest (Graham & Lam, 2003). Personal Style Culture also has significant control on the personal styles applied during negotiation. Personal styles can either be informal or formal depending on whether it a high or low context society. In high context society like the Chinese, formal style is used. The way that negotiators address their partners, by their titles, and staying away from discussing personal issues all highlight the formal style prevalent in Chinese negotiations.

American negotiators tend to hurriedly create a conducive atmosphere and warm relations with their partners. They also address their partners in a more informal manner (Shimutwikeni, 2010). Sensitivity to Time The sensitivity to time varies depending on the attitude of each society to time. The aim of negotiation hugely determines the sensitivity to time. Americans go to the negotiation table with the hope to hurriedly seal a deal or make an agreement. Chinese go to the negotiation table with the hope of creating a long term relationship.

This is in line with the teaching Confucius.

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