BBA 2551, Intercultural Management 1
Course Learning Outcomes for Unit IV
Upon completion of this unit, students should be able to:
4. Examine the influence of culture on strategic choice.
4.1 Describe the influence of culture on decision-making.
4.2 Discuss how to prepare for cross-cultural business negotiations.
4.3 Describe the five stages of the negotiation process
4.4 Explain the variables in the decision-making process
Chapter 5: Cross-cultural Negotiation and Decision Making
The art of negotiating is essentially a decision-making process. Some of the decisions you have to make
include what an acceptable outcome entails, how you will set out your proposal, and what you are willing to
concede. In this unit, you will learn about cross-cultural negotiations and you can apply all that you have
learned so far about culture and how it can relate to this decision-making process.
First, interacting on a global platform means that you must understand the subtleties of negotiating across
cultures. You might be negotiating with people you have never met before. You may be talking with people
whose decision styles might be very different to your own. You have to know what to expect and how to frame
Negotiations can take place between two companies or among several companies seeking contracts,
acquisitions, or some sort of trading pact. As a negotiator, you have to plan carefully. You must be able to
answer the questions of who, where, when, why, and what.
According to Deresky (2014), the “relationship building process… is regarded with much more significance in
most parts of the world than it is in the United States” (p XXXXXXXXXXIn the United States, people want to get down
to business immediately and work things out. If you negotiate in another country, you have to understand how
the negotiation process works there.
Second, you must recognize that negotiating means making decisions, which is normal for a manager, but not
necessarily normal for those people at the negotiation table. In some countries, the person at the meeting is
the one who makes decisions. In other countries, the person at the meeting has to take the offer to someone
else who will make the decision whether to accept or not.
Problems can arise because of “differences in culture, language, and environment” (Deresky, 2014, p. 146).
You can spend days in negotiation meetings if you do not fully understand these differences. Every time that
you think a decision is about to be made, you might learn of some slight difference in terminology or timing
that makes it impossible to complete the negotiation.
Once you have a profile of the party or parties with whom you will be negotiating, you have to consider how to
gain their trust. You also have to work out the negotiation process. Deresky XXXXXXXXXXpoints out that in some
countries contracts are negotiated through personal relationships rather than through legal relationships.
People meet in social settings as they begin the negotiation process.
The amount of information that is shared during meetings held subsequently depends on the culture. Looking
across North America, Europe, and Asia, Deresky XXXXXXXXXXnotes that “Mexican negotiators are usually
UNIT IV STUDY GUIDE
Cross-cultural Negotiation and Decision Making
BBA 2551, Intercultural Management 2
UNIT x STUDY GUIDE
suspicious and indirect . . . French negotiators enjoy debate and conflict . . . the Chinese also ask many
questions” (p XXXXXXXXXXThat means you must plan how you will handle each situation depending on where the
negotiating is taking place and with whom you are negotiating.
Throughout the negotiation process, you will be making decisions as to whether you will accept or make
proposals. You have to know when to give in and when to stand your ground. Do not only consider your
perspective on the issue, but think of the other party or parties and how they are viewing the issue.
Throughout the process, negotiators use various methods of persuasion. They may use one of several
al strategies that “include promises, threats, initial concessions, silent periods, inte
gazing, and touching” (Deresky, 2014, p XXXXXXXXXXEach of these tactics may be used to further propositions that
are laid out by each side and can help or hurt the process.
Negotiations may also be conducted through the use of technology. The InterNeg Support Program for
Intercultural REsearch (INSPIRE), a Canadian web system, was designed to help the process move along
effectively and reduce the costs that companies accrue when negotiating a
oad. Whether the negotiations
are face to face or web based, it is essential that negotiating parties develop good listening skills.
Listening is an important part of the negotiation process. You must listen carefully when others are presenting
their proposals. When it is your turn to present your ideas, do so clearly. It is best to be flexible and to be
open to options others suggest. You have to ensure you have carefully noted information shared about
disclosures and about any concessions that are being made. As negotiators complete their bids, they must
understand how people in various cultures will honor the agreements.
As the negotiating process draws to a close, decisions are made about formalizing the agreement. Details
have to be worked out and policies or procedures considered so that the agreement can be implemented.
You must ensure that all the points are in the written agreement. At this point, your decision-making skills are
Finally, you have to understand that “local practices determine how these agreements will be honored”
(Deresky, 2014, p XXXXXXXXXXIf the agreement you worked on is suddenly rejected by the other party, do you walk
away or do you try again? Your understanding of the culture and different negotiation styles will let you know
whether to draw up a legal document or to base your agreement on trust.
Deresky, H XXXXXXXXXXInternational management: Managing across borders and cultures (8th ed.). Boston, MA:
The article below is suggested reading that can provide further information on intercultural communication.
The article can be located through the Business Source Complete database in the CSU Online Li
Mannix, Elizabeth. [Review of the book Negotiating globally: How to negotiate deals, resolve disputes, and
make decisions across cultural boundaries]. Industrial & Labor Relations Review. Oct 2002, Vol. 56
Issue 1, p XXXXXXXXXX2p.