Skillful global managers need to assess many factors when managing negotiation. They must understand the position of the other parties in regard to their goals-whether national or corporate-and whether these goals are repre sented by principles or specific details. They should have the ability to recognize the relative importance attached to completing the task versus developing interpersonal relationships. Managers also need to know the composition of the teams involved, the power allotted to the members, and the extent of the teams' preparation. In addition, they must grasp the significance of personal trust in the relationship. As said earlier, the culture of the parties involved affects their negotiating styles and behavior and thus the overall process of negotiation. However, whatever the culture, person-related conflicts have been found by research done by Tse, Francis, and Walls, to invite negative, more relation- oriented (versus information-oriented) responses, leading them to conclude that:
The software of negotiation-that is, the nature and the appearance of the relationship between the people pursuing common goals-needs to be carefully addressed in the negotiation process.
This is particularly true when representatives of individual-focused cultures (such as Americans) and group-focused cultures (such as Chinese) are on opposite sides of the table. Many of these cultural-based differences in negotiations in fact came to light in a study by Husted of the perceptions of Mexican negotiators of the reasons for the failure of their negotiations with U.S. teams. The summary findings are shown in Exhibit 5-7. However, Husted interprets that many of the perceived differences relate to the typical differences found between high- context and low-context cultures. In other words, the interpretations by the Mexican managers were affected by their highcontext culture, with the characteristics of an indirect approach, patience in discussing ideas, and maintenance of dignity. Instead, the low-context Americans conveyed an impatient, cold, blunt communicative style. To maintain the outward dignity of their Mexican counterparts, Americans need to approach negotiations with Mexicans with patience and tolerance, and by not attacking ideas because these attacks may be taken personally.
The relationships among the factors of cross-cultural negotiation that we have discussed in this chapter are illustrated in Exhibit 5-8.
The successful management of intercultural negotiations requires a manager to go beyond a generalized understanding of the issues and variables involved. She or he must (1. gain specific knowledge of the parties in the upcoming meeting, (2. prepare accordingly to adjust to and control the situation, and (3. be innovative.
Research has shown that a problem-solving approach is essential to successful cross-cultural negotiations, whether abroad or in the home office, although the approach works differently in various countries.34 This problem-solving approach requires that a negotiator treat everyone with respect, avoid making anyone feel uncomfortable, and not criticize or blame the other parties in a personal way that would make someone feel shame-that is, lose face.
Research by the Huthwaite Research Group reveals how successful negotiators, compared to average negotiators, manage the planning process and their face-to-face behavior. The group found that during the planning process, successful negotiators consider a wider range of options and pay greater attention to areas of common ground. Skillful negotiators also tend to make twice as many comments regarding long-term issues and are more likely to set upper and lower limits regarding specific points. In their face-to-face behavior, skillful negotiators make fewer irritating comments-such as we're making you a generous offer,- make counterproposals less frequently, and use fewer reasons to back up arguments. In addition, skilled negotiators practice active listening-asking questions, clarifying their understanding of the issues, and summarizing the issues.
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