Cross Cultural Management and Negotiation Practices Chapter 12

Cross Cultural Management and Negotiation Practices Chapter 12 – Negotiation Differences: Saudi Arabia, Japan, Germany, China, and Brazil Dr. Bahaudin G. Mujtaba © Bahaudin G. Mujtaba

Chapter Topics • Chapter 12 – Negotiation Differences: Saudi Arabia, Japan, Germany, China, and Brazil – Saudi Arabia: Demography, Government and Religion – Japan: Demography, Government, Religion and Society – German and Japanese Cultural Differences – Chinese and Japanese: Cultural and Negotiation Differences – Negotiations in Brazil and China © Bahaudin G. Mujtaba

Saudi Arabia • Saudi Arabia is a country that has been given the gift of oil, from which wealth is derived. Yet it is the basis of religion that has led to the achievement of this country’s success, as it is a modern country that has been created upon strict fundamental religious beliefs. Saudi Arabia is bordered by the Persian Gulf, the Red Sea and is north of Yemen. The development of this country has been based upon the religious influences that have been integrated within the political, social and workforce realms, specifically in relation to the international arena. © Bahaudin G. Mujtaba

Japan: Demography, Government, Religion and Society • Japan is a country that has been born of discipline from the influence of its Confucius beliefs. It is a traditional country that emphasizes the role of education as the core to success; and its geographical nature, harmony and collectivism are the most vital elements that define the essence of living in a prosperous and peaceful society. From its demographics, to its governmental, religious and societal roles, Japan has been able to embrace globalization with great ecstasy. The openmindedness among the Japanese citizens has allowed for the creation of a successful empire. © Bahaudin G. Mujtaba

Similarities and Differences: Saudis and Japanese • The Saudi Arabians and the Japanese both come from the eastern, traditional societies, however, within their own worlds lay several similarities and differences that influence their negotiation styles. There are several elements that both countries have in common within their business environments. Negotiations are never final, as they are considered vague and are open to changes and renegotiations; therefore, they are used to seeing frustrations among their foreign counterparts. Both countries get to know their foreign counterparts on a personal level before entering any business negotiations; therefore, these are slow to take place. © Bahaudin G. Mujtaba

German and Japanese Cultural Differences • When doing business in today’s global environment it is vital to understand the differences in communication and negotiation styles between high context and low context cultures. Japan and Germany are chosen as the countries of focus due to their demonstration of cultural and business differences. One seeded in strong eastern culture, the other an example of a typical western business climate. Each country is highly developed and is regarded as a pillar of economic power and is greatly influential in today’s global economy. Though their approaches and techniques vary through communication and negotiation styles, they are each relevant in the study of international business. © Bahaudin G. Mujtaba

Chinese and Japanese: Cultural and Negotiation Differences • People’s Republic of China and Japan are two major economic powers. Both nation-states have been playing a major role in the global market for decades. More and more foreign based companies and foreign business personnel are interested in trading with these two Asian countries. In order to forge successful business relationships with the Chinese and the Japanese, one needs to study and understand the culture, the negotiating styles, and the communication practices of these two nations. © Bahaudin G. Mujtaba

The People’s Republic of China and Japan • The cultures of China and Japan share many similarities that noticeably influence the behavior of the people. Both cultures are high-context and collectivistic, tending to prefer behaviors that benefit the group as compared to the individual. They seek harmony and try to avoid conflict wherever possible in an effort to save face. Both cultures are immensely suspicious of foreigners and their intentions. There is a very visible hierarchy within both cultures which value wisdom and seniority. The few differences between the cultures of these two nations mainly amount to a disparity in government, religion, and beliefs. © Bahaudin G. Mujtaba

Negotiations in Brazil and China • It is increasingly being recognized that the key to successful negotiations across cultures is an understanding of that culture’s norms and customs. With each passing moment the world is becoming more global than ever before and for this reason it is important for companies to recognize and understand the challenges they face when dealing with cultural differences. This is especially true of China; a labor-intensive region that allows companies the opportunity to drastically cut costs, thus realizing significant profits. This section focuses on specific aspects of the Brazilian and Chinese culture; the cultural similarities they share as well as the differences. © Bahaudin G. Mujtaba

Application of Cultural Dimensions • The five dimensions include: individualism vs. collectivism, which refers to the extent that people are able to stand on their own; uncertainty avoidance, reflects how societies are able to cope with problems through confrontation or avoidance; power distance is the distance that lies between a manager and his/her employee or a higher authority vs. someone lower; masculinity/femininity defines a society’s traditional values that are placed on males and females; and long vs. short term orientation describes a culture’s time horizon and time orientation, or the importance attached to the future versus the past and present. © Bahaudin G. Mujtaba

It’s what is inside that makes a difference! Learn well, take chances, and remember that together we can move the world! © Bahaudin G. Mujtaba

Reference • Mujtaba, B. G. (2007). Cross Cultural Management and Negotiation Practices. ISBN: 978 -0 -9774211 -2 -1. ILEAD Academy, LLC; Davie, Florida. © Bahaudin G. Mujtaba

© Bahaudin G. Mujtaba