INTERCULTURAL MANAGEMENT 2 Styles conflicts negotiations Alain LOUVEL

INTERCULTURAL MANAGEMENT (2) Styles, conflicts & negotiations Alain LOUVEL 2009

REGIONAL MANAGEMENT STYLES

External INFLUENCES • NORTH AMERICAN model relationship with trade-unions show, “firms fair”, convention competition, research of profit self made man, self marketing entrepreneurship model, risky business, innovation, individual performance , “networking”, intranet, . . .

External INFLUENCES (2) • ASIAN MODEL chinese influence confucianism = moral, customs strong social links protocol, rank the group : no priority to the individual WARNING : cultural differences between Japan, China, Indonesia, . . .

External INFLUENCES (3) • EUROPEAN MODEL does it exist ? definition ? • Some variables : - French model, mediterranean - German model - Anglo-saxon model - Scandinavian model - “eastern” model, … • A lot of other variables ! But a common continental trend !

External INFLUENCES (4) • AFRICAN MODEL strong links with the “metropoles” (colonization) a modern-traditional “melting pot” firm as a real “family”, tribes “patrilineal” or “matrilineal” rules

BUT …. • There are national differences • “COUNTRY” COUNTRY dimensions are modified by “regional” sub-cultures • Some big influence BLOCKS exist ! • About the FUTURE ? Huge homogenous blocks with local cultural realities !

CULTURAL CONFLICTS in the firms

• Intercultural relationships are not always easy to manage ! • They create tensions and conflicts • CULTURAL SHOCK : domination, submission or riot, resistance • MECHANISM : “ culture is an analysis tool through which we are looking and judging the OTHER” • HIERARCHY / according to one’s own culture COMPARISON ===> DISTANCE

Which means…. • CULTURAL CATEGORIES if number of info is huge = classes infos / groups = specificities analysis emphasize intergroups similarities and intergroups differences • COMPARISON & HIERARCHY adhesion or reject / values difficult to react as the OTHER ! “alien” !

Which means…. (2) • EXAGERATION of CULTURAL DISTANCES : discrimination / risks and aims “focus” according to its own values defense system

COMMON MISTAKES at the origin of cultural conflicts

Simplification of REALITY • In front of “misunderstandable foreign” behavior, we are looking for stress limitation System balance…. Homeostasis … • Predetermined ideas help to reduce complexity, to increase security feeling and to enhance self-esteem • DEVALUATION OF THE OTHER !

• 1. STEREOTYPES : / categories instant beliefs, simplifying reality caricatures (german = worker) fixed and uncompleted image • 2. PREJUDICE : subjectivity coming to a conclusion before knowing (german = war) judgment based on personal environment or first sight impressions • 3. JUDGEMENTS OF VALUES : beauty ? Different from REALITY judgment

CONSEQUENCES ? • Relationship between groups = strengths relationships, risk of domination / “superior” values ! 1. Conformity to dominant culture conflict, rejection? 2. Consensus or compromise research avoidance / “open conflict” 3. minimum innovation

CONSEQUENCES ? (2) 4. Change in the polarization what is common to both sides = solution basis 5. Rupture, BREAK !

INTERCULTURAL NEGOTIATION

KEY POINTS • Knowing customs and cultural codes different reference systems BEFORE the NEGOTIATIONS !!! • words, facts, body language, attitudes = different meanings / cultures • TRANSGRESSIONS / cultural codes : behaviours, languages, gestures, … (ex: Finland / silence, distances, speaking interruption, …)

• Understanding the styles of behaviours for each negotiator : - sensation (USA) - instinct, impulse (Fr) - thinking, rationality (D) - feelings, emotion (Arg) • Huge differences between : Sensation-instinct & thinking-feelings

• Fragmenting the process into different steps: PREPARATION NEGOTIATION POSTNEGOTIATION • Identifying the styles of negotiation : conflict, distributive, win-lose or consensus, integrative, win-win “confrontation” or “cooperation” ?

• Adapting its strategy, tactic / contexts dealing with partners’ nature, characteristics, culture, environment • Being FLEXIBLE / tactics ! • The DINOSAUR-MOUSE history…

SUCCESS CRITERIA • STRICT and DEEP PREPARATION • ACTIVE LISTENING and EMPATHY • INTERCULTURAL RELATIONSHIP EXPERIENCE • KNOWLEDGE about COUNTRY, HISTORY, GEOGRAPHY, PEOPLE, CULTURAL SPECIFICATIONS

SUCCESS CRITERIA (2) • But also … LAW, REGULATIONS, COMMERCIAL MANNERS, HABITS have to be taken into account. • OPEN MINDED, PATIENCE, ADAPTATION • ACCEPTING the UNPLANNED FACTS • BE ABLE TO ADAPT TO CUSTOMERS’ BEHAVIOUR and CULTURAL VALUES !

REMEMBER ! • Big differences exist between : - business negotiation project, LT, built relationship - commercial negotiation “impact”, S&MT, forced relationship • There are many lists of frequent cultural risks • Beware of INTERCULTURAL COMMUNICATION in advertising !

A type of NEGOTIATION USA “chess” game direct strategy attack numerical superiority “death” MAT CHINE “Go” game Indirect strategy defence movement, asphyxia advantage + 1 piece

And about … FRENCH CULTURE perception

funny MAP of France !

* Attracted by POWER : France was powerful because of it’s glorious past ! * tend to see things in their historical context and relate contemporary events to their origins

FRENCH PSYCHOLOGY : « how can you govern a country that makes 365 kinds of cheese ? » DE GAULLE latin in their behaviour, influenced by the catholic faith * individuality : poor « team players » « l’état, c’est MOI ! » king LOUIS XIV