Greenleaf Negotiation Acroos the Cultures

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MANAGING ACROSS CULTURES

NEGOTIATING ACROSS CULTURES

Robert J. Greenleaf

Training Management Corporation
Princeton Training Press • Princeton, New Jersey

NEGOTIATING ACROSS CULTURES

Published by:

PRINCETON TRAINING PRESS Princeton, New Jersey a division of TRAINING MANAGEMENT CORPORATION 600 Alexander Road Princeton, New Jersey 08540-6011 USA Tel: Fax: Web: Email: (609) 951-0525 (609) 951-0395 www.tmcorp.com info@tmcorp.com

Editor-in-Chief: Series Manager: Writer: Cover Design: Interior Design:

Monique Rinere-Güven, Ph.D. Talia Bloch Robert J. Greenleaf Donna Lukis Bonnie Jacobs

© 2000 TRAINING MANAGEMENT CORPORATION. Managing Across Cultures Series: Negotiating Across Cultures All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America

ISBN:

1-882390-911

The Cultural Orientations Indicator®, COI® and TMC’s graphical depiction of our Cultural Orientations Model are registered trademarks of Training Management Corporation; Registration: 2,329,085 and 2,361,803.

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TABLE
OF

CONTENTS

TABLE
Preface iii

OF

CONTENTS

Introduction 1 Negotiation Defined Negotiating Across Cultures Chapter One: The Impact of Culture on Negotiating Behavior Case Scenario The Ten Dimensions of Culture Cultural Analysis of the Case Scenario Generalizations and Stereotypes in Negotiations 5

Chapter Two: The Seven Phases of International Negotiation 29 An Overview of the Seven Phases Showing a Commitment to Negotiating Internationally Chapter Three: Negotiating Effectively Across Cultures 35 Phase 1: Strategic Planning and Analysis Phase 2: Network Approach and Entry Phase 3: Building Personal and Business Relationships Phase 4: Orientation and Presentation Phase 5: Bargaining and Persuading Others Phase 6: Reaching Agreement Phase 7: Follow-Up and Maintaining Relationships Conclusion Appendix A: Cultural Orientations Model™ Quick Reference Resources Index 77 75 73

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NEGOTIATING ACROSS CULTURES
Training Management Corporation

PREFACE

PREFACE
It is no secret that we are in an era of global business, one in which the world is moving toward a completely transnational market. The rapid growth of increasingly interconnected markets, processes and operations is affecting virtually every industry, company and worker today. Between the increase in strategic business alliances and the proliferation of global organizations, the share of the market run by companies that span two or more business cultures is growing constantly. These trends have changed the criteria for competitive advantage. Past successes in the old marketplace do not guarantee future success in the new. Speed, responsiveness, flexibility, effectiveness and an ever-increasing rate of innovation have become the cornerstones of success in today’s market. Organizations everywhere have been transforming themselves to adapt to these new requirements. Most organizations now understand that competitive advantage no longer rests on formal structures but on a dynamic organizational culture that effectively encompasses the mindsets, competencies and practices of the individuals who create, support and sustain the organization––individuals who often do not share the same cultural background. This new type of organization also calls for a different type of manager––one who can create a dynamic, flexible environment and draw upon his employees’ varied mindsets and skills. Given the varied cultural backgrounds of the employees in global organizations and strategic business alliances, culture has become one of the key areas of managerial competence and one of the most...
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