When working internationally, it’s important to understand the professional negotiation style of the country in which you are employed to increase the odds of success.
Asking for what you want isn’t always easy, and it can be particularly daunting in your professional life. It takes skill, savvy and some guts to approach your boss and ask for that raise you believe you’ve earned or for that time off you really need. It can be just as challenging to pitch a new idea to your team or ask for an investment of time and resources for a particular project. A delicate balance of determination, stoicism and earnestness may be a winning combination in one culture, but somehow not quite right in another. How to best negotiate for what you want is often determined by the country in which you work and its culture. Negotiation styles, office protocol and communication styles vary from country to country. Researching those nuances before going into any serious negotiation is wise and can go a long way to achieving your desired outcome.
Here is a sampling of the general negotiation styles of several major countries around the world (India / South Korea / Switzerland / UAE ).
India
Because the country’s business culture is so diverse, you should be sensitive to any regional differences in cultural norms that might come into play in business negotiations. For example, companies in southern India tend to be more conservative than those in the north or west, which tend to be more individualistic and assertive. It is important for any businessperson to research not only the business but also the region before starting any negotiation.
Indians have been doing business with American, European and Japanese companies for a long time, and are comfortable with and open to negotiation. It is likely, however, that smaller companies have not dealt with foreign companies to any great extent, if at all, and an intermediary may be required to establish a negotiator’s credentials. Larger companies now have experts to deal with negotiations. Regardless of the organization, negotiations generally are not fast-paced. Because hierarchy generally does matter in India, it is important to try to deal with the person in the organization with decision-making authority. As a sign of respect, you should stand when the decision maker enters the meeting room.
Negotiations generally begin with small talk about neutral topics, such as the weather or travels. This often is an attempt by Indians to develop a personal relationship, which is seen as instrumental in successful business dealings. In fact, relationships and feelings play a larger role in decisions in India than in many other countries. Indians are more likely to take risks with a person they trust, so credibility and trustworthiness are critical in negotiations. They are very good bargainers, and they expect flexibility in negotiations.
Indian businesspeople are detail-oriented, and many may prefer to receive a detailed proposal prior to the first meeting. They also are cautious about accepting new ideas, so you may encounter reluctance toward embracing a different way of doing things, unless it already has been adopted by someone respected in the industry.
Indians, in general, hesitate to express their disagreement directly, feeling that it is rude. Rather, they prefer to politely indicate their feelings. For this reason, foreigners dealing with Indians should approach disagreement in a similar fashion. Instead of flatly saying “no,” use phrases like, “we think this might not work.” Also, during negotiations, avoid behavior that appears aggressive, as many Indians will not deal with people displaying aggressive attitudes. A polite approach will work much better.
South Korea
Koreans view contracts as flexible and subordinate to the personal relationship between two companies. Negotiations begin slowly in Korea. In fact, little or no business will be discussed at the initial meeting. Instead, the parties will sip tea and make small talk in order to forge a long-term business relationship that will outlast any potential project. This is the stage when the feeling of jeong is developed and should be allowed to flourish. If numerous people are present at the meeting, be sure to show the proper respect to the most senior person in the room. One way to do this is to not insult him or her by sending junior representatives to meet with senior contacts; find out who is coming ahead of time, and send negotiators of equal stature.
Korean negotiations can get aggressive and emotional. Negotiators may exhibit quick tempers and voice their frustrations, but it is important to value the relationship above the business deal. If you remain calm and cordial throughout the negotiations, success is more likely.
Initial offers during a negotiation may be vastly different from what either side expects the ultimate deal to be. It is important to make both sides feel they have gained some ground and saved face. Throwing out the final offer too early in the negotiation will only make a party seem inflexible later on. Successful negotiation often requires that the Korean counterpart perceives that he or she is the one making the final decision.
Switzerland
The Swiss value honesty, responsibility and self-discipline. Emotional displays and crude humor do not always go over well. People strive to be honest and often interpret things literally, so be careful when teasing or making jokes, as these may be misunderstood.
People, particularly in the German regions, tend to be very straightforward. They may appear reserved, at least initially, and do not appreciate questions about private matters, but they are attentive listeners. Money is an especially touchy subject ─ avoid asking someone about their salary or banking.
The Swiss tend to be excellent negotiators without ever appearing to negotiate. They have a quiet and reserved confidence, knowing their products and services are among the best in the world. They have little need to negotiate, and this is a powerful playing card. Swiss companies can ignore the hard sell, the urgently rushed decision and other strong bargaining tactics ─ these strategies will only backfire.
Perhaps the only way to negotiate is to offer something that actually benefits the company. Swiss businesses are reluctant to take extreme risks. If you are lobbying for a company to try something different, have a thick stack of persuasive, objective information to support the idea.
Swiss tend to be formal in business dealings, and it’s rare for someone to lose their temper or criticize another person during negotiations. Despite this formality, never make assumptions in business dealings. All necessary parties should be kept informed of decisions and actions required in any negotiation.
Patience in negotiations is highly regarded. Expect businesspeople to take their time reviewing the matter at hand cautiously and meticulously. They will not jump into a project without understanding everything about it, even the ‘what ifs’ that would probably never happen.
United Arab Emirates
Traditional values like respect, loyalty and relationships play a huge role in negotiations and take precedence over decision making. People may sometimes be subservient when dealing with royalty or people from higher ranks.
Because Emiratis do not like to disagree (especially with a newcomer), they may be reluctant to commit themselves if they’re not sure of the outcome of a negotiation. Also, “no” should not be said directly, but prefaced and soft-pedaled because a direct negative response can cause offense.
People in the UAE prefer to conduct business face to face. They rarely get confrontational or act in a disrespectful fashion. The phrase Inshallah (“God willing”) is constantly used.
The Emirati are true traders; they drive a hard bargain and tend to negotiate strongly for every deal. Their focus tends to be more on products; services often are not valued, and some think service comes free with the product.
Oral communication carries more weight than written communication; for this reason, agreements are considered final only when all parties concerned have parted ways. Until that point, everything is open to negotiation, even if a contract has been signed.
Because of the transient nature of some workers, there may at times be no continuity within an organization or project. People who serve on committees move on, and it becomes quite challenging when negotiations or discussions must start again from the beginning.
Conclusion
Negotiating is not easy. Whether it be between individuals within a company or between large two organizations, it can be challenging. Conducting some research on how to best approach the situation can go a long way toward its success. Understanding the culture and its negotiation style can lead to a fruitful exchange and both parties coming away having a positive experience.
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