Handbook of global and multicultural negotiation

S S

Handbook of Global and

Multicultural Negotiation

S S

Handbook of Global and

Multicultural Negotiation

Christopher W. Moore

Peter J. Woodrow

Copyright © 2010 by Christopher W. Moore and Peter J. Woodrow.

All rights reserved.

Published by Jossey-Bass

A Wiley Imprint

989 Market Street, San Francisco, CA 94103-1741—www.josseybass.com

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, scanning, or otherwise, except as permitted under Section 107 or 108

of the 1976 United States Copyright Act, without either the prior written

permission of the publisher, or authorization through payment of the

appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood

Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at

www.copyright.com. Requests to the publisher for permission should be

addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River

Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at

www.wiley.com/go/permissions.

Readers should be aware that Internet Web sites offered as citations and/or

sources for further information may have changed or disappeared between the

time this was written and when it is read.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have

used their best efforts in preparing this book, they make no representations or

warranties with respect to the accuracy or completeness of the contents of this

book and specifically disclaim any implied warranties of merchantability or

fitness for a particular purpose. No warranty may be created or extended by

sales representatives or written sales materials. The advice and strategies

contained herein may not be suitable for your situation. You should consult

with a professional where appropriate. Neither the publisher nor author shall be

liable for any loss of profit or any other commercial damages, including but not

limited to special, incidental, consequential, or other damages.

Jossey-Bass books and products are available through most bookstores. To

contact Jossey-Bass directly call our Customer Care Department within the U.S.

at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002.

Jossey-Bass also publishes its books in a variety of electronic formats. Some

content that appears in print may not be available in electronic books.

Library of Congress Cataloging-in-Publication Data

Moore, Christopher W., date￾Handbook of global and multicultural negotiation / Christopher W. Moore and

Peter J. Woodrow.—1st ed.

p. cm.

Includes bibliographical references and index.

ISBN 978-0-470-44095-7 (cloth)

1. Negotiation in business. 2. Cultural relations. I. Woodrow, Peter J. II. Title.

HD58.6.M656 2010

658.4

052—dc22

2009032175

Printed in the United States of America

FIRST EDITION

HB Printing 10 9 8 7 6 5 4 3 2 1

S S

CONTENTS

Figures, Tables, and Exhibit vii

Preface ix

PART ONE: THE ESSENTIALS OF GLOBAL AND MULTICULTURAL NEGOTIATION 1

1 Introduction to Culture and Negotiation: The Context of Global and

Multicultural Negotiations 3

2 The Wheel of Culture 21

3 Strategies for Global Intercultural Interactions 61

4 Cross-Cutting Issues in Negotiation 77

PART TWO: A STEP-BY-STEP GUIDE TO INTERCULTURAL NEGOTIATIONS 127

5 The Preparation Stage 129

6 Beginning Negotiations 149

7 Identifying and Exploring Issues 185

8 Cultural Patterns in Information Exchange 221

v

vi CONTENTS

9 Problem Solving and Option Generation 247

10 Influence and Persuasion Strategies 283

11 Assessing Options 327

12 Reaching Closure and Developing Agreements 347

13 Implementing Agreements 367

PART THREE: ASSISTED NEGOTIATIONS AND THIRD-PARTY ROLES 387

14 Assisted Negotiations 389

15 Facilitation and Mediation 407

References 435

The Authors 449

Name Index 451

Subject Index 457

S S

FIGURES, TABLES,

AND EXHIBIT

FIGURES

1.1 Distribution of Cultural Patterns in a Specific Group 6

1.2 Overlaps and Differences Among Cultures 7

2.1 Wheel of Culture Map 23

2.2 Basic Approaches to Conflict 48

3.1 Strategic Choices for Intercultural Interactions 64

4.1 Positional Bargaining and Convergence Process 84

4.2 Triangle of Satisfaction 91

8.1 Hierarchy of Requests or Demands in Negotiations 246

9.1 Framing a Joint Problem Statement in Terms of Multiple Interests 267

14.1 Potential Causes of Problems in Meetings or Negotiations 392

14.2 Labor Management Dispute Resolution System 403

14.3 Grievance Mechanisms with Multiple Local Approaches to

Resolving Complaints

404

TABLES

1.1 Range of Negotiation Contexts 8

4.1 Key Cultural Variables 79

vii

viii FIGURES, TABLES, AND EXHIBIT

8.1 Types of Questions and Cultural Orientation 240

10.1 Verbal Negotiation Tactics 286

12.1 Dimensions of Agreements: A Continuum 361

14.1 People Who Provide Third-Party Assistance 396

15.1 Comparison of Facilitation and Mediation 411

EXHIBIT

5.1 Situation Assessment, Conflict Analysis, and Negotiation

Planning Framework

139

S S

PREFACE

Since the beginning of time, people from all cultures and nations have

had to solve problems, negotiate agreements, and resolve conflicts among

members of their own group or between members of their society and that

of others. It is the rare culture indeed that has been so isolated that it has

not had to figure out ways that its members could relate across cultures or

internationally with people who were ‘‘different.’’

Historically, most cultures have had some contact with members of other

ethnic or national groups, either within their own borders or at least with

people from the near abroad (Fagan, 1984). People from Europe, the Middle

East, Africa, Asia, and North and South America have long had diplomatic,

commercial, religious, and in some cases colonial linkages and relations

with each other (Brook, 1978; Wallerstein, 1976). Within regions or states,

groups and nationalities have had to find ways to coexist in a peaceful

manner and, when appropriate, seek relationships—diplomatic, commercial,

technological, religious, cultural, or social—that result in mutual benefits. As

internal migration, urbanization, and immigration from other countries have

diversified membership or expanded regular contacts among groups, almost

all societies have become multicultural.

In the first years of the twenty-first century, an increasing number of individ￾uals, organizations, and nations are engaged in interactions, problem solving,

and agreement making across cultures. Globalization is not only making the

ix

x PREFACE

world smaller but is bringing people together who heretofore have never

made direct contact (Friedman, 2007). This trend of increasing intercultural

interaction occurs both within and between societies in numerous arenas: inter￾national peacebuilding and diplomacy; industry, business, and the workplace;

humanitarian assistance and development; and political institutions, schools,

and communities.

WHAT THIS HANDBOOK IS ABOUT

This handbook provides practical guidance for people working across cultures

in a globalized world, specifically addressing issues such as these:

• How culture influences the definition of and approaches to problem solv￾ing and negotiation

• How people communicate, cooperate, compete, and engage in conflict

with people from their own and other cultures

• How relationships are developed and valued across cultures, especially in

the context of problem solving and negotiations and at a range of levels,

from the interpersonal to business to international diplomacy

• How negotiators evaluate the potential outcomes of problem solving or

negotiation with members of their own culture or another culture

• How proficiency in intercultural problem solving and negotiations can be

increased so that individuals and groups from diverse backgrounds can

work effectively together in multicultural situations

In our rapidly changing world, effective global negotiators not only must

be familiar with a generic problem-solving or negotiation process that works

in their own culture; they must also become familiar with cultural factors that

affect the problem-solving approach of people from other cultures. They must

learn how to adapt to cultural dynamics and patterns, respond in flexible and

appropriate ways, and use a range of approaches for building positive working

relationships and reaching agreements.

WHO WILL FIND THIS BOOK USEFUL?

This handbook was written for a wide audience of individuals and organizations

engaged in problem solving, negotiation, or dispute resolution across cultures.

It will be useful for people working in multicultural settings or a diverse

PREFACE xi

workforce within a country, people who are working or visiting outside their

country, and international negotiators working in a variety of settings and on

a range of issues.

We have written the book to serve as a practical guide for negotiation

practitioners who are conducting bargaining, problem solving, and conflict

resolution. At the same time, we have drawn on considerable social science

research to satisfy the concerns of academic colleagues who want to use the

book in the classroom or to identify research topics in the critical area of

intercultural interactions.

Two broad groups will find this book useful: negotiators of all types and

those who assist negotiators (facilitators, mediators, and other intermediaries).

Increasingly negotiators in many positions are called on to deal with people

of different ethnic backgrounds within either their own country or other

societies. The handbook provides conceptual frameworks that will aid them

in understanding cultural factors that influence their own behavior, shape the

actions and reactions of their negotiating counterparts, and have a deep effect

on the institutions in which they work. The handbook also offers specific

suggestions of strategies and tactics for handling intercultural negotiations and

promoting successful talks and settlements.

While the handbook focuses on the negotiation process, the essential role

of mediators and other kinds of intermediaries is to assist parties engaged in

negotiations. Thus, mediators working cross-culturally or internationally will

also find the work useful, as they must often structure effective problem-solving

or negotiations processes. These insights apply equally well when assisting

in the resolution of interpersonal, intergroup, intercommunal, or international

conflicts. (See Chapters Fourteen and Fifteen for exploration of the roles of

intermediaries.)

Specific kinds of negotiators will find the concepts, approaches, and proce￾dures explored in this book useful

• Global business negotiators. The business world is increasingly globalized

and diversified. Businesspeople from diverse ethnic groups and societies who

are engaged in the development of mutually beneficial financial transactions

will find the handbook helpful for understanding their own culture and how

it influences their own negotiating assumptions and behavior, the impacts of

culture on other bargainers, and the cultural context in which the bargaining

is occurring.

• Managers and workers in the multicultural or international workplace.

Many societies comprise multiple ethnic groups—and have for centuries. Others

are newly diversified due to internal migration, immigration, and guest worker

xii PREFACE

programs. International companies also send managers to work in other coun￾tries, often with a diverse labor force, such as a Japanese manager working in

a car manufacturing plant in the United States. Managers and labor represen￾tatives who are working with multicultural workforces in their own country or

abroad will find the handbook helpful for understanding employees, managers,

and groups that are different from them and for developing effective working

relationships that can serve as the basis for handling day-to-day issues, nego￾tiating more important problems, or developing a labor-management contract.

• International diplomats. Professional foreign service officers from specific

countries and people working for international organizations, such as the

United Nations, African Union, and the Organization of American States,

will find the handbook helpful in promoting effective negotiations to address

political, social, and economic development questions. Diplomats who move

from country to country often need a broad framework that details ‘‘what to

look for’’ in a specific culture’s negotiating style. The handbook provides this

general framework, as well as specific information about several national and

regional styles.

• International donor agencies and lenders and national government coun￾terparts. Every year billions of dollars (euros, yen, and so on) flow from

lending institutions and wealthier nations to poorer countries in the form of

bilateral aid or more specific relief and development programs. International

institutions such as the World Bank, Asia Development Bank, and the Euro￾pean Bank for Reconstruction and Development are leaders in negotiating with

national governments to determine the broad shape of international assistance,

particular poverty-reduction plans. The International Finance Corporation and

other multilateral and bilateral lenders provide capital to private companies

engaged in projects that promote international development. We have also seen

considerable effort devoted to the renegotiation of debts owed to international

institutions. All of these require skills in intercultural negotiation—for which

this handbook will prove useful.

• International nongovernmental organization workers and local partners.

International nongovernmental organizations (INGOs), local nongovernmental

organizations (NGOs), and community-based organizations (CBOs) are

involved in humanitarian relief, development, human rights, and peacebuild￾ing programs (usually supported by international donor agencies, private

foundations, or individual donors). Such work involves constant negotiations:

between INGOs and their local partners; between INGOs and host governments

and donor agencies; and among INGOs, their local partner NGOs, and local

communities. Relief agencies also find themselves negotiating with military

forces and political groups that have their own agendas. Peacebuilding

organizations organize dialogue processes among conflicting factions or serve

PREFACE xiii

as informal mediators or conflict resolvers. All of these groups, local and

international, will find much useful information in this handbook.

• Professors and other university educators. Members of the academic

research and teaching community at all levels will find the handbook useful as

a text for preparing students to work in international or cross-cultural settings.

This will be especially true in the fields of sociology, anthropology, political

science, management, organizational development, planning, international

relations, development studies, and the growing field of conflict transformation.

University exchange programs or study abroad will also find helpful guidance.

The handbook will sensitize students to some of the issues they will face when

studying or working in another culture.

• Educators, school administrators, social service administrators, and local

government officials. Migration and immigration have created multicultural

schools, workplaces, and local communities. People who work in those

settings need awareness and skills to handle a range of complex issues across

cultural differences—many of which require some form of problem solving or

negotiation. The handbook provides frameworks for understanding different

approaches to conflict and bargaining that will be useful for people in these

positions.

SOURCES FOR THIS HANDBOOK

This handbook presents what we have learned in our extensive practice of

intercultural negotiations and dispute resolution, the experience of other practi￾tioners, and the work of researchers in this field over many years. Each of us has

almost forty years of experience working internationally in intergovernmental

negotiations, humanitarian relief, development, and conflict resolution. This

personal experience working and negotiating in many cultures—and helping

others negotiate—provides the primary source for this handbook. We have also

drawn on the rich literature in cross-cultural understanding, cultural anthro￾pology, and international negotiation—as can be seen in the many sources

cited in the text and the hefty References section.

We have also drawn on over thirty years of practical international and

domestic negotiation and conflict resolution experience of our colleagues at

CDR Associates (CDR), where we both serve as partners. Founded in 1978,

CDR is an international collaborative decision-making and conflict resolution

firm with offices in Boulder, Colorado. It provides professional decision mak￾ing, organizational consulting, public participation, and conflict management

assistance to the public, private, and nongovernmental sectors. CDR partners

and staff members have worked in over sixty countries in Africa; Asia; the