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Cross Cultural Negotiation Behaviors - INDIA and UK

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Rahul Jumani

on 9 May 2013

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Transcript of Cross Cultural Negotiation Behaviors - INDIA and UK

Republic of India Culturally enriched
500,000 Villages
22 Major Languages, 22,000 Dialects
Numerous Religions
Emerging Country
Huge social class difference Structure Introduction
Negotiation Process
India and UK overview
Cultural Profiling (Dimensions)
Negotiation Behavior and Process
Impact of Culture on Negotiation - Top 10 ways
Recommendations
Conclusion
References
Questions and Answers United Kingdom Negotiation Behavior and Process Cross Cultural Negotiation Behaviors
Between
INDIA and UK INDIA UK Meetings and Business Protocol Negotiation and Discussion Decision Making & Role of Contract Diverse Culture: English, Scots, Welsh, Irish
Oldest traders
Asian perception: Individualistic, monochromatic, reserved, direct
German's perception: Moderately relationship focused, indirect, hierarchical and mildly polychronic
American's perception: Formal, reserved, class-conscious and often relaxed about time Source: "India - Geert Hofstede." Cultural Insights - Geert Hofstede. N.p., n.d. Web. 6 May 2013." Cultural Profiling 1. Prepare 2. Open 3. Argue 4. Explore 5. Signal 6. Package 7. Close 8. Sustain Eight Steps of Negotiation Cultural Profiling Monochromatic vs Polychromatic
Personal Space
Low Context vs High Context E.T. Hall Fons Trompenaars Individualism vs Communitarianism
Universalism vs Particularism
Neutral vs Affective
Specific vs Diffuse
Achievement vs Ascription
Sequential vs Synchronic
Internal vs External Greet Hofstede Individualism vs Collectivism
High vs Low Power Distance
High vs Low Uncertainty Avoidance
Masculinity vs Femininity
Long vs Short Term Orientation
Indulgence vs Restraint Language INDIA UK Indian English English Time Time is a flexible concept Time oriented "Namaste" or a Firm handshake
Title +First Name INDIA UK Greeting A firm handshake
Title + First Name (Important) Personal Space/Touch Behavior Back tapping, elbow grabbing, arm-around-the-shoulder is rude Holding hands and arms is a sign of friendship
Important with women Eye Contact Not Direct Direct Gestures Use relatively few gestures Many gestures are used Build relationship
Indirect communication style (Jumping back and forth)
Competitive
Put a wide safety margin
Dealing on long term benefits and deals
Experts at haggling/bargaining
Respect - Try to tell you, what they think you want to hear.
Don't say "No"
Straight to Business
Direct - Communication Style
Factual and straight forward
Cooperative
Hypes and exaggerated claims are disliked
Dealing on short term benefits INDIA UK Decision Making Hierarchical
Decision making is done by higher authority
Process takes long Flat Hierarchy
Decisions can be made at lower level
Moderate Process Role of Contract Contracts are considered foundation of the deal
Can be changed
Not specific rules or conditions
Not final agreements Role of the contract is the most important
Cannot be changed
Detailed terms and conditions Place Office Restaurants Impact of Culture on Negotiation (Top 10 ways) Goal
Attitudes
Personal Styles
Communications
Time Sensitivity
Emotionalism
Agreement Form
Agreement Building
Team Organization
Risk Taking Relationship
Win/Lose
Informal
Indirect
Low
High
General
Top down
One Leader
High Contract
Win/Win
Formal
Direct
High
Low
Specific
Bottom Up
Consensus
Low Source: Kumar, Rajesh. " NEGOTIATING WITH THE COMPLEX, IMAGINATIVE INDIAN - Ivey Business Journal." Ivey Business Journal - Improving the practice of management. N.p., n.d. Web. 6 May 2013. INDIA UK Recommendations References To work in INDIA: Possess good communication skills and able to comprehend non verbal behavior.
Be Patient
Put margin in opening positions
If investing capital, plan to invest step by step in small chunks
Put small milestones for performance check and uncertainty avoidance.
Create proper detailed documents To work in UK: Direct and Straight forward: Say what you mean, mean what you say
Facts and figures
Put Margin on opening positions
Be sure before signing contracts Gesteland, Richard R.. Cross-cultural business behavior: a guide for global management. 5th ed. Copenhagen: Copenhagen Business School Press ;, 2012. Print.

Salacuse, Jeswald W.. "NEGOTIATING: THE TOP TEN WAYS THAT CULTURE CAN AFFECT YOUR NEGOTIATION - Ivey Business Journal." Ivey Business Journal - Improving the practice of management . N.p., n.d. Web. 6 May 2013.

"Cross-Cultural Management in practice: culture and negotiated meanings | Laurence Romani - Academia.edu." Academia.edu - Share research. N.p., n.d. Web. 6 May 2013.

"India - Geert Hofstede." Cultural Insights - Geert Hofstede. N.p., n.d. Web. 6 May 2013.

"Dimensions - Geert Hofstede." Cultural Insights - Geert Hofstede. N.p., n.d. Web. 7 May 2013.

"The Seven Dimensions of Culture - Communication Skills Training from MindTools.com." Mind Tools - Management Training, Leadership Training and Career Training. N.p., n.d. Web. 8 May 2013.

"India - Language, Culture, Customs and Etiquette | global-etiquette | resources." The Translation Agency for a complete Professional Translation Service. N.p., n.d. Web. 8 May 2013.
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