CROSS-CULTURAL ISSUES IN NEGOTIATIONS JAPAN
Nov 20, 2014
CROSS-CULTURAL ISSUES IN NEGOTIATIONS
JAPAN
Agenda
Introduction
The Culture
Implications for Negotiation
Post Negotiation
Agenda
Introduction
The Culture
Implications for Negotiation
Post Negotiation
RP
Introduction
Not sufficient to only know language; critical to Not sufficient to only know language; critical to understand crucial differences in cultural valuesunderstand crucial differences in cultural values
Agenda
Introduction
The Culture
Implications for Negotiation
Post Negotiation
Business organization
Hierarchical and Bureaucratic
High degree of harmony and cooperation
Key focus on quality
Information oriented
Focus on building long term relationships and emphasize Focus on building long term relationships and emphasize on long term benefitson long term benefits
Seniority system
Based on factors like age, sex, family name, occupation, physical features and birthplace
Titles are extremely important - signifies prestige and respect
Hierarchy legitimates the use of power
Japanese will always examine relative positioning in Japanese will always examine relative positioning in negotiationnegotiation
Decision making
Try to deal with higher ranks and in groups, factor in Try to deal with higher ranks and in groups, factor in delaysdelays
Centralized
‘Ringi’ system – all members involved in the process
Often slow – unwillingness to take risk and avoids on the spot decision making
Long term perspective
Other aspects
Avoid excessive assertiveness, may be viewed as Avoid excessive assertiveness, may be viewed as aggressiveaggressive
Punctuality- always be on time
Indirectness critical in communication and avoid conflicts
Private people and uncomfortable with physical contact
Japanese less pressured by deadlines, slowdown as complications develop – threatened by stressful situations
Agenda
Introduction
The Culture
Implications for negotiations
Post Negotiation
Pre-negotiation
Emphasize on building trust and long term relationshipEmphasize on building trust and long term relationship
Meet socially before beginning formal negotiation – avoiding social conversation may lead to bad impression
Establish and maintain harmony (Wa) – important aspect of Japanese social life
Exchange of business cards (Meishi) - use both hands, spend 20-30 seconds on examining their card RP
Information exchange
Be patient and persistent and ready with information!!Be patient and persistent and ready with information!!
Wait for counterpart’s signal before starting negotiation
Japanese are information oriented - offer detailed explanations before making actual proposal
Ensure to discuss long term generalized goals
Use informal channel of communication to get the true feeling of the Japanese
Persuasion
Maintain “Wa” at all timeMaintain “Wa” at all time
Patience and intelligence in collecting information without giving anything away is their style of negotiation
Avoidance strategies like non verbal expressions and silence used often – negotiator should not appear desperate
Avoid using aggressive tactics and threats. Negotiator asking for high price may destroy the trust built RP
Concession and agreement
Settle overall agreement first and then detailsSettle overall agreement first and then details
Make the first proposal and receive counter proposal – focus on reciprocity
Japanese examine all issues simultaneously in a more holistic approach
Concessions are made only near the end of the talks and usually all at once – basic goal of long term mutual benefit
Customary to give the buyer a discount (called sabitsu) when agreement is reached - to demonstrate friendship and sincerity
Agenda
Introduction
The Culture
Implications for negotiations
Post Negotiation
Post-negotiation
Emphasize win-win situation and help increase the size Emphasize win-win situation and help increase the size of the pieof the pie
Fundamental approach is to emphasize the relationship being created
Specific items of a contract always open to renegotiation if the circumstances change
Signing manifested by ceremonial meetings and exchange of gifts
Munches!!
Emphasize win-win situation and help increase the size
of the pie
Over 90% of the Japanese population buys a comic-magazine daily
Frogs are the symbol of good luck in Japan
Japanese drink tea with almost every meal
Heavy traffic – In Tokyo, a bicycle is usually faster than a car for most trips up to 50 minutes