Cultural Diversity & Negotiations—A Global Perspective

By : Prof. Rajesh Asrani
Core Faculty Member,
N. R. Institute of Business Management, Ahmedabad, India
(P. G. Centre of Gujarat University for MBA)

Comparative Study of Negotiating Styles In Different Countries

CANADA
Canada typically is a country where negotiations often begin in informal meetings. Dealing with Canadians can be agreeable, as they are often gracious hosts who take genuine interest in other countries. These qualities may in part explain Canada’s popularity. Business negotiations would typically take place during business lunches, usually short (1 to 1.5 hours) with lighter food and often no alcohol. When invited to a dinner, the best policy is to wait for your Canadian host to bring up the subject of business.

Tolerance, calmness and reasonableness are behaviors valued by most of the Canadians, who typically live in a multicultural society and the customs of businesspeople may reflect their ethnic background. In many circles, it is an asset to maintain low-key demeanor. Traditional sex roles are changing rapidly, but there is still some struggle among women for equality in income and position of authority. The negotiators from other countries, should however make it a point that negotiation process would though begin in an informal note, would continue and end on a formal note.

Again Canadian culture as well as law would require individuals to keep physical and/or electronic records of all the dealings and transactions done with any counter parts. This would imply that no negotiation, or its result, unless formalized would be considered final. A more important point to consider is that Canadians do not have difficulty saying “no”. Further experts are appointed to complete the process of negotiations, as a result of which, the counter part should be well versed with all the styles and protocols of business process during the process of negotiation.

Decisions are not rushed and a certain amount of caution is advised, but practically Canadians of all origins dislike wasting time.

AUSTRALIA
Typically Australians being the process of negotiations with a preliminary ‘small talk’. Establishing rapport is important in Australian business culture. It is important to speak plainly and expect what you say to be taken literally. In turn, interpret what Australians say to you in the same direct manner. Often Australians will be initially trusting of people they consider their equals; this attitude will quickly change, however if they find a reason to be suspicious.
Australians are usually distrustful of authority and of people who think that they are some how ‘better’ than others. It is important to remain modest at all times; in conversation, refrain from drawing attention to your education, professional experience, business success, and related achievements.”

Australians generally dislike negotiating and aggressive sales techniques. Since they value directness, presentations of any kind should be straightforward, with an emphasis on both positive and negative outcomes.

Modesty, casualness and an air of non chalance are characteristic attitudes in Australians business culture.

Finally Australian people would emphasize more on profit than any other objective, so it is important to emphasize the importance of economic incentives, during the process of negotiations. Deadlines and producing results are the main sources of anxiety in this culture as a result of which the Australians often lose out during the process of negotiations. Like Canadians, Australians do not find it difficult to answer “no”. Coercive techniques and informing against one’s mates is regarded with disgust in this culture. Concerning gender bias, Australian women are still struggling for positions of authority. In the work place men may not always treat women as equals. This should be inevitably considered during the process of negotiations.

Australians sometimes perceive work as a “necessary evil”. As a result of the above connotation they might not cooperative during the process of negotiation, which has contrasting interests.

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