Impact of the Differences between Chinese and Western Culture on Business Negotiation.doc

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1、毕业论文(设计)1Impact of the Differences between Chinese and WesternCulture on Business Negotiation1.Introduction 22.How negotiation works32.1 Concept of negotiation32.2 Fundamental principles of negotiation 42.2.1 Separating the people from the problem42.2.2 Focusing on interests but not positions 52.2.3

2、 Inventing options for mutual gain 52.2.4 Insisting on objective criteria63.Culture and its impacts on negotiations 73.1 Comparison between Chinese and western cultures73.1.1 Values 73.1.2 Individualism and collectivism83.1.3“Showing Yourself”and“Being Modest”93.1.4 Family103.1.5 Nationalism103.2 Ge

3、neral impact of culture on business negotiation113.2.1 Negotiation goal 113.2.2 Sensitivity to time 143.2.3 Form of agreement 163.2.4 Decision-making183.2.5 Willingness to take risk204.Recommendation for Chinese negotiators214.1 Cultivating cultural awareness and sensitivity214.2 Making sufficient p

4、reparations224.3 Having a good command of the target language 225.Conclusion23References 25毕业论文(设计)21.IntroductionDuring the past decade,Chinese economy has been growing rapidly.Afterentering into the World Trade Organization,China became one of the majorinternational business players.The business n

5、egotiation among China and the westerncountries is the key point for developing business relationship of China and the West.As the most active factor in business action,international business negotiation isregarded as more and more important.There are various factors that have impact on internationa

6、l business negotiationsuch as international economic factors,political environment,pluralism of legalsystem,culture,etc.Culture is one of the most important factors which cannot beneglected.Cultural factor has been the most active one in affecting on the businessnegotiation process.The great diversi

7、ty of culture makes negotiating style different.They could cause unnecessary misunderstanding,even affect the result of the businessnegotiations.It is impossible for any negotiator who lacks cultural backgroundknowledge to succeed in international business negotiation no matter how skilled andexperi

8、enced he is.This thesis focuses on the different cultures between China and theWest,and how do they influence on business negotiation.毕业论文(设计)32.How negotiation works2.1 Concept of negotiationGenerally speaking,negotiation means discussions through which relevantparties can reach agreement to satisf

9、y their needs and coordinate relations.The word“negotiates”derives from the Latin infinitive“negotiari”meaning“to trade or dobusiness.”This verb itself was derived from another,“negare”,meaning“to deny”and a noun,“otium”,meaning“leisure.”Thus,the ancient Roman business personwould“deny leisure”until

10、 the deal had been settled.Negotiation,especially international business negotiation,is regarded as animportant and necessary social activity.International business negotiation meansconsultation and interlocution between two sides with different methods ininternational economic trade.International b

11、usiness negotiation involves negotiatorsrepresenting at least two parties,one or more translators or interpreters whennecessary,settings referring to office or meeting-room for negotiations,invisiblecultural background of the participants,and at least one round discussions oriented toachieve certain

12、 interest goals.After the negotiation finishes,the happy“win-win”result will be made.Not only the interest goals will be achieved,but also the friendlyand harmonious relationship among companies which the negotiators represented areestablished and continued.毕业论文(设计)42.2 Fundamental principles of neg

13、otiationNegotiation is an art that requires both study and practice.It could be consideredas competition,but communication for mutual profit and common development.There are four fundamental principles of negotiation which can help negotiators toachieve their goals.2.2.1 Separating the people from t

14、he problemEvery negotiation has two basic components:people and problems.Sometimesnegotiators bring their emotions,personalities,feelings when they discuss the interestsand events.Negotiators prejudice against the other partys intention would causepersonal disputes and both sides say something hurti

15、ng each other when suchprejudice or misunderstanding exists.In any negotiation,a negotiator has two intereststhe negotiation itself and therelationship with the other party.Negotiators should always keep in mind to separatetwo of them:to be firm on the problem and gentle on the people.In order to ma

16、ke agood negotiation,negotiators should try to maintain the relationship among the parties.However,the relationship should not have an influence on the negotiating conflict.In general,to separate people from problem,the crucial point is to understand theother party,control ones own emotion and stren

17、gthen communication.If thecounterparts opinion is not right,one should look for chances to correct themafterwards；If they feel dissatisfied,one should let them express themselves;ifmisunderstanding occurs,one should try to find some ways to understand what they毕业论文(设计)5think and feel.2.2.2 Focusing

18、on interests but not positionsPeople negotiate because of their conflicts of interests.Usually,the two partiesinterests cannot both come to an agreement.Negotiators should look for newsolutions to the problem which contribute to win-win,not just focus on the positionswhich cause one side wins,the ot

19、her side loses.Unfortunately,in fact most of thenegotiators try their best to make their counterpart change position.They think thatway they can protect their interests or gain more interests.Therefore,neither partywould come to an end in the negotiation.One important task of negotiation is to overp

20、ass ones position and to look forsolutions satisfying both parties interests.Negotiators should not consider problemson their own position only and regardless of the other partys reasonable interest.Good agreements focus on the parties interests but not their positions.If negotiatorsneglect ones own

21、 positions,but consider more about mutual interests,negotiationswill come to a successful ending.2.2.3 Inventing options for mutual gainFinding new options that will bring up the interests of both parties is the mostimportant factor in having a successful negotiation.If one finds himself negotiating

22、on a point of ego,this is usually a sign that he is losing.It is important for the partiesto give up the idea that one partys gain is the others loss.In order to come to an毕业论文(设计)6agreement,negotiators should understand the interests of the other and jointly createoptions which lead to mutual inter

23、ests.Therefore,one should realize that solving the others problem is also a way ofsolving his own.Both parties suggest some solutions to the problems.After theproblems have been discussed and the interests have become clearer,parties need towork together to generate options for mutual satisfaction.O

24、nly when parties focus onthe shared interests can they avoid falling into a win-lose mentality.2.2.4 Insisting on objective criteriaBy using objective criteria as a guide,neither party has to give in to the other,even both parties can come out with a fair and mutual solution.Insisting on theobjectiv

25、e criteria means to persuade the other side that an agreement is fair and toprotect one side from being forced.Objective criteria are used to make solution easily and acceptable because theyare fair,effective and rational.Different issues have different objective criteria.Forinstance,there are many

26、factors which affect the criteria of price,including cost,pricecompetition and market situation,and so on.There are three judgments to consider whether a criterion is objective or not:1）It should be independent of wills of all parties and thus be free from sentimentalinfluence of any one.2）It should

27、 be valid and realistic.3）It should be at leasttheoretically accepted by both sides.毕业论文(设计)73.Culture and its impacts on negotiationsCulture is commonly defined as a set of shared and enduring meanings,values,and beliefs that characterize national,ethnic,or other groups and orient their behavior.Fa

28、ure&Sjostedt,Hofstede,Namenwirth and Weber view culture as a system ofvalues and norms that are shared among a group of people and that when takentogether constitute a design for living and negotiating.When people of differentcultures are engaged in business negotiations,difficulties and misundersta

29、ndingsoccur all the time.3.1ComparisonbetweenChineseandwesterncultures3.1.1 ValuesThe core of western values is individualism.David Hitchcock(1994)said thatwestern values have three levels:1)physical level science,technology,business,public administration,and modern capitalist economics;2)conceptual

30、 level equalopportunity,the role of law;and time management;3)core values open debate,equality,balance of power;free speech,and democracy.The core of the Chinese value in a way relates to the Confucianism.The ethnicprinciple of Confucianism is the well-known Five Relationships:ruler-minister,father-

31、son,husband-wife,elder-younger brother and friend-friend.This was explainedas“There should be affection between father and son,righteous sense of duty between毕业论文(设计)8ruler and minister,division of function between man and wife,stratification betweenold and young,and good faith between friends.”Take

32、 Americans for instance,the top personal values were self-reliance,hardwork,and a tie between achieving success in life,personal achievement,and helpingothers.On the contrary,hard work,respect for learning,honesty,and self-reliancewere most valued among Chinese people.In addition,the top social valu

33、es forAmericans were freedom of expression,personal freedom,rights of the individual,open debate,thinking for oneself,and official accountability.The top six social valuesfor Chinese people were maintenance of an orderly society,harmony,accountabilityof public officials,openness to new ideas,freedom

34、 of expression,and respect forauthority.3.1.2 Individualism and collectivismWesterners believe in individualism which refers to the doctrine that the rights ofthe individual are the most important ones in a society.They hold an idea that eachperson has his own separate identity and personality,which

35、 should be recognized andreinforced.The core of individualism is the pursuit of personal and achievements.InChristianity traditions,individuals are important not only to each other,but also to thesociety and God.Individualism has been handed down from their ancestors.Therefore,to westerners,individu

36、alism is not selfishness but rather virtue.However,to Chinese people,individualism means egoism,with representsselfishness in quality and looseness in discipline.Chinese people appreciate毕业论文(设计)9collectivism.It emphasizes cooperation among group members and individual successis due to the collectiv

37、e effort.The sacrifice of individual interest for that of thecollective is a noble quality eulogized so much by Chinese people.In individualistic cultures,typically found in Western Europe and North America,individual interests tend to prevail over group interests.In collectivist cultures likeChina,

38、there is a strong concern for group interests.Collectivists are oriented towardsharmony in well-defined in-groups.3.1.3“Showing Yourself”and“Being Modest”In western countries,“showing yourself”is very normal for all westerners andhas a strong influence upon their behaviors.Most of westerners take it

39、 for granted thatto impress people,you have to show yourself.Different from the westerners,Chinese people have learned to be modest.At aresult,many Chinese behave in a modest way in whatever they say or do.MostChinese people like to belittle the actual significance of what they have done.Supposea Ch

40、inese has achieved some remarkable progress.But when he is appreciated byothers,he would say that what he had done was nothing and not worth mentioning.For Chinese,being modest is not only a usual practice,but a recognized virtuethat governs ones actions as well.For that reason,a Chinese would not s

41、how off nomatter how much he has done for the organization or for society.毕业论文(设计)103.1.4 FamilyWestern families advocate equality.The husband and the wife usually have anequality voice in decision-making,and on certain matters,the children,too,have avote.Family members are regarded as friend and th

42、ey should treated equality in dailylife.In the western,most old people do not live with their children or relatives.Theydo not gain honor,respect or attention as old people.On the contrary,most Chinese family members tend to live together and theyoung are supposed to show respect and obedience to ol

43、d people.Generally,oldpeople receive honor,privilege and satisfaction because people believe that an oldperson is a wise man full of experience.Just as Confucianism shows in Five Relations,the young should filial love,obedience and duty to the old in a family.For example,the Chinese who have moved a

44、broad usually continue to send money back to theirparents as a token of their filial piety.Moreover,many young people still try to livenear their parents whenever possible even after they are marriage.Westerners stress individualism in families while Chinese stress coalition,whichmakes the Chinese f

45、amily extremely cohesive.Generally speaking,the Chinese havea stronger sense of family honor than westerners.3.1.5 NationalismSince the ancient times,the nation form of China has been based solely on theHan nationality.The Han nationality developed their privities in the languageexpression and socia

46、l contact during the common life and work of their forefathers in毕业论文(设计)11the history.People can express some meanings with a subtle facial expression or aslight action only.When one says half of his words,even just a little,the others stillcan understand what he wants to say.Therefore,Chinese peop

47、le sometimes do not sayall their words when they want to express something.However,in western countries,take the American for instance:America is animmigrant country which has more than two hundred years of history.Nevertheless,America people still cannot reach privities.They must express clearly wh

48、at they want,otherwise the others cannot understand well.3.2 General impact of culture on business negotiationCultural differences play a crucial role in international business negotiation.Itcan generate misunderstandings,sow the seeds of distrust,and generate negativeemotions among negotiators.Diff

49、erent cultures will inevitably have different influence on peoples attitudetoward power among social members,peoples basis for trust,peoples goalorientation,peoples way of making decisions and peoples tendency to take risks,which will be discussed in detail in the next part.3.2.1 Negotiation goalDif

50、ferent cultures may view the purpose of a business negotiation differently.InChina,personal relationships come first.Chinese negotiators start to make friendswith their customers,to build and develop the relationship.They promote their毕业论文(设计)12business through their personal contacts(guanxi),dinner