International Dimensions Of Organizational Behavior.

International Dimensions Of Organizational Behavior.

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there are 5 documents attached. please go through the documents pots slides and project report and PowerPoint and write a two-page summary report of all the topics included.

General guidelines to conducting business Negotiations in China

Banruo Xia

Maneel Reddy

Shashank Venugopal



Why is china in the spotlight?

China has a thriving economy

The country has outperformed the S&P 500 over the last 20 years

It has an economic growth rate much higher than some developed countries (6% vs 1.9% in US and 1% in UK)

Many Chinese companies are reasonably priced as compared to their counterparts in developed countries


Hofstede’s culture value dimension


Chinese view of negotiations

Literal translation : Tan-pan = discuss and to judge

A mechanism for building trust

Hinges on creating a framework for long term cooperation and problem solving

Viewed as an ongoing and dynamic process

It’s a process that does not end unless the relationship is severed

Take into account practical matters and context

Are slow paced, and involve seemingly abstract building of interpersonal relationships

Negotiation Strategy


Negotiations are a marathon not a sprint



Meetings require to be face to face



Time is necessary to get to know your potential partner



Keep accurate records of the results of each rounds of negotiations



Good idea to sign off meeting notes



Will likely face a team of negotiators



Key challenge will be to identify real decision maker or makers!




Communication Guidelines


Chinese value “not losing face”



So be careful with what you say!



Look beyond the compliments



See them for what they are!



Put effort to understand the meaning behind the words



Try to understand what they’re really trying to say!



Personal projections

Be more understated and modest

Show your counterparts respect and make an effort to get to know them on a more personal level

Be patient and practice the “cold shower” approach to decision making

Just when you think you know enough: stop, think, listen some more, sleep on it and then make your decision.

Don’t set artificial deadlines, or give displays of emotion

Be fair, reasonable and diplomatic

If you disagree with your counterpart, don’t simply reject their position out of hand, but carefully explain your reasoning





This is the MOST important aspect of the negotiation

Use local staff, local contacts and external advisors to receive pre-negotiation guidance

Hire a capable Chinese team who can

help you understand the nuances of what your counterparts are saying

develop back channels that can help smooth the negotiations




Choosing your partner


Become familiar on interpersonal and organizational levels



Verify credibility



Use a strategic screening process



Choose a reputable local partner who is closely aligned on mutual goals



Take time to confirm whether there is a basis for sustainable business before investing in discussions





Maintaining due diligence

Invest resources in broad ranging due diligence

Foreign companies are expected to know of and work well within the local context

Have clarity on Chinese industrial policy, government regulations, and relevant stakeholders at the national, provincial, and local levels

Commit adequate time and resources to understanding and tending local China relationships for the long run


Operational guidelines

Assemble a disciplined and cohesive negotiation team that follows a unified communication plan

Have a designated speaker

Assign individual roles

because it is common to receive questions like “During his visit on that time, he assured this…”

Choosing a translator

Must be able to read the room better

Should be able to speak informally with the Chinese team






Remember that Negotiations are never over



Due diligence is to be maintained during the whole course of the business engagement



The team has to be cohesive and have individual roles so as to be prepared for minute questions



Always stay up to date with the Government regulations and Guanxi! Guanxi! Guanxi!



If all these guidelines are followed, your business in China will be a success!



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