Answers: A, C and D.
Philippine Business Negotiations
During negotiations
Be sensitive, sincere, and avoid direct criticism. Be prepared for a "take it or leave it" attitude when Filipinos are the sellers, and note that Filipinos tend to stress percentages rather than absolute numbers, unit costs rather than totals, and rounded numbers rather than exact figures.
In bargaining, Filipinos will tend to start low, and increase concessions in an ascending manner. It is a good idea to frame proposals in such a way that radical changes and innovations are kept to a minimum. Filipinos tend to avoid drastic change, and such notions can be perceived as threatening.
Decisions
The structure and decision-making style of the Filipino corporation are modeled on the corporations of the Spanish Mestizo elite, and on the corporate giants of the post-colonial and postwar eras.
Friendly consensus, or "pakikisama" in Tagalog, is important. Advocating new ideas requires tact to avoid implying criticism.
Only chief executives have the power to make decisions. The speed with which those decisions are executed is governed, however, by numerous variables: the physical and mechanical limitations imposed by the country's climate, the vagaries of nature such as typhoons, torrential rains, mudslides, earthquakes, blackouts, and brownouts; the bureaucracy, and a certain degree of a mañana attitude.
Most important are the effects of family commitments and responsibilities, often involving a member of the executive's extended family. Since a businessperson's commitment to you is assumed to be lifelong, the most extended form of logic also gives a lifetime to honor it.
Even the occasional business visitor may find oneself absorbed into this extended family. You may be assigned, for example, the role of ninong –godfather – or ninang – godmother – for the child of a business partner or acquaintance, and find yourself bouncing a toddler on you knee. Such a relationship is not to be taken lightly. The Filipinos are quite serious when offering such a gesture, and expect that the accompanying responsibilities will be honored.
Excerpted from the Living Abroad Philippine report: Business Practices/Business Negotiations
Written by Michael Cadden, SGMS-T, VP International Operations
