Negotiation in a Cross Cultural Context

Negotiation

“Negotiation is a process by which two or more individuals or groups having both common and conflicting goals state and discuss proposals for the specific terms of a possible agreement” (Kukreja, 2019). Negotiations can happen both in and out of workplace and is an essential part of maintaining relationships.

Factors Deciding Negotiation       

Negotiation is an interactive communication process depends on several important factors. It is dependent on the objective and interest of the parties and the extent to which they are interdependent. This is also an indicator of the flow and outcome of the negotiation. The history of the relationships of the parties and the nature of the party too provides implications to negotiations. Another important factor is the strategy or the persuasive ability of each party engaged in the negotiation

How individuals perceive a certain scenario is different to one another. Therefore how an individual perceives facts during negotiation decides outcome and communication. A negotiator needs to be creative enough to use language in such a way that he grabs attention of the other party and convey messages with utmost clarity. Trust is usually essential in building sustainable relationships between parties. “Ethics influence an individual’s values, perceptions of situations and the communication and strategic tactics employed in negotiation” (The Business Professor, n.d.)

 Negotiations and Culture

People are essentially bound by culture. Therefore they are bound by special values, beliefs, manners and perceptions that are indigenous to them. Diversity in cultures lead to diversity in business negotiations. “Negotiators from different cultures may tend to view the purpose of a negotiation differently” (Salacuse, 2004).

Personal style is how a negotiator talks to others, dress and interact with other party in a negotiation. Culture is a strong indicator of personal style and influences heavily on decision making in negotiations. Each habit has its own meaning and specialty, therefore negotiators need to respect each others’ personal style.

Some cultures rely on direct and simple speech whereas others use indirect and complex methods. “In a culture that values directness, such as the American or the Israeli, you can expect to receive a clear and definite response to your proposals and questions, in cultures that rely on indirect communication, such as the Japanese, reaction to your proposals may be gained by interpreting seemingly vague comments, gestures, and other signs” (Salacuse, 2004).

In this globalized world understanding cultures is vital as organizations need to work beyond cross culture barriers. Hence understanding and respecting different cultures is as equally important as general factors for successful negotiations in order to bring out the best possible outcome for the negotiation.

References

Kukreja, S. (2019). What is Negotiation and Factors Influencing Negotiations | Management Study HQ. [online] Management Study HQ. Available at: https://www.managementstudyhq.com/factors-influencing-negotiations.html [Accessed 2 Jun. 2019].

Salacuse, J. (2004). Negotiating: The Top Ten Ways that Culture Can Affect Your Negotiation •. [online] Iveybusinessjournal.com. Available at: https://iveybusinessjournal.com/publication/negotiating-the-top-ten-ways-that-culture-can-affect-your-negotiation/ [Accessed 2 Jun. 2019].

The Business Professor. (n.d.). Negotiation - The Effect of Personal and Situational Factors. [online] Available at: https://thebusinessprofessor.com/knowledge-base/personal-and-situational-factors-affecting-a-negotiation/ [Accessed 2 Jun. 2019].