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SUSHMA. C. S NAMITHA. K. B CHIDANANDA. N ANAND. N. ROY
Negotiation is a process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.
All cultures are known to have a set of beliefs that defines the code of conduct and values for that particular culture. People living together in a society share the same culture. Cultural differences distinguish societies from one another. Different countries follow different cultures and styles for negotiation.
CULTURAL DIFFERENCES IN NEGOTIATION
Europe and North America, business is contractual in nature. Personal relationships are seen as unhealthy as they can cloud objectivity and lead to complications. In South America and much of Asia, business is personal. Partnerships will only be made with those they know, trust and feel comfortable with. It is therefore necessary to invest in relationship building before conducting business. Information at Negotiations: Western business culture places emphasis on clearly presented and rationally argued business proposals using statistics and facts. Other business cultures rely on similar information but with differences. For example, visual and oral communicators such as the South Americans may prefer information presented through speech or using maps, graphs and charts.
Negotiation Styles: the way in which we approach negotiation differs across cultures. For example, in the Middle East rather than approaching topics sequentially negotiators may discuss issues simultaneously. South Americans can become quite vocal and animated. The Japanese will negotiate in teams and decisions will be based upon consensual agreement. In Asia, decisions are usually made by the most senior figure or head of a family. In China, negotiators are highly trained in the art of gaining concessions. In Germany, decisions can take a long time due to the need to analyse information and statistics in great depth. In the UK, pressure tactics and imposing deadlines are ways of closing deals whilst in Greece this would backfire. Clearly there are many factors that need to be considered when approaching cross cultural negotiation. Through cross cultural negotiation training, business personnel are given the appropriate knowledge that can help them prepare their presentations and sales pitches effectively. By tailoring your behaviour and the way you approach the negotiation you will succeed in maximising your potential.
Negotiation in global arena
The increasingly global business environment requires managers to approach the negotiation process from the global business person's point of view. This approach includes aspects which are usually unimportant in domestic negotiations. Some of the components of a cross cultural negotiation process are more complex and difficult, but will increase our success in avoiding barriers and failures in the international business arena. When doing business internationally, we need to consider : The negotiating environment Cultural and sub-cultural differences Ideological differences Foreign laws and governments Financial insecurity due to international monetary factors Political instability and economic changes