According to Deresky and Christopher (2015), negotiation is defined as the course of discussion between two or more parties with aim of reaching a mutual agreement. In most instances, when coming to negotiating terms with another business entity or individual, there are several pronouncements that a person should make and applying strategies. Making decisions during a negotiation process may not direct commence from the negotiating table. According to mmmm, it is vital to have the pronouncement before, during and after the actual course of negotiations. An effectual negotiation may only conceivable if the parties are well primed for the discussions. However, it is important to consider the extent in which the cultural diversity influences the efficiency of the decision-making process amongst the entities involved.
The process of negotiation comprises of five steps. The five phases are essential in relation to the way they differ regarding the ethnic standards, preparations, relationship development, exchanging task-related data, persuading, and concessions and agreement. In the case of global diplomacy, it is vital to assess the customs and adjustments to the stages if required. The approach used in negotiating has an impact on the negotiation outcomes. As a business executive managing the intercontinental consultations, understanding the behavioural difference is the foundation of every resolution in negotiations. This would assist in knowing the activities in the negotiating period. Americans are known to have low-context approaches, which may be regarded peculiar by the Mexicans.
If I was presented in Mexico to discuss a profitable joint undertaking with restricted turn-around, I may consider several pronouncements prior to the negotiation. If the turn-around is planned is viewed to be swift, I may present resolutions during the negotiation preparations capable of being well deliberated. On the other hand, decisions made during the sessions should be rapidly integrated. Offering myself the chance of preparation before the discussions, and ensuring my resolutions are read earlier may guarantee a positive outcome.
Cultural variables are important on the decision-making process of international executives. Deresky and Christopher (2015) defines five phases within this decision-making process that could radically be influenced by cultural variables. The stages include problem identification, gathering and examining relevant information, contemplating other practical resolutions, establishing the best resolution, and execution of the best operations.
When considering risk tolerance, it is involves deliberating on the cultural adequately threshold level. Deresky and Christopher (2015) states that business have the utmost risk tolerance. Additionally, she affirms that Austrian managers have a subordinate risk lenience as compared to Japanese or Dutch Managers. Comprehending the existence of cultural differences in the level of tolerance is very significant when commencing negotiations. This inclination to acknowledge a point of risk has a direct impact on three phases in the decision-making process. The three affected phases are problem definition, contemplating alternative resolutions, and pronouncements. This cultural understanding will help when it is period to resolve on the best resolution.
Mmmm, a cultural variable states the differences between objective and subjective viewpoints. The objective method is founded on shrewdness and is more conspicuous in Western cultures. According to bbbb, numerous cultures tend to take a more subjective approach in their decision-making process. Their decisions come from an emotional rather than a rational basis. Knowledge of the level of this cultural variable and how it affects, problem description, information gathering, and deliberation of alternate resolutions, can assist the delegate get ready for several unfamiliar responses in every stage.
Another variable that may be mystifying is derived from the locus of control. Deresky and Christopher (2015)considers this as manager’s view of their capabilities to regulate happenings. Those that function with an internal locus of control believe they may can control events through preparation. The external viewpoint holds no regard for making choices that can be seen as out of their reach. The business interior or exterior viewpoint can affects the last three phases of the decision-making progression.
During the preparation stage of negotiation, comprehending the cultural variances and familiarization with counterpart’s backgrounds may be beneficial. One of the non-verbal characteristics of a successful negotiator is understanding the facial expressions. Devoid of the base insight, vital queries might be misunderstood. Deresky and Christopher (2015)highlighted that facial staring as one of the most commonly used techniques. More eye contact may generate uneasiness in certain cultures, for instance, Japanese culture.
Another nonverbal feature is the use of silence. In the American culture, they find still pauses to be rather unpleasant. On the other hand, in the Chinese culture, silence is embraced. Deresky (2014) identified that the quietness is utilized for information processing and they might turn out to be aggravated if the procedure is interjected. In contrast, a Chinese mediator, perceptive of the American counterparts’ uneasiness in quietness, may deliberately prolong it to fortify their position. People uncomfortable with silence may share information that may turn out to be detrimental.
Another major non-verbal characteristic is touching. Other than the initial hand clasp, further touching is considered as affection, making some cultures feel uneasy. Acquisition of this information before-hand as an American heading for negotiations in Brazil can assist with the disquiet felt sensed when there is violation of personal space. Making individuals feel uneasy is one of the few gimmicks used. The colleague may make a decision to terminate the unpleasant consultations prematurely. For instance, the German culture is believed to be of low contact, and if German colleague uses lots of touching, it may specify he is attempting to instil some form of uneasiness facilitate a concession.
Another form of non-verbal characteristic is interruptions. While many may consider verbal interjections as an interruption, it may occur in a non-verbal manner and may be used to their advantage. For instance, engaging with an individual from a polychromic culture may result in a negotiator being in a fragile point. Body language may be used as a disruption. Giving the impression of disinterest in a counterpart’s says is another nonverbal way that interrupts a concession.
The first phase of a negotiation process is preparation. Being cognizant with colleague’s background and negotiation subjects may offer the difference between successful and an unsuccessful interactions. According to Deresky and Christopher (2015), most of the challenges arise due to lack of understanding of the environment, culture and language. Various regions may exercise behavioural aspects that are dissimilar to the negotiator. Identifying your own style of negotiation and comprehending how they may vary from the corresponding individual’s cultural norms is the primary step.
The next phase is developing a relationship. Various regions such as America do not focus on this stage, despite being a vital part in other nations. People tend to depend on specific pacts and regulations while other nations are dependent on individual obligations as compared to the legal frameworks. For a relationship to be developed, respect and trust is crucial. Placing little or no effort in this phase may dismiss any consultations before commencement.
The third phase involves exchange of task related data. This phase can be delayed due to misunderstandings if the representatives fail to prepare for cross cultural communications. Having the elementary understanding prepares the negotiating team for candid discussions with corresponding persons. This results to less interruptions during presentations about insignificant information.
The next phase involves persuasion. This bargaining phase can be demanding with not only the dialect, but also customs, behaviors, and nonverbal interactions. According to Deresky and Christopher (2015), there are some subtle aspects utilized in this phase. They include the use of voice inflection, body expressions and eye contact. It might be a routine in the host nations to provide deceptive data. A person’s knowledge of the culture may assist in maintaining the negotiations and being aware of the gimmicks incorporated during this stage.
The final phase entails concessions and agreements. A negotiator deemed to be well-prepared should familiar with the various tactics utilized in other cultures to acquire concessions. Cultural approaches such a linear, step by step, fashion verses a holistic manner is likely to affect the outcome of a negotiation. Once a pact is agreed upon, local customs dictate how a deal can be finalized. Comprehensive, official pacts may be seen as an insult to some cultures. Knowledge of the host’s practices dictates how a pact is honoured. Therefore, this phase is crucial as it guarantees mutual benefit of each stakeholder.
Deresky, H., & Christopher, E. (2015). International management: Managing cultural diversity. Pearson Higher Education AU.