...Introduction Negotiation is a method of conflict resolution. It is a problem-solving process in which two or more parties attempt to resolve their disagreement or conflict in a manner, and through a process, that is mutually agreeable. Where as the general concept of negotiation is easy enough to understand, in practice it can be an extremely difficult proposition. Negotiation is further complicated when the parties find themselves negotiating across dissimilar cultures. “Culture is a powerful factor in shaping how people think, communicate and behave. It therefore affects how they negotiate” .Our presentation investigates the impact of culture on negotiations. It begins by defining culture, to include a discussion on how culture is imbedded in an individual through their mental models and values. It then breaks out the four dimensions of culture identified by Geert Hofstede. A general overview of negotiations follows the culture. It includes a definition of negotiations and discusses the range or continuum of negotiation styles. The section on negotiations closes with an overview of negotiation skills to include the actors and their frames of reference. The final idea provides a description of how culture impacts negotiations. First, it overlaps four elements of negotiations; actors, structure, strategy, and process with Hofstede’s dimensions of negotiation. Then, a summarization of cultural affects on specific negotiation styles is provided. Defining Culture Working...
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...form, negotiation is a method of conflict resolution. It is a problem-solving process in which two or more parties attempt to resolve their disagreement or conflict in a manner, and through a process, that is mutually agreeable. Whereas the general concept of negotiation is easy enough to understand, in practice it can be an extremely difficult proposition. Opposing views about what is right and wrong, disagreement on what is fair and equitable, understanding each other’s message and form of communication, and even the procedures that will be used to conduct negotiations are but a few of the hurdles that negotiators will encounter. Negotiation is further complicated when the parties find themselves negotiating across dissimilar cultures. Culture is a powerful factor in shaping how people think, communicate and behave. It therefore affects how they negotiate. In business arena, negotiations are crucial aspects of inter-organizational relationships like joint ventures, mergers and acquisitions, licensing and distribution agreements, and sales of products and services. As the proportion of foreign to domestic trade increases, so does the frequency of business negotiations between people from different countries and cultures. To successfully manage these negotiations, businesspeople need to know how to influence and communicate with members of cultures other than their own. This paper investigates the impact of culture on negotiations. It begins by defining negotiation, cross...
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...Behaviours Cultural Differences in International Business Negotiations Nonverbal Behaviours Cultural Differences in International Business Negotiations Globalization embraces the free-market system which is driven by policies to allow the integration of markets in the global economy. By reducing trade barriers, it has promoted free trade - encouraging competition to spread globally. As a consequence, the global environment of business has become exceedingly challenging as the number of corporations competing in the world marketplace rise. The unprecedented growth of international business has become increasingly dependent on effective face-to-face negotiations between business partners from different countries which often have unique cultural nuances. Culture influences how people think, communicate and behave, which ultimately affects the way they negotiate. For example, many countries which utilize northern European, German, English, and Scandinavian languages are categorized as low context cultures, and rely on spoken words in order to communicate. Conversely, high context cultures, often pertaining to Asian and Arabic languages, are heavily dependent on nonverbal and situational cues. These differences in culture can lead to misunderstandings during international business negotiations, so it is imperative that all members involved are familiar and sensitive to the culture of the other party. A key component of successful international negotiation is effective...
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...Introduction International business is not just about nationalities, it is also about cultures. Cultures influence negotiation styles, values and communications. Image a situation where a Japanese supermarket manager negotiating with an American salmon supplier with their own negotiation styles: the Japanese negotiator want to extent the length of negotiation in order to seek the best result of the deal, but the American negotiator treats time as money and he/she wants to quickly reach the agreement (Evans & Richardson, 2010). This essay will firstly discuss the definitions of culture and negotiation, and then it will discuss cultural influence on negotiation and its behaviour; finally it will suggest possible strategies in addressing difficulties caused by cultural differences. This essay will argue that cultural impacts increase the difficulties of cross-culture negotiation, but negotiators can successfully manage the difficulties by increasing their knowledge of different cultures and continuously practise relevant strategies. Culture Culture is a term that can be explained in many different ways. According to Alon and Brett (2007), culture is a process of socialisation that people learn a shared pattern of behaviour and affective understandings. These patterns distinguish one group of people from another. Carrell, Shank and Barbero (2009) also state that culture is not physical elements but the perceptions that members consider them. People from the same culture usually...
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...individualism-collectivism cultural dimension, Pruitt’s negotiation styles model, and Rahim’s conflict management model, this research examines how national culture influence the way people choose negotiation and conflict resolution handling styles through an empirical study of 87 individuals in the U.S. The respondents were divided in two groups: American, and Ethiopians. The results show that the individualism-collectivism cultural dimension did differentiate the members of the American culture from the members of the Ethiopian culture. Among the negotiation and conflict management styles object of this study, the dominating style was found to be preferred by those with high concern for self, whereas the cooperating and the integrating styles were found to be preferred by those with high concern for others. Introduction In order to remain competitive in their respective markets companies around the world are expanding their horizons beyond their original country, and they are increasingly seeking international partnerships and business ventures in different cultural environments. The ability to negotiate across national borders and within the organization has become increasingly important in the past decade, but despite the continuous growth of business globalization negotiation and conflict resolution styles are often misunderstood. According to much of the literature available scholars have conducted substantial research on the subjects of negotiation and conflict resolution...
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...Executive summary The report is based on the question stated below: Culture – Negotiation, "Cross-cultural communication often involves several barriers preventing success, the aim of this report is to identify the various problems that may arise in an attempt to explain how to overcome them" Basically we`re going to have a look at the meaning of communication before getting to understand the different cultures we come across worldwide. What defines communication, the different types of communicating and how is communication used. When understanding these subjects’ doors open to have a look at the differences communication is altered and affected by different cultures and how it is used in doing business across the globe. Hopefully it will reveal the answer to the question stated above. This report explores the communication process and identifies how varying cultures have an effect. The differing regional norms within the continents globally are also compared to aid successful communication across different cultures. Introduction In its basic form, negotiation is a method of conflict resolution. It is a problem-solving process in which two or more parties attempt to resolve their disagreement or conflict in a manner, and through a process, that is mutually agreeable. Whereas the general concept of negotiation is easy enough to understand, in practice it can be an extremely difficult proposition. Opposing views about what is right and wrong, disagreement on what...
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...Cell Phone Negotiations MGT 557 April 8, 2013 Cell Phone Negotiations In today’s society, cell phones have become and necessitate and also have become a billion dollar business. Distributors of cell phones look for maximum profit by buying from manufactures’ at the cheapest price. Not only does price matter in negotiations, but considerations for individual differences such as cultural differences must occur for the outcome of a negotiation to be successful. In today’s economy, it is not uncommon for companies to go overseas for cheaper manufactures’ cost to increase profits. However, American companies who wish to compete internally in manufacturing products face the high labor costs in the United States compared to foreign countries. In this paper, the author will discuss a negotiation between a Chinese and an American negotiation team over cell phone cost per unit and possible influences that go into the negotiations such as gender difference, personality, culture and perception, cognition, and emotion. Summary of Cell Phone Negotiation The negotiation involves two teams, the all-American negotiating team from the United States and...
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...international business in the twenty first century has brought many cultural difference issues to the forefront of today’s business strategies. Culture in international negotiations has frequently been compared to an iceberg, although there is an appearance of an obstacle above the surface, the depth of understanding required to conduct successful international negotiations goes far beyond what is immediately transparent. Since culture has a substantial influence on how people deliberate, converse and act, it has significant effect on many aspects of business negotiations, and therefore must be considered when conducting business internationally. All too often companies try to operate using the same business structure and strategies in multiple different countries and are unsuccessful or have extreme difficulty due to the differences in culture. This paper will discuss several cultural differences which consistently cause difficulties in international negotiations specifically during the conduct of business between America and China. These differences are broken up into several different categories including: purpose of negotiation, cultural compatibility, governmental compatibility, communication barriers, risk aversion, formalities and negotiating speed, emotional response, and successful negotiating tactics. Purpose Understanding why both business parties are negotiating as well as cultural negotiation processes are important in obtaining a favorable outcome during international...
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...The Chinese view of negotiations The Chinese word for negotiation—tan pan—combines the characters meaning “to discuss” and “to judge.” From a Chinese perspective, negotiation exists primarily as a mechanism for building trust so that two parties can work together for the benefit of both. Trust is built through dialogue that lets each party judge or evaluate the partner and the partner’s capabilities and assess each other’s relative status. The negotiation process also enables parties to reach an understanding on a specific issue, condition, or transaction, in a way that lets each side feel that “a good deal” was brokered. But the concept of negotiation hinges on creating a framework for long-term cooperation and problem-solving much more than on drafting a one-time agreement. As such, negotiation in China is viewed as an ongoing, dynamic process that takes into account practical matters and context. Many Chinese prefer this approach over creating contract-based absolutes, which many Chinese perceive as the primary purpose of Western-style negotiations. Significant differences in negotiation style and culture can be accompanied by mutually unfavorable perceptions. Americans may see Chinese negotiators as inefficient, vague, and perhaps even dishonest, while Chinese perceive American negotiators as impersonal, impulsive, and overly focused on immediate gains. When adapting to Chinese-style negotiations, task-based, time-conscious foreign partners must balance the need for...
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...http://www.solutionlibrary.com/business/management/miami-school-negotiations-paper_8g1f Miami School District Negotiation Paper Miami School District Negotiation Paper The Miami school district has announced that in the upcoming year, school boundaries will be redrawn due to unexpected increases in enrollment. The school board has created a plan for the students as the school is not large enough to accommodate each and every one of them. They have hired experts to redraw school boundaries to be submitted for the following year. Upsetting many students as they will not be able to stay at their present school, several parents have voiced opinions based upon the school district proposed plan. Most of the parents are concerned about the quality of education their children will receive, increased travel time, crossing economic and cultural boundaries, affect on property values, and social effects on children. With the following reasons against the proposed plan, I will address all of the stakeholders and their concerns. This paper will also discuss a developed plan to address stakeholders’ concerns as well as the negotiation strategy used to support the school board’s need to redraw the boundaries with the concerns of the stakeholders. Lastly, the paper will explain how ethics and culture affect the decisions. There are many stakeholders in this situation with the students being redrawn from their current school. The students, school officials, staff, teachers, school district,...
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...Negotiation Negotiation Plan Team D (NAC) Walden University Negotiation Plan One of the main challenges in the upcoming negotiations with the USSL is the cultural differences between our countries. In order to overcome this barrier, we have to plan our negotiation approach very careful and detailed. According to Lewicki, Saunders, and Barry (2011), “The dominant force for success in negotiation is in the planning that takes place prior to the dialogue” (Lewicki, Saunders, & Barry, 2011, p. 97). The main issues in the upcoming negotiations are: * Number of vessel used per year * Logistics support during the ocean and ground transportation * Freight cost and terms of payment * Geographic distribution over the Americas and other continents With accordance to the presented issues, the objectives in each negotiation session will be as following. Stage 1: A general agreement on the concept of operations, including reaching of consensus regarding further negotiations. Stage 2: Strategic Objectives. 1. Creation of harmonious relationships, based on the integrity and reliability; 2. Determination of the volume of transportation over the five-year period, including general understanding regarding an obligation per each year; 3. Principal agreement on the financial relations; 4. General agreement regarding potential geographic areas /states...
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...Introduction This essay will first show how an effective use of language and persuasion, and a good awareness of ethical considerations can contribute to a successful negotiation process by breaking deadlock and achieving a win-win situation. To lead a good business negotiation, there are five key points that one should go through: preparing the negotiation, rehearsing the negotiation, describing our statement and position, making propositions and offers, bargaining and the weight of culture in the negotiation process. The process of negotiation itself requires preparations. If one negotiates in an offhand attitude, then one will never be able to optimize ones efficiency. More the negotiation is important and more it requires preparation. If one does not prepare correctly and efficiently, and if the other part did it well, one will enter in a position of inferiority. One will appear weak and non-professional. The lack of preparation will nearly always cost money. Preparing the negotiation Oral communication, such as discussions and conversations belong (most of the time) to improvisation. Negotiation, which is a particular form of oral communication, also seems to belong to improvisation. But by just reducing it to a simple improvisation, it is underestimating the power of words and language. Negotiation always requires a minimum of preparation. By preparing or building your knowledge (make researches about the products, company mottos and corporate values…), you avoid...
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...In an international business there has to be at least 2 parties, from different countries, negotiating a business deal. There are 2 factors in the international negotiation. The environmental context – this Includes environmental forces that neither negotiator controls that influence the negotiation The immediate context – this Includes factors over which negotiators appear to have some control The following diagram below shows the context of international negotiations. According to the above diagram, the 6 factors in the environmental context that makes international negotiation different from the national are: (1) Political and legal pluralism Firms from different countries work with different legal and political systems. There are large concerns about the political risks. (2) International economics The value of foreign currencies which fluctuates from time to time; this factor needs to be negotiated. (3) Foreign governments and bureaucracies The level of governmental meddling in business in many nations is wide-ranging. In countries firms are free from government regulations while in others they are not. Parties need to know whether the governments should be included in their negotiations or not. (4) Instability Instability can be caused due to lack of resources (electricity/computers), shortages of other goods and services (water, transportation and proper food) and political instability (government policies). (5) Ideology & Culture ...
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...China: Business Do’s and Don’ts Introduction In business, knowing traditions and customs of host countries is paramount when beginning or carrying out negotiations. I find one of our most consistent and influential competitors and business allies to be China. China has for many years been a major contributor in the role of technology. Chinese technology and manufacturers are a huge part of the international trading system in America. In this paper I will discuss cultural differences, negotiation tactics, traditional and non-traditional customs, and attempt to explain effective methods of communication in the business sector of Chinese culture. I will begin by comparing and contrasting the cultures of China and America, and continue, by implementing ideas for effective communication and ways of successfully conducting business with China. China has recently had an economic spike, and was reported in an article in the Huffington Post as doing better now than ever before: “China is still faced with many daunting challenges ranging from corruption to regional income gaps and environmental degradation. But China is indeed better than at any time in its modern history. The country is now the world's largest laboratory for economic, social and political experimentation. There is every reason to believe that China, which has a continuously adaptive political system, will reach its objective of becoming the world's largest economy in a decade's time -- with all the implications...
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...Negotiation Closing Deals, Settling Disputes, and Making Team Decisions David S. Hames University of Nevada, Las Vegas @>SAGE Los Angeles | London | New Delhi Singapore | Washington DC • •-*» •• • i ' w ' t * • * 5s" i- . •> - • • y . » " •• is • Acknowledgments Preface PART I: THE FUNDAMENTALS 1 The Nature of Negotiation: What It Is and Why It Matters Intended Benefits of This Chapter The Essence of Negotiation What Is Negotiation? 5 6 6 When Do People Negotiate? Technology 6 4 3 xvii xix 1 3 Why Has Negotiation Become a More Important Skill? The Workplace 7 8 9 10 11 How People Negotiate: The Dual Concerns Model The Pros and Cons of Negotiating The Shadow Negotiation 10 What Does a Negotiation Look Like? Conclusion and Implications for Practice READING 1.1 - ONLINE DISPUTE RESOLUTION: DO YOU KNOW WHERE YOUR CHILDREN ARE?, 8Y DAVID A . LARSON 1 3 19 READING 1.2 - BALANCING ACT: HOW TO MANAGE NEGOTIATION TENSIONS, BY SUSAN HACKLEY Preparation: Building the Foundation for Negotiating Intended Benefits of This Chapter The Essence of Preparation 23 23 23 The Preparation Process, or How to Make I t All Happen Strategic Planning: Establishing the Framework Defining the Situation Setting Goals 29 30 25 25 25 Determining Your Strategy Strategy Implementation: Operationalizing the Plan 30 The Component Parts of the Situation 30 Best Alternative to a Negotiated Agreement (BATNA) Reservation Prices or...
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