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Cultural factors in negotiation
On International business negotiation
Culture of diversity in an organization
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Recommended: Cultural factors in negotiation
Introduction
Rao-Nicholson, Khan, Akhtar, & Merchant, (2016) article acknowledged over the last few decades acquisitions by emerging market multinationals have seen a rapid increase. It is important to understand the influence that leaders have when leading in a culturally diverse organization. There are several elements that must be taken into consideration. Leading successfully requires understanding cultural integration, having the right mindset and effective communication skills. Leaders are also responsible for incorporating negotiation strategies when needed. Nishii and Mayer (2009) article acknowledged that due to the fluctuating workforce and managing diversity effectively inclusive leaders are critical for successfully leveraging
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Cultural integration is crucial to the success of cross-border merger and acquisition integration. When addressing integration perspectives there are two elements to address. First, there are direct impacts and then there are indirect impacts. In integrating varied perspectives in a dynamic environment, a leader must first look at the direct impact on the culture itself. Leaders must take into consideration all employees involved and assess how cultural differences will affect the environment. The indirect impacts that leaders must take into consideration are the employees' comments and behaviors because these are influenced by culture. Dong, Lua and Wang (2017) advised that indirect impacts can be influenced by various things, such as culture language barrier, senior management change, poor communication skills, leadership style differences, employee behaviors in the acquired company and intention to maintain culture. In understanding the direct and indirect impacts that influence culture integration is important to understand cultural difference has the strongest impact on cultural integration outcomes than any other factor. The leader is responsible for engaging ways to utilize cultural differences to create environments that foster cultural integration and to promote successful cross-border cultural integration in mergers an acquisition. When integrating perspectives in a dynamic …show more content…
Leaders first need to be knowledgeable in the cultural differences in the organization and second engage in effective communication practices. Semerad (2015) defined cross-cultural negotiation as a process involving two parties from different backgrounds and they do not share the same way of thinking feeling and behaving. Cross-cultural negotiation poses many challenges because of the difference in beliefs and values. International negotiations can last longer and are built on trust and honest communication. Negotiation strategies can be difficult because of the different cultures and languages that play a part in the negotiation. When applying negotiation strategies ethics is also an important concern. Yang, De Creamer, and Wang (2017) stated that incorporating ethically questionable tactics would be most successful when leading in a culturally diverse organization. Negotiation strategies the inclusive leader could apply to craft a common cultural mindset is, to be honest, be knowledgeable in the cultural difference that may surface and to communicate effectively with all
They have to understand and practice the tools needed to manage a diverse workplace. As discussed in The Loudest Duck leaders can employ these methods to obtain a harmonious, all-inclusive environment: appreciate, promote, employ and celebrate diversity. Leaders must show appreciation and interest in the diversity of their workforce, not just look at percentages and how those are fulfilled but truly engage in understanding and developing the challenges and successes diversity brings. They need to understand how their subconscious is predisposed towards other's differences and develop a character and attitude that is not biased or predisposed to people and situations that are only similar to them. It's important for leaders to have an open-door policy that encourages sharing thoughts, rationale and feelings will help unify the diverse workforce. Leaders more than others need to understand that for a company to succeed everyone needs to feel valued and appreciated regardless of the
Today, competent administrators show sensitivity to individual needs by encouraging upward mobility among all staff members. These forward-thinking leaders understand how important it is to treat all people fairly and equally and consider the dynamic forces that exist among employees. Sincerity in these matters is important, because a manager’s actions far outweigh their statements. Therefore, workplace leaders must learn to pinpoint and cultivate each employee’s special skills and promote upward or lateral mobility by providing training for the entire talent pool. To this end, managers must continually seek opportunities to learn more about diversity.
Primarily, we did not fully immerse ourselves into the role as we gave the questions little importance, did not focus solely on negotiating with the leading representative, and did not present a very extreme starting package. After the negotiation, I learnt that the purpose of these instructions was to teach how cross cultural negotiations take place. For instance, the relationship building questions represent the very personal and purposely time consuming nature certain cultures use in negotiations to develop strong relationships. Furthermore, negotiating solely with the leading representative displays the high power distance in certain countries. Finally in some cultures it is common to negotiate with extreme opening offers because large concessions are expected. Overall, I’ve learned these three instances highlight the differences that exist between the negotiation processes of North American cultures and the cultures of some other
Negotiation occurs when two or more parties strive to resolve their divergent interests and derive a decision through effective communication and negotiation strategies (Pruitt, 2013). Negotiation is pervasive in our everyday life. Moreover, it is a learned skill that promotes flexibility and adaptability to effectively navigate relationships and potential business partnerships. Many people overestimate their negotiating abilities and enter into negotiations with an inflated sense of their skills, which leads to less than optimal results (Clenney, 2013). Perfecting the art of negotiation requires the understanding of the negotiators personal style, including their communication competency, as well as their values and beliefs.
Students in American public schools represent an increasingly diverse population in terms of race, ethnicity, socioeconomic status, and other characterizations. Students come from a variety of cultures, backgrounds, and home environments. More specifically, culture includes shared traditions, symbols, language, behaviors, and what is considered normal and abnormal for a group of people. Vygotsky (1978) explained that students come to school with experiences that impact how they assimilate new information. Humans learn through interaction with others and interpretation of information is based upon past experiences and current perceptions. Based on this thinking, educators must develop cultural competence
Moran, R. T., Harris, P. R., & Moran, S. V. (2007). Managing Cultural Differences, Seventh Edition: Global Leadership Strategies for the 21st Century (7th ed.). Butterworth-Heinemann.
Schein in his book “Organizational Culture and Leadership” explains how different believes and behaviors start to be logical when we understand their cultures by stating “When we learn to see the world through cultural lenses, all kinds of things begin to make sense that initially were mysterious, frustrating, or seemingly stupid” (2010, p. 13). This kind of foresight should be the starting point in order to manage the tremendously growing diversity in the workforce nowadays. Leaders and administrators of both public and private organizations through their influence are responsible to promote and manage diversity in an ethical manner.
However, this assumption is incomplete in reality. The main problem that causes the failure of negotiation is due to culture differences. Many companies are going global, people will negotiate with people come from different culture and different countries. If people do not realize what the main problem is, they will continue to have trouble with this problem.
Negotiation is a process of discussion aimed at conflict resolution in which two or more parties attempt to resolve the conflict (incompatible goals) in a process that is mutually agreeable. Though the concept seems easy to understand, it is difficult to implement in practical scenarios. There are various hurdles in negotiation process such as differing views on what is right and wrong, what is fair and just, differences among parties in expressing themselves, understanding each other’s communication and ultimately the procedure in which negotiations are conducted. In addition to these factors, negotiations are further complicated whenever people from different cultural backgrounds are involved.
Understanding stakeholder’s norm gives them ability to have those necessary communications between stakeholders from different cultures. The norm in some stakeholder culture dictates how they communicate and understand this gives an insight into how the other stakeholder will communicate in a conflict situation. Communication norms between stakeholders can be direct or indirect in a conflict situation. A stakeholder that comes from a culture whose norm in communication is direct prefers to have explicitly communications. While a stakeholder that comes from in direct communication culture have words that are the same word but will different meaning to other stakeholders. Communication for stakeholders in negotiation goes beyond understanding when yes means no. If negotiators are going to reach integrative agreements, they need to share information about interests and priorities (Lewicki, Saunders, & Barry, 2010, p 330). Regardless of the stakeholder’s position direct and indirect communication will be used to deal conflicts when they
Barak, M. E. (2005). Managing diversity: toward a globally inclusive workplace. Thousand Oaks, Calif.: Sage Publications.
There are several factors that are important if a culturally diverse business team is to flourish and realize its vast potential. Di Stefano and Maznevski (2000) claim that there are three imperative steps to achieving multicultural team success; namely, mapping the team; where the team members need to clearly understand their cultural differences in how they work and view success. This is often led by the team leader. Next, the team must bridge, that is, to communicate with one another, bearing in mind their cultural differences. Finally, the team must integrate, meaning that they bring together these differences and leverage on them to succeed.
Culture varies from one organization to another as it is shaped by the values and beliefs of the people working there. As it progresses over the years, it takes form in such a way that it works or performs in a manner to regulate behavior, action and decision making processes within the organization. It not just includes written rules and regulations, but also the behavioral aspects faced by each one on a day to day basis.
Any negotiation challenges the parties involved in a variety of ways, but parties with conflicting interests face important additional difficulties when attempting to negotiate an agreement across culture lines. Not only will the difficulties arising from the known similarities and differences of opinion be more pronounced, but also unsuspected factors could easily enter the picture and condition perceptions of the situation. In cross-cultural negotiations, a reasonable second acknowledgment should be that the hidden factors that are always at work are more likely to interfere with reaching an agreement. It is especially important that this acknowledgment be understood to apply not only to the dynamics of interactions across the table, but those of individuals on the same side of the table. [At times, it may be tempting to attribute the outcomes of negotiations to a single variable (such as the culture or the relative power of a country).] The term culture has taken on many different meanings but basically it reflects the shared values. Culture affects negotiations in different ways. In this paper, we are going to discuss the American and Jap...
Communication is the key to organization for these companies and leaders depend largely on its effectiveness. In one study of cross cultural communication, managers were asked to think of seven problems before the meeting to make the communication effective (Barriers of Cross Cultural Communication in Multinational Firms). But, how do people understand each other when they do not share the same culture? To answer this question we must first understand cross cultural management. This type of management focuses on the behavior of people working together as a group ...