Business Negotiation Essay: Role of Culture in Negotiation Process

Question

Task: Write a business negotiation essay on ‘Critically explore the role of culture in a negotiation process and select an appropriate negotiation model/theory and discuss how it would be implemented to establish a win-win outcome.’

Answer

Introduction
The current business negotiation essay will discuss the involvement of culture in the process of negotiation. Negotiation is the voluntary process that involves various types of multi- disciplinary Act. Joint decision is being made by two parties to interact and make a relevant decision. It has been observed that culture is the source of this using, the negotiation should be separate in three distinct phases. These are antecedent, concurrent and lastly the consequent phase. It has been observed that importance of culture varies or changes throughout the process of negotiation. This is being explained by the presence of various types of dimension that is having the proper role to be done in each of the steps. The three main steps of the negotiation process is the interaction, doingagreement and the outcome. The current essay will alsoprop pose relevant and new negotiation model and way by which it would be implemented to establish a win-win outcome. This will help the managers of any organisation to reach the various types of distributive results in the cross-cultural negotiation by enhancing tools to manage with various types of culture within an organisation. The thesis statement of the business negotiation essay is to critically explore the negotiation process and selecting the proper negotiation model and knowledge to discuss the process by which the win-win outcome can be gained.

Concept of negotiation in an organisation
Negotiation can be defined by an important method through which people can easily settle differences. This is useful in any type of scenario be it a personal or professional agenda. According to the viewpoint of Ateng, Abazaamiand Musah (2018), an agreement is reached while avoiding the argument and dispute is known as negotiation process. it has been noticed that in any type of disagreement,individuals can easily understand the aim to achieve the best possible outcomes for gainingthe position, rather is for an organisation they represent. Negotiation process has important value in organisation change management. Based on the opinion of Chung,Baik and Lee (2017), in a case of negotiation is required during organisational change, communicating with peers or employees to agree. In the agreement, it is being expected by employees and other people that theirrequirements and needs will be listened and met. Thus, it is important to have a negotiation before implementing a change in an organisation.

Culture
Answering regarding culture can be a difficult task for the researcher. This is due to the reason that researcher generally do not agree on the general definition of culture. As opined by Feitosa, Grossmanand Salazar (2018), in the different field there are various types of definition of culture.

The definition of culture is regarded as quite comprehensive. Setty (2019) has argued that culture includes both values and beliefs. However, many researchersimply that culture should be measured at the individual level. As culture is not only linked with values and beliefs as they are not consistent with actions. This fact develops another concept that is cross-cultural negotiation which is studied with several types of approaches (influenced by Huangand Crotts, 2019). In business, to business relationship cross-cultural negotiation is an important concept. As commented by Bal(2018), one of the interestingapproaches in the B2B relations is the relationship marketing which can lead to a win-win approach. Relationship marketing is defined as the establishment od long-lasting relationship that is based on the long- term benefits which is between buyer and seller. Additionally, relationship marketing is related to the managing all relationship. As stated by Vindry and Gervais (2019), cross-cultural negotiation is common appro is the internationalisation process of a firm. As it has been witnessed that negotiation through cultures includes iterations if face to face negotiation is being initiated by the parties, it can conclude that negotiation starts at the second stage (Caraman, 2016). At this stage, there is no high level of expectation in dealing with each other and proper adaptation is required.

Role of Culture in a negotiation process
It has been observed that the British are tough and skilful negotiators. In business, UK based companies remaincalm and polite during the entire negotiation process. However, manytime informal and humoroustone can suppress the actual seriousness and it can cause an issue. As opined by Brettet al. (2017), most people in the UK organisation are following pragmatic as well as a rational approach for the business people. Only on some rare occasions, commitment is being announced andagreements need to formalise through writing. International cultural differences can affect the negotiations to large extent. There are some cultural norms such as physical touching and aversion to touching or any casual approach that is unfamiliarto people who are from different cultures. In the case of international negotiations which is important in any type of business scenario, four dimensions need to be considered for getting better results. As mentioned by Huang and Crotts (2019), these dimensions include power distance, Individualism/Collectivism, Masculinity/Femininity and Uncertainty Avoidance. These dimensions are based on the Hofstede cultural dimension model. These elements impact the negotiation to great extent.

For instance, people from culture having high certainty are likely to be thorough in planning. On the other hand, people in the USA are comfortable with ambiguity and expect great surprise however their countries cultures are not comfortable with planning. In this case, people who are high in uncertainty avoidance will rely more on the various type of rules to guide them. As commented by Semnani-Azadet al.(2020), the importance of relationship in negotiation is important. In this context, the masculinity and feminity plays an important role. This depends upon country to country. For example negotiators from the masculine countries are likely to use distributive bargaining and follows a more competitive approach for negotiation, power of negotiatorsisbeing observed maximum in the masculine culture.

Mostly these types of countries are set on rules rather than bending in search of the cooperative settlement. As mentioned by Huang and Crotts(2019), the countries which are based on the collectivist frequently negotiate between the groups, no individuals are involved in this type of negotiation. Based on the opinion of Beugelsdijk and Welzel(2018), negotiations alsooccur under the influence of high-powerdistance while it is preferred with the decision made in negotiating party. Thus, it is observed that the Hofstede model of International culture is being greatly used while doing negotiations during the international business.

As mentioned by Thomaset al. (2018), this negotiation with the cultures can be explained with the comparison of Hofstede cultural difference between two countries. In case one of the companies is planning to expand its business in the UK, the four elements of culture need to be considered in France. UK has more Masculinity as compared to France (UK- 66, France- 43)(influenced by Favarettoet al. 2016). On the other hand, uncertainty avoidance is high in France compared to the United Kingdom (UK-35, France-86). These differences between the culture creates issues in the negotiation process while planning for the internal business (Favarettoet al. 2016). Comparing to Russia and USA, masculinity is highest in the UK and lowest in Russia (UK- 66, USA- 62, Russia- 36). Thus, negotiations will be affected by these types of cultural difference.

Negotiation model
There are two models which can be used together for a win-win approach in an organisation. The first model is the six-step model of negotiation that is being developed by Maddux in 1988. This model is applied in the business purpose especially in the international business. This model helps in getting to know each other properly before expansion or any type of business acquisition (influenced by Narendha and Anuradha, 2017). This model also gives the business people to know the statement of goals and objectives, starting the process and the fourth step us to express some of the disagreement and conflicts which can be considered as an opportunity to know the actual requirements of the business in the destination company or country. This step is followed by reassessment and compromise and lastly, agreement is done based ion the proper principle and settlements. In this discussed model, culture plays a significant rolein all the steps of the negotiation (influenced by Beugelsdijk and Welzel, 2018).This can lead to a conflict or can be an issue of conflict in case the steps or the cultural perspective of the destination as well as the host country or company is misunderstood. For instance, in the case of the first step that knowing each other properly, a North American manager doesn't need to care about the personal bonds with the potential partner. This is quite important in the case of South America.

As commented by Semnani-Azadet al. (2020), another model which can be paid with this six-step model is a four-step model that is developed by Rinehart and Page in 1992. This model is developed for setting a negotiation between buyers and sellers. According to the statement given by Carbonaraand Pellegrino (2018), while using both the model jointly to get a win-win approach the steps can be effectively divided into various periods as suggested by the literature. In the first part that is antecedent, the pre- interaction phase of negotiation is being done. This also includes the preparation and information gathering. This is mainly highlighted on the party’scharacteristics and the situational constraints as an independent variable. In the second phase hat is concurrent phase the method of negotiation truly persists. This is due to the reason that that true interaction is being done at this phase. As observed by Beugelsdijk and Welzel (2018), in this phase negotiation comes into the platy. The people act as a mediator that follows the consequent phases. This helps in referring mainly to the various outcomes of the negotiation. Both these models can together be applied for getting the Win-Win Model which is the best method for surviving a complex situation.

Implementation of negotiation model for a win-win outcome
After presenting the negotiation process some of the important cultural dimension can be explained. Proper information is needed for good communication. In this context, high-level information refers to the business information that can effectively deal with the negotiation process. application of the above two negotiation model, there is less chance of having any types of conflicts. As commented by Ågeand Eklinder-Frick(2017), in most of the negotiation fostering a cooperative atmosphere increases the chance of a win-win outcome, in the negotiation process when each party involved in the negotiation something greater value in exchange of something lower value, in this case, both the parties win. According to the viewpoint of Titoet al.(2017), win-win approach to negotiation refers to the application of a solution that is profitable for both the parties. In this approach looking for resolution that can easy for both the parties to gain. In the other words,proper solutions to the differences should be found so that both the parties can be satisfied with the mutual agreement. As noticed by Mazumdar and Yadav (2019), as per the cultural dimensions and other important elements, some steps should be taken by both the parties to use this winning approach in negotiation. While combining both the models discussed in the above parts, both the parties should avoid a narrowing the negotiation down to one of the major issues.

When the parties focus on one scene that there is a scene for win-lose outcome. This is observed in the case of arguingin the price of product and service. It has been observed by Rahman, Choe and Park (2017), in most of the international business scenario in case of negotiation, a cooperative atmosphere should be fostered this can increase the chance of win-win outcome. In some of the companies or with some businessmen it has been seen that theystronglyhave a reputation of achieving win-win outcomes in their negotiation. Some guidelines should be followed by people as per the win-win model. According to the opinion of Ågeand Eklinder-Frick (2017), for both the parties, it is important to realise that the counterpart does not have the same needs as they want. In addition to this, the party should not assume thatthe needs of other party are already known. For applying the Win-Win negotiation strategy multiple offers can be made by the parties (Liet al. 2018). This will help in selecting one of the best offers by the opponent and win-win trades can be implemented to generate mutual gain.

Another way of implementing this model in including a matching right in the contract can be helpful. This refers to a guarantee one side can match any offer to the opponentparty for later receives. The third strategy that can be used for implementing the Win-Win model us trying a contingent agreement. As mentioned by Carbonaraand Pellegrino(2018), in case of negotiation process parties often reach impasse due to the reason that they have different beliefs regarding the likelihood of the various future scenarios. Furthermore, by implementing a contingent agreement in the conflict solving scenario this greatly increases the odds of being satisfied with remedies in place and this helps in generating a win-win deal. As mentioned by Ågeand Eklinder-Frick (2017), due to the various types of future events that can be anticipated with the contingent agreement is one of the major ways by fostering the win achievement in case of liquidated damaged in the company. Additionally,Ahmad, Jaliland Ahmad (2016), noticed that negotiating damages can put a new problemon the table and this it helps in expanding the potential for value creation. In this context, there should be adding of new challenges that can help in increasing opportunity for win-win negotiation.

Conclusion
Based on the overall discussion made in the current essay, it can be said that there is an important role of culture in the negotiation process. while doing an international business negotiation is the concept which should be known by every businessman. A proper negotiation model should be applied so that one can get satisfaction with the negotiation. The Hofstede cultural model suggests four important elements that should be followed by the negotiators so that they can be invoked in the proper negotiation model. There is various cultural dimension in various country. The four main elements which are considered while negotiating are power distance, masculinity, uncertainty avoidance andindividualism/ collectivism. It has been observed in the overall essay that the UK is the most masculine country, thus, the power of negotiators is more in the UK than other countries such as France, USA and Russia. In the globalised environment, proper strategies should be taken so that wider aspects of negotiations can be considered and a win-win outcome can be gained. Thus, managers should be self-aware regarding the ways of implementing win-win approach which should include styles, techniques and conducting effective negotiations. Overall there are no prescribed rules and regarding negotiations, thus they are free to adopt rules wherever it is required.

Reference List
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