Negotiation in Different Cultures - Essay Example

Negotiation Institution Tutor Date Negotiation Introduction Different nations have different ways of interacting and negotiating. Since these countries are interdependent, it is advisable that these nations design ways in which they negotiate and come up with agreements that will see to conclusive negotiations. However, it is vital to note that different forms of negotiations are normally not conclusive due to the lack of cultural awareness that lead to misunderstandings that arise as a result of the cultural unawareness. Due to the misunderstandings that come in the course of negotiations, it is recommended that an understanding of different cultures is done as well as come up with measures that avoid these misunderstandings. The negotiation techniques must come along with the cultural dynamics that will help minimize negotiation issues. This paper will examine the culture of the Chinese and the US in an attempt to explain how their comparisons and dissimilarities impact the negotiation process. The paper will then give recommendation on ways of minimize intercultural negotiation conflicts. Characteristics of the US and the Chinese cultures According to Lam & Graham (2007) the Chinese negotiators have embraced a culture of asking questions. This explains that their form of negotiation is one that involves the tactic of exchanging information. The authors continue to indicate that the Chinese negotiations have a tendency of using the “yes”, and “no” statements (Lam & Graham, 2007). The Chinese have also been indicated to embrace long periods of silence that allow them to listen to the other members of the negotiation table. In addition, the culture of the Chinese negotiators involves long facial gazes. They also ask fewer questions and devote their time to providing more information on what they expected in the course and at the close of the negotiation (Gelfand & Brett, 2004). The Chinese would be indicated to settle till the issue at hand was solved or when the parties involved would come to a conclusion. In the negotiation context, the Chinese can simply be said cooperative negotiators. On another note, Ghauri & Fang (2001) indicate that being an emerging economy, the Chinese people focus more creating personal relationships with their negotiators; thus, have trust that their relationships and do not hold the opinion that after creating friends, their relationships will break or any form of forgery will take place. In the case of the United States, they focus more on written form of agreements as opposed to the Chinese that mostly rely on creating personal relationships (Shell, 2006; Starkey, Boyer & Wilkenfeld, 2010). The United States does not rely on the good will of their negotiators as they visualize the belief in personal relationships as a leeway to distrust in negotiations. It is this aspect that leads to a great percentage of United States negotiators to visualize the Chinese negotiators as dishonest as well as ineffective (Lian & Jones, 2005). The Americans also have the culture of making agreements based on the flexibility at hand as opposed to waiting for the last word from the highest hierarchy to give consent. The American negotiations have also been indicated to have no interest in forming lasting relations that would even give them a future advantage in later negotiations as opposed to their Chinese counterparts (Lian & Jones, 2005; Steers, Sanchez-Runde & Nardon, 2010).This explains that the Americans did not focus on pleasure and gratification in their negotiation process, but closing a deal. The immediate future is, therefore, the main focus of the United States negotiators. In this case, making decisions in the context of the Americans is an immediate process that would not take long as for the case of the Chinese (Rudd & Lawson, 2007).The Americans also apply direct confrontation in their negotiation, and will mostly focus on specific details that are being discussed in the negotiation table. How the cultural characteristics impact the negotiation process- a comparative analysis For the negotiation processes to be successful between Chinese and the Americans, the two countries must have a cordial relationship. Though their cultures and negotiation processes are conflicting, they need to adapt to each other so as they fit in the dynamic world of business. From the discussion of the disparities of the cultures of the two countries, the China vs. United States negotiations will conflict. A good example is the aspect that the United States most rely on written contracts to have satisfactory agreements, on the other hand, the Chinese believe in building relations with their negotiations. It is in this context that the Chinese will presume that the United States is being unfair and harsh on them while the United States will develop the notion that the Chinese are mere persons that prefer the use of shortcuts and are not honest people (Gelfand & Brett, 2004). Trust issues will therefore become a major issue in a negotiation process between these two countries since the Chinese do not have trust in legal signed documents while the Americans believe in legal procedures. As seen in the research conducted by Hillebrand (2008) the United States have been known to make friendships after deals have been made as opposed to the Chinese that make friends first then make deals. This explains that Chinese deals are solely dependent on the levels of trust and friendship that have been cultivated with their negotiators. This case will negatively affect the United States that do not treasure friendship as way to making deals. This cultural disparity will greatly affect the negotiation between the Chinese and the Americans. On another note, the Chinese as Rudd & Lawson (2007) write, only make deals after long and several discussion on a deal. As seen in the work Cateora, Gilly & Graham (2009) the process of communication is centered on relationships that are built between different cultures. This means that if the Americans have to make aby form of negotiations with the Chinese they have to compromise on various aspects of their culture so as to fit in the present demands of present world negotiations especially going with the fact that the two countries are economic giants, and stand to benefit from each other. The negotiations are also expected to differ between the Americans and the Chinese due to their cultural disparities since the Chinese believe in meeting with persons they are conversant with and believe that they can begin negotiations while the Americans do not only believe that negotiations can start when trust and relations have been built (Zhenzhong & Jaeger, 2005). Negotiation will in this context be more of a strategy as each of the countries will negotiate what is seemingly best of their interests. One would relate to the China’s way of interaction based on their past culture that did not have formal laws as Browaeys & Price (2011) indicate while the Americans based on their legal system and traditions. The Chinese have also been noted to place more importance on ranks among the negotiators (Gelfand & Brett, 2004). In the course of negotiation, therefore, they place a lot of emphasis on the position one sits at the table, while for the Americans, this aspect may not have a major influence in the outcome of the negotiation. In line with this disparity, the Chinese may not feel that the vitals of negotiation are fulfilled; thus, face difficulties in reaching the negotiation deal. The Americans, on the other hand, may feel that the Chinese are putting emphasis on factors that are not important in the process of negotiations. Disparities will indeed ensue in the negotiation process. Conclusion and recommendations From the findings above, it is evident that there are numerous disparities that exist between the Chinese and American cultures. It is these disparities that lead to the misunderstandings in the process of negotiations. Since the two countries assume that what their cultural practices and understanding are the appropriate ones, they may not have the ability to switch effectively to the other cultures when needed. In this case, therefore, it is recommended that the countries in question get the right information on the cultures of the other countries that they aim at entering into negotiations. It is also vital that the negotiators have their objective in mind (Gelfand & Brett, 2004). This will prevent chances that the negotiators will have chance to focus more on the differences that the different individuals portray in the negotiation process. Knowledge on different cultures would also help in perfecting negotiations between different people. Through awareness on different cultures, negotiators will have the ability to respect the cultural thoughts and expressions of their fellow negotiators. Cultural dynamics are thus vital in the negotiation techniques. In the event that they are understood, it is possible that the negotiation techniques will run smoothly and any issues that may arise in the negotiation process are handled effectively (Gelfand & Brett, 2004). Negotiation abilities can thus be boosted only if the negotiators can accept to embracing the differences of other persons in terms of culture. Evidently, minimal frustrations will be result from the negotiations, as the different perceptions that different parties will not no longer be termed as factual. References Browaeys, M. & Price, R. (2011).Understanding Cross-cultural Management. NY: Financial Times/Prentice Hall. Cateora, P., Gilly, M. & Graham, J. (2009). International Marketing. New York: McGraw-Hill. Hillebrand, J. (2008). Cross-Cultural Competence. NY: BoD – Books on Demand. Gelfand, M. & Brett, J. (2004).The Handbook of Negotiation and Culture. Stanford: Stanford University Press. Ghauri, P, & Fang, T (2001) Negotiating with Chinese: A socio cultural analysis. Journal of World Business, 36 (3), 303 -326. Lam, M. & Graham, L. (2007). China Now: Doing Business in the World’s Most Dynamic Market. New York: McGraw-Hill. Lian, L., & Jones, C.L. (2005). A Comparison of Business Communication in China and the U.S. With Implications for Business Educators. Delta Pi Epsilon Journal, XLVIII (3), 113-127. Rudd, J. & Lawson, D. (2007).Communicating in Global Business Negotiations: A Geocentric Approach. London: SAGE Publications. Shell, R. (2006).Bargaining for Advantage: Negotiation Strategies for Reasonable People. NY: Penguin Books. Starkey, B., Boyer, M. A. & Wilkenfeld, J. (2010). International Negotiation in a Complex World. NY: Rowman & Littlefield Publishers. Steers, R., Sanchez-Runde, C.J. & Nardon, L. (2010). Management Across Cultures: Challenges and Strategies. Cambridge: Cambridge University Press. Zhenzhong, M. & Jaeger, A. (2005). Getting to Yes in China: Exploring Personality Effects in Chinese Negotiation Styles. Group Decision and Negotiation 14(5), 415–437 Read More