The paper "Assessment of How Cross-Cultural Negotiations Are Affected by Cultural Factors" is a great example of management coursework. In the modern-day business environment, the level of cross-cultural business communications is very high due to the rapid phase of globalization. With the growth in Free Trade (FT), increased foreign direct investments (FDI) and escalated business process outsourcing (BPO) practices, the level of negotiations with people from different countries has increased dramatically (Hill, 2003). Many companies face challenges in establishing international operations and business dealings due to their inability to progress further than the initial rounds of the negotiation process.
However, some organisations achieve success in international business, with a proper understanding of how the negotiation process is affected by cultural differences (Killing, 1982). National Culture and Its Influence on Communication While there are varying views of national culture and the degree of its impact on organisational behavior, there is much consensus that it embodies norms, values, artefacts and symbols, which results in diversity in communication and interaction process within a cross-cultural setting (Trompennar & Hamden turner, 1998). It is also a key factor in gaining an insight into how people behave in different countries, their preferences, attitudes, values and beliefs (Fathehi, 1996).
Thus the importance of understanding national cultures become critical if businesses are to understand how and why people from different cultures will behave differently and communicate differently within the negotiation process (Francesco & Gold, 1998). Cross-Cultural Communication To understand, how negotiations are affected by cultural factors, it is necessary to understand what actually entails cross-cultural communication. “ Cross-cultural communication occurs when a person from one culture sends a message to a person from another culture” (Adler, 1991 cited in Weiss, 2003, page.
185). However, the communication process is distorted by the wrong signals, resulting from cultural differences. To make this communication process effective the communicating party should have a clear knowledge of the cultural values and assumptions which relates to each other’ s national cultures. Some well-established explanations of cross-cultural differences such as Fons Trompennar & Charles Hampden-Turner’ s model of Seven Dimensions of Culture; Geert Hofstede’ s Indices of Work-Related Values and The theory of Silent Languages of Culture proposed by Hall are useful in gaining insight to how cultures differ on different dimensions.
The negotiation process is not only affected by verbal expressions but also by the silent communication factors which need to be observed and responded during the negotiation process (Hill, 2000). Different Cultural Factors Affecting Negotiation There are various cultural factors that influence the negotiation process and the meaning, interpretations and way of doing things differ from culture to culture. Following are a few of the main cultural factors that can affect negotiation processes in international business. Display of Emotions in Negotiations Negotiation styles are affected by what is explained by Neutrality vs.
Affectivism dimension (Trompenaars and Hampden-Turner, 1998), which refers to the degree to which people display their emotions. For example, Japan is a neutral culture with sombre mannerisms, especially informal business dealings. In contrast, Americans, Australians or British can be considered as highly expressive by Japanese counterparts. In negotiations, Americans are direct in expressing their disagreement (Hall, 1963 cited in Weiss, 2003). For a comparative example of how American and Japanese negotiation styles vary on different aspects, please refer to Appendix I. In this view, if two companies from neutral and affective countries engage in business negotiations, those who are well versed in cross-cultural negations will know that the lack of display of enthusiastic responses from counterparts from a neutral country not necessarily indicates lack of interest in what is being proposed.
It is simply their way of considering and pondering deeply on the positions.
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