Negotiation and Culture: Strategies for Cross-Cultural Negotiation

This report delves into the crucial role of cultural understanding in negotiation processes. It emphasizes the importance of acknowledging cultural differences, such as communication styles, ethical considerations, and time sensitivity, to achieve successful outcomes. The report highlights the significance of understanding specific cultural contexts, using Indonesia as a case study, and the need to adapt negotiation approaches accordingly, such as a distributive bargaining approach. Furthermore, it explores strategies for effective cross-cultural negotiation, including the use of interpreters, fostering open communication, and finding common ground. The report also discusses ethical reasoning in negotiation, encompassing personalistic and duty ethics, underscoring the importance of aligning negotiation practices with cultural norms and values for optimal results.

BUSINESS NEGOTIATION
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The importance of understanding influence of
culture in negotiation
•Culture; my refer to the collective believes, ideas, customs and behavior of a
definite group of people in a setting/ context
•To hold an effective and interactive negotiation, there is need to have an
Understanding the the culture of a given groups of people.
•It implies that for any international and cross-cultural negation, culture is a variable

The importance of understanding influence of
culture in negotiation
Communication; understanding cultural influence ensures effective
communication among negotiating parties
This is because respect for norms and customs of respective individuals must
be observed to

Selection of negotiator; basing on the fact that different cultures have
different expectations from given negotiators
The fundamental basis of agreement and disagreement varies hence very
important and to achieve success, the cultural
Protocols; understanding culture helps in the identification of the logical
procedures followed by particular nations as well as the chain of authority I
negotiation

•Time sensitivity; some cultures are good in time keeping while others
are poor. It is therefore very important the type of people being dealt with
•The propensity; when preparing negotiation, determining the
likeliness of risks in a particular context.
This can be determined only by understanding the contextual culture of
the place

Whether negotiation should remain open for
negotiators to express their view
•There is need for a balance between the freedom to remain open and
respecting the norms of other parties involved in the negotiation
•This culture of religious difference between businesspeople results into
conflicts due to difference in goals for the negotiating parties hence a
distributive bargaining approach in the process of carrying out business

•Indonesia’s current composition dictates a distributive bargaining
approach at the expense of integrative bargaining approach
•Indonesian culture is much group oriented and individual preferences are
not highly considered than being in a group
•supporting the group rules and norms and maintaining harmony amongst
the group members

Considering best context for Indonesian
counterparts in negotiation
•Creating a Free Flow of Information; Effective communication can
promote a ground for Integrative negotiation solutions
•The use of interpreters; to help in effecting communication among the
Indonesian and the non-natives from other countries.
•Attempting to Understand the Other Negotiator’s Real Needs and
Objectives

Considering best context for Indonesian…
•Emphasizing the Commonalities between the Parties and
Minimizing the Differences
•Searching for Solutions That Meet the Needs and Objectives of
Both Sides

Approaches to Ethical Reasoning
•Personalistic ethics; these ethics reflects an individual feeling about
the decision being taken and they have the following characteristics
•Duty ethics; This is concerned with the rightness of an action
determined by someone’s duty to adhere to laws and principles that
defines what is right or wrong.