Outcomes for Negotiations in any framework are affected by three classes of characteristics - Bargainers characteristics situational constructs and process related procedures (Graham, 1985). Inside the negotiation process, both attributes exercise their influence in order to achieve their own targets through their interactions with the other party (Gelfand and Dyer, 2000). As the planet economy becomes progressively more globalized, folks from different cultures have become more and more getting involved in negotiation with one another. Therefore, a good understanding of the negotiation process and the impact of culture upon this process are essential for anybody who works in an internationally oriented business environment (Adler and Graham, 1989). Which means exercises that we participated in through the discussions conducted as part of this course were essential in building this ethnic understanding while conduction discussions in various situations and configurations. Research has shown that each characteristics, including personality qualities and interpersonal perceptions have a substantial effect on negotiation process or effects. Although, it is difficult to point at one specific set of characteristics that have an impact on the negotiation results, there are several strategies which can help us.
We acquired numerous negotiations during the course based in different options and contexts. Dozens of studies have analyzed this is and practice of negotiation across ethnicities (Gelfand and Dyer, 2000). Because of the substantial culture differences, negotiating across ethnicities differs dramatically from negotiating within the same culture. The key for us in all negotiations was to include the best strategy and approach all negotiations with an open up mind while observing how various ethnicities react in various scenarios. Luckily we had numerous international students inside our class and so we had the possibility to use various cultures and learn.
The first negotiation that people were an integral part of was the Car Purchase negotiation wherein the target was to simply make a deal without the other cultural aims. Although, the cultural components arrived to play independently and therefore simple negotiation became a intricate affair. The negotiation was about one team attempting to buy an automobile from the other team and both were to try and have the best prices and other benefits from it. We chosen a bottom part price and started out the discussions with a higher price bargaining out way down. This proved to be extremely complicated given the actual fact that the rate and design of speaking of many people are very different. There is difficulty in keeping up with the tempo and accents of people participating and for that reason it became difficult to reach at decisions quickly. Given the first negotiation our team was also not very well prepared and for that reason we were astonished at how hard it is to attain a settlement. Some participants are rational and try to reach an agreement; others think it to be always a competition in support of look to get what they need rather than negotiating for a ground. The social factors like the Chinese language and Saudis in the group like me have trouble keeping track of the western associates. The main element learning of the first negotiation for your class was that people all realized the importance of having common objective or goal as a team before getting into the negotiation. It is crucial that all team members get involved for the negotiation for achieve success. In the end the first negotiation shut with both clubs controlling to scrape something from the deal. Though it was a learning experience in the sense that all members realized the value of compromise.
The second negotiation that we participated in was the e-negotiation that was to happen between your two parties. This is a challenging negotiation in the sense that people were not likely to meet up with the opposing team face to face. The entire negotiation was to be conducted online using emails. This was a fresh situation since we were not used to cultural idioms and behaviour and making use of them in written communication rather than verbal really was difficult. The negotiation was between HHA (Him and Her Australia) and BFM (Beijing Fashion Manufacturers, China), two garments companies who work together. The goal of the negotiation was to reach an agreement wherein BFM were to provide clothes produced by them at a stipulated deadline but much larger amount that before and at lower price.
The negotiation was well thought out and formal and both groups possessed little room to claim and fight in the matters. A common ground was reached between the clubs, the integrative design of negotiations prevailed. The Chinese company decided to deliver 16000 units at a price of $14 per product while also having the rights to market the HHA's products in the Chinese language market under the HHA brand name. This was the longest negotiation conduced and helped us understand our very own team better to be able to be able to organize with them in conditions of planning for future discussions.
Third negotiation was the of the Hinchinbrook Island wherein as part of the community/environmental organizations we were to work out with the vacation resort owners and designers team about the cover of natural habitats of the Hinchinbrook Island. The objective of this negotiation was to balance the effect on the type of the island which was a natural reserve and the inexpensive aspect of the island earning money from its investments. The opposing team contacted the negotiations with projects to build a causeway and enlarging the holiday resort to support a car parking and a marina and paved walkways for travelers in the reserve among other up gradations and development options. Because of this negotiation we were ready well and possessed a plan. We had decided upon the points we were going to use to counter the quarrels by our opponents. We'd a win-win strategy wherein we understood the island must improve tourism but its cost to dynamics needed to be kept to the least. Some of the outrageous needs of the competitors were opposed very strongly by we which resulted I ego clashes and many people getting offended. However in the finish we agreed upon allowing the competitors to create the resort improvements and broaden facilities, but we disagreed on the walkways, marina and the car parking. In the long run the main element point of negotiation by the other team of creating the causeway, dropped through and our team had the advantage in this negotiation. We fought hard the honest aspect of our offers in this deal and in the end the opposite team's own root biases made way for us to concur upon a offer that was best for the natural reserve and the local community.
- Understand the nature of conflict in any negotiation
- Understand and identify the goals of each negotiation
- Have everything on all issues and also examine the importance of varied issues
- Understand the needs and personalities of all individuals both in your team and the opponents'
- Have all historical and legal information available prior to the negotiation
The classical operations of negotiation have four steps - Non-task, Activity, Persuasion and Agreement (Graham, 1985). This means that it is important to first build the rapport and be confirmable with the other part, then get down on the real activity and persuade the other team to recognize. Finally the contract is come to when both functions acknowledge common grounds beneficial for both. To deal with the final negotiation which transported the most grades and also was critical for learning, we made a decision to prepare detailed plans and carry out research. We read theory and other literature regarding the discussions, industry and case. We realized the opposing team and got seen them negotiated so we also ready to counter them specific biases in their team. We placed on various levels on which we will argue and also strategies that people will be using. Once again we divided the task and assigned tasks to everyone in the team on which aspect to get ready on. The final negotiation was to happen mainly on four aspects. First aspect was the question of closure of mines. The mines had been announced unsafe by the federal government and so were bought to be closed down. But since these produced employment for the region, the local government is keen on saving these mines by agreeing with Fernett brio to improve the safeness of mines and increase the facilities in order to save as much mines as possible. The second point of negotiation was the getting as much engineers using their company mines trained on safe practices aspects of mining. Fernett Brio has among the best safety records on the planet in mining and they want to use it so as to enhance their functions and reputation. Finally, the Zijan mining desires to update its transportation system and have Fernett brio spend money on the up gradation of the railway tracks. This would boost the capacity for the mining area and make the industry productive. Finally, the key point of the deal was the income sharing ratio between both companies, to be able to enter a partnership. As Fernett Brio, we decided to follow a competitive bargaining strategy and having the upper hand in the discussions, we made a decision to bargain for the utmost and then slide down based on the quarrels. Four associates of the team, each was given one problem mentioned previously and was to meet its focus on.
The negotiations were the final and therefore both groups were motivated. Also had discovered from past negotiations and therefore were formal and professional. Both sides approached the items tactically and argued with making up points. Like the assumption that was made by the opponents about how precisely much expansion will the new railway system will offer. They developed an inflated number that was un-acceptable and for that reason didn't warrant the full 15 million ventures in to the railways system. The final arrangements were agreed upon after demanding negotiations on both teams. By now both teams possessed understood the importance of agreeing over a common surface that allowing the negotiations to show up through by struggling with and being obstinate. In the last time left to complete the deal we could not reach for an agreement and thus time got over whereby No package was manufactured in this circumstance.
This course made me understand the procedure of negotiation, strategies, and behaviours you can use to successfully do business negotiations. Also, the most important aspect that added value was that i can now conduct business discussions in a multi-cultural framework.
Adler, N. J. , and Graham, J. L. , 1989, Cross-cultural connection: the international contrast fallacy?, Journal of International Business Studies, Vol. 20, pp. 515-37
Gelfand, M. and Dyer, N. , 2000, A ethnical point of view on negotiation: improvement, pitfalls, and potential clients, Annual Mindset: An International Review, Vol. 49 No. 1, pp. 62-99
Graham, JL. , 1985, Cross-cultural marketing negotiations: a lab experiment, Marketing technology (pre-1986), 4, no. 2, pp 130
Spoelstra, M. and Pienaar, W. , 1999, Negotiation: Ideas, Strategies and Skills, 2nd Edn, Juta Academic, New York
Tian, F. , 2009, Mix Cultural Negotiation and Management, McGraw Hill, Sydney
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