Cultural Impact in The Negotiation Process

Every negotiation goes through five processes or steps. These processes include; preparation, relationship building, exchange of task-related information, persuasion and concessions and agreement. The preparation stage is when a negotiator may gain a distinct advantage through familiarising themselves with the entire context and background of their counterpart negotiator in addition to the specific subjects to be negotiated. In order to understand differences in negotiating styles of people from other cultures, managers first need to understand their own styles and then determine how their style differs from the norm in other countries. An effective negotiator at this stage is expected to do some research to develop a profile of their counterparts so that they are prepared for various situations as they arise. Managers should find out as much as possible before hand about the kinds of demand that might be made, the composition of the opposing team, and the relative authority the members possess. Managers then gear negotiation strategy toward the other side. Indian negotiators are generally humble, patient, respectful of the other parties, and very willing to compromise. Comparing these profiles is useful. An important difference between those from most other countries is that they are mediators, not the parties themselves, thereby avoiding confrontation. Successful negotiators are conservative and careful in dealing with factual and detailed information.

Relationship Building This stage of negotiations involves building interpersonal relationships between the negotiating parties. This step is crucial in the negotiation process. The importance of this step and, therefore, spend considerable time in building relationships with the other party. On the other hand, Americans in general consider this aspect of the negotiating process as less important and thus spend much less time on it . mostly people spend considerable time in informal interaction with the members of the other party in going round the town, eating and drinking. In this way formal barriers are broken down between the parties and a sense of trust and respect slowly develops which becomes the basis for negotiating contracts. In fact, looking from Asian angle, developing a mutually trusting relationship is the cornerstone of negotiated agreements. While Americans tend to get down to business in their very first meeting, to talk in general, having in their minds that the preliminary sessions are meant simply to know each other well. develop desire to build a trusting relationship before doing business so that frustration and failure do not occur later. In many countries, especially high context cultures, personal commitments to individuals, rather than the legal system, form the basis for the enforcement, of contracts. Effective negotiations, therefore, allow plenty of time in their schedule for relationships building with bargaining partners.

Exchange of Task-Related Information The third stage of the cross-cultural negotiations involves information exchange. In this stage the parties make presentations and state their positions. A question-and-answer session usually ensues, and alternatives are discussed. It is often difficult to understand the other party's situation, intents and needs even if the latter belongs to one's own culture, but understanding these matters is even more difficult when the other party is from another culture. People from differing cultures may view problems, realities, and business operations in different ways. It takes a more sincere and sustained effort to clearly articulate ones own situation and understand other party's situation.

Most Asians do not like to spend a lot of time and energy in making small concessions in reciprocation to the opposite party's concessions. Instead, they like to view the process holistically, trying to accept each others' views and needs build trust and then make concessions, if any, at the end as a form of warping up the negotiations. As far as concessions are concerned, tactics vary greatly across cultures. Well-prepared negotiators are usually aware of the various concession strategies of the other country's negotiators, and therefore, decide ahead of time what their own concession strategy should be. It is known that the Chinese and the Russians generally open their bargaining with extreme positions, asking for more than they hope to gain, whereas the Swedes usually start with what they are prepared to accept.