Cultural Diversity & Negotiations—A Global Perspective

By : Prof. Rajesh Asrani
Core Faculty Member,
N. R. Institute of Business Management, Ahmedabad, India
(P. G. Centre of Gujarat University for MBA)

The emerging trend towards liberalized global policies coupled with suitable reform processes throughout the globe have drastically changed the business environment for the firms. This leaves the managers in organizations of all sizes and types around the world with the opportunities and challenges of operating in the global market. The immediate issue to be addressed is configuration of human resource that is diverse in culture and geographic proximity especially in global business organizations.

The paper is broadly categorized in two parts. The first part tries to explore the meaning of culture, concepts related to it and the role of culture in finding global opportunities. It also emphasizes on the various cross-cultural issues concerning the integration of diverse workforce in an international organization.

The second part has a major emphasize in understanding the dynamics of successful international business negotiations and the strategies that work in the current multi-cultural business arena. The paper presents various models in a standardized form to suggest a model framework for global business negotiations and the significance of culture in the same. It mainly concentrates on 12 negotiating variables i.e. selection of negotiator, role of individual aspirations, concern with protocol, significance of type of issue, complexity of language, value of time, basis of trust, risk taking propensity, etc. All these negotiating variables in specific reference to countries like India, Russia, Germany, France, Nigeria and Brazil are considered.

Finally the paper concludes with the suggestions on appropriate behavior coupled with acculturation, assimilation and maintenance of the new culture, and resistance to both new and old cultures.

INTRODUCTION
The emerging trend towards liberalized global policies coupled with suitable reform processes throughout the globe have drastically changed the business environment for the firms. This leaves the managers in organizations of all sizes and types around the world with the opportunities and challenges of operating in the global market. The immediate issue to be addressed is configuration of human resource that is diverse in culture and geographic proximity especially in global business organizations.

We know that every person has a unique personality. An individual’s personality is a set of relatively permanent and stable traits. Our personality influences the way we act and interact with others. When we describe someone as warm, open, relaxed, or conservative, we’re describing personality traits. An organization too has a personality, which we call its culture.

It’s a system of shared meaning and beliefs held by organizational members that determines, in large degree, how they act. It represents a common perception held by the organization’s members. Just as tribal cultures have rules and taboos that dictate how members will act toward each other and outsiders, organizations have cultures that govern how its members should behave. In every organization, there are systems or patterns of values, symbols, rituals, myths, and practices that have evolved over time. These shared values determine to a large degree what employees see and how they respond to their world. When confronted with problems or work issues, the organizational culture – the way we do things around here- influences what employees can do and how they conceptualize, define, analyze, and resolve issues.

Research suggests that there are seven dimensions that capture the essence of an organization’s culture that are described in the figure. Each of the characteristics exists on a continuum from low to high. Appraising an organization on these seven dimensions gives a composite picture of the organization’s culture. In many organizations, one of these cultural dimensions often rises above the others and essentially shapes the organization’s personality and the way organizational members do their work.

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