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)

1. Basic Concept of the Negotiation Process:- First and foremost variable to be considered is the process of negotiation. The negotiation process is highly influenced by the cultural dimensions of negotiators. Many a times the process of negotiation is highly affected when one negotiator is ‘high context’ while the other is ‘low context’. Similar implications would arise, when mono-chronic culture clashes with poly-chronic culture.
   
   
2. Selection of Negotiators:- There are various criteria for selection of negotiators. When Korean negotiating team is selected on the basis of status, knowledge and expertise, the status difference complicates the matter in India. Selection of negotiators also depends on the level of decentralization in an organization. Gender bias also plays an important role in selection of Negotiations. Many Arabic countries would not like to negotiate with female executives, whereas female negotiators would work perfectly in countries like India.
   
   
3. Role of Individual Aspirations and concern with protocols: - Traditionally culture has dominated a lot in selection of the negotiators. Generally people with high level of individualism are selected in countries like U.S., where as people with high level of collectivism are selected in the countries like China and Japan. Negotiation process is also affected by the general environment, customs, traditions and ways of conducting business. An important implication is how the negotiator uses environment in his favor. Rules for self-presentation, customs during the process of negotiations and cultural adiaphora also affect the process of negotiation.
   
   
4. Complexity of Language:- Linguistic problems coupled with the problems of translation. A major problem is faced by Americans and Australians who have a common language through out their conduct. When the negotiators from these countries have to communicate with people in their local language, it becomes a difficult task for them to undertake. Further adaptability to the local languages especially in the countries where diversity in the use of languages and dialects is present, is a factor that would influence the process of negotiation.
   
   
5. Non-verbal behavior: - An extension of the above problem is a variation of cultures in relation to non-verbal behavior. It has been seen that Americans typically being low context people, would not rely on non-verbal behavior, whereas the Japanese would typically communicate in a high context manner. In a process of cross-cultural negotiation, it is necessary for high context individuals to be specific in their communication while dealing with low context individuals.
   
   
6. Time: - “Let the world wait”. Negotiation and patience are positively related. It has been observed that Americans by their very nature are restless, result oriented and impatient, so they try to complete the negotiation process within the stipulated time. It is again seen that Japanese and Chinese counter parts very well know the weakness of the Americans and many a times take advantage of the same. When the process
   
   
7. Thinking and decision making: - Application and implementation of mind coupled with understanding cultural implications is a key to decision making in the international business negotiations. Leadership styles also affect the ways of taking decisions. Americans on one hand with high individuality index would not take time to think and make decisions; Japanese would evaluate their counter part on various criteria and then decide about the final agreement. Thinking is directly connected with the application of local protocols, history and geography of the country in which the negotiation is going to take place.

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