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Cross-Cultural Negotiation

  • 15th Jun'21

What strategies do we use to deal with cultural differences?

Which method is the most effective and appropriate?

For any negotiator, negotiating in an international setting is a significant task.

 

Factors Influencing Cross-Cultural Negotiations

There are various factors that come into account in a croos cultural negotiaiton. 

 

  • Negotiating-Goal and Concept

Various aspects of negotiating are emphasized differently in different cultures. The objective of business negotiations may be a real outcome or a long-term partnership.

 

  • Protocol

Business etiquettes that differ from country to country are dress codes, the number of negotiators, the level of formality, gift exchange, meeting and greeting, etc.

 

  • Communication

The way we convey our wants and concerns through body language and tone of voice can influence how the other party perceives us, and can also help or hurt our reputation.

 

  • Risk-Taking Propensity

Some cultures are more risk-averse than others. If the counterparts have a solid trust-based partnership, it ensures that fewer imaginative and inventive alternatives are available to pursue throughout the agreement. You can effectively negotiate and solve your problems as well. 

 

  • View of Time

In certain countries, time is money. Punctuality and agenda, along with a focus on the past, present, or future, may be integral factors in negotiating as well.

 

  • Decision-Making System

When dealing with a group, it's critical to determine who is the boss and who has decision-making power. Focus on providing the presentation to them.

 

  • Form of Agreement

In most communities, only formal agreements stamp a contract. It seems to be the most effective means of safeguarding our rights in the event of unforeseen events.

 

  • Power Distance

This applies to people's recognition of authority differences. People in low power distance cultures believe in equality and earned status, whereas people in high power distance cultures believe in hierarchical systems and clearly defined authority figures.

 

  • Personal Style

Our personal attitude towards the opposing side and biases that we may develop influences our assumptions, which can lead to win-win or win-lose outcomes in the negotiating process.

 

Coping with the Culture

  • Try to determine the main influences that foreign culture may have on the deal. This may be a boon or a hidden challenge of a cross border negotiation. 
  • Don’t stereotype. Assumptions may develop distrust and obstacles, exposing both your and the other side's needs, perspectives, and objectives.
  • Find common ground to bridge the cultural gap.

 

Visit the below article to know more about cross-cultural negotiation:

https://www.calumcoburn.co.uk/articles/cross-cultural-negotiation/

 

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