The immense growth of global competition and co-operation has made it important for us to understand the dynamics of cross-cultural negotiation. In order to overcome the issues of global business, managers of today have to use various tools and strategies. One of such tools is negotiation. Negotiation is the process of bargaining with one or more parties for the purpose of arriving at a solution that is acceptable to all. As a conflict solving method negotiation plays a significant role in global business especially in a cross-cultural environment.
Negotiation is a process involving two or more people of either equal or unequal power meeting to discuss shared and/or opposed interests in relation to a particular area of mutual concern.
Negotiation is the process where interested parties resolve disputes, agree upon courses of action, bargain for individual or collective advantage, and/or attempt to craft outcomes which serve their mutual interests As a process, negotiation has three dimensions. First, negotiation is an educational process: it enlightens the other side about your team’s concerns, perceptions and aspirations. Second, negotiation is a problem solving process: inevitably the parties involved have different perspectives that must be reconciled if there is to be progress. Third, negotiation is an interdependent process: workable and sustainable progress depends on building a cooperative relationship with the other side. In general, negotiating a workable balance among competing interests requires a combination of direct and indirect diplomacy, discussion and consultation, compromise and concession, and above all, flexibility.
Moreover, negotiation is about conflict. In negotiation, conflict tends to be a product of the different interests held by the parties in relation to the area under discussion. The nature of the conflict is conditioned by the substantive, psychological and procedural requirements of both sides: respectively, the minimum objective, emotional needs, and resolution and implementation procedures requiring satisfaction for there to be an agreement. The conflict therefore need not be destructive: it can be used to promote communication and discussion which allows the parties to redefine old, unworkable, or to establish new, relationships. Furthermore, the nature of conflict changes over time which allows new opportunities for discussion and reconciliation. In general it is important to understand the nature of the conflict and to legitimize it in the negotiating process.
Finally, negotiation is about power. Power is the capacity to realize a desired outcome, or to change the stance of another party. Negotiation inevitably involves parties with different capabilities and resources. The ability to utilize these differences in an effective exercise of power will depend on the political, economic and social context surrounding the negotiations.
The exercise of power manifests itself in the words and phrases used in the final agreement. It is therefore a contingent phenomenon subject to the particularities of the situation and the abilities of the parties involved to function in the given negotiating environment.
As a result, in a contest of wills it is not inevitable that the party with greater resources and influence will always realize its objectives. In general, negotiating a workable solution among competing interests requires an understanding of the power dynamics at work because these will set the parameters in which an agreement will be realized.
