In: Operations Management
Negotiation today has been quite an important aspect in business today and in order to be successful in the industry the organizations need to very much effective in creating an environment for negotiations to happen. Organizations today are no more Limited to domestic environment and therefore they are expanding into the international market and as organizations are crossing border they are crossing culture as well and these cultural differences may create issues and discrepancies while conducting or planning to do a business.
If we consider a hypothetical situation where two individuals one from China and one from Germany are having a business deal we will observe cultural differences and that may also act as a barrier in the business deal because not only they belong from a different country but they possess different culture from their background. Therefore we can understand the importance of culture in any negotiation and the differences that may cause.
We need to understand what negotiation is all about and it should be understood that negotiations are generally conversation which focus on reaching an agreement for serving individual and mutual interests as well. As the style of communication differ based on culture hence while negotiating any deal the individuals need to understand the culture that they each other belong from and these differences needs to be taken care of as these are important. This also depends upon the type of relationship the negotiating parties are trying to establish because if it is a one time, then the situation may be different from that of a long term relationship. The approach needs to be different in both the cases.
I believe that this is a very common issue as organizations strive more for globalization today. Therefore the organization need to be very much effective in handling such situations and therefore there should be professionals in the field who will take care of such situations.