FIRST SEMESTER SESSION 2018/2019 (A181)

COMMUNICATION PROGRAM, SMMTC

SCCG 3123 NEGOTIATION COMMUNICATION

INDIVIDUAL ASSIGNMENT

Matric No Name Contact No

238529 Nur Syahirah Binti Panut 017-2436687

Title: Culture and Negotiation Strategy

Lecturer’s Name: Miss Nuredayu Omar

Group: B
Date of submission: 25th October 2018

Administrative

Marks: Remarks:
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Introduction

In achieving agreement for both or many parties it is important for an individual or

organization to use negotiation communication. Negotiation communication is one of the
important and crucial skill that must be developed by all individual and it is compulsory
for everyone to know the importance of having this skill. According to Lum (2011),
negotiation can be a discussion that aims to reach an agreement, in other words, negotiation
may include any situation where an individual trying to persuade or influence each other.
From the statement, it is stated that negotiation is about achieving a win-win situation,
which both parties achieve their own aims as well as their own goal. The process of
reaching an agreement is one of the core element of an individual or an organization and it
depends on how skillful they are (Age & Frick, 2017). It is important for an organization
and individual to have their strategy in negotiating in a global environment as their cultures
can be considered as a boundary in achieving the goals and agreements both parties. The
article that will be review is about the negotiation strategy that should be learning for the
negotiators such as learning about the other party’s interests and priorities and the strategies
they are likely to bring to the intercultural negotiation table. According to Brett (2017),
culture can be defined as the values and norms and beliefs characteristic of the people from
that nation and the political, economic and legal system that provide a structure of social
interaction there. In this article, there is various technique stated that can be used by the
negotiators in achieving their goals and agreements.

Critical Analysis

Firstly, to ensure the negotiation process between culture achieves the agreement
for both parties, the negotiators itself must be prepared in term of their counterpart’s
cultural background. As stated above, culture in this context is about the political,
economic and the legal system from that nation itself. Brett (2017) stated that a negotiator
must understand the environment of the nation first by studying the economic policy, the
nation’s development plans and by doing some research regarding the recent history of
investment from any legal sources. Lack of preparation is one of the causes that lead to the
unsuccessful negotiation, so it is vital for the negotiator to prepare externally and internally
by learning about the counterpart’s market condition, history and other that might influence

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the deal so that, it will lead to the successful negotiation (Tinsley, Taylor, & Adair, 2012).
For example, in 2000, the Chinese government have announced a ‘Go Out’ economic
policy which this policy made it possible for a tiny company (Geely) acquired the financing
it needed to acquire Volvo. It is proven that the Chinese government’s recent initiative in
fighting corruption provide another environmental signal that helps to understand Chinese
outbound foreign direct investor (COFDI). Tinsley, Taylor & Adair (2012), added that the
negotiators should do some research regarding the cultural sensitivity as well about various
cultural differences, particularly in behaviors. For example, in China, the act of giving a
clock as a gift is something that should be avoided by the negotiators, as clocks are
symbolic of death. By doing some research and study regarding the nation before entering
the negotiation process, it helps the negotiator impressing the other party.

Next, one of the crucial strategy to ensure that the negotiation within the culture
head to success is asking the counterpart directly. A recent study has stated that learning
about the counterpart’s political, economic, legal system and the environment may
consume a lot of time and still requires assumptions to be made. Knowing these elements
can be helpful for the negotiator, but they do not directly identify the counterpart specific
interest and priorities are, so the negotiator can directly ask as it can be one of the efficient
methods in finding their interest and priorities. To get more information as possible for the
other party is to ask an open question which does not have yes or no answer. It is the only
way that will lead the counterpart to provide data precisely. Mahmoodi (2012), added that
usually in co-operative negotiations both parties aim to a win-win outcome and the will
reach it because they are working together. Even though this technique can be considered
as an efficient one but, the negotiator must require trust from the other party to give the
precise information away and believe that the negotiator will use information not to take
advantage, but to further joint interests (Brett, 2017). Thus, it is compulsory for the
negotiator to build trust with the other party through deeds not words to do what he
promised he will do and maintain the professional appearance. Mahmoodi (2012), also
stated that trust also will be developed with honesty where the negotiator should be honest
about things that may not be at his best. As stated above, without trust, the counterpart will
not provide data precisely and it is supported by Chang (2006), where it is impractical to
expect the other party to fulfill their obligations when both parties cannot trust each other.
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The third technique that can be used in achieving inter-cultural negotiation success
by making multi-issue offers (MIOs) and draw inferences. According to Brett (2017),
MIOs will provide some momentum toward negotiating interest-based agreements when
the trust is low between parties. MIOs is the one and the only option that can be used from
the beginning when trust is low, by linking all the issues in the negotiation and so build in
a trade-off. Brett (2017), added that these trade-offs will capture differences in negotiator’s
interests and priorities at the same time because MIOs linking all the issues, as well as
protect negotiator’s interests and priorities. The key to successfully using MIOs as a
negotiation technique is to make small by continuous concessions throughout the process
so that each party can protect their high-level interests and priorities and sacrificing their
low-level interest priorities in other words each party can obtain a greater value on the issue
that is most important to them. There are many levels in using MIOs as a technique, starting
from the low interest or low priority, until it reaches to the high interest or high priority for
both parties. MIOs is valid when both parties respond to each round of the negotiation and
maximum value can be extracted from the deal. In other words, if there is no response from
both parties on the negotiation of MIOs the negotiation will break down or lose value. Brett
(2017), stated that both parties should be showing a willingness to move and by doing so
clearly in the second offering, the process can be invaluable in any negotiation, but when
there is low in trust for both parties.

Conclusion

In a nutshell, negotiation communication is something that can be improved and

there is so many method and techniques that can be used by the negotiators to achieve the
objectives of the negotiation. Negotiating globally can significantly develop the
organization as well as expand the organization’s reach and bring great value. Yet,
intercultural negotiation can be difficult and complex, without a proper strategy and
technique. It also can be challenging, and the organization may pose several barriers such
as misunderstanding arising from language, conflicts cause by different ways of managing
time and accidental violations of one another’s cultural norms. By using and frequently
practice the techniques and stated above, the negotiation process may be successful and
both parties may achieve their interest and goal.

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References

Age, L. J., & Frick, J. E. (2017). Goal-oriented balancing: happy–happy negotiations

beyond win–win situations. Journal of Business & Industrial Marketing, 32(4),
525-534.
Brett, J. M. (2017). Culture and negotiation strategy. Journal of Business & Industrial
Marketing, 32(4), 587-590.
Chang, L. C. (2006). Differences in Business Negotiations between Different Cultures .
The Journal of Human Resource and Adult Learning , 135-139.
Lum, G. (2011). The Negotiation Fieldbook. Chicago: McGraw Hill.
Mahmoodi, K. (2012). Negotiation Strategies and Skills in International Businesss.
Tinsley, C. H., Taylor, S. M., & Adair, L. W. (2012). Culture and International Negotiation
Failure. International Institute for Applied Systems Analysis Press, 185-200.