CROSS CULTURAL NEGOTIATION

CROSS CULTURAL NEGOTIATION

Introduction  In its basic form, negotiation is a method of conflict resolution
Mental Programs

Every person carries within himself or herself patterns of thinking, feeling and potential acting which were learned throughout their lifetime. Much of it has been acquired in early childhood, because at that time a person is most susceptible to learning and assimilating. As soon as certain patterns of thinking, feeling and acting have established themselves within a person’s mind, (s)he must unlearn these before being able to learn something different, and unlearning is more difficult than learning for the first time

Hofstede defines culture as “the collective programming of the mind which distinguishes the members of one group or category of people from another”

Power Distance Index (PDI). Power distance is “the extent to which the less powerful members of institutions and organizations within a country expect and accept (emphasis added) that power is distributed unequally”

The power distance dimension is a measure of the relationships between individuals of different status within a culture

Individualism Index (IDV). Individualism, as used in this index, is the degree to which people in a country or region learn to interact with each other. The majority of the people of the world live in societies where they are taught from birth that the interest of the group, starting with the extended family, is paramount to the interest of the individual

These are described as collectivist societies. The reverse is the case for the individualist societies. Hofstede defines this dimension as such: “Individualism pertains to societies in which ties between individuals are loose: everyone is expected to look after himself…and his or her immediate family. Collectivism as it’s opposite pertains to societies in which people from birth onwards are integrated into strong, cohesive in-groups, which throughout people’s lifetime continue to protect them in exchange for unquestioned loyalty

Masculinity Index

 (MAS): The masculinity-femininity dimension identifies cultural variability based on what are considered appropriate gender roles for that culture

…masculinity pertains to societies in which social gender roles are clearly distinct (i.e., men are supposed to be assertive, tough, and focused on material success whereas women are supposed to be more modest, tender and concerned with the quality of life); Femininity pertains to societies in which social gender roles overlap i.e. both men and women are supposed to be modest, tender, and concerned with the quality of life

Uncertainty Avoidance Index (UAI). “Extreme uncertainty creates intolerable anxiety. Every human society has developed ways to alleviate this anxiety. These ways belong to the domains of technology, law and religion”

Negotiations Defined When two or more parties (individuals, clubs, nations, etc) reach a position where their interests or values come in conflict with one another, there are several ways in which to resolve the conflict. If one party is significantly more dominant (powerful) than another, they could attempt to simply enforce their will on the other. Other times, both parties may choose to enlist the aid of an outside neutral party to “mediate” the issue.

Skills of Negotiation

Actors The key actors in a negotiation are the negotiators themselves. Rubin describes five attributes linked to successful negotiators . First, effective negotiators have the capacity to be flexible on the method to achieve their goals

Second, negotiators remain sensitive to “social cues” (interpersonal sensitivity) given off by their counterparts without being over-reactive to these observations. To ignore the cues may be to miss out on important pieces of data. Conversely, to react too strongly risks misinterpreting intentions based on personal bias

The third attribute is the negotiator’s “inventiveness” or ability to develop creative solutions in order to strive for mutually acceptable agreement. Patience is the successful negotiator’s fourth attribute. Rubin attaches this trait to the negotiator’s ability to look beyond immediate gains with a view on the long game

 Finally, successful negotiators are tenacious especially in the area of reconfiguring an “adversarial relationship into a more collaborative arrangement

Negotiation Elements and Cultural Dimensions

Actors. The actors in a negotiation are members of some form of culture, whether it is national, ethnic, professional or any of a multitude or combination of other types of cultures. As such, their cultural background, which includes the values associated with and shared by that culture, will play a significant role on the negotiation especially how they “perceive issues, other actors, and their intentions

Structure. The structure of a particular negotiation also holds examples of how culture can influence the negotiation process. The structural dimension includes variables such as the size of the negotiation team, the number and type of issues, power distribution between the parties, the organizational setting, and the degree that outside influences, such as the media or other interested but not directly related parties, bring to bear on the negotiations

Strategy. The strategy used by negotiators, particularly along the negotiation continuum previously discussed, is another area of where culture holds an influence on the negotiation process. Strategy is the actor’s orientation used to achieve their goals

Process. The fourth area where culture impacts negotiations is the process itself; that is “the actual interaction between parties” These interactions are the methods or tactics that the parties use to communicate; that is, the way they exchange information, seek out methods to create options, or find room for maneuver and concessions

Developing a Strategy The preceding discussions, cultural dimensions overlaid with the negotiation elements and culture’s affects on negotiation style, demonstrates that culture does have the propensity to influence negotiations. Although ignoring culture’s impact does not necessarily mean an attempt at reaching a collaborative agreement will fail, understanding its affects can greatly facilitate and enhance the process

Conclusion

Negotiation is an important and valuable tool for resolving conflict when all parties involved have a shared commitment to reaching a collaborative, joint outcome that satisfies both parties needs and interests. Cultural considerations play an important role in the negotiation process as all of the actors bring with them their own specific cultural behaviors; that is their patterns of thinking, feeling, acting and most importantly, their own set of culturally shared values

the nature of culture and the salient characteristics of negotiations. A working definition for culture was provided to lay the groundwork for understanding the concept of culture. In order to further develop this understanding, the role of mental programs and values were discussed. Human nature, culture and personality all make up an individual’s mental program, but it is the cultural piece that is a singularly a learned trait formed by collective programming. Ingrained in this collective programming contains the culture’s values. Understanding these two areas is crucial to conceptualizing cultural variations. Hofstede’s dimensions of culture provided a summarization of how cultures differed based on their overall proclivity toward various values or norms. An understanding of cultural theory in this manner is an important element in describing culture’s impact on negotiations.

PLANNING AND PREPARATION PARAMETER

Preparation Steps to Get the Most Out of the Strategic Planning Process | A solid strategic plan can provide a road map for the organization’s future. But without the right input and preparation, an organization can end up with just another expensive binder of good ideas gathering dust on the shelf. To get the most out of the strategic planning process and position themselves to develop a truly mission-guiding plan, it is important that organizations do the right prep work.

Step 1: Setting the Context for Planning Think of the parameters under which your organization will be undertaking the strategic plan and begin to identify what success will look like, specific issues you will need to address during planning, and any non-negotiables that need to be identified up front. }

 How well are we achieving our mission and could we have a greater impact? }

Are our operations financially viable and how can we ensure financial stability? }

 Do we have capacity to support our programs and services in terms of planning, leadership and staff, technology and infrastructure? }

Are we committed to look objectively and gather the needed information – organizational strengths, weaknesses, opportunities and threats; effectiveness of current programs; current and future community needs; competitor and potential collaborator information? }

Is there a willingness to question the status quo, ask hard questions, face difficult questions, and support organizational change that may arise from the planning process?

 Step 2: Designing the Process Take the time to create a process that will engage the right constituents over the right amount of time to ensure a quality outcome. Also, look at your previous experience with strategic planning and determine the parameters you can put into place that will make this process uniquely suited to your own organization’s}

Is there clarity on who will have input into the plan and who will be decision makers?

} Do we have the right mix of individuals involved – strategic thinkers, action takers, big-picture thinkers, detail-oriented thinkers?

 } Do we have enough organizational resources committed for successful completion of the planning process – staff time, leadership and board time, funds for research or consultants?

} Will we use an existing committee or a strategic planning committee for coordination and planning assistance? } Who will lead the process?

} Who will be the primary writer of the plan?

 } Do we have the capability to undertake the plan on our own or should we bring in a consultant?

Step 3: Develop a Resource Gathering Plan Identify how you will gather information from both internal and external stakeholders to utilize in the planning process.

} What external and internal information is needed to inform the planning process?

 } What resources already exist and which will we need to develop? } Are there gaps in data that must be researched?

} What are the key drivers for institutional success?

 } Are there any high-impact decisions that will be made in the near future by an external source that will impact planning?

} Should we bring in a panel of topic experts to address our planning team?

Strategic Planning Process The strategic planning process is an opportunity to chart your organization’s course for the future. Over the past several years, JGA has provided a range of strategic planning services to our clients. True to our tradition of creating custom solutions, we help our clients create a tailored strategic planning process to best meet their specific needs. You can expect that a JGA-led strategic planning process will typically include the following core elements:

 1. Creating a strategic planning committee It is important for the strategic planning process to be led by a strong volunteer and staff group. We help clients identify the best structure for the planning process at their organization. This includes the creation of a strategic planning committee that is representative of the organization’s key stakeholders.

 2. Assessing the current state of the organization JGA helps clients assess the outcomes of the most recent plan and leads a discussion to build consensus around the most critical issues facing the organization today. JGA also leads clients in an environmental scan to understand the context for the planning process.

 3. Developing specific elements of the plan The core of the planning process is the sequential development of the strategic plan elements, beginning with the overarching goals and progressing through the more detailed and measurable objectives and tactics. These are then further developed into action steps with specific metrics, timelines and assignments.

 4. Testing elements of the plan with a broader audience At some point in the strategic planning process, JGA recommends clients test some or all of the strategic plan with a broader audience beyond the organization. We create methods to test the goals and objectives with key stakeholders during the planning process so that we are certain to get an external perspective on the planning process in real time.

 5. Developing supporting materials JGA assists clients to develop materials that support the implementation of the strategic plan. These frequently include budgets, development plans, facilities plans, and other organizational infrastructure planning.

 6. Approving the plan JGA guides the planning process so the board of directors is informed each step of the way prior to being asked to approve the plan. Board approval should not be taken lightly – the board is approving the road map for the future.

TYPES OF STRATEGY

Introduction:

Strategy king is not just an ask for top executives. Middle and lower level managers too must be involved in the strategic planning process to the extent possible. In a large company / firm actually four level of strategies (corporatelevel, divisional / business level, functional level and operational level) where asin small farm strategies are actually in three level – Company / Corporate, Business, and Functional or Operational level. It is important to note that all levels / all persons responsible for strategic planning at the various levels ideally participate and understand the strategies at the other organizational levels to assure coordination, facilitation, and commitment while avoiding in consistency, inefficiency and miscommunication. Strategy can be broadly classified into three levels (organizational level of Hierarchy) – corporate level, business level and functional level but if we consider in operational level there are 12 alternative options under 4 broad categories like Intensive, Integrative, diversification and defensive

 Organizational hierarchy level:

A. Corporate level strategies

: Corporate strategies are concerned withthe direction of the firm and with the management of its product lines and business units. Corporate Strategies can be

Grand or Directional Strategy – over all orientation towards growth, stability and retrenchment

 Portfolio Strategy – competes through its product or services

 Parenting Strategy - management’s coordination towards productlines.

B. Business level strategies

 focuses on improving the competitiveposition of a company’s or business unit’s products or services within the specific industry or market segments that the company serves. Business Strategy can be- Competitive strategy- Cooperative strategy or both

Organizational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization.

Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the values that guide member behavior, and is expressed in member self-image, inner workings, interactions with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid

HOW IS ORGANIZATIONAL CULTURE CREATED AND COMMUNICATED?

Business leaders are vital to the creation and communication of their workplace culture. However, the relationship between leadership and culture is not one-sided. While leaders are the principal architects of culture, an established culture influences what kind of leadership is possible 

Person culture and market culture

How members of an organization conduct business, treat employees, customers, and the wider community are strong aspects of person culture and market culture. Person culture is a culture in which horizontal structures are most applicable. Each individual is seen as more valuable than the organization itself. This can be difficult to sustain, as the organization may suffer due to competing people and priorities (Market cultures are results oriented, with a focus on competition, achievement, and “getting the job done”

Adaptive culture and adhocracy culture

The extent to which freedom is allowed in decision making, developing new ideas and personal expression are vital parts of adaptive cultures and adhocracy cultures. Adaptive cultures value change and are action-oriented, increasing the likelihood of survival through time Adhocracy cultures are dynamic and entrepreneurial, with a focus on risk-taking, innovation, and doing things first

Power culture, role culture, and hierarchy culture

How power and information flow through the organizational hierarchy and system are aspects of power cultures, role cultures, and hierarchy cultures. Power cultures have one leader who makes rapid decisions and controls the strategy

Task culture and clan culture

How committed employees are towards collective objectives are parts of task cultures and clan cultures. In a task culture, teams are formed with expert members to solve particular problems. A matrix structure is common in this type of culture, due to task importance and the number of small teams in play

HOW AND WHY DOES ORGANIZATIONAL CULTURE CHANGE?

Organizational culture is not stagnant. Members of an organization develop a shared belief around “what right looks like” as they interact over time and learn what yields success and what doesn’t. When those beliefs and assumptions lead to less than successful results, the culture must evolve for the organization to stay relevant in a changing environment.

Changing organizational culture is not an easy undertaking. Employees often resist change and can rally against a new culture. Thus, it is the duty of leaders to convince their employees of the benefits of change and show through collective experience with new behaviors that the new culture is the best way to operate to yield success.

Formulate a clear strategic vision. This vision gives the intention and direction for the future culture change.

Display top-management commitment. The top of the organization must favor the culture change in order to actually implement the change in the rest of the organization.

Model culture change at the highest level. The behavior of the management needs to symbolize the kinds of values and behaviors that should be realized in the rest of the company. Change agents are keys to the success of this cultural change process and important communicators of new values.

Modify the organization to support organizational change. This includes identifying what current systems, policies, procedures and rules need to be changed so alignment with the new values and desired culture can be achieved.

Select and socialize newcomers and terminate deviants. Encouraging employee motivation and loyalty to the company will create a healthy culture. Training should be provided to all employees to help them understand the new processes, expectations, and systems.

Develop ethical and legal sensitivity. This step can identify obstacles of change and resistant employees, and acknowledge and reward employee improvement, encouraging continued change and involvement