Negotiation for your Employer

Introduction1

Discussion2

Dynamics of multi-party negotiations and their role in the designing strategy to deal with such conflicts2

Issues affecting a negotiation with a diverse cultural environment4

Strategy that would work best in that situation4

Conclusion5

References7

Negotiation for your Employer

Introduction

Globalization has changed world scenario for international trade. This is due to the fact that more and more organizations all over the world are getting themselves engaged with the process of outsourcing, subcontracting activities ranging from hiring-firing to research and development. Hiring from third world countries is comparatively cheaper therefore Multi-national companies all over the world outsource cheap human resource from third world countries like China, India, Pakistan, Malaysia, Indonesia, Bangladesh etc and use them to their advantage to make their expenditures more cost-effective, enhancing their revenues in the long run.

This has increased interaction among people from different cultures which in a number of ways is good. Socially and morally this increased interaction has boosted communication between people, reducing cultural barriers and differences and centuries old misconceptions about each other. This has also inculcated among people concept of open economy, opening doors for free international trade leading to strategic cooperation among economies.

At the same time it has raised communication challenges for entrepreneurs and organizations too. The dynamic nature of the corporate culture gives all of us the freedom to speak our minds and be part of the progress. Taking everyone on board is always productive. It increases one's pool of ideas, ensures democracy in the organization and, critical assessment by members prepare us against market challenges and competitors. Yet it may also lead to unavoidable conflicts.

Conflicts rising in a diverse cultural background may have serious consequences to one's business avenues. Specifically associating it to the concept of out-sourcing it needs to be clarified here that basically out-sourcing means establishing a bilateral relationship between two firms. It is a relationship-specific binding, administered by a legal contract. But for this contract to be fully understood and administered fairly it is important that it is clear to both parties, and that its clauses has been set in agreement with both of them (Grossman et. al, 2001, p. 10)

Negotiation and negotiators play an important role here. Some academics consider it a common behavior, and that cultural difference doesn't affect the process. Whereas others believe it may have fundamental differences in varied cultures. In some cultures a contract is a commitment, one's compliance with it is a strict matter and defiance leads to austere legal consequences like in the US and UK. In countries like Japan and China such mis-commitments have social consequences too. And in Indian Culture contracts are rather considered as relationships.

Since every culture takes contracts and legal bindings differently, negotiations should be done with them differently as well. Through this study we can identify the issues and conflicts that arise from inter-cultural communication during negotiations between two culturally diversified organizations, how these foreseen conflicts can be mitigated and also how does these conflicts benefit the organizations (Chang, 2006).

Discussion

Dynamics of multi-party negotiations and their role in the designing ...