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Negotiation

How to Negotiate Effectively

in Different Cultures

BY GUIDO STEIN AND KANDARP MEHTA

In a globally connected world characterised style of negotiation and that individual’s inter-
by diversity, there exist different approaches SUHWDWLRQ RI WKH VLWXDWLRQ &XOWXUH LQÁXHQFHV
towards negotiation, which are depen- both the individual’s style of negotiation and
dent on people’s respective culture. In this the way negotiators interpret situations and their
DUWLFOH WKH DXWKRUV GLVFXVV WKH VLJQLÀFDQW counterparts’ behaviour.
impact of culture to negotiation processes as
expounded on three culture types – Dignity Negotiation Situations and Style
Culture, Face Culture and Honour Culture – 1HJRWLDWLRQ OLWHUDWXUH LGHQWLÀHV WZR SDUD-
with the aim of helping us understand one GLJPV WR GHÀQH YHU\ GLVWLQFW QHJRWLDWLRQ
another better. situations and styles – namely, (1) distributive
or competitive negotiations and (2) integrative
xecutives in our negotiation programmes or collaborative negotiations.
quite often ask: “How should I nego-
E tiate with people from a very different
culture?” Most negotiations in today’s globally
connected world take place in a multinational
context. While this has brought us all closer,
at the same time it has added to the anxiety of
business executives when they are dealing with
cultures with which they are not very familiar.
Most of the executives with whom we interact A B
highlight culture as a very important factor as far
Competitive negotiations Collaborative negotiations
as negotiations are concerned.
Why do cultures have a strong impact on
negotiations? Before answering this question, let
us try to understand what happens in a negoti- As the diagrams above suggest, a competi-
ation. A negotiation is primarily an interaction tive situation is one where the negotiator has to
that someone has with one or more counter- get the best outcome at the cost of the coun-
parts to satisfy a particular need and thereby gain terpart’s position. For example, in a typical
an advantage or claim something. Negotiating is traditional vegetable market in rural India when
basically a relationship between an individual’s you buy potatoes or onions, you bargain for

Culture influences both the individual’s style of negotiation and the

way negotiators interpret situations and their counterparts’ behaviour.

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