Much of the negotiation process is fraught with conflict-explicit or implicit, and such conflict can often lead to a standoff, or a lose-lose situation. This is regrettable, not only for the situation at hand, but because it probably will shut off future opportunities for deals between the parties. Much of the cause of such conflict can be found in cultural differences between the parties-in their expectations, in their behaviors, and particularly in their communication styles.
As discussed in Chapter 4, much of the difference in communication styles is attributable to whether you are part of a high-context or low-context culture (or somewhere in between), as shown in Exhibit 4-4.) In low-context cultures such as that in the United States, conflict is handled directly and explicitly. It is also regarded as separate from the person negotiating-that is, the negotiators draw a distinction between the people involved and the information or opinions they are representing. They also tend to deal on the basis of factual information and logical analysis. That approach to conflict is called instrumental oriented.61 In high- context cultures, such as in the Middle East, the approach to conflict is expressive oriented-that is, the situation is handled indirectly and implicitly and there is no clear delineation of the situation from the person handling it. Those negotiators do not want to get in a confrontational situation because it is regarded as insulting and would cause a loss of face, so they tend to use evasion and avoidance if they cannot reach agreement through emotional appeals. Their avoidance and inaction conflicts with the expectations of the low-context negotiators who are looking to move ahead with the business at hand and arrive at a solution.
The differences between high- and low-context cultures which often lead to conflict situations are summarized in Exhibit 5-9. As you can see, most of these variables were discussed earlier in this chapter or in Chapter 4 on communication. The reason for the overlap is that the subjects and culture and communication are really inseparable, and negotiation differences and conflict situations arise from variables in culture and communication.
The point here is, how can a manager from France, from Japan, or from Brazil, for example, manage conflict situations? The solution, as discussed before, lies mainly in your ability to know and understand the people and the situation you will face. Be prepared by developing an understanding of the cultural context in which you will be operating: What are the expectations of the persons you will be negotiating with? What kinds of communication styles and negotiating tactics should you expect, and how will they differ from your own? It is important to bear in mind your own expectations and negotiating style and to be aware of the other parties' expectations about your behavior. Try to consider in advance what it will take to arrive at a win-win solution. Often it helps to use the services of a host-country adviser or mediator who may be able to help with early diffusion of a conflict situation.
One contemporary tool in negotiation and decision making which helps to avoid circumstances of conflict is the on-line B2B marketplace: exchanges, where buyers and sellers negotiate prices, speed up the decision-making and transaction process, as described in the accompanying E-Biz Box.
Managing Conflict Resolution : Economic article from Global Management Catagory Managing Conflict Resolution
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