STEPS FOR EFFECTIVE NEGOTIATIONSThe success of any business depends on the effective negotiation process it has. Forthis purpose, KBI has taken into the following to facilitate effective negotiation.• Contract of relationshipDifferent cultures view negotiations differently. The goal of any negotiation is thecontract. Bangladesh culture consider relationship more than the Australians. Thesociety is family oriented and knowing each other more thoroughly is appreciated thantrying to pursue the contract.it is Important that foreign organisations don’t assume theinformal posture rather get a formal posture fist. Cai, Wilson& Drake (2000).• ATTITUDE (win- win, win – loose)Negotiators can both be gaining and giving back (win win) or they could be having anattitude of giving and not giving something in return. It is very necessary to know thecounterparts because they could either be collaborative or confrontational.• PERSONAL STYLE (informal or formal)Personal style covers arrange of issues like dress code, how a person talks andinteracts with others. A formal negotiator will always discuss about the contract andnot ask the other counterparts about their personal life. They address the other partywith their titles and avoids nicknames. Tu, Lin & Chang, XXXXXXXXXXAn informal negotiatorwill start a conversation by calling the first names with an intention of developing arelationship. When the negotiations commence the informal party can remove thejacket / coat, roll up their sleeves in order to be at ease in the conversations.• COMMUNICATION (direct and indirect)Many Asian countries communicate indirectly while western countries communicatedirectly.in the negotiation counterparts who are dealing with direct communicators canbe given answers of the questions they have asked and the others can be vague orgestures can be seen. Direct people are perceived as aggressive hence it’s an insultwhile the indirect are perceived as insecure. This easily builds up friction in thenegotiation. Tu, Lin & Chang, (2011).• SENSITIVE TO TIMEMany researchers say that some cultures are punctual to time. The characterisationof this can be different in that countries like Australia try to cut the formalities andhence get to business but the Bangladesh will be more interested in the formalities tosee if there is a chance for a long term relationship. Investing time in the negotiationis seen in different angles either the time spent in the formalities or the time spent afterthat. Nguyen, Heeler & Taran XXXXXXXXXXThose who keep time say that time is money butthey are perceived as pushy and aggressive.• FORMS OF AGREEMENT (specific or general)Australians have detailed contracts that are able to handle uncertainties this isbecause when new matters arise they can go back and re read the contract.Bangladesh prefer having a general contract this is because when new matters arisethey will focus on the relationship first and then solve the problem giving therelationship a priority. This major differences brings up unequal bargaining power.Salacuse, XXXXXXXXXXThe strong counterpart will want a detailed agreement to seal thecontract while the other will want a general contract to have more room fornegotiations.
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