Effective management system starts from desirable goal and strong cooperation within the organization. Goal or objective is impossible to achieve unless competent planning is conducted. In order to plan an effective planning, deep understanding of factors influencing outcome and acquisition of perfect information are required, additionally understanding business partner behavior and value is also fundamental for maintaining relationship within the parties. This paper will define negotiation, why negotiation is conducted, define culture, evaluate cultural effect in relation to negotiation, identify how organization comes to decision making in ...view middle of the document...
Pre-negotiation stage refers to the first stage where both parties entering the agreement express the need and demand necessary for the objective. Face to face stage is when both parties are closer to entering contract, evaluating alternatives and rank the most preference choice. At the final stage or the post negotiation stage, contract is ready to be signed by both side and all the terms in the contract has been agreed upon .
2.1 FUNCTIONS OF NEGOTIATION
There are some significant uses of negotiation.
Specific agreement can be created through negotiation
Negotiation is very essential because it has the functions of settling disagreements, resolving precedents and to the extent that both parties are satisfied with the outcome. It also can strength the relationship between the parties involved in the negotiation
Developing longer term policies about roles, commitments and rights
Negotiation of social change
The occasions for such change include failure of traditional structures and patterns that is a result from misrepresented circumstances, modified needs and transformed power relations between parties.
Negotiators must be able to generate an effective negotiation in order to achieve their objectives. In effective negotiation, it is important to have a sound understanding of the other side's culture, which is including communication patterns, time orientation and social behavior. Trompenaars and hampden-Turner state that society's culture often plays an important role in determining the effectiveness of a negotiation .
Therefore, there are some differences between Australian and Asian (Singapore) people regarding to their behavior in a negotiation. Those differences are based on the relationship focused versus deal focused, formal versus informal business culture and attitude towards time .
Relationship focused versus deal focused
In relationship focused, people tend to negotiate with other people that they know, such as friends and families. They always want to know their business partners very well before taking business with others (Gestleland, 1996) . This style is usually appropriate with Asian cultures, such as Singapore, Indonesia and China. Therefore, most of developing countries tend to be relationship focused rather than deal focused.
On the other hand, most of developed countries, such as Australia, are more likely deal focused cultures. It means that people are relatively open to do business or negotiation with strangers.
Formal and informal business culture.
Most of Singapore businesses have formal business culture; in which there are sharp hierarchies. It means that people are more status and power aware than those from informal business culture. Moreover, esteem is very significant; it is because power distance tends to be high in organizations. For example, most people are preferred to be...