Lastly, design and submit a side-by-side summative chart of how each of the 6 worldviews would respond to that chosen issue. Be concise; the chart does not factor in the page count.
CROSS-CULTURAL NEGOTIATIONS 6 Running head: CROSS-CULTURAL NEGOTIATIONS Negotiations across Cultures Name: Course:
CROSS-CULTURAL NEGOTIATIONS 6
Running head: CROSS-CULTURAL NEGOTIATIONS
Negotiations across Cultures
The modern business world is largely characterised by increasing globalization in all aspects of the business. Among these include businesses venturing across borders. This requires an organization to employ people from different cultures and different countries. More so, the globalization has also allowed human capital to move from one country to another. The result of these dynamics if the diversification of the workforce. Solving organizational conflicts thus take a twist because the negotiations have to be bound by the cultural differences. This essay presents an analysis of the cross-culture negotiation and decision making. The background to this analysis is chapter 5 of the book International Management by Deresky (2014) which introduces the concept of cross-culture negotiations. A critical insight will be achieved through analysing further materials on the same.
The term negotiation has been described by Deresky (2014) as the process where two or more parties hold a discussion in order to reach a mutual and acceptable agreement. Negotiations are key in the management context because issues like strategy implementation will depend on the management’s ability to undertake productive negotiations. A case for Facebook’s efforts in entry into the Chinese market provides a case scenario of the importance of negotiations across cultures. Herein, we learn that for a successful entry into China, Facebook has to undertake successful negotiations with the cultural issues being the major constraints therein.
A successful negotiation process in the ross0cultural context can be accomplished in five stages. These are as indicated below:
Preparation – This requires adequate time because cross-cultural negotiations may be costly and time consuming. Herein, the negotiators need to familiarize with the entire context and background of fellow negotiators of counterparts.
Relationship building – this is the process of familiarizing with host country and establishing mutual trust prior to embarking on the negotiations
Exchanging task-related information – herein, a question-and-answer session ensues and alternatives are discussed.
Persuasion – entails bargaining where each party tries to entice the other to accept various positions.
Concessions and agreement – an agreement is reached, often a win-win situation.
According to Peleckis (2013), “the context of negotiations at the international level is faced with the differences between various cultures: a long-term attitude towards communication, the power placement, the uncertainties avoiding, emotional differences between the negotiating parties and others” (p. 91). It follows therefore, that when the international business representatives from the different countries prepare for the negotiations by starting with analysing the traditions, properties and differences for the other countries. As mentioned earlier on, adequate background of the counterpart is the backbone of the preparations for a negotiation process.
In organizations, the cross-cultural management has become quite important because it greatly affects the success of the international businesses and their operations (Singh, n.d.). It also follows that the international business management cannot be separated from the sphere of patterned cultural behaviours owing to the fact that culture entails shared beliefs, values, norms, and symbols that guide the daily lives of the people. In an organizational setting, in the context of a culturally diversified workforce, there are possibilities of conflicting cultures often requiring the attention of the managers. In this case, the cross-cultural negotiations need not take place between an organization and a host country’s representatives, but can also be within an organization’s culturally diversified workforce. This brings about internal and external negotiations in the context of international management. This is despite the fact that this internal aspect has not received as much attention from the academics and practitioners.
Whether in the case of internal or external context, it should be understood that there are differences in the methods of negotiations just as the cultures are different (Chang, 2006). The question here is, does each culture has a different negotiation method? And if this is the case, then how does the negotiation take place or rather, what influences the choice of the method? There are two beliefs here: 1) because the negotiations in the cross-cultural context have become a common phenomenon, the behaviour of negotiation will take place within some predetermined framework, regardless of the cultural backgrounds of the negotiators; 2) the negotiations in different culture differ and take different forms. There is no approach that is generally accepted and the correct one, as the first belief assumes that the negotiators have adequate prior experiences with the cultures involved. However, it applies that there will be challenges especially with communications. Herein, eight cultural factors emerge (Chang, 2006). These are as follows:
Roles and role interpretation
Understanding of time
Spatial usage and organization
To prove the existence of cultural differences in negotiation, various aspects can be referred. For example, the definition of ‘negotiation’ differs across cultures. For instance, Americans see negotiation as a competitive process while the Japanese see negotiations s an opportunity where parties can share information. The selection of negotiators also illustrates cultural differences where qualifications may include gender, age, experience, relationship, and credentials among others. According to Deresky (2014), composition of teams (in the selection of negotiators) is one of the variables in the cross-cultural negotiations.
Much of the focus has been on the one on one negotiations requiring the presence of all parties during negotiations. However, with the development of the internet, the world e-commerce has boomed making the transnational negotiations possible over the internet or other media. Little attention has been given to this phenomenon. Lin, Lai, and Juin-Yi (2009) have looked at the impact of the cultural differences on the online text-based negotiation behaviour whereby the different communication media lead to different social presence. Deresky (2014) expresses that the modern technology has been applied in supporting the negotiation processes. The Negotiation Support Systems (NSS) support negotiations in various ways. These include reducing the direct and indirect costs of the negotiation process and maximizing chances for optimal outcomes. The negotiation processes herein are subject to the same cultural challenges.
In conclusion, the cross-cultural negotiation has been seen as the negotiation processes taking place between negotiators of different cultural backgrounds. The negotiation is a process where parties seek common ground on a particular issue. Applied to international business contexts, it aims at solving cross-cultural conflicts (within an organization) and to establish contracts and other agreements (between organizations and host country’s government or businesses). Also addressed herein include the cultural differences whereby various aspects like attitude, language, and social structure among others are highlighted. Lastly, the paper has introduced the new paradigm where the cross-cultural negotiations can take place over the internet. Herein, it is explained how the cultural differences apply and how the internet provides an ideal platform for negotiation. Cost saving are among the benefits brought about by the negotiation support systems.
Chang, L.-C. (2006). Differences in Business Negotiations between Different Cultures. The Journal of Human Resources and Adult Learning, 135-140. Retrieved from http://www.hraljournal.com/Page/18Lieh-ChingChang.pdf
Deresky, H. (2014). International Management: Managing Across Boarders and Cultures. Boston: Pearson.
Lin, W.-J., Lai, H., & Juin-Yi, L. (2009). The Impact of Cultural Difference on Online Textbased based Negotiation Behaviour: Integrating Qualitative and Quantitative Research Methods. MIS Review, 1-27. Retrieved from http://gebrc.nccu.edu.tw/misr/pdf/volume/1501/1501-01-fullpaper.pdf
Peleckis, K. (2013). International Business Negotiations: Culture, Dimensions, Context. International Journal of Business, Humanities and Technology, 91-99. Retrieved from http://www.ijbhtnet.com/journals/Vol_3_No_7_September_2013/11.pdf
Singh, D. (n.d.). Managing Cross-cultural Diversity: Issues and Challenges in Global Organizations. Journal of Mechanical and Civil Engineering, 43-50. Retrieved from http://www.fondazionepirelli.org/uploadcultura/pdf/1404724136.pdf
Running head: INTERNATIOAL COMPENSATION INTERNATIOAL COMPENSATION 6 International Compensation Programs Name: Course:
Using the social issue of abortion, report on how a Christian Worldview frames understanding of and action regarding your Essay Writing Assignment Help Running head: INTERNATIOAL COMPENSATION
INTERNATIOAL COMPENSATION 6
International Compensation Programs
Contemporary approaches to employee compensation tends to emphasize on the importance of aligning the behaviour of the employees towards the strategic direction of the firm. This is a term or approached dubbed as strategic compensation. Compensation is a critical human resource function mainly because it is one of the major motivators alongside other benefits. A well paid employee will work harder meaning more productivity for the firm. How does the compensation phenomenon look like in the international context? The international human resource managers need to establish the best compensation practices in an international context. This essay critically looks into this issue with the basis being chapter 9 of the book International Management by Deresky (2014) that looks at HR functions of staffing, training and compensation across borders. Further insights will be provided by related literature.
Deresky (2014) recognises that “compensation is a crucial link between strategy and its successful implementation. There must be a fit between compensation and the goals for which the firm wants managers to aim” (p. 304). Herein, a firm’s perspective is adopted where the focus has been given the challenges that companies face when transferring managers. The costs of transfer and the new salaries in the new environments are a challenge. This I an indication that it is a complex affair to design and maintain an appropriate package as the consideration and reconciliation of the parent-and-host-country legal, financial, and customary practices has to be achieved.
The chapter mostly looks at the managers from the home country working in the host country, for example, an American organization hiring an American to go work as a manager in Germany. In the host country, legal implications may include taxes even on housing and other allowances (Deresky, 2014). In this case, the compensation packages for both the home and host countries have to be considered. The considerations herein include salary, taxes, allowances and benefits. Approaches may include the localization (or going-rate) whereby an expatriate receives the going salary for similar positions in host country in addition to various other allowances and benefits. This can be seen as an appropriate approach because the expatriate will be working alongside other local managers at the same level, and a unified compensation averts issues of discrimination among others.
The chapter also turns attention to the compensation issue for the local employees in the host country. The chapter tries to answer the question of, “how do firms deal with the question of what is appropriate compensation for host-country nationals, given local norms and the competitive needs of the firm?” (Deresky, 2014, p. 310). Herein, the issue remains equally complex because there are a number of issues to consider, among these including the market factors, pay scales, the government’s involvement in benefits, the costs of living, the role of unions etc. Herein, a company is seemingly bound by the host country’s local environment unlike in the case for expatriates where the home and host countries are put into consideration.
Even though Deresky (2014) suggests the host countries local environment to be the key consideration for compensation for host country’s local employee, there are other opinions that there are various approaches that can be used. These are home based approach where the home practices prevail in the host country; headquarter approach where the compensation for all personnel in a region are determine at that region’s headquarter; or the host country approach where the compensation practices adopted are those of the host country (Tiwari, 2013).
The notion of compensation issues for international businesses as one of the most complex areas in international HRM is upheld by various academics and practitioners. This is because the pay systems have to conform to local constraints, as well as fit into the global multinational corporations’ policies (Haile, 2002). Among the reasons that a company may establish operations in a foreign country may be access to cheap labour. For example, the sweatshop companies like Nike have been in the limelight because of employing children in Asian countries, paying very low wages, and also poor conditions and mistreatment of workers (Kristof & Wudunn, 2000). As such, the compensation for the host country’s employees may not be much of a problem where this is the case, but this is grossly unethical. International human resources cannot, in the name of following local practices, employ children and pay them poorly. Such practices need to be avoided in the IHRM practices. Much of the media focus has been on foreign countries undertaking these practices, but not much has been provided regarding local host companies doing the same.
The issue has raised much concerns mainly because compensation remains the key element of an employment relationship besides being the greatest operational cost for any organization (Trevor, 2000). Even though a major cost element, compensation is also a tool for enhancing performance and productivity of an organization. Better compensation, as mentioned earlier on, is a form of motivation to the employees. Besides this, compensation can also be a means of attracting the best talent. An international HRM needs to consider that competition exists for the best talent especially when hiring in the host country. This illustrates why, besides considering the other constraints to the determination of pay scale, a HRM might consider talent as well. In international compensation practices, the mismanagement of the strategic compensation systems result in undesirable employee behaviours that are detrimental to the organizational performance (Trevor, 2000).
Pena, Bretton, and Reis (1998) present what they call a ‘competitive international compensation program’ where they state that the balanced sheet approach is the commonly used approach. In this approach, the local package (home country) is offered and the other benefits, or incentives to accept the foreign appointment follows. However, critics have it that the modern world is more connected and these incentives should no longer exist. The competitive compensation program, as mentioned earlier on, should allow for local competitiveness where the company competes with other for best talent, and also seeks competitiveness from better paid employees.
In conclusion, the issue of compensation in the international context raises challenges for the international human resource managers. The complexity of this issue is compounded by the fact there are two types of employees involved – that is, expatriates and the host country’s employees. Different approaches are adopted for each case whereby the case for expatriates requires a consideration of the home compensation practices besides the constraints faced in the host country. Herein, managers find themselves paying ‘incentives’ to these employee. In the second case, different approaches may be used among them being the home based approach, the headquarters approach, and the host based approaches. Whichever the case, issues of competitiveness and the implication of the compensation practices on organizational performance are to be considered.
Deresky, h. (2014). International Management: Managing Across Borders and Cultures. Boston: Pearson.
Haile, S. (2002). Challenges in International Benefits and Compensation Systems of Multinational Corporation. The African Economic and Business Review, 3(1), 1-22.
Kristof, N., & Wudunn, S. (2000, Sept 2000). Two Cheers for Sweatshops. Retrieved from The New York Times Magazine: http://www.nytimes.com/2000/09/24/magazine/two-cheers-for-sweatshops.html
Pena, L., Betton, J., & Reis, D. (1998). Designing Competitive International Compensation Programs. RAE, 19-26. Retrieved from http://www.scielo.br/pdf/rae/v38n1/a03v38n1.pdf
Tiwari, N. (2013). Managing Human Resources in International Organizations. Global Journal of Management and Business Studies, 3(4), 355-360. Retrieved from https://www.ripublication.com/gjmbs_spl/gjmbsv3n4_02.pdf
Trevor. (2000). Can compensation be strategic? : A review of compensation management practice in leading multinational firms. Working Paper Series, 1-38. Retrieved from https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/workingpapers/wp0803.pdf
Conclusion It is a fact that a good interviewer requires not only
It is a fact that a good interviewer requires not only good interviewing skills, but also knowledge of the subject. It also requires one to be good in speaking. Being an interviewer for the first time is not always easy. So, when the interviewee arrived, he looked great and impressive in the official dress code as per the interview expectations. I started asking my questions that were thirteen in total. As a first time interviewer, I was very sure I would make mistakes in the questions that would include improper pronunciations of some words. Al the thirteen questions that I had prepared were open ended, and this was meant to give room to the interview to express his opinions.
Challenges in the interview cut both ways, as both the interviewee and I experienced some problems during the interview. The challenges on the part of the interview were the result of some challenging questions. I did not set all the questions very easy, and some were expected to assess the capability of the interviewee to reason and argue. Even though I had made prior preparation, one of my greatest challenges was that being my first time, I has some fear in me that I would make mistakes. As such, I found myself sometimes worrying too much about making mistakes that I missed some of the answers given by the interview. I was worried that my confidence might drop and be noted by the interviewee, and this experience was not a good one.
However, the interviewee was not having his first time interview, and his confidence in answering questions was amazing. He was always relaxed and answered the questions with so much ease and in some cases made me wonder whether I had prepared too cheap questions. For all the thirteen questions, only two of them seemed inadequate, and these were the question of working under pressure, and the description of the best skills that were required for success in the job. All in all, the rest of the questions seemed quite okay with me, and this was a basis for approving the interviewee for the job. The interviewee was quite okay with the requirements of the job, and these included being available for work for eight hours a day and from Monday to Friday. This meant forty hours a week. Therefore, I was left with no choice, but to recommend the interviewee for the job.