1.0 ÃÂÃ ÃÂÃ ÃÂÃ ÃÂÃ ÃÂÃ ÃÂÃ ÃÂÃ ÃÂÃ INTRODUCTION
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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 negotiation, compare and contrast behavior of organization in two different countries and provide examples to support the evidence.
In this era of globalization, the use of negotiation in business is becoming very important. Zartman (1977) argues that there is a significantly increased reliance on negotiation in a society. Moreover, he says "ours is an age of negotiation" and competes that negotiation is rapidly replacing decisions that are made by higher authority .
On the other hand, strauss (1978) disagree with Zartman. He states that negotiation is always a part of traditional society and is found in most hierarchical as well as authoritarian systems. The increase of negotiating attention is caused by certain development in the scientific thought .
Negotiation can be defined as a process undertakes to maintain relationship, while in business terms, the definition of negotiation can varied. Negotiation in the sense of business is a process by which parties modify their offer and expectation in order to obtain a clearer view of each other objective.
Business Negotiation usually undertakes three fundamental stages, pre negotiation stage, face to face negotiation stage and Post Negotiation stage. Pre-negotiation stage refers to the first stage where both parties entering the agreement express the need and demand necessary for the...