Managing Global Organizations

Managing Global Organizations

A Cultural Perspective

Rabi S. Bhagat, Harry C. Triandis and Annette S. McDevitt

The globalization of business is a reality that confronts organizations of all sizes from different nations and cultures. This book serves as a comprehensive guide for understanding the nature of cultural variations that affect important aspects of organizational behavior.

Chapter 5: Cultural variations in negotiation, conflict management, and decision- making

Rabi S. Bhagat, Harry C. Triandis and Annette S. McDevitt

Subjects: business and management, international business


Negotiation between multinational and global corporations occur both as discrete and continuous events in the process of expanding business operations across nations and cultures. Negotiations can take place at multiple levels—at the intra-organizational level, it takes place between senior managers between two or more global companies trying to reach a set of outcomes which are satisfying to both or all the parties concerned. Managers of global corporations must be proficient in negotiating with individuals from other countries and cultures. They need to do so for developing specific strategies for exporting their products and services, setting joint ventures and strategic alliances, and managing subsidiaries in dissimilar political contexts and cultures. The art of effective negotiation is difficult at best, and it can be a challenging, if not daunting, task for even the most experienced senior managers of multinational and global corporations. The art and science of effective negotiation require that one pays careful attention to the various elements of the negotiation process before, during, and after the negotiation.

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