The Role of Culture in Decision Making (Essay Sample)

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THE ROLE OF CULTURE IN DECISION MAKING
Abstract
Culture has a significant role in international business negotiations due to the cross-cultural factors that are inherent to a particular group of people. It involves the effect of the different patterns of behavior, symbols, values, and beliefs that are shared by a certain number of persons in the exchanging information process. The factors that are identified as contributing to cross-cultural negotiations include language, personal values, and nonverbal communication behaviors. These elements are often hidden, and they may lead to ineffective transnational business negotiations if not adequately addressed. Therefore, it is essential for businesses and international negotiators to be aware of the cultural influences on negotiation so as to ensure sufficient communication processes.

Introduction
Culture is one of the fundamental factors that have a significant impact on the outcome of a given negotiation process. The cultural differences inherent to the diverse groups of people in the society pose substantial problems in cross-cultural negotiations particularly in situations where there exist relationship-oriented and information-oriented societies. Moreover, they have an important influence on the discussion styles that are adopted in addition to the negotiating parties’ gender, international, experience, industry background, and organizational factors. The cultural factors that are inherent to the society have led to stereotyping about particular communities or group of people during cross-cultural negotiations. However, the majority of these regional generalizations are more often improper and incorrect given that the outcome of a particular negotiation process is dependent on a number of factors. Therefore, cultural differences pose substantial problems especially for international conflicts and transnational collective arguments. The main reason for this lies in language differences, personal values, nonverbal behaviors, and strategic decision-making processes.
Negotiation is an essential business tool that involves the dialogue between different groups of people or parties whose intention is to reach a mutually acceptable agreement. Moreover, the aim of negotiation is to enable the parties that are in conflict or dispute to resolve their points of difference that will satisfy their various interests fully. Talks are significantly affected by the differences in the knowledge and characteristics of a certain group of individuals with differing opinions and that are defined by their language, social habits, cuisine, eating habits, and arts. Culture also includes the shared patterns of interaction and behavior acquired by a particular group of persons by socialization. Therefore, it creates a shared identity fostered by social patterns unique to the group and socially transmitted from one generation to the other. Hence, the purpose of this paper is to discuss the role that culture plays in the negotiation process.
Culture’s role in the negotiation process
The international negotiations between businesses, people, and governments are continuously being affected by the cultural diversities that exist among these persons. In the modern business environment, the society has increasingly become integrated due to the globalization effects. Globalization has been influenced by the increasing interdependence that exists among different people, countries, and enterprises that conduct similar business. It is interdependence that exists between people, nations, and businesses that are culturally diverse. So, it has put a spotlight on culture, which accordingly affects almost all manufacturing processes given that it is socially transmitted from one generation to the next. It consists of the shared behavioral patterns, beliefs, norms, and values of a particular group of people. These factors are transferred to the next generation by use of symbols that constitute the distinctive human achievements. The traditional ideas and shared values present an essential core of business given that they form the basis of actions individuals always take.
In cross-cultural negotiation practices, there exist a number of cultural factors that cause difficulties in any discussion process. These aspects are the ones that will be discussed in depth so as to highlight its crucial role in international business negotiations. Conversation skills are essential in the whole negotiation process in addition to excellent communication skills especially in the architectural field. The particular cultural characteristic that defines its critical role in the communication process involves its powerful but subtle nature. Moreover, culture is highly crucial in shaping the identity, the judgement, and perceptions of individuals in the society given its multi-layered nature. Furthermore, its dynamic nature means that different individuals will portray different cultural diversities amongst themselves. It is important to note that a number of existing world conflicts is perception driven by the individual persons. The other factors, such as ethnocentrism and miscommunication, may influence the outcome of the negotiation process.
Given the diverse nature of the cultural factors, the processes of conflict and its resolution, including negotiation, can, therefore, be significantly culturally defined. In order to identify and assess the role of culture in the negotiation process, it is important to note the principal factors that cause substantial differences in cross-cultural negotiations. They include the negotiating goal, the attitude during negotiation, the risk-taking potential of the people, sensitivity to time, emotionalism, communication, and team organization. In addition to this, there are other factors causing enormous problems in transnational negotiation such as the form of agreement to be reached, the process of building an understanding, and personal style. The major points of contrariety that exist between various negotiation styles are different time expectations, communication approaches, emotionalism, and motivational goals. Therefore, the variations that exist in the underlying cultural concepts are evident within the cross-cultural negotiation processes, which in their turn strengthen the essential role of culture in transnational business negotiations.
The disparities that exist in the different negotiation styles of a particular group of people are reflected in the interpersonal attitudes and individuals’ negotiation goals. These cultural diverse factors may result in higher economic outcomes for the negotiation process or the development of blossoming business relationships amongst those involved. The recent developments in the global politics, such as the decline of American competitiveness in the global market, necessitate the need to understand the importance of culturally-based international business negotiations. In addition, globalization effects have underscored the need for including cultural factors concerning international business transactions between a diverse group of people, governments, and businesses in the negotiation process. Therefore, the role of culture can be drawn from the effect that such beliefs, customs, values, and traditions have on negotiation effectiveness. The ten cultural factors identified above affect the negotiating ability of the individuals involved in various ways.
The cultural factors such as negotiating goal, sensitivity to time, emotionalism, communication, and team organization have a substantial effect on the discussion ability as well as its effectiveness. The negotiation process is affected by the fact that culture shapes the role of a single cultural dimension. Moreover, it determines the degree of cultural compatibility that exists between different negotiating parties and the interactive effects that are seen with the multiple cultural dimensions. Furthermore, given the fact that negotiation is a social interaction model, it can be used by two or more parties that are unable to resolve their points of dispute. It is also important to understand the mental model that is used during the negotiation process by learning what the different negotiating parties mean during the discussion. In addition, gaining an understanding of the proper outcome of a negotiation process in most cases leads to its successful completion.
Since culture has an effect on the negotiating ability and its effectiveness, the mental models of negotiation of one group of people may different depending on various types of cultural orientation. The negotiation process is usually carried out by the direct confrontation between the negotiators either through electronic means or face-to-face confrontation. However, the discussion process may be undertaken by third parties who will act as agents of the individual parties in conflict. Such a situation is evident in the mediation process which involves the input of an impartial and independent third party known as a mediator. The third party players act as agents or representatives of the parties from various points of otherness as they try to facilitate the mediation process. Therefore, the third party involvement is not evident in all cultures posing a cultural issue. In addition, some parties in dispute may feel uncomfortable with a third party acting as a go-between and thus may reject such persons from conveying information amongst them.
Negotiation can be conducted on two broad levels. These include negotiation that is directed towards the resolution of a particular dispute or conflict, as well as transactional negotiation between buyers and sellers. So, culture will significantly influence the effectiveness of negotiation process outcome depending on the discussion type undertaken by the parties. However, irre...