How to Handle Cultural Differences and Make a Good Job of the Follow-Up Work in Business Negotiation

The first importance you need to do is to create a good atmosphere. Chinese negotiators respect Americans' culture can create an equal and harmonious negotiating atmosphere.

For example, western people like to talk about specific articles directly while Chinese negotiators can adjust their own thinking to begin the negotiation with specific articles to adapt the other side's custom. This will make the guests think that their Chinese partners respect them and they will respect Chinese negotiators' negotiating behaviors which are different with theirs. Thus, the negotiating atmosphere will become friendly and harmonious.

Secondly, remember it is important to be a good listener. In view of this situation that western negotiators have the characteristic of making full preparation and being professional. Chinese negotiators can remain silence during the negotiation, listen more and gain more information through listening.

How to Handle Cultural Differences and Make a Good Job of the Follow-Up Work in Business Negotiation

Thirdly, do give definite words. Chinese negotiators should adopt direct and determined words and avoid equivocal words such as "maybe", "perhaps" etc.

International business negotiation involves with the management of the contract and the follow-up communicating. Different culture has different understanding with the content and effect of the contract. For example: American culture emphasize objective and attach importance on equality which determines that they rely on thorough contract to ensure rights and set obligations. So, the contracts between American companies are always as long as hundreds of pages, including very careful wording articles about all the aspects related to the contracts with the purpose of protect their own company from any dispute and unexpected accident. Other culture may not have such complicated contracts, so, they must endure Americans' this custom.

In international business activities, the differences of culture and national psychology always influence the decision of the management. Different cultural background makes different business style, for example, Americans are mainly interested in profit while Chinese are interested in the market shares. Besides, those who speak different language may have different thoughts. The stringent German, flexible Americans, calm French, the warm-hearted Spanish and the enigmatic Japanese and so on are all closely related to their language. So, in international business activities, people should not only know the rules of the business activities, but also the prevailing customs and culture characteristics of the other people.

How to Handle Cultural Differences and Make a Good Job of the Follow-Up Work in Business Negotiation
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What's the Difference Between a Negotiation, Arbitration, and Mediation?

Negotiation. Involves two or more parties who are engaged in direct discussions with each other in a concerted effort of reaching an agreement. Both parties use persuasion and influence to get the other party to see things their way.

Example:

 A buyer and a salesman are negotiating a price for a car.

What's the Difference Between a Negotiation, Arbitration, and Mediation?

 A wife is negotiating with her husband over use of finances.

 A president is negotiating with another country's leader to remove missile silos that threaten the security of the nation.

Arbitration. This is a form of resolving conflict that is handled outside of court where both parties come before a neutral third-party. The neutral third-party is usually a lawyer and the arbitrator listens to both sides and then passes judgment on a winner and a loser in much the same way as a judge does.

Example:

 Two employees are having issues with each other. They take these issues to the boss. The boss hears both sides and then decides to fire one of the employees.

 Two siblings are having a fight and the mother gets involved. The mother hears what they have to say, and of course both siblings are pointing fingers at the other side. The mother decides to ground them both.

Mediation. Similar to negotiation, but mediation involves the use of a neutral third-party who assists the negotiating parties in reaching an agreement. Mediation is used typically when direct negotiations have failed because the mediator can separate the people from the problem much easier than the stakeholders can.

Example

 A buyer purchases a used car from a seller. The car breaks down soon after. The buyer demands his money back. The seller accuses the buyer of damaging the car himself. Instead of dealing with the matter in court, which can be both costly and time-consuming for both parties, they instead agree to hire a mediator and work out their situation out of court.

 A couple decide to get a divorce, but argue over who gets what. Instead of waging legal war against each other, they decide to work out their agreement with a divorce mediator. The mediator uncovers what the needs and interests are for both the husband and wife as well as separating the emotions from the problems at hand.

 Two nations, on the verge of war after failed negotiations, agree to peace-talks. Neither side trusts the other side, so they ask for the help of a neutral representative to act as mediator for their talks. Through the mediator, both stake-holding countries are able to work out an agreement and avoid war.

© Copyright 2006 by Tristan Loo. All rights reserved.

What's the Difference Between a Negotiation, Arbitration, and Mediation?
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For over 10 years, Tristan Loo has inspired, motivated, and brought success to the lives of the people he’s touched. Successful in his own right, Tristan has competed athletically against Olympians as a world-class gymnast, saved lives as a police officer, authored numerous Personal Development and Interpersonal Communication books and articles, and is a highly sought-after Personal Development Coach. Tristan is the founder of the Synergy Institute, a San Diego based Personal Development Firm. His philosophy of passionate living and helping others fulfill their dreams has continually been the driving force that has placed him well above the industry standard. Visit Tristan's website at http://www.synergyinstituteonline.com or by email at info@synergyinstituteonline.com

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Sample Late Payment Explanation Letter

When you write a creditor to explain your late payments (mortgage, car, or credit card), the letter should state:

why you are late, (see paragraph 1 of the letter below) how serious you are about fulfilling your commitment to them (paragraph 2 of the letter below), and when you expect to be able to resume full and regular payments, (paragraph 3 of the letter below), what you want from them (paragraph 4 of the letter below) the financial details of your hardship (paragraph 5 of the letter below)

Below is a sample late payment explanation letter. Change it to describe your own circumstances, but make sure that you enclose copies of financial documents like: checking account statements, tax returns (past two years), all bills from creditors, all late notices, pink slip, anything else that will prove your hardship.

Sample Late Payment Explanation Letter

Cindy R. Williams

9 Turnbill Ct.

Anywhere, USA 55555

To: ABC Mortgage

Re: Late Payments; Account # 12345678

Daytime phone number: (555)555-5555

I am writing to inform you of my recent financial hardship. I was laid off from my job at XYZ Company just before Christmas of 2008. I am diligently seeking other employment, but as you know, jobs are scarce in today's economy. I have not found anything yet. Being out of work has caused me to be late on my bills.

I believe in hard work and have never been without a job for more than a few months. Until this unfortunate event, I have maintained a solid payment history with you.

My goal is to pay everything I owe. I take my financial obligations very seriously and plan to continue regular and full payments as soon as I find a job.

I expect my situation to be temporary and would like to discuss loan forbearance. I would also appreciate any suggestions you might have that would help me get back on track.

Please find the enclosed spreadsheet of my monthly expenses, as well as copies of financial documents, my pink slip from XYZ Co, and late notices I have received during my financial setback. I'm sending these to show that I am indeed experiencing financial hardship. This letter and all documents attached are true and accurate to the best of my knowledge.

Thank you for your time. I hope to hear from you soon.

Sincerely,

Signature/Date

Forbearance is an agreement by a creditor to reduce or delay payments for a specified period of time. Interest accrues during forbearance and will increase your loan amount. The good thing is that you will not have to pay late fees and penalties. There is no negative affect on your credit either.

Sample Late Payment Explanation Letter
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Procurement Process

Procurement is the acquisition of goods or commodities by a company, organization, institution, or a person. This simply means the purchase of goods from suppliers at the lowest possible cost. The best way to do this is to let the suppliers compete with each other so that the expenses of the buyer are kept at a minimum.

Procurement usually involves a bidding process in which the bidders or sellers quote their prices and the buyer accepts the lowest possible bid. This is the most efficient and cost effective method of procuring goods or services if the quality of the goods meets the buyers' requirement.

The process of procurement usually begins when the procurer starts to search the market for bidders. After identifying the suppliers, a request for bids, proposals, quotes, and information can be made. However, direct contact with bidders can also be made instead of advertising the above requests.

Procurement Process

After selecting the suitable bidders, a quality check is essential in order to confirm the suitability of the goods in question. The next step would be negotiation of the terms, conditions, quality, and delivery schedules. Logistics and payment are the next two important processes that determine the safe delivery and the payoff of goods.

If this whole process is carried out on the Internet, then it can be called "e-procurement." The huge market that is accessible on the Internet provides numerous and unprecedented opportunities for sellers and buyers alike. This makes it a very popular tool for researching and consulting for the procurement of goods or services.

The whole process of procurement should be carried out in compliance with the existing laws in order to avoid any legal hassles. There are many consultants on the Internet who provide education and advice regarding the procurement process.

The process of procurement may differ slightly from one company to another, but the process is usually symbiotic in nature. It benefits both the buyer and the seller.

Procurement Process
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Effective Negotiation

INTRODUCTION

The whole cosmic economy is interactive phenomenon of animate and inanimate objects. In addition, the objects are interdependent on each other for growth and survival. Human beings are epitome of Divine Creative Activity. The interactive feature of mankind is vital aspect of Divine Scheme of Creation. A rational-moral human interaction quickens / softens evolution of individuals & groups. Mankind faces multiple challenges during varied interactions. The most complex, harmful, and frequent problem of interactive life is miscommunication. It creates mutual hatred and distrust among individuals / groups / nations and leads towards conspiracies, rivalries, and wars. The very basis of miscommunication are Perceptual Errors.Perceptual errors produce misconception among individuals / groups so that miscommunication is surfaced. Consequently, the people involved brake contacts with each other and opt long silence or confrontation or indifference. The unwanted situation can be solved through negotiation. Negotiation is helpful in every sphere of interactive life; it is used to bridge the gaps between husband and wife, parents and children, entrepreneurs and workers, business partners, political leaders, etc. In order to realize successful negotiation we must understand ins and outs of negotiation. Negotiation is the conflict management process of communication to make a compromise/better solution.The successful negotiation is called Effective Negotiation. Effective negotiation is knowledge based, manner driven, and wisdom led negotiation. It creates pragmatic and satisfactory solutions for each party.

PERCEPTUAL ERRORS

Effective Negotiation

Man is intelligent creation of Absolute Intelligence. The distinctive human trait, intellect or perceptual intelligence, make the human being supreme creation of universe. But, intellect can misjudge/misinterpret due to ignorance or lustful tendencies of human nature. Perceptual errors or intellectual mistakes lead to biases in information processing / final judgments. There may arise three types of perceptual errors in a communication process.

Generalization: -Small amount of information are used to draw universal conclusions, e.g., old people are conservative, this person is old so that is conservative, or a humble person is judged to be more honest than a scowling person, even there is no consistent relationship between conservativeness & age or courtesy and honesty. The multiple social rifts such as family rifts and neighborhood rifts are surfaced due to unscientific generalizations.

Projection: -It occurs when people ascribe to others the characteristics or feelings that they have, for instance, a person feels that he will be frustrated if he were in the other position, then he is likely to perceive that the other person is frustrated. People respond differently to similar situations so that projection of own feeling to other may be incorrect. The multiple political mis-communications are generally due to wrong projections.

Power: - Power is an important leverage during interactions; it gives edge to one party over the other. Power develops the perception that you have power and you can impose a verdict, the power-perception limits viable options or can make someone wrongdoer, because, power has germs of corruption-development - in Acton's words, 'Power tends to corrupt and absolute powers corrupts absolutely.' The major sources of power are - Information and Expertise, Control over resources, Location / Position in an organization. Power tactics should be used only as last resort. Ignoring temporal suitability of power tactics may create chaos in the environment; a chaotic situation has certain aftermath for the power user.

CHARACTERISTICS OF NEGOTIATION PROCESS

The prominent characteristics of a negotiation process are:

Interdependence: - In negotiation both parties need each other to arrive at some solution. This situation is called interdependence. Interdependence leads towards mutual adjustments during negotiation.

Mutual Adjustments: - Negotiating parties know that they can influence the other's outcome and the other can in turn, influence their outcome. This mutual adjustment continues through out the negotiating process. Mutual Adjustments persuade the negotiating parties towards flexibility and concessions.

Flexibility and Concession: - Flexibility and concession is necessary for a settlement. In order to arrive at some acceptable outcome, it is essential to know what we want and what we are prepared to give to get something. It sounds simple but most people enter negotiations without planning their desired outcomes and believe that it is a matter of power or tactics The lopsided approach may lead towards failure. It is noteworthy that a lenient approach on concessions may lead towards unfair demands while strict approach towards concessions may create angry environ. An optimal mix of perceptual intelligence, emotional intelligence, & intentional intelligence is invoked for honest/accurate flexibility and concessions. A negotiation generally encounters two dilemmas:

Dilemma of Honesty: -The dilemma is concerned how much of the truth is to tell to other party. On the one hand, telling the person everything about your situation may give that person the opportunity to take advantage of you. On the other hand, not telling the other person anything about your needs and desires may lead to a deadlock due to lack of information. A principle stand towards information sharing is extremely effective for successful negotiation. It is noteworthy that the forgery of information/emotions is uncovered ultimately. Dilemma of Trust: - The second dilemma is concerned with how much to believe of what the other party tells you. If you believe everything that the other party says, he/she may take advantage of you. If you believe nothing, there would be deadlock. The trust depends on many factors such as reputation of party, past experiences, and present circumstances. The principle, "truth is ever green" is very much relevant for successful negotiation; otherwise one has to speak countless lies to conceal one lie even then truth is exposed ultimately.

PATTERN OF NEGOTIATION PROCESS

There is no standard and scientific pattern of successful negotiation; however, a general outline can be prepared to start any negotiation.

Framing: -It is the conceptual platform by which the parties in a negotiation define the problem. For example, Kashmir issue between India and Pakistan can be negotiated on religious frame or on historical frame.

Goal Setting: -It gives foundation to negotiation. It is necessary for successful negotiation. Goal setting includes stating goals, setting goal priorities, identifying multi-goal packages.

Planning: -Effective planning requires hard work on number of steps, such as:

Defining Issues, (agenda) - Controlling the number and size of issues in the discussion, Desirability of the defined issues - Enhancing the desirability of the options and alternatives that each party presents to the other, Define Common interests / needs - Establishing a common ground on which the parties can find a basis for agreement on issues, Research - It includes consulting related stakeholders, gathering information, developing supporting arguments, and analyzing the party.

Developing Strategy: -Strategy is an intentional work-pattern to achieve some goals. It is based on good planning. Strategy formulation modal of effective negotiation identify four elements to formulate effective strategies:

Choice: - negotiation is voluntary, i.e., a matter of choice and the solution cannot be imposed. Constraints: - Negotiation outcomes are subject to some constraints. The modal suggests pragmatism over doctrine. Interdependence: - Parties motives are interdependent, Imperfect Information: - Parties have imperfect information about each others strengths / weaknesses.

TYPES OF NEGOTIATION

Distributive Negotiation

In win-lose / distributive bargaining parties seek their own maximum advantage through concealing information, misleading or using manipulative tactics. All these actions may lead towards bitterness or hostility. It is noteworthy that effective negotiation is an attempt to resolve a conflict with reason or without force. The second type of distributive bargaining is accommodative or lose-win strategy. One party is ready for some loss for the time being or in short run to achieve some long-run benefits.

Integrative Negotiation

It is win-win / cooperative negotiation. It allows both sides to achieve their goals. The multiple business links such as partnership and varied social linkages such as kinship are generally based on win-win approach, i.e., both parties get benefits from contact. The approach behind integrative negotiation is synergy, i.e., to expand/create possibilities so that benefits will be increased for all parties.

CONCLUDING REMARKS

Negotiation is extremely complex phenomena. It demands knowledge, wisdom, and courtesy to arrive at some acceptable outcome for the negotiating parties. The decision-making process in negotiation passes through four phases:

Orientation - In orientation phase, group members socialize, set up certain rules of communication, and agree on their reason for meeting.

Conflict - In the conflict phase, parties begin to discuss their positions on the problem, the environment is filled with arguments / confrontation / war of words.

Emergence - In the emergence phase, members arrive at some acceptable solution and put aside the differences and objections because they are convinced.

Reinforcement - In the reinforced phase, group feelings are rebuilt, outcomes of negotiation are summarized for each party, and solution is implemented in a way to block future conflicts.

The negotiating parties come up with three solutions - win-win, win-lose, and lose-win. The principle behind the win-win strategy is that the parties in conflict can better solve their problem by working together than by waging war. The principle behind the win-lose strategy is that the parties in conflict can reap more benefits by manipulating the situation than by developing consensus. The decision about manipulation should be based on pure reason subject to certain moral values. Otherwise, it would be harmful for manipulator. The principle behind the lose-win or accommodative strategy is that the one party in conflict can reap more benefits in the long run by accommodating the other party in the short run. The decision about accommodative bargain should be based on pure reason subject to certain scientific evaluation; otherwise, it may be harmful for the accommodating party.

Effective Negotiation
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Six Steps For Negotiation Preparation

The most commonly overlooked aspect of negotiation is preparation. We say things like, "We're just in the negotiation stage of the deal ..." There is no more profitable expenditure of time than the time spent preparing to negotiate. Here's your checklist:

Know what you want and don't want ... Most of us have a general idea of what we want or want to avoid in a deal. Unfortunately, general objectives tend to render general results ... leading to second guessing and dissatisfaction. Instead, write a paragraph describing in detail what you want and don't want from the transaction, then, edit this description furiously until it is laser focused and precise. When we are crystal clear on our objective(s) and rationale(s) for their acquisition, we are most likely to achieve desired results. Know what your counterpart wants and doesn't want ... Now do the same for your counterpart. Write the description of what your opposite is looking for and seeking to avoid. This exercise tends to be a real stumper ... and eventually a real eye-opener. Knowing our counterpart's goals, objectives, and sought after results helps us see commonalities that lead to creative solutions.Know what concessions you are willing to give ... What must you absolutely achieve to consummate a successful bargain? What terms, conditions, extras could you live without? Every great negotiator knows there must be give and take on both sides for agreements that make sense.Know your alternatives ... Remember when you bought your first car? Mine was a 1956 T-Bird. The ,guy I bought mine from told me, "I like you and want to sell you the car ... but there's another person coming over in 30 minutes who also wants the car." Wow, did the dynamics of the negotiation shift on the spot. Having an alternative vendor or supplier really helps your level of confidence.Know your counterpart and your subject matter ... A lot of information is available to us on personality styles, body language, and neuro-linguistic programming. Remember transactions take place between people ... and people view the same facts and appeals differently. Subject matter is simple ... Know it cold-there is no excuse for being ill informed ... and lost credibility is rarely recovered.Rehearse You know how to get to Carnegie Hall! It's the same road to negotiation success - Practice - Practice -Practice! Attend swap meets and flea markets ... They are wonderful opportunities to sharpen your skills. Remember use it or lose it! Most negotiators rarely, if ever, thoroughly prepare to negotiate. But this is the magic! Try this checklist before you negotiate ... Your returns will improve dramatically.

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Six Steps For Negotiation Preparation

Six Steps For Negotiation Preparation
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As a California Criminal Trial Lawyer with 28 years of courtroom experience, JOHN PATRICK DOLAN has handled everything from traffic tickets to death penalty murder cases. Dolan is a recognized California State Bar Certified Specialist in Criminal Law and a true courtroom veteran. He is AV (highest) Martindale-Hubbell rated.

As an author, JOHN PATRICK DOLAN has written twelve, best-selling books, including his classic Negotiate like the Pros™. He is a recognized international authority on negotiation and conflict resolution. And, just to show that he does not take himself too seriously, he is also the co-author of the wildly popular Lawyer's Joke Book™.

A communications veteran, John Patrick Dolan is a radio broadcaster and television legal news analyst appearing frequently on Fox News Channel, MSNBC, and Court TV. He has also been honored by the National Speakers Association as a member of the Professional Speakers Hall of Fame.

In addition to his professional legal experience, John Patrick Dolan serves as CEO of LawTalk™ MCLE, Inc., a continuing legal education company.

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Writing an RFP (Request for Proposal)

A while back, a potential client provided me with some general details of the writing work he wanted me to do for his company. Then he asked me to send him a proposal.

Proposal?! I panicked as I tried to confirm with him what he meant by that since I had never done one before, at least not as a freelancer.

I must've not really wanted to pursue this opportunity since I didn't bother to do research or follow up with the company after submitting a contract instead of a proposal. A little time passed, I came across an article on writing RFPs (Request for Proposal). Ding! The light bulb went on. This guy verbally gave me his RFP and wanted a written response.

Writing an RFP (Request for Proposal)

When a company needs a project to be completed by a contractor or outside source, they write a RFP. This is a formal document describing the project, how the contract companies should respond, how the proposals will be reviewed, and contact information. Often, the company documents the submission guidelines to make it easier for them to compare responses. There are no specific standards or guidelines for creating the RFP, but government agencies usually strict standards they follow when conducting the proposal process.

Outside companies read the RFP and write a proposal (a bid) explaining how they can best provide and meet those needs. When writing the proposal, the company should closely follow the guidelines established in the RFP to avoid being removed from consideration for the potential project.

A typical proposal contains:

Executive summary - summary of the entire proposal Statement of need - why project is necessary Project description - How project will be implemented and evaluated Organization information Project schedule Budget Conclusion

My situation was an informal version of all this. The client gave me a high level overview of what I might do for him. If I knew then what I know now, I would've written up a description of the client's needs and how I would complete the work in meeting those needs.

Small businesses would likely do a proposal in between the one I got and the complex government required ones. Most small businesses will be prompted to write a proposal when approaching a client. The client may ask you to submit a proposal outlining what you can do for them. In this case, write a proposal including the elements of a typical proposal and keep it short and to the point especially if the client is not a large company.

There are examples of RFPs and responses peppered throughout the Web, but which one you can learn from depends on the type of work involved. A proposal can be two pages or as big as a book. Rely on your favorite search engine and do the research to create an unbeatable proposal.

Writing an RFP (Request for Proposal)
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Meryl K. Evans, Content Maven, is Editor-in-Chief of eNewsletter Journal and The Remediator Security Digest. She's a slave to a MarketingProfs weekly column and a Web design reference guide at InformIT. She is the author of the popular e-report, How to Start a Business Blog and Build Traffic. Visit her site at http://www.meryl.net/blog/ for free newsletters, articles, and tips.

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