The Influence of Culture and Gender On Negotiations

The Influence of Culture
and Gender on
Negotiations
9-2
Why Culture and Gender Are Issues

 Negotiating is inherently a personal activity
 Aspects sensitive to culture: biases, emotions,
trust, and fairness
 Globalization on a personal level due to
revolutions in communication and transportation
9-4
Chapter Case: Bridging the

Cultural Gap
 Discussion of how Governor Collins used her
understanding of Japanese culture to convince
the CEO of Toyota to locate a major auto plant in
Kentucky
 Community development, responsible CSR,
relationships - trips
 The deal almost fell through because “signing” a
contract was an American and not a Japanese
value
9-5
Cultural Differences
 Culture is learned behaviors
 Common characteristics include
• Self-identity – independent or interdependent
• Relationships – who makes decisions
• Communication – verbal and nonverbal
• Time consciousness – cyclical or lineal
• Values and norms – for one’s self and the other
party
• Mental process – abstract thinking or rote
memory
9-6
Hofstede’s Cultural Dimensions

 Power Distance: degree of equality or
inequality, hierarchal or democratic . Power
and Wealth
 Uncertainty Avoidance: degree of tolerance
for ambiguity, strict laws and rulemaking, or
more relaxed . In unstructured situations
 Individualism-Collectivism: individual or
group achievements more admired
9-7
Hofstede’s Cultural Dimensions

(cont’d)
 Masculinity-Feminist: assertiveness or
nurturing, distributive or integrative
bargaining
 Long-Term Orientation: honoring tradition
and long-term rewards or immediate results
and saving “face”
9-8
Hofstede Cross-Cultural
Figure 9-1 Hofstede Cross-Cultural Comparisons
Comparisons, U.S.,
U.S. and Japan, and
Japan
France
100
0
PDI IDV MA UAI LT
Japan 54 54 95 92 80
United States 40 91 62 46 29
France 68 71 43 86 0
Nations Exhibiting Extremes in Hofstede’s Cultural Dimensions
9-10
GLOBE Study
 Similar to Hofstede’s cultural dimensions
 Measured both the ways things are and
the ways things should be
 Grouped 62 societies into 10 country
clusters
Ten Clusters of GLOBE Countries
Representative Characteristics of GLOBE Dimensions
HIGH PERFORMANCE ORIENTATION LOW PERFORMANCE ORIENTATION
societies have characteristics such as... societies have characteristics such as...
Value competitiveness and materialism. Value societal and family relationships.
Value what one does more than who one is. Value harmony with the environment.
Expect direct, explicit communication. Value who one is more than what one does.
Expect indirect, subtle communication.
HIGH INSTITUTIONAL COLLECTIVISM LOW INSTITUTIONAL COLLECTIVISM
societies have these characteristics... societies have these characteristics...
Group loyalty is encouraged, even if this Pursuit of individual goals is encouraged, even
undermines the pursuit of individual goals. at the expense of group loyalty.
Rewards are driven by seniority, personal Rewards are driven very largely by an
needs, and/or within-group equity. individuals contribution to task success.
Critical decisions are made by groups. Critical decisions are made by individuals.
HIGH IN-GROUP COLLECTIVISM societies LOW IN-GROUP COLLECTIVISM societies
have characteristics such as... have characteristics such as...
Duties and obligations are important Personal needs and attitudes are important
determinants of social behavior. determinants of social behavior.
A strong distinction is made between in-groups Little distinction is made between in-groups
and out-groups. and out-groups.
People emphasize relatedness with groups. People emphasize rationality in behavior.
The pace of life is slower. The pace of life is faster.
HIGH POWER DISTANCE societies have LOW POWER DISTANCE societies have
characteristics such as... characteristics such as...
Society is differentiated into classes. Power linked to corruption and coercion.
Power seen as providing social order. Information is widely shared.
Information is localized and hoarded.
HIGH UNCERTAINTY AVOIDANCE LOW UNCERTAINTY AVOIDANCE

societies have characteristics such as... societies have characteristics such as...
Use formality in interactions with others. Use informality in interactions with others.
Rely on formalized policies and procedures. Rely on informal norms for most matters.
Take moderate, carefully calculated risks. Are less calculating when taking risks.
Show strong resistance to change. Show only moderate resistance to change.
HIGH HUMANE ORIENTATION societies LOW HUMANE ORIENTATION societies

The interests of others are important. One's own self-interest is important.
People are motivated primarily by a need for People are motivated primarily by a need for
belonging and affiliation. power and material possessions.
Members of society are responsible for The state provides social and economic support
promoting the well-being of others. for individuals' well-being.
HIGH FUTURE ORIENTATION societies LOW FUTURE ORIENTATION societies

Emphasize working for long-term success. Prefer gratification as soon as possible.

Organizations tend to be inflexible and Organizations tend to be flexible and adaptive.
maladaptive.
HIGH ASSERTIVENESS societies have LOW ASSERTIVENESS societies have

characteristics such as... characteristics such as...
Value competition, success, and progress. Value cooperation and warm relationships.
Communicate directly and unambiguously. Communicate indirectly; try to "save face."
Try to have control over the environment. Try to be in harmony with the environment.
Build trust on basis of calculation. Build trust on basis of predictability.
Relative Scores on Cultural
Figure 9-5 GLOBE the Nine GLOBE
Dimensions Dimensions
U.S. and Japan
6
for U.S. and Japan
0
Future Human Instit. In- Pow Uncert
Perfor. Assert. Gender
Or. Or. Coll. Group Dis ain
U.S. 4.49 4.55 4.15 4.17 4.2 4.25 3.34 4.88 4.15
Japan 4.22 3.59 4.29 4.3 5.19 4.63 3.19 5.11 4.07
9-17
Cross-Cultural Negotiating Patterns
 Example of individualist culture and

collectivist culture
 Individualist – negotiation is distribution of
resources and claiming most
 Collectivist – negotiation is about
relationships and creating long-term values
Emotions 9-20
 Emotions evoke reciprocal emotions

 Emotions convey information
 In cross-cultural negotiations it can be
difficult to find a common frame of reference,
unfamiliarity lessens control of situation, and
possibly reduces level of trust
9-21
Negotiating Behaviors in Cross-

Cultural Negotiations
 See the world from their perspective
 Tailor arguments to culture of listener
 Manage stress, ambiguity, and unpredictable
situations
 Express ideas clearly
 Adjust suggestions to cultural constraints
9-22
High to Low Context

Communication
 High-context cultures place value on body
language and nonverbal cues
• Place value on being part of a group
• Considers good of whole rather than individual
achievement
 Low-context cultures rely heavily on spoken
word
• Rewards individual achievement
• Values independence
Gender 9-24
 Traditional male model of negotiating:

competitive, hierarchical, winning,
rational, and unemotional – consistent
with distributive bargaining
 Traditional female model of negotiating:
cooperative, equalitarian, quality results,
intuitive, and empathetic – consistent
with integrative bargaining
Gender (cont’d) 9-25
 Studies have shown women negotiating

on others’ behalf perform better than
when negotiating for themselves
 High ambiguity negotiations, men have
more optimistic goals and higher payoffs
 Unambiguous negotiations, no
perceptible differences between men
and women negotiators
Management Styles Which May Affect
Negotiating Styles

The Influence of Culture and Gender On Negotiations

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The Influence of Culture

Why Culture and Gender Are Issues

Chapter Case: Bridging the

Hofstede’s Cultural Dimensions

Hofstede’s Cultural Dimensions

HIGH UNCERTAINTY AVOIDANCE LOW UNCERTAINTY AVOIDANCE

HIGH HUMANE ORIENTATION societies LOW HUMANE ORIENTATION societies

HIGH FUTURE ORIENTATION societies LOW FUTURE ORIENTATION societies

Emphasize working for long-term success. Prefer gratification as soon as possible.

HIGH ASSERTIVENESS societies have LOW ASSERTIVENESS societies have

Cross-Cultural Negotiating Patterns

 Example of individualist culture and

 Emotions evoke reciprocal emotions

Negotiating Behaviors in Cross-

High to Low Context

 Traditional male model of negotiating:

 Studies have shown women negotiating

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