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The Influence ofThe Influence of
Culture and Gender onCulture and Gender on
NegotiationsNegotiations
Why Culture and Gender AreWhy Culture and Gender Are
IssuesIssues
 Negotiating is inherently a personal activityNegotiating is inherently a personal activity
 Aspects sensitive to culture: biases,Aspects sensitive to culture: biases,
emotions, trust, and fairnessemotions, trust, and fairness
 Globalization on a personal level due toGlobalization on a personal level due to
revolutions in communication andrevolutions in communication and
transportationtransportation
9-2
Negotiating SkillsNegotiating Skills
 Skill 9.1: RecognizeSkill 9.1: Recognize cultural and gender-basedcultural and gender-based
traitstraits
 Skill 9.2: AvoidSkill 9.2: Avoid negotiation biasesnegotiation biases
 Skill 9.3: Use strategies thatSkill 9.3: Use strategies that respond to diverserespond to diverse
negotiation patterns and practicesnegotiation patterns and practices
 Skill 9.4: Identify practical steps to useSkill 9.4: Identify practical steps to use gender-gender-
specific traitsspecific traits in negotiating situationsin negotiating situations
 Skill 9.5: Develop a negotiating strategySkill 9.5: Develop a negotiating strategy combiningcombining
the cultural and gender differencesthe cultural and gender differences explored in thisexplored in this
chapterchapter
9-3
Chapter Case: BridgingChapter Case: Bridging
the Cultural Gapthe Cultural Gap
 Discussion of how Governor Collins usedDiscussion of how Governor Collins used
her understanding of Japanese culture toher understanding of Japanese culture to
convince the CEO of Toyota to locate aconvince the CEO of Toyota to locate a
major auto plant in Kentuckymajor auto plant in Kentucky
 The deal almost fell through becauseThe deal almost fell through because
“signing” a contract was an American and“signing” a contract was an American and
not a Japanese valuenot a Japanese value
9-4
Cultural DifferencesCultural Differences
 Culture is learned behaviorsCulture is learned behaviors
 Common characteristics includeCommon characteristics include
• Self-identity – independent orSelf-identity – independent or
interdependentinterdependent
• Relationships – who makes decisionsRelationships – who makes decisions
• Communication – verbal and nonverbalCommunication – verbal and nonverbal
• Time consciousness – cyclical or linealTime consciousness – cyclical or lineal
• Values and norms – for one’s self and theValues and norms – for one’s self and the
other partyother party
• Mental process – abstract thinking or roteMental process – abstract thinking or rote
memorymemory
9-5
Hofstede’s CulturalHofstede’s Cultural
DimensionsDimensions
 Power DistancePower Distance: degree of equality or: degree of equality or
inequality, hierarchal or democraticinequality, hierarchal or democratic
 Uncertainty AvoidanceUncertainty Avoidance: degree of: degree of
tolerance for ambiguity, strict laws andtolerance for ambiguity, strict laws and
rulemaking, or more relaxedrulemaking, or more relaxed
 Individualism-CollectivismIndividualism-Collectivism: individual or: individual or
group achievements more admiredgroup achievements more admired
9-6
Hofstede’s CulturalHofstede’s Cultural
Dimensions (cont’d)Dimensions (cont’d)
 Masculinity-FeministMasculinity-Feminist: assertiveness or: assertiveness or
nurturing, distributive or integrativenurturing, distributive or integrative
bargainingbargaining
 Long-Term OrientationLong-Term Orientation: honoring tradition: honoring tradition
and long-term rewards or immediateand long-term rewards or immediate
results and saving “face”results and saving “face”
9-7
0
100
Figure 9-1 Hofstede Cross-Cultural Comparisons
U.S. and Japan
Japan 54 54 95 92 80
United States 40 91 62 46 29
France 68 71 43 86 0
PDI IDV MA UAI LT
Hofstede Cross-Cultural
Comparisons, U.S., Japan, and
France
9-8
Nations Exhibiting Extremes in Hofstede’s Cultural Dimensions
GLOBE StudyGLOBE Study
 Similar to Hofstede’s cultural dimensionsSimilar to Hofstede’s cultural dimensions
 Measured both the ways things are andMeasured both the ways things are and
the ways things should bethe ways things should be
 Grouped 62 societies into 10 countryGrouped 62 societies into 10 country
clustersclusters
9-10
Ten Clusters of GLOBE Countries
HIGH PERFORMANCE ORIENTATION
societies have characteristics such as...
LOW PERFORMANCE ORIENTATION
societies have characteristics such as...
Value competitiveness and materialism.
Value what one does more than who one is.
Expect direct, explicit communication.
Value societal and family relationships.
Value harmony with the environment.
Value who one is more than what one does.
Expect indirect, subtle communication.
HIGH INSTITUTIONAL COLLECTIVISM
societies have these characteristics...
LOW INSTITUTIONAL COLLECTIVISM
societies have these characteristics...
Group loyalty is encouraged, even if this
undermines the pursuit of individual goals.
Rewards are driven by seniority, personal
needs, and/or within-group equity.
Critical decisions are made by groups.
Pursuit of individual goals is encouraged, even
at the expense of group loyalty.
Rewards are driven very largely by an
individuals contribution to task success.
Critical decisions are made by individuals.
HIGH IN-GROUP COLLECTIVISM societies
have characteristics such as...
LOW IN-GROUP COLLECTIVISM societies
have characteristics such as...
Duties and obligations are important
determinants of social behavior.
A strong distinction is made between in-groups
and out-groups.
People emphasize relatedness with groups.
The pace of life is slower.
Personal needs and attitudes are important
determinants of social behavior.
Little distinction is made between in-groups
and out-groups.
People emphasize rationality in behavior.
The pace of life is faster.
Representative Characteristics of GLOBE Dimensions
Representative Characteristics of GLOBE Dimensions
HIGH POWER DISTANCE societies have
characteristics such as...
LOW POWER DISTANCE societies have
characteristics such as...
Society is differentiated into classes.
Power seen as providing social order.
Information is localized and hoarded.
Power linked to corruption and coercion.
Information is widely shared.
HIGH UNCERTAINTY AVOIDANCE
societies have characteristics such as...
LOW UNCERTAINTY AVOIDANCE
societies have characteristics such as...
Use formality in interactions with others.
Rely on formalized policies and procedures.
Take moderate, carefully calculated risks.
Show strong resistance to change.
Use informality in interactions with others.
Rely on informal norms for most matters.
Are less calculating when taking risks.
Show only moderate resistance to change.
HIGH HUMANE ORIENTATION societies
have characteristics such as...
LOW HUMANE ORIENTATION societies
have characteristics such as...
The interests of others are important.
People are motivated primarily by a need for
belonging and affiliation.
Members of society are responsible for
promoting the well-being of others.
One's own self-interest is important.
People are motivated primarily by a need for
power and material possessions.
The state provides social and economic support
for individuals' well-being.
HIGH FUTURE ORIENTATION societies
have characteristics such as...
LOW FUTURE ORIENTATION societies
have characteristics such as...
Emphasize working for long-term success.
Organizations tend to be inflexible and
maladaptive.
Prefer gratification as soon as possible.
Organizations tend to be flexible and adaptive.
HIGH ASSERTIVENESS societies have
characteristics such as...
LOW ASSERTIVENESS societies have
characteristics such as...
Value competition, success, and progress.
Communicate directly and unambiguously.
Try to have control over the environment.
Build trust on basis of calculation.
Value cooperation and warm relationships.
Communicate indirectly; try to "save face."
Try to be in harmony with the environment.
Build trust on basis of predictability.
Representative Characteristics of GLOBE Dimensions
0
1
2
3
4
5
6
Figure 9-5 GLOBE Cultural Dimensions U.S. and Japan
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
Perfor. Assert.
Future
Or.
Human
Or.
Instit.
Coll.
In-
Group
Gender
Pow
Dis
Uncert
ain
Relative Scores on the Nine GLOBE
Dimensions for U.S. and Japan
Culturally SensitiveCulturally Sensitive
Heuristics and BiasesHeuristics and Biases
 Anchoring and framingAnchoring and framing
 Overconfidence or egocentricityOverconfidence or egocentricity
 AvailabilityAvailability
 StereotypingStereotyping
9-16
Cross-Cultural NegotiatingCross-Cultural Negotiating
PatternsPatterns
 Example of individualist culture andExample of individualist culture and
collectivist culturecollectivist culture
 Individualist – negotiation is distribution ofIndividualist – negotiation is distribution of
resources and claiming mostresources and claiming most
 Collectivist – negotiation is aboutCollectivist – negotiation is about
relationships and creating long-termrelationships and creating long-term
valuesvalues
9-17
Tactics for Success:Tactics for Success:
Consensus BuildingConsensus Building
 Be patientBe patient
 Share significant amounts of informationShare significant amounts of information
 Focus information on the doubtersFocus information on the doubters
 Use informal negotiationsUse informal negotiations
 Adjust your timetable to satisfy all of theAdjust your timetable to satisfy all of the
interests involvedinterests involved
 Relationship building can result in better dealsRelationship building can result in better deals
9-18
High to Low Context by Cultures
EmotionsEmotions
 Emotions evoke reciprocal emotionsEmotions evoke reciprocal emotions
 Emotions convey informationEmotions convey information
 In cross-cultural negotiations it can beIn cross-cultural negotiations it can be
difficult to find a common frame ofdifficult to find a common frame of
reference, unfamiliarity lessens control ofreference, unfamiliarity lessens control of
situation, and possibly reduces level ofsituation, and possibly reduces level of
trusttrust
9-20
Negotiating Behaviors inNegotiating Behaviors in
Cross-CulturalCross-Cultural
NegotiationsNegotiations
 See the world from their perspectiveSee the world from their perspective
 Tailor arguments to culture of listenerTailor arguments to culture of listener
 Manage stress, ambiguity, andManage stress, ambiguity, and
unpredictable situationsunpredictable situations
 Express ideas clearlyExpress ideas clearly
 Adjust suggestions to cultural constraintsAdjust suggestions to cultural constraints
9-21
High to Low ContextHigh to Low Context
CommunicationCommunication
 High-context cultures place value on bodyHigh-context cultures place value on body
language and nonverbal cueslanguage and nonverbal cues
• Place value on being part of a groupPlace value on being part of a group
• Considers good of whole rather than individualConsiders good of whole rather than individual
achievementachievement
 Low-context cultures rely heavily on spoken wordLow-context cultures rely heavily on spoken word
• Rewards individual achievementRewards individual achievement
• Values independenceValues independence
9-22
Trust and FairnessTrust and Fairness
 Based on behavioral assumptionsBased on behavioral assumptions
 One motivated by self-interest may notOne motivated by self-interest may not
understand a negotiator from a collectivistunderstand a negotiator from a collectivist
or feminist cultureor feminist culture
 Reciprocity may differ between what isReciprocity may differ between what is
“fair” - would you divide resources“fair” - would you divide resources
according to one’s contribution, equally, oraccording to one’s contribution, equally, or
according to one’s need?according to one’s need?
9-23
GenderGender
 Traditional male model of negotiatingTraditional male model of negotiating::
competitive, hierarchical, winning, rational,competitive, hierarchical, winning, rational,
and unemotional – consistent withand unemotional – consistent with
distributive bargainingdistributive bargaining
 Traditional female model of negotiatingTraditional female model of negotiating::
cooperative, equalitarian, quality results,cooperative, equalitarian, quality results,
intuitive, and empathetic – consistent withintuitive, and empathetic – consistent with
integrative bargainingintegrative bargaining
9-24
Gender (cont’d)Gender (cont’d)
 Studies have shown women negotiatingStudies have shown women negotiating
on others’ behalf perform better than whenon others’ behalf perform better than when
negotiating for themselvesnegotiating for themselves
 High ambiguity negotiations, men haveHigh ambiguity negotiations, men have
more optimistic goals and higher payoffsmore optimistic goals and higher payoffs
 Unambiguous negotiations, no perceptibleUnambiguous negotiations, no perceptible
differences between men and womendifferences between men and women
negotiatorsnegotiators
9-25
Management Styles Which May Affect
Negotiating Styles

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The Influence of Culture and Gender on Negotiations {Lecture Notes}

  • 1. The Influence ofThe Influence of Culture and Gender onCulture and Gender on NegotiationsNegotiations
  • 2. Why Culture and Gender AreWhy Culture and Gender Are IssuesIssues  Negotiating is inherently a personal activityNegotiating is inherently a personal activity  Aspects sensitive to culture: biases,Aspects sensitive to culture: biases, emotions, trust, and fairnessemotions, trust, and fairness  Globalization on a personal level due toGlobalization on a personal level due to revolutions in communication andrevolutions in communication and transportationtransportation 9-2
  • 3. Negotiating SkillsNegotiating Skills  Skill 9.1: RecognizeSkill 9.1: Recognize cultural and gender-basedcultural and gender-based traitstraits  Skill 9.2: AvoidSkill 9.2: Avoid negotiation biasesnegotiation biases  Skill 9.3: Use strategies thatSkill 9.3: Use strategies that respond to diverserespond to diverse negotiation patterns and practicesnegotiation patterns and practices  Skill 9.4: Identify practical steps to useSkill 9.4: Identify practical steps to use gender-gender- specific traitsspecific traits in negotiating situationsin negotiating situations  Skill 9.5: Develop a negotiating strategySkill 9.5: Develop a negotiating strategy combiningcombining the cultural and gender differencesthe cultural and gender differences explored in thisexplored in this chapterchapter 9-3
  • 4. Chapter Case: BridgingChapter Case: Bridging the Cultural Gapthe Cultural Gap  Discussion of how Governor Collins usedDiscussion of how Governor Collins used her understanding of Japanese culture toher understanding of Japanese culture to convince the CEO of Toyota to locate aconvince the CEO of Toyota to locate a major auto plant in Kentuckymajor auto plant in Kentucky  The deal almost fell through becauseThe deal almost fell through because “signing” a contract was an American and“signing” a contract was an American and not a Japanese valuenot a Japanese value 9-4
  • 5. Cultural DifferencesCultural Differences  Culture is learned behaviorsCulture is learned behaviors  Common characteristics includeCommon characteristics include • Self-identity – independent orSelf-identity – independent or interdependentinterdependent • Relationships – who makes decisionsRelationships – who makes decisions • Communication – verbal and nonverbalCommunication – verbal and nonverbal • Time consciousness – cyclical or linealTime consciousness – cyclical or lineal • Values and norms – for one’s self and theValues and norms – for one’s self and the other partyother party • Mental process – abstract thinking or roteMental process – abstract thinking or rote memorymemory 9-5
  • 6. Hofstede’s CulturalHofstede’s Cultural DimensionsDimensions  Power DistancePower Distance: degree of equality or: degree of equality or inequality, hierarchal or democraticinequality, hierarchal or democratic  Uncertainty AvoidanceUncertainty Avoidance: degree of: degree of tolerance for ambiguity, strict laws andtolerance for ambiguity, strict laws and rulemaking, or more relaxedrulemaking, or more relaxed  Individualism-CollectivismIndividualism-Collectivism: individual or: individual or group achievements more admiredgroup achievements more admired 9-6
  • 7. Hofstede’s CulturalHofstede’s Cultural Dimensions (cont’d)Dimensions (cont’d)  Masculinity-FeministMasculinity-Feminist: assertiveness or: assertiveness or nurturing, distributive or integrativenurturing, distributive or integrative bargainingbargaining  Long-Term OrientationLong-Term Orientation: honoring tradition: honoring tradition and long-term rewards or immediateand long-term rewards or immediate results and saving “face”results and saving “face” 9-7
  • 8. 0 100 Figure 9-1 Hofstede Cross-Cultural Comparisons U.S. and Japan Japan 54 54 95 92 80 United States 40 91 62 46 29 France 68 71 43 86 0 PDI IDV MA UAI LT Hofstede Cross-Cultural Comparisons, U.S., Japan, and France 9-8
  • 9. Nations Exhibiting Extremes in Hofstede’s Cultural Dimensions
  • 10. GLOBE StudyGLOBE Study  Similar to Hofstede’s cultural dimensionsSimilar to Hofstede’s cultural dimensions  Measured both the ways things are andMeasured both the ways things are and the ways things should bethe ways things should be  Grouped 62 societies into 10 countryGrouped 62 societies into 10 country clustersclusters 9-10
  • 11. Ten Clusters of GLOBE Countries
  • 12. HIGH PERFORMANCE ORIENTATION societies have characteristics such as... LOW PERFORMANCE ORIENTATION societies have characteristics such as... Value competitiveness and materialism. Value what one does more than who one is. Expect direct, explicit communication. Value societal and family relationships. Value harmony with the environment. Value who one is more than what one does. Expect indirect, subtle communication. HIGH INSTITUTIONAL COLLECTIVISM societies have these characteristics... LOW INSTITUTIONAL COLLECTIVISM societies have these characteristics... Group loyalty is encouraged, even if this undermines the pursuit of individual goals. Rewards are driven by seniority, personal needs, and/or within-group equity. Critical decisions are made by groups. Pursuit of individual goals is encouraged, even at the expense of group loyalty. Rewards are driven very largely by an individuals contribution to task success. Critical decisions are made by individuals. HIGH IN-GROUP COLLECTIVISM societies have characteristics such as... LOW IN-GROUP COLLECTIVISM societies have characteristics such as... Duties and obligations are important determinants of social behavior. A strong distinction is made between in-groups and out-groups. People emphasize relatedness with groups. The pace of life is slower. Personal needs and attitudes are important determinants of social behavior. Little distinction is made between in-groups and out-groups. People emphasize rationality in behavior. The pace of life is faster. Representative Characteristics of GLOBE Dimensions
  • 13. Representative Characteristics of GLOBE Dimensions HIGH POWER DISTANCE societies have characteristics such as... LOW POWER DISTANCE societies have characteristics such as... Society is differentiated into classes. Power seen as providing social order. Information is localized and hoarded. Power linked to corruption and coercion. Information is widely shared. HIGH UNCERTAINTY AVOIDANCE societies have characteristics such as... LOW UNCERTAINTY AVOIDANCE societies have characteristics such as... Use formality in interactions with others. Rely on formalized policies and procedures. Take moderate, carefully calculated risks. Show strong resistance to change. Use informality in interactions with others. Rely on informal norms for most matters. Are less calculating when taking risks. Show only moderate resistance to change. HIGH HUMANE ORIENTATION societies have characteristics such as... LOW HUMANE ORIENTATION societies have characteristics such as... The interests of others are important. People are motivated primarily by a need for belonging and affiliation. Members of society are responsible for promoting the well-being of others. One's own self-interest is important. People are motivated primarily by a need for power and material possessions. The state provides social and economic support for individuals' well-being.
  • 14. HIGH FUTURE ORIENTATION societies have characteristics such as... LOW FUTURE ORIENTATION societies have characteristics such as... Emphasize working for long-term success. Organizations tend to be inflexible and maladaptive. Prefer gratification as soon as possible. Organizations tend to be flexible and adaptive. HIGH ASSERTIVENESS societies have characteristics such as... LOW ASSERTIVENESS societies have characteristics such as... Value competition, success, and progress. Communicate directly and unambiguously. Try to have control over the environment. Build trust on basis of calculation. Value cooperation and warm relationships. Communicate indirectly; try to "save face." Try to be in harmony with the environment. Build trust on basis of predictability. Representative Characteristics of GLOBE Dimensions
  • 15. 0 1 2 3 4 5 6 Figure 9-5 GLOBE Cultural Dimensions U.S. and Japan 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 Perfor. Assert. Future Or. Human Or. Instit. Coll. In- Group Gender Pow Dis Uncert ain Relative Scores on the Nine GLOBE Dimensions for U.S. and Japan
  • 16. Culturally SensitiveCulturally Sensitive Heuristics and BiasesHeuristics and Biases  Anchoring and framingAnchoring and framing  Overconfidence or egocentricityOverconfidence or egocentricity  AvailabilityAvailability  StereotypingStereotyping 9-16
  • 17. Cross-Cultural NegotiatingCross-Cultural Negotiating PatternsPatterns  Example of individualist culture andExample of individualist culture and collectivist culturecollectivist culture  Individualist – negotiation is distribution ofIndividualist – negotiation is distribution of resources and claiming mostresources and claiming most  Collectivist – negotiation is aboutCollectivist – negotiation is about relationships and creating long-termrelationships and creating long-term valuesvalues 9-17
  • 18. Tactics for Success:Tactics for Success: Consensus BuildingConsensus Building  Be patientBe patient  Share significant amounts of informationShare significant amounts of information  Focus information on the doubtersFocus information on the doubters  Use informal negotiationsUse informal negotiations  Adjust your timetable to satisfy all of theAdjust your timetable to satisfy all of the interests involvedinterests involved  Relationship building can result in better dealsRelationship building can result in better deals 9-18
  • 19. High to Low Context by Cultures
  • 20. EmotionsEmotions  Emotions evoke reciprocal emotionsEmotions evoke reciprocal emotions  Emotions convey informationEmotions convey information  In cross-cultural negotiations it can beIn cross-cultural negotiations it can be difficult to find a common frame ofdifficult to find a common frame of reference, unfamiliarity lessens control ofreference, unfamiliarity lessens control of situation, and possibly reduces level ofsituation, and possibly reduces level of trusttrust 9-20
  • 21. Negotiating Behaviors inNegotiating Behaviors in Cross-CulturalCross-Cultural NegotiationsNegotiations  See the world from their perspectiveSee the world from their perspective  Tailor arguments to culture of listenerTailor arguments to culture of listener  Manage stress, ambiguity, andManage stress, ambiguity, and unpredictable situationsunpredictable situations  Express ideas clearlyExpress ideas clearly  Adjust suggestions to cultural constraintsAdjust suggestions to cultural constraints 9-21
  • 22. High to Low ContextHigh to Low Context CommunicationCommunication  High-context cultures place value on bodyHigh-context cultures place value on body language and nonverbal cueslanguage and nonverbal cues • Place value on being part of a groupPlace value on being part of a group • Considers good of whole rather than individualConsiders good of whole rather than individual achievementachievement  Low-context cultures rely heavily on spoken wordLow-context cultures rely heavily on spoken word • Rewards individual achievementRewards individual achievement • Values independenceValues independence 9-22
  • 23. Trust and FairnessTrust and Fairness  Based on behavioral assumptionsBased on behavioral assumptions  One motivated by self-interest may notOne motivated by self-interest may not understand a negotiator from a collectivistunderstand a negotiator from a collectivist or feminist cultureor feminist culture  Reciprocity may differ between what isReciprocity may differ between what is “fair” - would you divide resources“fair” - would you divide resources according to one’s contribution, equally, oraccording to one’s contribution, equally, or according to one’s need?according to one’s need? 9-23
  • 24. GenderGender  Traditional male model of negotiatingTraditional male model of negotiating:: competitive, hierarchical, winning, rational,competitive, hierarchical, winning, rational, and unemotional – consistent withand unemotional – consistent with distributive bargainingdistributive bargaining  Traditional female model of negotiatingTraditional female model of negotiating:: cooperative, equalitarian, quality results,cooperative, equalitarian, quality results, intuitive, and empathetic – consistent withintuitive, and empathetic – consistent with integrative bargainingintegrative bargaining 9-24
  • 25. Gender (cont’d)Gender (cont’d)  Studies have shown women negotiatingStudies have shown women negotiating on others’ behalf perform better than whenon others’ behalf perform better than when negotiating for themselvesnegotiating for themselves  High ambiguity negotiations, men haveHigh ambiguity negotiations, men have more optimistic goals and higher payoffsmore optimistic goals and higher payoffs  Unambiguous negotiations, no perceptibleUnambiguous negotiations, no perceptible differences between men and womendifferences between men and women negotiatorsnegotiators 9-25
  • 26. Management Styles Which May Affect Negotiating Styles