Chapter 9Chapter 9

The Influence of The Influence of Culture and Gender Culture and Gender

on Negotiationson Negotiations

Why Culture and Gender Why Culture and Gender Are IssuesAre Issues

Negotiating is inherently a personal Negotiating is inherently a personal activityactivity

Aspects sensitive to culture: biases, Aspects sensitive to culture: biases, emotions, trust, and fairnessemotions, trust, and fairness

Globalization on a personal level due to Globalization on a personal level due to revolutions in communication and revolutions in communication and transportationtransportation

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Negotiating SkillsNegotiating Skills Skill 9.1: Recognize Skill 9.1: Recognize cultural and gender-based cultural and gender-based

traits traits Skill 9.2: Avoid Skill 9.2: Avoid negotiation biases negotiation biases Skill 9.3: Use strategies that Skill 9.3: Use strategies that respond to respond to

diverse negotiation patterns and practices diverse negotiation patterns and practices Skill 9.4: Identify practical steps to use Skill 9.4: Identify practical steps to use

gender-specific traitsgender-specific traits in negotiating situations in negotiating situations Skill 9.5: Develop a negotiating strategy Skill 9.5: Develop a negotiating strategy

combining the cultural and gender differencescombining the cultural and gender differences explored in this chapterexplored in this chapter

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Chapter Case: Bridging Chapter Case: Bridging the Cultural Gapthe Cultural Gap

Discussion of how Governor Collins Discussion of how Governor Collins used her understanding of Japanese used her understanding of Japanese culture to convince the CEO of culture to convince the CEO of Toyota to locate a major auto plant in Toyota to locate a major auto plant in KentuckyKentucky

The deal almost fell through because The deal almost fell through because “signing” a contract was an “signing” a contract was an American and not a Japanese valueAmerican and not a Japanese value

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Cultural DifferencesCultural Differences Culture is learned behaviorsCulture is learned behaviors Common characteristics includeCommon characteristics include

• Self-identity – independent or Self-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 Values and norms – for one’s self and

the other partythe other party• Mental process – abstract thinking or Mental process – abstract thinking or

rote memoryrote memory

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Hofstede’s Cultural Hofstede’s Cultural DimensionsDimensions

Power DistancePower Distance: degree of equality or : degree of equality or inequality, hierarchal or democratic inequality, hierarchal or democratic

Uncertainty AvoidanceUncertainty Avoidance: degree of : degree of tolerance for ambiguity, strict laws tolerance for ambiguity, strict laws and rulemaking, or more relaxed and rulemaking, or more relaxed

Individualism-CollectivismIndividualism-Collectivism: individual : individual or group achievements more or group achievements more admiredadmired

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Hofstede’s Cultural Hofstede’s Cultural Dimensions (cont’d)Dimensions (cont’d)

Masculinity-FeministMasculinity-Feminist: assertiveness : assertiveness or nurturing, distributive or or nurturing, distributive or integrative bargainingintegrative bargaining

Long-Term OrientationLong-Term Orientation: honoring : honoring tradition and long-term rewards or tradition and long-term rewards or immediate results and saving “face” immediate results and saving “face”

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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

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Nations Exhibiting Extremes in Hofstede’s Cultural Dimensions

GLOBE StudyGLOBE Study

Similar to Hofstede’s cultural Similar to Hofstede’s cultural dimensionsdimensions

Measured both the ways things are Measured both the ways things are and the ways things should beand the ways things should be

Grouped 62 societies into 10 country Grouped 62 societies into 10 country clustersclusters

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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 DimensionsHIGH 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

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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

Uncertain

Relative Scores on the Nine GLOBE Dimensions for U.S. and Japan

Culturally Sensitive Culturally Sensitive Heuristics and BiasesHeuristics and Biases

Anchoring and framingAnchoring and framing Overconfidence or egocentricity Overconfidence or egocentricity AvailabilityAvailability StereotypingStereotyping

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Cross-Cultural Cross-Cultural Negotiating PatternsNegotiating Patterns

Example of individualist culture and Example of individualist culture and collectivist culturecollectivist culture

Individualist – negotiation is Individualist – negotiation is distribution of resources and claiming distribution of resources and claiming mostmost

Collectivist – negotiation is about Collectivist – negotiation is about relationships and creating long-term relationships and creating long-term valuesvalues

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Tactics for Success: Tactics for Success: Consensus BuildingConsensus Building

Be patient Be patient Share significant amounts of information Share 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 the Adjust your timetable to satisfy all of the

interests involvedinterests involved Relationship building can result in better Relationship building can result in better

dealsdeals

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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 In cross-cultural negotiations it can

be difficult to find a common frame be difficult to find a common frame of reference, unfamiliarity lessens of reference, unfamiliarity lessens control of situation, and possibly control of situation, and possibly reduces level of trustreduces level of trust

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Negotiating Behaviors in Negotiating Behaviors in Cross-Cultural Cross-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, and Manage stress, ambiguity, and

unpredictable situationsunpredictable situations Express ideas clearlyExpress ideas clearly Adjust suggestions to cultural Adjust suggestions to cultural

constraintsconstraints

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High to Low Context High to Low Context CommunicationCommunication

High-context cultures place value on body High-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 Considers good of whole rather than

individual achievementindividual achievement Low-context cultures rely heavily on Low-context cultures rely heavily on

spoken wordspoken word• Rewards individual achievementRewards individual achievement• Values independenceValues independence

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Trust and FairnessTrust and Fairness

Based on behavioral assumptionsBased on behavioral assumptions One motivated by self-interest may One motivated by self-interest may

not understand a negotiator from a not understand a negotiator from a collectivist or feminist culturecollectivist or feminist culture

Reciprocity may differ between what Reciprocity may differ between what is “fair” - would you divide resources is “fair” - would you divide resources according to one’s contribution, according to one’s contribution, equally, or according to one’s need?equally, or according to one’s need?

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GenderGender

Traditional male model of negotiatingTraditional male model of negotiating: : competitive, hierarchical, winning, competitive, hierarchical, winning, rational, and unemotional – consistent rational, and unemotional – consistent with distributive bargainingwith distributive bargaining

Traditional female model of negotiatingTraditional female model of negotiating: : cooperative, equalitarian, quality cooperative, equalitarian, quality results, intuitive, and empathetic – results, intuitive, and empathetic – consistent with integrative bargainingconsistent with integrative bargaining

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Gender (cont’d)Gender (cont’d)

Studies have shown women negotiating Studies have shown women negotiating on others’ behalf perform better than on others’ behalf perform better than when negotiating for themselveswhen negotiating for themselves

High ambiguity negotiations, men have High ambiguity negotiations, men have more optimistic goals and higher more optimistic goals and higher payoffspayoffs

Unambiguous negotiations, no Unambiguous negotiations, no perceptible differences between men perceptible differences between men and women negotiatorsand women negotiators

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Management Styles Which May Affect Negotiating Styles