Negotiation across Cultures

Question 1

What is culture?

Answer 1

Herriot stated:
Culture can be described as ‘‘what remains when one has forgotten everything’’.
It encompasses shared beliefs, values, norms, practices and traditions of a society.
Culture is not solely attributed to individuals, but is a quality of society as a whole

Question 2

3 main aspects define culture

Answer 2

1. a quality of society
2. Acquired and changing
3. unique complex of attributes

Question 3

A quality of society

Answer 3

Culture is not limited to individuals but encompasses the collective values and
behaviors of a particular society.

Question 4

Acquired and changing (culture)

Answer 4

Culture is aquired and transmitted through acculturation or socillization.
It evolves and adapts over time, reflecting the influences of various factors, such as globalization and intercultural interactions.

Question 5

Unique complex of attributes (culture)

Answer 5

each culture is an unique combination of material, intellectual, and organizational aspects. It encompasses various dimensions of social life, including art, language, religion, customs, and social structure.

Question 6

Defining culture

Answer 6

culture is the sum of beliefs, opinions and activities.
distinguishing groups of human beings from other groups of human beings, and which are learned from childhood through a system of…
Rewards, Appraisals, Rejections, Punishment, … by the group
(Social learning theory)

Question 7

Cultural orientation

Answer 7

basic cultural orientation:
* beliefs → assumptions about the world and how it works

• values → assumptions about right and wrong
• Behaviour → Human action
• norms→ Expected or typical behavior

Question 8

Recognizing cultural differences

Answer 8

• obvious differences
• less obvious differences

Question 9

obvious cultural differences

Answer 9

age
language
gender
family status
educational background

Question 10

less obvious differences

Answer 10

social values
roles and status
decision making customs
concepts of time
body language

Question 11

Culture impacts many aspects of negotiation

Answer 11

Actors: emotionalism, personal style, risk taking
Structure: power distribution, hierarchies, leadership
Relationships: communication, trust
Strategy: hard bargaining versus problem-solving
Process: rules, time, transparency, disclosure
Outcome; vague versus specific, agreement versus relationship
Interpretation: win-win, versus lose-lose

Question 12

High context cultures

Answer 12

(such as collectivist societies)
* meaning of message is dependent on context in which it is given.
* vagueness instead direct communication
* information outside of spoken words
* nonverbal cues, like facial expressions + body langue, play big role.

In high context cultures, it is essential to maintain a good image and save face in front of others. Face-to-face conversations are characterized by expressions of courtesy and respect.
* time is seen as more flexible

Question 13

Low context cultures

Answer 13

(individual societis)
* information is fully contained in direct communication
* more direct +explicit in language
* individual freedom is often prioritized over group harmony
* relationships are not necessary put ahead of the goal.
* time is considered valuable

Question 14

Prenegotiation (high/low context)

Answer 14

High context
building relationship with other side

Low context
focus is on issue

Question 15

Beginnings (high/low context)

Answer 15

High context
face saving
minimizing uncertainties
parties take turns in presenting concerns and reciprocating initiatives in kind Deductive mode of reaching an agreement
General principles –> to principles at hand

Low context:
opening statements tend to be risky, and aim at revealing interests
Inductive mode of reaching agreemetn
facts > crafting conclustion to fit those

Question 16

Middle phase (high/low context(

Answer 16

high context:
Bargaining not always approriate
time is not seen as constraint

Low context:
bargaining is the key
time is of essence
urgency to reach an agreement

Question 17

End phase (high/low context)

Answer 17

High context:
Face saving is essential
deals need to be presented in a way to not damage reputation

Low context:
agreement is the key, face saving is not primary important

Question 18

Hofstede 4 basic dimension of culture used to classify behaviour of negotiator

Answer 18

1. Power distance index (PDI)
2. Individualsm versus collectivism (IDV)
3. Uncertainty avoidance (UAI)
4. Masculinity versus feminity (MAS)

Question 19

Power distance index

Answer 19

Reflects the degree to which the culture accepts the unequal distribution of power.
Reflects the degree to which thedecisions of power holders should be challenged or accepted.
existence + relevance of hierarchies.

Question 20

Individualsm versus collectivism

Answer 20

describes the degree to which a culture relies on the self or the group.

Individualistic cultures focus on themselves first.
Collectivist cultures focus on the group. loyalty is important.

Question 21

Uncertainty avoidance

Answer 21

Describes the extend to which culture feels threatened by ambigous and uncertain situations and tries to avoid them by establishing more strcture.

Cultures with low UAI score= tend to have a high tolerance for uncertainty + for people considered socially deviant

Cultures with high UAI score prefer to avoid uncertainty + try to ensure security through extensive sets of rules + regulations

Question 22

Masculinity versus feminity

Answer 22

indicates the degree to which a culture values achievement, assertiveness, and manliness;
or nurtance and soical suppors.

Culture with high MAS score believe in achievement and ambition.
judge people on basis of performance, and material goods acquired.

Cultures with low MAS score believe in less external achievements, and shows of manliness.
They prefer equality between sexes, and less prescriptive role behaviours associated with each gender

Question 23

Two additonal dimension

Answer 23

Long-term versus short-term orientation (LTO)
indulgence versus restraint (IND)

Question 24

Large power distance

Answer 24

key negotiations have to be concluded by top authority
(centralized control & centralized decision-making)

Question 25

Collectivism Effects on Negotiation Behavior

Answer 25

Need stable relationship to develop familiarity between negotiators.
Sudden replacement of negotiator, experienced as disturbance of relationship
Mediator- intermediaries important (formal harmony does not permit overt conflict)

Question 26

Masculinity effects on negotiation behaviour

Answer 26

conflicts more often resolved through fighting than compromising.
Distributive bargaining more dominant than integrative bargaining.

Question 27

Unncertainty avoidance Effects on Negotiation Behavior

Answer 27

Distrust opponents who show unfamiliar behavior
preference for nicely structure ritualistic procedures

Question 28

Negotiation is culturally neutral (Zartman)

Answer 28

Negotiation is a universal process.. Cultural differences are simply differences in style + language (Zartman)
Universal underlying process
Positioning and concessions
Maximizing gains/ minimizing losses

Question 29

Negotiation professionals belong to a common Cosmopolitan culture

Answer 29

Educated at Western universities
Trained as Ambassadors/ Foreign Service
International experiences + Common languages

Question 30

Key points culture

Answer 30

• culture matters
• risk of stereotyping/ essentializing
• context matters (power, status etc.)