S6 - Negotiating Across Cultures

Question 1

what is culture

Answer 1

three main aspects:

1. quality not of individuals, but of the society of which individuals are a part
2. aquired (and transmitted) and changes through socialization and acculturation
3. each culture is an unique complex of attributes (material / intellectual / organizational) , subsuming every area of social life

Question 2

defining culture

Answer 2

= 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, punishments by the group.

Culture in multicultural society is becoming more complex. We adopt certain traits from different groups / culture.

Question 3

beliefs

Answer 3

assumptions about the world and how it works

Question 4

values

Answer 4

assumptions about right and wrong

Question 5

behaviour

Answer 5

human action

Question 6

norms

Answer 6

expected or typical behaviour

Question 7

Basic cultural orientation centers around…

Answer 7

beliefs

values

behaviour

norms

Question 8

Recognizing cultural differences

Answer 8

Obvious differences = age, language, gender, family status, educational background.

Less obvious differences = social values, roles and status, decision-making customs, concepts of time, concepts of personal space, body language, social behaviour and manners, legal and ethical behaviour, corporate cultural differences.

Question 9

Communicative dissonance

Answer 9

Communication is at the core of negotiations: language, body language, facial expressions, gestures, habits, symbols, rituals.

those who share communication norms, usually communicate clearly

those who do not, experience noise.

Misinterpretations, misunderstandings, and confusion are worse than an acknowledged lack of understanding.

When people think they can communicate clearly, but still misunderstand each other, that is a real problem.

Failure to appreciate divergence of meaning (same words, different meaning).

misinterpretations / misunderstandings worse when people think they can communicate clearly

Question 10

Two types of cultures

Answer 10

high and low context.

Question 11

high context

Answer 11

information dependent on the context

vagueness instead of directness

Most of the information is located somewhere other than the words being spoken

Nonverbal nuances are complementing the meaning of words

Image is essential: face saving in front of the constituencies

Face-to-face conversations are characterized by expressions of courtesy and respect

Time is elastic

indirect / nonverbal / context

Question 12

low context

Answer 12

Information located fully within the direct communication

All of the information is in the words

Vagueness less applied

Direct language emphasized

Individual freedom from the group

No desire to put relationship ahead of the goal

Time is of of the essence

direct communication / direct language / goal oriented / individualism

Question 13

high context - prenegotiation

Answer 13

Building relationships with the other side

relationship / trust is important

Question 14

low context - prenegotiation

Answer 14

Focus is on the issue

issue is more important than relationships

Question 15

high context - beginning negotiatoin

Answer 15

Face saving (reputation)

Minimizing uncertainties

Parties taking turns in presenting concerns and reciprocating initiatives in kind

Deductive mode of reaching an agreement (from general principles to principles at hand).

Question 16

low context - beginning negotiation

Answer 16

Opening statements can be risky, and aim at revealing
interests

Inductive mode of reaching an agreement (examining the facts and crafting a conclusion to fit those facts)

inductive

examining facts –> reaching conclusion

Question 17

high context - middle phase negotiations

Answer 17

Bargaining not always appropriate

Time is not seen as a constraint

Question 18

low context - middle phase negotiations

Answer 18

Bargaining is the key

Time is of the essence

Urgency to reach an agreement

Question 19

high context - end of negotiations

Answer 19

Face saving is essential

Deals need to be presented so that they do not damage reputations

reputation is important

Question 20

low context - end of negotiations

Answer 20

Agreement is the key, face saving is not of primary importance

agreement / goal is most important

Question 21

Cultural dimensions

Answer 21

Hofstede’s four basic dimensions
- Power distance index (PDI)
- Individualism vs. collectivism (IDV)
- Uncertainty avoidance (UAI)
- Masculinity vs. femininity (MAS)

Two additional dimensions
- Long-term vs. short term orientation (LTO)
- Indulgence vs. restraint (IND)

Question 22

power distance index (PDI)

Answer 22

reflects the degree to which the culture accepts the unequal distribution of power.

Reflects the degree to which the decisions of the power holders should be challenged or accepted.

Existence and relevance of hierarchies.

accepting of unequal distribution of power

should decisions power holder be accepted / challenged?

Question 23

individualism vs. collectivism

Answer 23

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

Individualistic cultures focus on themselves first: people should take care of themselves and decisions are based on what is good for the individual, not for the group.

Collectivist cultures focus on the group: people should show loyalty to the group. The group that a person belongs to are the most important social units

culture relies on self or on group?

Question 24

uncertainty avoidance

Answer 24

describes the extent to which the culture feels threatened by ambiguous and uncertain situations and tries to avoid them by establishing more structure.

Cultures with a low UAI score tend to have a high tolerance for uncertainty and ambiguous and for the people who are considered socially deviant.

Cultures with a high UAOI score prefer to avoid uncertainty and try to ensure security through an extensive sets of rules and regulations

does culture feel threatened by ambiguous / uncertain situations?

Question 25

masculinity vs. femininity

Answer 25

indicates the degree to which a culture values achievement, assertiveness and manliness or nurturance and social supports.

Cultures with a high MAS believe in achievement and ambition. They tend to judge people on the basis of their performance and the material goods that have been acquired.

Cultures with a low MAS believe less in achievement and ambition. They prefer equality between the sexes and less prescriptive role behaviors associated with each gender.

does culture value achievement, assertiveness and manliness / nurturance and social supports

Question 26

Long-term vs. short term orientation (LTO)

Answer 26

how people see and prioritize time. Do they prioritize tradition or change. More accepting of long-term processes and processes in general or do they think time is of the essence.

prioritizing time –> long-term or short-term?

Question 27

Indulgence vs. restraint (IND)

Answer 27

whether a society allows free pleasure or not.

society allowing free pleasure or not

Question 28

Is negotiation universal?

Answer 28

Negotiation is culturally neutral
- Universal underlying processes
- Positioning and concessions
- Maximizing gains / minimizing losses

Negotiation is a universal process… cultural differences are simply differences in style and language.

Question 29

Large power distance (decentralization) - effects on negotiation behaviour

Answer 29

Key negotiations have to be concluded by top authority (centralized control and centralized decision-making)

Question 30

collectivism - effects on negotiation behaviour

Answer 30

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 over conflict)

Mediators important –> prevent direct conflict

Question 31

uncertainty avoidance - effects on negotiation behaviour

Answer 31

Distrusting opponents who show unfamiliar behaviour (unlike routine).

Preference for nicely structured procedures

Question 32

masculinity - effects on negotiation behaviour

Answer 32

Conflicts more often resolved through fighting than compromising

Distributive bargaining more dominant than integrative bargaining