Understanding Culture

Question 1

Defining Culture

Answer 1

• Culture is a lens that allows us to interact with the world
• Influences perceptions and behaviors
• Learned by socialization
• Distinguishes groups
• Relatively stable

Question 2

Important Dimensions of Culture

Answer 2

• 1. Collectivism-Individualism
• 2. High context vs. low context communication
• 3. Disagreement
• 4. Scheduling

Question 3

Collectivism-Individualism

Answer 3

• Valuing the group (we,us) vs. individual (I, me, mine) goals
• Squeaky wheel gets the grease (US) vs. The nail that sticks out gets hammered down (Japan)
• Bank employees study = US employees -> Honesty/ Mexican employees -> Friendship

Question 4

Ranking Individualistic vs. Collectivistic

Answer 4

• Individualistic = 1. US/ 2. Australia/ 3. UK/ 4. Canada/ 5. Hungary
• Collectivistic = 1. Guatemala/ 2. Ecuador/ 3. Panama/ 4. Venezuela/ 5. Colombia

Question 5

High context vs. low context communication

Answer 5

• Communicating indirectly (tone of voice, hints) vs. directly (“I mean what I say and I say what I mean”)
• Low context = 1. Direct/ 2. Verbal/ 3. Explicit/ 4. Repetitive/ 5. Bullet points/ 6. Summary email
• High context = 1. Indirect/ 2. Nonverbal/ 3. Implicit/ 4. Nonrepetitive/ 5. Hints/ 6. Body Language

Question 6

Ranking High context vs. low context

Answer 6

• High context = 1. Japan/ 2. Vietnam/ 3. Korea/ 4. Philippines/ 5. Indonesia
• Low context = 1. US/ 2. Australia/ 3. Canada/ 4. Netherlands/ 5. Germany
• How to say “No” in Japan = 1. I see/ 2. Ah/ 3. Ah-hah/ 4. Yes/ 5. That is very interesting

Question 7

Disagreement

Answer 7

• Willingness to engage in confrontation vs. avoiding confrontation
• Good meeting = 1. Chinese formal stamp, decision is made/ 2. American decision is made/ 3. French debate and exchange views
• More eye contact and less silent minutes leads to “No”

Question 8

Ranking confrontational vs. avoiding confrontation

Answer 8

• Confrontational = 1. Israel/ 2. France/ 3. Russia/ 4. Greece/ 5. Germany
• Avoiding confrontations = 1. Thailand/ 2. Indonesia/ 3. Japan/ 4. Philippines/ 5. Ghana

Question 9

Scheduling and Ranking flexible vs strict

Answer 9

• Flexible vs. strict attitude towards time
• Strict = 1. Germany/ 2. Japan/ 3. Sweden/ 4. Czech Republic/ 5. Norway
• Flexible = 1. Nigeria/ 2. Kenya/ 3. Angola/ 4. Botswana/ 5. Zimbabwe

Question 10

Culture and Negotiation Outcomes

Answer 10

• Cross-culture negotiations result in poorer outcomes with diminished total value than withing-culture negotiations
• This is due to cultural differences in behaviors, communication styles and norms
• Case study demonstrated exaggerated stereotypes but these are dimensions that cultures do differ on

Question 11

Avoiding steoretypes

Answer 11

• There is far more variability in values within than across cultures (Cultures are only a central tendency)
• Be aware of cultural differences in values and communication styles but (!) no stereotyping
• Treat your negotiation counterpart as a real individual

Question 12

Contingent Contracts

Answer 12

• Terms are linked to future events about which there is uncertainty (Product sales, Employee performance)
• Can maximize each side’s expected future value
• Can reveal deception (Täuschung) if present
• Most effective if linked to objective outcomes