Chapter 9 The Influence of Culture and Gender on Negotiations 9-2 Why Culture and Gender Are Issues Negotiating is inherently a personal activity Aspects sensitive to culture: biases, emotions, trust, and fairness Globalization on a personal level due to revolutions in communication and transportation 9-3 Negotiating Skills Skill 9.1: Recognize cultural and gender-based traits Skill 9.2: Avoid negotiation biases Skill 9.3: Use strategies that respond to diverse negotiation patterns and practices Skill 9.4: Identify practical steps to use genderspecific traits in negotiating situations Skill 9.5: Develop a negotiating strategy combining the cultural and gender differences explored in this chapter 9-4 Chapter Case: Bridging the Cultural Gap Discussion of how Governor Collins used her understanding of Japanese culture to convince the CEO of Toyota to locate a major auto plant in Kentucky The deal almost fell through because “signing” a contract was an American and not a Japanese value 9-5 Cultural Differences Culture is learned behaviors Common characteristics include • • • • • • Self-identity – independent or interdependent Relationships – who makes decisions Communication – verbal and nonverbal Time consciousness – cyclical or lineal Values and norms – for one’s self and the other party Mental process – abstract thinking or rote memory 9-6 Hofstede’s Cultural Dimensions Power Distance: degree of equality or inequality, hierarchal or democratic Uncertainty Avoidance: degree of tolerance for ambiguity, strict laws and rulemaking, or more relaxed Individualism-Collectivism: individual or group achievements more admired 9-7 Hofstede’s Cultural Dimensions (cont’d) Masculinity-Feminist: assertiveness or nurturing, distributive or integrative bargaining Long-Term Orientation: honoring tradition and long-term rewards or immediate results and saving “face” 9-8 Hofstede Cross-Cultural Comparisons, U.S., Japan, and France Nations Exhibiting Extremes in Hofstede’s Cultural Dimensions GLOBE Study 9-10 Similar to Hofstede’s cultural dimensions Measured both the ways things are and the ways things should be Grouped 62 societies into 10 country clusters Ten Clusters of GLOBE Countries Representative Characteristics of GLOBE Dimensions 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 LOW INSTITUTIONAL COLLECTIVISM societies have these characteristics... 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 LOW IN-GROUP COLLECTIVISM societies have characteristics such as... 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 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. Representative Characteristics of GLOBE Dimensions 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. Relative Scores on Cultural the Nine GLOBE Dimensions Figure 9-5 GLOBE Dimensions U.S. and Japan for U.S. and Japan 6 5 4 3 2 1 0 Perfor. Assert. Future Or. Human Or. Instit. Coll. InGender Group Pow Dis Uncert ain 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 9-16 Culturally Sensitive Heuristics and Biases Anchoring and framing Overconfidence or egocentricity Availability Stereotyping 9-17 Cross-Cultural Negotiating Patterns Example of individualist culture and collectivist culture Individualist – negotiation is distribution of resources and claiming most Collectivist – negotiation is about relationships and creating long-term values 9-18 Tactics for Success: Consensus Building Be patient Share significant amounts of information Focus information on the doubters Use informal negotiations Adjust your timetable to satisfy all of the interests involved Relationship building can result in better deals High to Low Context by Cultures Emotions 9-20 Emotions evoke reciprocal emotions Emotions convey information In cross-cultural negotiations it can be difficult to find a common frame of reference, unfamiliarity lessens control of situation, and possibly reduces level of trust 9-21 Negotiating Behaviors in Cross-Cultural Negotiations See the world from their perspective Tailor arguments to culture of listener Manage stress, ambiguity, and unpredictable situations Express ideas clearly Adjust suggestions to cultural constraints 9-22 High to Low Context Communication High-context cultures place value on body language and nonverbal cues • Place value on being part of a group • Considers good of whole rather than individual achievement Low-context cultures rely heavily on spoken word • Rewards individual achievement • Values independence 9-23 Trust and Fairness Based on behavioral assumptions One motivated by self-interest may not understand a negotiator from a collectivist or feminist culture Reciprocity may differ between what is “fair” - would you divide resources according to one’s contribution, equally, or according to one’s need? Gender 9-24 Traditional male model of negotiating: competitive, hierarchical, winning, rational, and unemotional – consistent with distributive bargaining Traditional female model of negotiating: cooperative, equalitarian, quality results, intuitive, and empathetic – consistent with integrative bargaining Gender (cont’d) 9-25 Studies have shown women negotiating on others’ behalf perform better than when negotiating for themselves High ambiguity negotiations, men have more optimistic goals and higher payoffs Unambiguous negotiations, no perceptible differences between men and women negotiators Management Styles Which May Affect Negotiating Styles