Cross cultural Negotiations


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Siena Heights University graduate class on Negotiation as Process based on text (2011) from Lewicki, Saunders and Barry (McGraw-Hill).

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  • This model helps us think about diversity in layers, some of which we control and others we do not. At the center of what makes us different from others is the fiber of our personalities. Although two people can have similar personality characteristics, it would be tough, if not impossible, to find two with the exact same personality.Next we have internal dimensions of diversity that we are not able to change. These include our age, race, gender, and so forth.The next layer, external or secondary dimensions of diversity, includes personal characteristics that contain an element of control or choice, and they can be changed. For example, under the category of personal habits, an individual can be characterized as a night owl but can still choose to get up early; and under the religion category, Jews can choose to convert to Christianity; and Christians can choose to convert to Judaism. The outside layer, organizational dimensions, includes areas that change over the course of one’s career. Some are defined by the organization, and some have an element of choice.Our ability to understand, value, and manage diversity at all four levels helps us to recognize the unique contributory potential of every participant.
  • Are you ready to compete in a global diverse market? The U.S. has been loosing ground on having the most educated workforce. Globally we’ve gone from having a 30% college educated population 30 years ago to 14%. Why do you think that is? (Discussion). The Program for International Student Assessment (PISA) conducted by the Organization for Economic Co-operation and Development (OECD) partial chart of the 2009 results here shows where the U.S. falls on a global comparison. The full chart is much deeper containing 75 countries and in math we barely make the top half (30th).
  • Factors that make international negotiations more challenging than domestic negotiations include:Political and legal pluralismInternational economicsForeign governments and bureaucraciesInstabilityIdeologyCultureExternal stakeholdersImmediate Context: Factors over which the negotiators have influence and some measure of control:Relative bargaining powerLevels of conflictRelationship between negotiatorsDesired outcomesImmediate stakeholders
  • Power Distance Index (PDI) focuses on the degree of equality, or inequality, between people in the country's society. The Individualism (IDV) focuses on the degree the society reinforces individual or collective, achievement and interpersonal relationships. The Masculinity (MAS) focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. The Uncertainty Avoidance Index (UAI) focuses on the level of tolerance for uncertainty and ambiguity within the society. These dimensions are measured on a scale from 0 to 100, include 75 countries or regions, and scores are determined by “high” or “low” rankings within each category.
  • In the mid 1970's, the Dutch academic, GeertHofstede, based his five dimensions of culture on an extensive survey at IBM in which he investigated the influence of national culture. His methodology was both unique in size as well in structure. He defined organisational culture is an idea system that is largely shared between organisational members. By filtering out IBM's dominant corporate culture from his data on IBM's national subsidiaries, Hofstede was able to statistically distinguish cultural differences between countries. Hofstede classified a county's cultural attitudes as five dimensions: 1. POWER DISTANCEThe extent to which power is distributed equally within a society and the degree that society accepts this distribution. A high power distance culture prefers hierarchical bureaucracies, strong leaders and a high regard for authority. A low power distance culture tends to favour personal responsibility and autonomy. 2. UNCERTAINTY AVOIDANCEThe degree to which individuals require set boundaries and clear structures: a high uncertainty culture allows individuals to cope better with risk and innovation; a low uncertainty culture emphasises a higher level of standardisation and greater job security. 3. INDIVIDUALISM versus COLLECTIVISMThe degree to which individuals base their actions on self-interest versus the interests of the group. In an individual culture, free will is highly valued. In a collective culture, personal needs are less important than the group's needs. This dimension influences the role government is expected to play in markets. 4. MASCULINITY versus FEMININITYA measure of a society's goal orientation: a masculine culture emphasises status derived from wages and position; a feminine culture emphasises human relations and quality of life. 5. TIME ORIENTATIONThe degree to which a society does or does not value long-term commitments and respect for tradition. Long-term traditions and commitments hamper institutional change.
  • The long-term orientation dimension can be interpreted as dealing with society’s search for virtue. Societies with a short-term orientation generally have a strong concern with establishing the absolute Truth. They are normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results. In societies with a long-term orientation, people believe that truth depends very much on situation, context and time. They show an ability to adapt traditions to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in achieving results.
  • Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.  Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms.
  • Cross cultural Negotiations

    1. 1. Cross-Cultural Negotiation LDR 655 Wallace Siena Heights University (Lewicki, Saunders & Barry. 2011)
    2. 2. 4 Layers of DiversityGardenswartz & Rowe, (1994) Diverse Teams at Work: Capitalizing on the (Lewicki, Saunders & Barry. 2011) Power of Diversity. New York, NY. McGraw-Hill,. p. 33
    3. 3. Global CompetitionSource: OECD PISA 2009 (Lewicki, Saunders & Barry. 2011)
    4. 4. International: Art &Science• Science• Art• Context – Environmental – Immediate (Lewicki, Saunders & Barry. 2011)
    5. 5. Context (Lewicki, Saunders & Barry. 2011)
    6. 6. International Outcomes? • No simple arguments – Understand multiple influences – Regularly update understanding (Lewicki, Saunders & Barry. 2011)
    7. 7. Conceptualizing• Learned behavior expectations• Shared values  Individualism/collectivism  Power distance  Career Success versus. quality of life  Uncertainty avoidance (Lewicki, Saunders & Barry. 2011)
    8. 8. Hofstede’s Model Graphic Source (Lewicki, Saunders & Barry. 2011)
    9. 9. Hofstede’s ModelGraphic Source (Lewicki, Saunders & Barry. 2011)
    10. 10. Hofstede’s ModelGraphic Source (Lewicki, Saunders & Barry. 2011)
    11. 11. Individualism/Collectivism (Lewicki, Saunders & Barry. 2011)
    12. 12. Power Distance (Lewicki, Saunders & Barry. 2011)
    13. 13. Career Success/Quality of Life (Lewicki, Saunders & Barry. 2011)
    14. 14. Uncertainty Avoidance (Lewicki, Saunders & Barry. 2011)
    15. 15. Short vs. Long Term (Lewicki, Saunders & Barry. 2011)
    16. 16. Indulgence or Restraint? (Lewicki, Saunders & Barry. 2011)
    17. 17. Hofstede’s Top 10 (Lewicki, Saunders & Barry. 2011)
    18. 18. Graphic Source (Lewicki, Saunders & Barry. 2011)
    19. 19. Dialectic vs. Context (Lewicki, Saunders & Barry. 2011)
    20. 20. Schwartz’s 10 Cultural Values (Lewicki, Saunders & Barry. 2011)
    21. 21. Managerial Perspectives• Definition• Opportunity• Selection• Protocol• Communication• Time• Risk• Groups versus individuals• Agreements• Emotionalism (Lewicki, Saunders & Barry. 2011)
    22. 22. Responsive Strategies • Be aware • Understand • Predict or influence • Familiarity (Lewicki, Saunders & Barry. 2011)
    23. 23. Low Familiarity• Employ agents or advisers (unilateral)• Mediator (joint)• Induce (joint) (Lewicki, Saunders & Barry. 2011)
    24. 24. Moderate Familiarity • Adapt (unilateral) • Coordinate adjustment (joint) (Lewicki, Saunders & Barry. 2011)
    25. 25. High Familiarity• Embrace (unilateral)• Improvise (joint)• Effect symphony (joint) (Lewicki, Saunders & Barry. 2011)
    26. 26. Cultural Diversity (Lewicki, Saunders & Barry. 2011)