INDIVIDUAL NEGOTIATION SIMULATION REPORT

Topics: Cross-cultural communication, Negotiation, Geert Hofstede Pages: 13 (3071 words) Published: August 23, 2015
Table of Contents
INTRODUCTION3
ACCESSING CULTURAL DIFFERENCES IN THE NEGOTIATION TEAMS3
Hofstedes Cultural Dimensions3
The Hall Model3
The Kluckholn and Strodtbeck Model4
ANALYSIS OF THE NEGOTIATION ACTIVITY5
1. Background Factors5
2. Atmosphere5
Conflict/co-operation5
Power/Dependence6
Expectations6
3. Process6
Pre - Negotiation6
Negotiation7
Post negotiation7
4. Cultural Factors7
Time7
Individualism vs. Collectivism7
Pattern of communication7
Emphasis on personal relations8
5. Strategic Factors8
Presentations8
Strategy8
Decision Making8
RECOMMENDATIONS9
REFERENCES10
APPENDIX11
APPENDIX 1.1 - Framework for International Business Negotiations11 APPENDIX 1.2 - Hofstedes model on cultural dimensions, 198012 APPENDIX 1.3 - Hall’s High-Low Context Model of Cultural Differences12 APPENDIX 1.4 - The Kluckholn and Strodtbeck Model13

APPENDIX 1.5 - The Trompenaars’ Model13
APPENDIX 1.6 - Model for Negotiation – HAWKINS & HUDSON, 199014 APPENDIX 1.7 - The Thomas-Kilman Model of Negotiation Styles, 197614 APPENDIX 1.8 - The Gesteland Model, 199614

INTRODUCTION

Negotiation is a process whereby two parties try to reach a mutually favourable outcome where both parties are benefitted. (Fisher 1980; Ghauri 2003) There are many factors, which can drastically alter the consequences of a negotiation, culture playing a very critical role. Culture is the collective bargaining of the mind that distinguishes the member of one group or category of people from the others. (Fisher 1980) As long as the cultural differences are understood and managed effectively, parties can reach favourable outcomes.

ACCESSING CULTURAL DIFFERENCES IN THE NEGOTIATION TEAMS
Hofstedes Cultural Dimensions

In order to analyse cultural differences in the context of the negotiation, Hofstede’s Five Cultural Dimensions are used. (Appendix 1.2)

According to the Hofstedes model, Indians are collectivists, demonstrating high power distance, evident by their keen sense of following a hierarchy. Whereas, the Americans, are very individualistic, leading them to embrace a tough, results oriented approach. (Hofstede 2010) Although they do demonstrate a certain amount of power distance; it gets overshadowed by their high individualism. Indians being a slightly collectivist society, have a strong tendency to build and commit to long lasting relationships also depicting Trompenaars synchronic dimension which led to the assumption that the Indian team would arrive late for the negotiation meeting. (Trompenaars, Trompenaars & Hampden-Turner, 1998)

Also, looking at the sixth dimension of Indulgence vs. restraint, India clearly demonstrates high restraint given their excessive formal approach during meetings and their need to be liked whereas; Americans are visibly less formal with an outgoing nature. This is an indicator of the Americans being high in indulgence.

The Hall Model

According to Edward Hall (1976), cultures can be distinguished on the basis of their communication patterns. (Appendix 1.3) India and America are the 2 perfect examples of this theory as they are poles apart from each other.i.e. high and low respectively. (Cohen, Pant & Sharp 1996; Ferraro 2002; Hall 1960). Indians are high context cultures depicting that Indians believe in long lasting relationships with a strong belief in culture. Trompenaars & Hampden-Turner( 1998) categorize this as pluralism. This gets them to distinguish between ‘their own’ and ‘outsiders’. Communication amongst Indians is fast with a lot of non-verbal communication while with outsiders, it evolves into a more formal discussion. In the Indian culture, a lot of importance is given to their designation, a dimension that Trompenaar calls the achievement status. This emphasises the social roles that the participants adopt. In High-Context cultures, role relationships and status differences play a very important role. (Jeannet &...

References: Example of Cultural Clusters based on Individualism and Power Distance
APPENDIX 1.2 - Hofstedes model on cultural dimensions, 1980
APPENDIX 1.3 - Hall’s High-Low Context Model of Cultural Differences
Hall (1976) puts different cultures along a continuum of high and low context.
Six Basic Cultural Orientations, 1961
Orientation
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