Research Based Essay: Cross-Cultural Negotiations

CROSS-CULTURAL NEGOTIATIONS
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Section 1
What is culture? Culture has many different meanings. Many people associate culture with the appreciation of food, art, language and music. According to Taylor, Furnham & Breeze (2014), culture is hat complex whole which includes knowledge, art, law, belief, custom, morals and any other habits and capabilities acquired by man as a member of society. Taylor’s definition hints that culture is associated with societies and therefore different societies have different cultures which make them unique. Elsewhere, Bakir et al. (2015) defines culture as the collective programming of the mind distinguishing the members of one group or category of people from others. From Taylor’s and Hofstede’s definitions of culture, it is clear that culture maps out a group of people from others and it controls their mental actions and decisions. Thus culture is a set of moral beliefs that guide decisions made by individuals.
Comparison of Hofstede’s Cultural Dimensions in USA and China
Hofstede Cultural Dimension

Hofstede’s cores

Schwartz values



USA

China


USA

China

Power distance index (PDI) - this dimension reflects the degree to which less powerful members of the society expect and accept that power is unequally distributed. Individuals in high PDI societies accept a hierarchical order that places each individual in the hierarchy and there is no need for further justification. On the other hand, societies with low PDI attempt to equalize power distribution and seek for justification whenever there are inequalities in power

Scores low (40) meaning that the country advocates for equal distribution of powers among individuals

Scores high of (80) meaning that it is a hierarchical society where people vary in power possession

Self-direction- independent thought and action-choosing, creating and exploring. Individuals demand control and mastery.

High

Average

Individualism versus collectivism (IDV) - in this dimension, there are two sides, individualism in which society members prefer a loosely-knit social framework marked by individual self-care and for immediate family members and on the other side, collectivism which insists on tightly-knit social framework whereby members of a society expect every member to look after group members in return for unquestioned loyalty. In individualistic societies, the image is ‘I' while in collectivism; the impression is ‘we.'

Scores high IDV of (91) meaning that societies are preferred individualism

Scores very low (20) meaning that Chinese societies advocate for collectivism

Simulation-individuals are defined by novelty and challenge in life

High

Average







Masculinity versus femininity (MAS) - masculinity represents society’s preference for achievement, heroism, assertiveness and material rewards or success and this makes a society highly competitive. On the other hand, femininity represents societal preference of cooperation, caring for the weak, modesty and quality of life. Tough vs tender cultures in business.

Scores 62 means that the societies prefer masculinity as well as femininity but more masculine

Scores relatively high of 72 meaning the society is more inclined to masculinity than the USA.

Hedoism- defining goal is pleasure or sensuous gratification for oneself

High in line with scores of indulgence

Low in line with restraint

Uncertainty avoidance index (UAI) - explains the extent to which society members are uncomfortable with uncertainty and ambiguity. High UAI countries uphold rigid codes of belief and behaviors and do not tolerate unorthodox behavior and ideas while weak UAI countries exhibit a more relaxed attitude where practice counts more than principles.

Scores 46 which is higher than Chinese and it shows that societies do not support unorthodox ideas

Scores 30
Chinese count on practice more than the principles

Achievement- defining goal is personal success through demonstrating competence based on the social standards

High in line with individualism

Low in line with collectivism

Long term orientation vs short term normative orientation (LTO)- represents the tendency of societies to maintain links with its past when dealing with present problems as well as future problems. Countries with low (LTO) maintain time-honoured traditions and norms while viewing societal change with suspicion. On the other hand, countries scoring high LTO encourage changes through education in preparation for the future.

Scores low of 26 meaning that the country meaning that it honors traditions and norms and viewing change with suspicion

Scores high of 87 indicating influence of education in preparation for the future

Power- defining goal is social status and prestige, control or dominance over people and resources

Low in line with quest for power equality

High in line with hierarchical status in the society

Indulgence vs restraint (IND) - indulgence represents a society that grants free gratification of basic and natural human drives for having joy and fun while restraint represents a society that imposes strict social norms to suppress gratification of needs.

Scores relatively high of 68 showing that the society gives indulgence for having joy and fun

Scores low of 24 meaning that society imposes strict norms on its members

Security- defining goal is safety, harmony, and stability of society, relationships and of one self

High

High




Conformity- defining goal restraint of actions, inclinations, and impulses likely to hurt others and violate social norms

Low in line with indulgence

High in line with high score on restraint




Tradition- defining goal is respect, commitment, and acceptance of the customs and ideas derived from religion or culture






Benevolence- defining goal is preserving the welfare of those with frequent personal contact.






Universalism- defining goal is understanding, appreciation, tolerance, and protection for the welfare of all people and for nature



In general, the USA and China differ with regard to Hofstede's and Schwartz values. USA societies exhibit more equity, individualistic, indulgence, feminine and resistive to change while Chinese societies exhibit less equitable, collective, restraint and change receptive societies. On the Schwartz values, USA societies demonstrate high values of creativity, exploration, hedoism, and safety and low conformity and tradition while Chinese societies exhibit high values of conformity, tradition, safety and low achievement and hedoism.

Section 2
Many businesses conduct business across the world and across various cultures of the world. Most important about culture is that it influences the way people think, communicate and behave. Additionally, it affects the transactions conducted and how they negotiate those transactions. Differences in cultures among the business executives can impede negotiation process in different ways.
Culture and Goals and Preferences of the Negotiators
Different negotiators from different cultures tend to have different goals and preferences in a negotiation. Some people from some cultures belief that the goal of a business negotiation is to sign a contract between the two parties. To other cultures, the goal of a business negotiation is not to sign a contract but instead to establish a relationship between the two parties. According to Salacuse, (2015), 77% of the Spanish enter a negotiation with the goal of making a contract whereas only 33% of the Indian executives entered into a negotiation with the goal of making a contract. Looking at the cultural differences in dimensions and values between USA and China, it is likely that majority of executives from the USA will enter a business negotiation with the goal of signing a contract whereas a majority of the Chinese would least expect a contract and rather prefer a relationship being reached through a...