CROSS CULTURE

NEGOTIATION

Group-4
•23P261-Ayush Bhatia
•23P269- Jayant Nayak
•23P278- Manikant Sharma
•23P299- Saipriya Shastri
•23P310- Varun Gupta
•23P313- Pranav Yannawar
Understanding
Culture?
•Culture refers to the shared values,
beliefs, norms, customs, behaviors,
and practices of a particular group
of people. It encompasses the way
of life, traditions, and social
patterns that influence their
interactions and perceptions.
 Cross Cultural Negotiation

Home Country Host Country:​

(HQ): Firm Negotiators: ​
• HQ • Host Country
Employees • Investors • Distributors
• Suppliers • Alliance partners • Expatriate
• Home • Contractors employees​
Government ​

Cross-cultural negotiation refers to the process of reaching agreements or resolving disputes between individuals or groups
from different cultural backgrounds. It often involves addressing differing values, communication styles, and expectations.
 Hofstede's Cultural Dimensions Model
Power Distance measures the extent to which a society accepts and expects
Power Distance hierarchical structures and authority. High power distance cultures have a significant
gap between those in power and the rest of society, while low power distance
Index (PDI) cultures aim for more equality.

Consider a negotiation between a French company (low PDI) and a

Saudi Arabian company (high PDI). In this scenario, the French
negotiators may be more comfortable with informal discussions and
decision-making among team members. In contrast, the Saudi
Arabian negotiators may expect strict adherence to a hierarchical
structure and require that decisions be made by senior leaders.

This dimension measures the balance between individual interests and group
interests within a society. Individualistic cultures prioritize personal achievement and Individualism vs
independence, while collectivist cultures prioritize group harmony and
interdependence.
Collectivism

Imagine a negotiation between a German company

(high IDV) and a Japanese company (high IDV as well,
but with a collectivist cultural background). Both
parties value individual achievement, but the
Japanese negotiators might also prioritize group
consensus and decision-making. In negotiations, the
Japanese team may spend more time ensuring that all
stakeholders within their group are aligned
 Hofstede's Cultural Dimensions Model
Masculinity vs This dimension explores the balance between assertiveness, ambition, and
competitiveness (masculine) and nurturing, cooperation, and quality of life
Femineity (feminine) in a culture.

A negotiation between a Swiss company (high MAS) and a Swedish

company (low MAS) highlights this contrast. The Swiss negotiators
may prioritize competition, achieving objectives, and assertiveness,
while the Swedish negotiators may emphasize cooperation, work-life
balance, and consensus. These differences can affect the negotiation
approach and outcomes, so being aware of them is vital for successful
negotiations.

Uncertainty Avoidance measures a society's tolerance for ambiguity and its ability to
deal with uncertainty and risk. High UAI cultures have strict rules, are risk-averse, Uncertainty
and prefer structured environments, while low UAI cultures are more flexible,
adaptable, and open to change.
Avoidance Index

In a negotiation between a German company (high UAI)

and a Brazilian company (low UAI), the German
negotiators may prefer a structured, rule-based
approach to the negotiation process. The Brazilian team,
on the other hand, might be more comfortable with
ambiguity and flexible in their negotiation tactics.
 Hofstede's Cultural Dimensions Model
Long Term vs Short This dimension assesses whether a culture prioritizes long-term planning,
perseverance, and saving for the future (long-term) or short-term results, immediate
Term gratification, and tradition (short-term)

A negotiation between a Chinese company (high LTO) and an

American company (typically low LTO) may involve different
perspectives on time and results. The Chinese negotiators may be
willing to invest time in building long-term relationships, while the
American negotiators may be more focused on short-term gains and
quick results

This dimension examines a society's approach to enjoying life and having fun Indulgence vs
(indulgence) or regulating behavior through strict social norms (restraint).
Restrain

A negotiation between a Dutch company (high IVR) and a

Saudi Arabian company (low IVR) may reveal differences
in how negotiators approach social interactions. The
Dutch team may be more informal and open to leisurely
discussions during negotiations, while the Saudi Arabian
team may prioritize maintaining a sense of restraint and
formality
Lewis Model
 Cross cultural
negotiation using the
Lewis Model
•Linear-active Cultures: Organized, task-
focused. Emphasize clear plans and formal
communication.
•Reactive Cultures: Relationship-oriented,
good listeners. Value harmony and indirect
communication.
•Multi-active Cultures: Emotional,
expressive. Rely on persuasion, storytelling,
and personal connections.

Negotiators should adapt strategies, be flexible, and avoid

rigid stereotypes.
This model helps individuals understand how different
cultures approach communication, time management, and
decision-making.
 Cross-Cultural Leadership in
Action: Lewis Model Example
A British
Recognizing Differences manager
Building Relationships is Promoting
leading a diverse team
Harmony To succeed, the manager adapts their
• Acknowledge diverse
comprising
cultural traits within the
members from
• Foster connections with
the Japanese team
• Embrace the
Japan and Brazil. The
Brazilian team member's
communication and leadership style:
team. British member,
manager, representing
valuing relationships and
emphasis on the Linear-active
harmony, encouraging
culture,inclusivity
values punctuality open dialogue
and understanding.
and structured
communication. In contrast, the Japanese team
member, influenced by the Multi-active culture,
prioritizes relationships and group dynamics.
Meanwhile, the Brazilian team member, rooted
in the Reactive culture, emphasizes harmony
and indirect communication.