Cultural Dimensions Theory Of Negotiation

1. Introduction:

Negotiation is a process of discussion aimed at conflict resolution in which two or more parties attempt to resolve the conflict (incompatible goals) in a process that is mutually agreeable. Though the concept seems easy to understand, it is difficult to implement in practical scenarios. There are various hurdles in negotiation process such as differing views on what is right and wrong, what is fair and just, differences among parties in expressing themselves, understanding each other’s communication and ultimately the procedure in which negotiations are conducted. In addition to these factors, negotiations are further complicated whenever people from different cultural backgrounds are involved.

Culture encompasses a person’s

Cultural Dimensions Theory:

Geert Hofstede has developed a framework for cross-cultural communication to understand the effect of culture on values and behaviour of the people. The differences across cultures was measured and compared using six dimensions: Power distance, Individualism, Uncertainty avoidance, Masculinity vs Feminity, Long term vs short term orientation and Indulgence vs Restraint.

2.1. Power distance:

Power distance refers to “the extent to which the less powerful members of institutions and organizations accept that power is distributed unequally”. People in high power distance cultures do not question their managers, expect to be told what to do. They generally wait for directions from superiors in a negotiation. Whereas people from low power distance culture would like to act independently, not necessarily obeying superior’s orders. They prefer direct and face-to-face negotiations.

2.2. Individualism – Collectivism:

Individualism refers to the extent of which people are integrated into groups. Individualistic societies have loose ties among individuals. In collectivism, society is tightly integrated into groups or extended families in which people have unquestioning loyalty and support for each

Win-win negotiators see deal making as collaborative problem solving process which would lead to mutual benefit by increasing the size of the negotiation pie. Win-lose negotiators see it as confrontational which results in only one side winning i.e., acquiring major portion of the pie. The approach of parties in negotiation will determine the kind of strategies they use throughout the negotiation – an integrative or distributive strategy. The cultures which are more masculine which are driven by competition, people may tend to exhibit win-loss