The influences of culture and gender on negotiations

Culture & Gender in Negotiations

Culture and Gender in Negotiations

In negotiating a deal favorable to an organization's relationship in an Eastern European and an Asian country, I will take into account one of the most important dimensions of culture as identified by Hofstede: power distance. In power distance, the culture's regard to power and authority is given consideration in the negotiations. In high power distance countries, subordinates recognize that people with authority and roles higher than theirs should be given respect and must be 'followed.' Conversely, in countries with low power distance, subordinates and persons with roles of authority and power interact as equals, especially outside of their work environments. While respect is still recognized, almost always, subordinates can be comfortable and socially interact with their bosses/employers when socialization calls for it.

Since Eastern European and Asian countries have high power distance cultures, I, as a negotiator, must recognize each person's role and authority in the organization they work for. Thus, before interacting with them, I must ensure that I "know" everyone of them, and know how I should treat each of them. Although high power distance is not my culture, I must learn to adopt a high power distance psyche to use as my leverage during negotiations. Since individuals with roles of authority and power deal with almost all decision-making in the organization, I must give greater consideration and attention to them. This does not mean that I would 'neglect' their subordinates, as subordinates play a critical role in their dynamics as a working group. While Eastern Europe and Asia have high power distance cultures, they are also collectivist, and they also give importance to maintaining group coherence. Thus, subordinates are critical members of the group, and must also be given respect, albeit not the 'same level of respect' given to their employers/bosses.

Negotiations can also differ in strategy when dealing with gender differences. In a highly-feminine society, the idea that a product or service is "readily available" could work against the seller/owner, since it gives the impression that nobody 'wants' that product or service. A highly-coveted product or service is one that is not readily available. Take, as an example, the high demand for Hermes bags among its female patrons. Customers have to register months before a new Hermes bag is released, and the fact that reservations are sometimes available only to selected clientele (depending on frequency of purchase, ability to purchase the bags, and prestige) make these bag highly coveted. In effect, Hermes can demand any price for any new bag because of this psyche of 'scarcity' (limited supply) marketed to its female customers.