Members from individualistic societies expect the other side’s negotiators to have the ability to make decisions unilaterally.
Collectivist negotiators tend to assume that details can be worked out if the negotiators can agree on generalities. Collectivist societies show more concern for the needs of the other party and focus more on group goals than individualistic societies. Members of collectivist societies chafe when members from individualistic societies promote their own positions and ideas during negotiations.
Power Differential
The idea of power differential describes the degree of deference and acceptance of unequal power between people. Cultures where there is a comfort with high power differential are those where some people are considered superior to others because of their social status, gender, race, age, education, birthright, personal achievements, family background or other factors. Cultures with low power differential tend to assume equality among people, and focus more on earned status than ascribed status. Generally speaking, the more unequally wealth is distributed, the bigger will be the power differential in any national setting. National cultures with a high power differential include Arabian countries, Malaysia, the Philippines, Mexico, Indonesia, and India. Negotiators from these countries tend to be comfortable with: hierarchical structures; clear authority figures; the right to use power with discretion. Countries with a low power differential include U.S., Austria, Denmark, Israel, New Zealand, Ireland, Sweden, Norway, Finland, Switzerland, Britain, and Germany. Negotiators from these countries tend to be comfortable with: democratic structures and flat organizational hierarchies; shared authority; the right to use power only in limited circumstances and for legitimate purposes.
Uncertainty Avoidance
The idea of uncertainty avoidance has to do with the way cultures relate to uncertainty and ambiguity, and, how well they may adapt to changes. In general, countries that show the most discomfort with ambiguity and uncertainty include Muslim countries and traditional African countries, where high value is placed on conformity and safety, risk avoidance, and reliance on formal rules and rituals. Trust tends to be vested only in family and close friends. It may be difficult for outside negotiators to establish relationships of confidence and trust with members of these cultures. The United States, Scandinavia, and Singapore are identified as having a higher tolerance for uncertainty. Members of these cultures tend to value risk-taking, problem-solving, flat organizational structures, and tolerance for ambiguity. It may be easier for outsiders to establish trusting relationships with negotiating partners in these cultural contexts.
Masculinity-Femininity
The terms masculinity and femininity are used to refer to the degree to which a culture values assertiveness or nurturing and social support. The terms also refer to the degree to which socially prescribed roles operate for men and women. Countries and regions such as Japan and Latin America are rated as preferring values of assertiveness, task-orientation, and achievement. In these cultures, there tend to be more rigid gender roles and “live to work” orientations. In countries and regions rated feminine, such as Scandinavia, Thailand, and Portugal, values of cooperation, nurturing, relationship and solidarity with those less fortunate prevail, and the moral belief is more one of “work to live”. Of course, it is important to remember that associations with gender vary greatly across cultures, so that elements considered masculine in one culture might be considered feminine in another. Negotiators may find it useful to consider the way gender roles play out in the cultural contexts of their negotiating partners.