INDIVIDUAL NEGOTIATION SIMULATION REPORT

Table of Contents
INTRODUCTION 3
ACCESSING CULTURAL DIFFERENCES IN THE NEGOTIATION TEAMS 3
Hofstedes Cultural Dimensions 3
The Hall Model 3
The Kluckholn and Strodtbeck Model 4
ANALYSIS OF THE NEGOTIATION ACTIVITY 5
1. Background Factors 5
2. Atmosphere 5
Conflict/co-operation 5
Power/Dependence 6
Expectations 6
3. Process 6
Pre - Negotiation 6
Negotiation 7
Post negotiation 7
4. Cultural Factors 7
Time 7
Individualism vs. Collectivism 7
Pattern of communication 7
Emphasis on personal relations 8
5. Strategic Factors 8
Presentations 8
Strategy 8
Decision Making 8
RECOMMENDATIONS 9
REFERENCES 10
APPENDIX 11
APPENDIX 1.1 - Framework for International Business Negotiations 11
APPENDIX 1.2 - Hofstedes model on cultural dimensions, 1980 12
APPENDIX 1.3 - Hall’s High-Low Context Model of Cultural Differences 12
APPENDIX 1.4 - The Kluckholn and Strodtbeck Model 13
APPENDIX 1.5 - The Trompenaars’ Model 13
APPENDIX 1.6 - Model for Negotiation – HAWKINS & HUDSON, 1990 14
APPENDIX 1.7 - The Thomas-Kilman Model of Negotiation Styles, 1976 14
APPENDIX 1.8 - The Gesteland Model, 1996 14

INTRODUCTION

Negotiation is a process whereby two parties try to reach a mutually favourable outcome where both parties are benefitted. (Fisher 1980; Ghauri 2003) There are many factors, which can drastically alter the consequences of a negotiation, culture playing a very critical role.
Culture is the collective bargaining of the mind that distinguishes the member of one group or category of people from the others. (Fisher 1980)
As long as the cultural differences are understood and managed effectively, parties can reach favourable outcomes.

ACCESSING CULTURAL DIFFERENCES IN THE NEGOTIATION TEAMS
Hofstedes Cultural Dimensions

In order to analyse cultural differences in the context of the negotiation, Hofstede’s Five Cultural Dimensions are used. (Appendix 1.2)

According to the Hofstedes model, Indians are collectivists, demonstrating high power distance, evident by their keen

References: Example of Cultural Clusters based on Individualism and Power Distance APPENDIX 1.2 - Hofstedes model on cultural dimensions, 1980 APPENDIX 1.3 - Hall’s High-Low Context Model of Cultural Differences Hall (1976) puts different cultures along a continuum of high and low context. Six Basic Cultural Orientations, 1961 Orientation