Cultural Values and the Negotiation Table: Unlocking the Impact of Individualism vs. Collectivism, Hierarchy, and Uncertainty Avoidance

Negotiation, the art of reaching agreements, is not merely a transactional exchange of offers and counteroffers; it’s a complex dialect of cultural values, beliefs, and norms

Understanding how cultural values influence negotiation outcomes is essential for achieving results in the global arena. 

So, let’s take a look at the impact of cultural values such as individualism versus collectivism, hierarchy, and uncertainty avoidance on negotiation strategies and outcomes.

Individualism vs. Collectivism

Welcome to the boardroom.

On one side of the table: a U.S. company; on the other: a Japanese firm. 

While discussing a joint venture, their priorities differ, based on their individualist versus collectivist values.

The American negotiators emphasize their company’s strengths and seek to secure the best possible deal for their organization. 

The Japanese negotiators prioritize building trust, fostering mutual respect, and ensuring alignment with their company’s broader goals and values.

One of the most fundamental cultural dimensions impacting negotiation is the degree of individualism versus collectivism within a society. 

In individualistic cultures like the United States, negotiation is often approached from a competitive standpoint, with an emphasis on individual goals, autonomy, and personal achievement

Negotiators may prioritize their own interests and seek to maximize their outcomes, even at the expense of others.

Conversely, in collectivistic cultures such as Japan or China, negotiation is viewed through a communal lens, emphasizing harmony, cooperation, and group cohesion. 

Negotiators may focus on building relationships, consensus-building, and ensuring the well-being of the collective. 

In these cultures, concessions may be made to preserve group harmony and maintain long-term relationships.

Hierarchy

The boardroom, round two.

On one side: a German company; on the other: a Brazilian company.

While discussing a partnership agreement, their priorities differ based on their views of hierarchy.

The German negotiators expect a collaborative approach, with decisions made based on merit and expertise rather than hierarchical considerations. 

The Brazilian negotiators defer to senior executives and prioritize building rapport and respect for authority.

Hierarchy, or the degree of social stratification within a society, significantly influences negotiation dynamics. 

In hierarchical cultures like those found in many Asian and Latin American countries, respect for authority, status, and seniority plays a central role in negotiation interactions. 

Negotiators may defer to higher-ranking individuals, and decisions may be made by those in positions of authority.

In contrast, in egalitarian cultures such as those in Northern Europe or Australia, negotiation tends to be more egalitarian, with an emphasis on equality, meritocracy, and consensus-building. 

Negotiators may engage in open dialogue, challenge assumptions, and seek input from all stakeholders, regardless of rank or status.

Uncertainty Avoidance

The boardroom, round three.

On one side: a Swedish company; on the other: a Saudi Arabian company.

While discussing a business partnership, their priorities differ based on their level of uncertainty avoidance.

The Swedish negotiators are more open to exploring creative solutions and adapting to changing circumstances. 

The Saudi negotiators prefer clear agreements, detailed contracts, and a structured approach to minimize uncertainty and risk.

Uncertainty avoidance, or the degree to which a culture tolerates ambiguity and uncertainty, shapes negotiation outcomes. 

In cultures with high uncertainty avoidance, such as those found in many Asian and Middle Eastern countries, negotiators may prefer clear rules, detailed contracts, and predictable outcomes. 

Negotiation strategies may focus on minimizing risk and ensuring stability.

Conversely, in cultures with low uncertainty avoidance, such as those in the United States or Northern Europe, negotiators may be more comfortable with ambiguity and uncertainty. 

Negotiation approaches may be more flexible, adaptive, and open to innovative solutions, with less emphasis on rigid rules or formalities.

Come to the Negotiation Table Prepared

Cultural values – particularly individualism vs collectivism, hierarchy, and uncertainty avoidance – play a profound role in shaping negotiation outcomes, influencing everything from communication styles to decision-making processes

By understanding and respecting cultural differences, negotiators can adapt their strategies and approaches to navigate diverse cultural landscapes successfully.

Attitude & Behavior in the Workplace: How Does Tightness/Looseness of Culture Apply?

Do you find the overall morale of your work team to be positive or negative?

How do you navigate it?

And have you ever considered whether the tightness/looseness in your company culture or societal culture might impact these attitudes?

In recent weeks, we’ve talked about tightness and looseness in culture and how this can affect innovation.

Today, we’ll be looking at another study examining tightness/looseness in the workplace to see how it can benefit morale, management policies, and behaviors.

The Study

The primary objective of this study was to investigate the impact of perceived cultural tightness at the work unit level on individual-level outcomes, both positive and negative.

This understanding can be used to enhance management policies.

The research delves into the influence of perceived T-L culture at the work unit level on various individual-level factors, including stress, intention to leave, organizational deviance, job satisfaction, effort investment, and organizational commitment. 

Utilizing cross-sectional data gathered from 417 participants across 57 preexisting work units in diverse Italian organizations, participants were presented with 10 statements that they were asked to agree/disagree with.

These statements include:

  • In my work unit, there are many social norms that must be strictly followed
  • In my work unit, if someone acts in an inappropriate way, others will strongly disapprove
  • In my work unit, there are clear and well-defined rules that must be respected
  • In my work unit, it is not allowed to break the existing norms

The results from multilevel analysis indicate a significant and positive association between perceived cultural tightness at the unit level and individual-level job satisfaction, effort investment, and organizational commitment. 

Conversely, this perceived tightness is significantly and negatively linked to individual-level stress, intention to leave, and organizational deviance. 

These findings imply that fostering a culture of tightness within organizations can positively shape employee attitudes and behaviors.

Confirming the researchers’ hypotheses, the results revealed that perceived cultural tightness at the unit level exhibited a positive association with job satisfaction, effort investment, and organizational commitment. 

Conversely, it displayed a negative association with perceived stress, turnover intentions, and organizational deviance.

Interpreting the Results

Based on the research, this study found that fostering a tight culture could be beneficial for leaders to cultivate positive attitudes within work units. 

However, the suitability of a tight culture depends on individual characteristics and cultural diversity within work units, necessitating attention from HR managers and leaders. 

Achieving a “person-group fit,” where the T-L culture aligns with employees’ mindset and individual characteristics, could promote positive attitudes and behaviors.

Interestingly, in loose societies, organizations may witness more positive workplace attitudes within loose culture work units. 

However, the study did not find significant curvilinear effects, suggesting a need for further investigation, especially in creative, design, or high-tech settings.

Future

The study suggests examining creativity at work, especially given prior results on cultural T-L and creativity.

Exploring moderators of the relationship between tight culture and creativity, such as regulatory focus theory, could provide valuable insights. 

Future research should extend the examination of these effects to the organizational level, considering that work unit culture is influenced by the larger organizational and national culture. 

Investigating interactions between the T-L culture of the country and that of the organization or work unit in promoting workplace outcomes is recommended. 

Overall, these findings contribute to a deeper understanding of T-L effects in real working environments.

Diversity is an Asset: How Tightness/Looseness of Culture Impacts Innovation

Do you feel more creative when you are given rules to follow or no rules at all?

Does freedom inspire or limit you?

Today, we’ll delve into a study regarding the degree of tightness and looseness in cultures and how that impacts innovation.

But first, let’s identify what tightness/looseness in culture means.

Defining Tightness/Looseness

As you may have guessed, the “tightness” or “looseness” of a culture is related to its hierarchical structures and social norms.

Witkin and Berry define it as the

“degree of hierarchical structure among sociocultural elements in a society”

While Gelfand, Nishii, & Raver define it as

“the strength of social norms and degree of sanctioning within societies.”

In other words, loose cultures allow flexible and informal social norms, while tight cultures maintain order, coordination, and control. 

Why is Impact Innovation?

For decades, scholars in management and economics have examined the connections between innovativeness and economic performance, often concentrating on conventional “hard factors” such as research and development investments or educational initiatives. 

However, in an era of globalization where cultural dynamics play an increasingly crucial role, the impact of cultural characteristics on innovativeness has been relatively overlooked. 

In this study, researchers employ various econometric models to examine the associations between cultural tightness and looseness and national innovativeness.

The Study

In line with the theoretical framework, researchers used the Global Innovation Index and the rank cultural tightness–looseness combination index.

They identified a significant positive association between cultural looseness, as measured by the Global Innovation Index (Uz (2015a)), and national innovativeness. 

However, this correlation did not hold when using data provided by Gelfand et al. (2011a). 

Researchers concluded that the higher number of surveyed countries, larger sample sizes, and a focus on specific tolerance in Uz’s (2015a) study provide a more comprehensive and accurate representation of cultural tightness-looseness, enhancing the reliability of estimation models.

Diversity is an Asset

The study’s interpretation of the results reveals a significant positive connection between innovativeness and cultural looseness when tightness-looseness is measured as a spread of norms. 

This suggests that societal pluralism and diversity of opinions contribute to innovativeness. 

However, cultural looseness does not equate to high individual tolerance in general; rather, it signifies the endurance of varying degrees of specific tolerance of controversial issues within an open society.

These findings align with studies at different levels, indicating that diversity, when managed constructively, serves as an asset for innovativeness rather than an obstacle. 

This study emphasizes the importance of balancing diversity with participatory safety to enhance team identity and foster creativity. 

The cultural values of a society, as reflected in its approach to innovation, play a crucial role in shaping its economic and creative landscape. 

Recognizing the paradoxical nature of cultural looseness—simultaneously allowing individual freedom and embracing culture-specific norms—can provide valuable insights into fostering societal innovativeness.

Social & Cultural Capital, Part 1: How to Benefit from Each in the Workplace

Your success on the job often relies on the type of capital you possess. 

We’ve been discussing social and cultural capital over the past few weeks, and these two types of capital are what matter at work. 

To review, social capital is all about the strength of relationships and connections within a group, whereas cultural capital is the shared values and goals that bring a group together.

Social capital can help you achieve more or reach objectives more easily at work. 

In this post, we’ll take a closer look at social capital and see how to assess and build upon it.

Assessing Your Social Capital

Maybe you don’t even know where you stand with your social capital.

After all, it’s not exactly something tangible that you can measure.

The following questions might help you identify where you’re at with your social capital:

  • Do I carry influence? What is my reputation like? Do others see me as strong or weak, reliable or flakey, positive or negative? Do they want to work with me?
  • How strong are my relationships within my team and without? Do I build connections with others across departments? Do I network?
  • Do I build strategic and enduring relationships or just transactional ones?
  • Do I have the energy and influence to mobilize resources and colleagues to support and achieve my goals? 
  • Do I keep abreast of important news and developments within my workplace and industry?

Improving your social capital can enhance your job performance, satisfaction, and career prospects. 

To do so, networking with peers and colleagues in your industry, cultivating relationships based on mutual interests and values, and offering help and support to others are paramount to banking more social capital. 

Aggregate Benefits

Not only does social capital improve individual success and potential, but the entire workplace improves.

Successful workplaces cultivate social structures in which everyone benefits.

This happens through social intercourse, empathy, fellowship, compassion, consideration, and most importantly, trust.

If the social structure benefits only a small group within the workplace, the organization’s aggregate benefits from their social capital decrease.

It feeds into a negative company culture, in which trust is lost, along with the sense of community.

When none of these things are there, those in the social structure can’t rely on each other and cooperation and society collapses.

If you look at your workplace and you cannot identify its values, then that’s a problem.

It means you’ll have a hard time personally building social capital there…as will the workplace, itself.

Building your cultural capital, which relates to your knowledge, skills, and understanding of cultural norms and practices, is also important for career success.

We’ll talk more about that next week.

Culture and Self: How Self-Esteem is Based on the Fulfillment of Dominant Cultural Values 

Does one’s culture influence self-regard?

This article by CNRS (Délégation Paris Michel-Ange) suggests that it actually informs it.

How?

Everyone bases their success or level of achievement on the dominant values of their culture.

Even if a person’s personal values differ from the norm, their self-esteem is often based on fulfilling cultural values.

Let’s see why.

The Survey

Fulfilling one’s personal values has long been viewed in psychology as the greatest influence on self-esteem.

But that may not be the case.

A global study, conducted by social psychologist, Maja Becker, at the CLLE (Laboratoire Cognition, Langue, Langages, Ergonomie) department of the Université de Toulouse II-Le Mirail, surveyed 5,000 teenagers and young adults from 19 different countries.

200 young people from countries in Eastern and Western Europe, South America, Asia, Africa, and the Middle East took part.

Questions in the survey covered personal and cultural values and to what degree they impacted the students’ self-esteem.

Key Factors of Cultural Influence

What the survey found was that four key factors drove self-esteem in all cultures:

  • Earning social status
  • Fulfilling one’s duty
  • Controlling one’s life
  • Benefitting others

The study also found that the students’ own personal values had little to do with their level of self-esteem.

Rather, self-esteem is measured against our ability to fulfill dominant cultural values.

Fulfillment of Values = Self-Esteem

Each culture places different degrees of importance on these four factors.

For instance, those from Middle Eastern, African, or Asian cultures that value tradition and conformity might place more importance on doing one’s duty and benefitting others.

Thus, individuals in such cultures derive their self-esteem from demonstrating this fulfillment of duties.

And those from Western cultures whose values lie in individualism and freedom might place more importance on controlling one’s life.

Thus, individuals in such cultures derive their self-esteem from demonstrating such control.

Even if one doesn’t personally subscribe to their own culture’s values, they are still influenced by them on a deeply personal level.

Subtly, societal expectations can make or break an individual’s psyche and self-worth.

Next week, we’ll discuss how a culture’s time perspective might also influence self-esteem.

The Team Itself: Management Challenges Faced By Global Virtual Team Leads

Have you ever dealt with a colleague who has a very different work style than you?

Or one who is driven by different motivations?

How did you resolve these conflicts in approach and perspective?

Whatever skills you’ve used to confront any collaborative issues you’ve had with your colleagues are likely to pay off in a global virtual team environment.

As we’ve discussed over the past two weeks, cross-cultural remote teams come with their own unique challenges.

Some of them are familiar; some are completely foreign.

I’ve outlined a few below.

Motivating Factors

While we are all motivated by different things – be it money, accolades, achievement, etc. – culture often factors into our motivations.

That’s because different cultures have different values

And values are what often drive motivation.

Some cultures emphasize tangible things; thus, bonuses or other such benefits would be motivators for these team members.

Other cultures value work/life balance, so job satisfaction and time off might be a motivating factor in this case.

Knowing where your team members come from and what they value will help you motivate each member in an individualized way.

Work Style

Often, different work styles are common amongst different cultures.

This often has to do with how the culture views workplace hierarchies.

Are your team members from a culture that demands a strict hierarchy and a top-down approach to management?

Or are they from a culture with a flatter more egalitarian team approach?

On a cross-cultural team, members will have different managerial needs due to their backgrounds, so understanding their work style – whether they need more hands-on or hands-off guidance – will help you better lead them.

Information Gaps

Information gaps on a global virtual team can impact everything from data flows to communication to processing.

Giving all team members access to the right resources for your project goals will ensure that no one falls through the gap.

Doing so will also improve collaboration, as everyone will be working with the same information.

These are just a few challenges that managers face while working with global virtual teams, specifically in a cross-cultural context.

Next week, we’ll talk about challenges that have to do with the virtual environment itself.

How Does Culture Influence the Way We Use Our Brains? Find Out Here.

We’ve all heard of “right-brain” and “left-brain” thinkers.

Left-brain thinkers are thought to be more logical and mathematical, while right-brain thinkers tend to lean emotional and artistic.

But are there any links between the way our brains function and our cultures?

We’ve talked a lot about gene-culture coevolution over these past few weeks.

In short, the theory suggests that genetics and culture are interconnected.

This brain imaging study about visual perceptual tasks seems to substantiate that theory.

Individualist vs. Collective 

Psychological research has shown that individualist and collective values are demonstrated in an individual’s view of objects in relation to their context.

Americans, valuing individuality, tend to view the two as independent from each other.

East Asian cultures, which value the collective, view objects as contextually interdependent.

These differences have been shown to impact perception and memory by behavioral scientists.

The Study: How Our Brains Work

A study by the Massachusetts Institute of Technology took a look at whether these cultural tendencies can be measured in brain activity patterns.

Using functional magnetic resonance imaging (fMRI) scans from a group of 20 participants – 10 from East Asia, 10 from the U.S. – McGovern Institute for Brain Research Professor John Gabrieli and his team examined participants’ mental operations.

Participants were asked to compare a sequence of images, and their mental operations were mapped via blood flow changes in the brain.

The images were lines within squares.

Participants were asked to compare each image with the previous image, making judgments based on relative judgments of interdependent objects or absolute judgments of individual objects without context.

For instance, some questions asked whether the lines were proportional to the squares, regardless of size (interdependent); others asked whether the lines were the same length as each other, regardless of the squares (independent of context).

The Results: Confirmed

While the simplicity of the task resulted in no differences in accuracy between the groups, brain activation patterns did differ.

Relative judgments, which have been shown to be harder for Americans, stimulated the brain regions dedicated to mental tasks that demand attention. 

These regions were less active for absolute judgments.

As you might guess, the results for the East Asian group were the opposite, with brain activity becoming more active for absolute judgments and less for relative.

The paper’s lead author, Trey Hedden, said of the study:

“We were surprised at the magnitude of the difference between the two cultural groups, and also at how widespread the engagement of the brain’s attention system became when making judgments outside the cultural comfort zone.”

Even more interesting, questionnaires had been distributed prior to the exam to see how closely each individual identified with their culture, using questions regarding values and norms.

Those individuals who identified more intimately with their culture’s values showed a stronger reactive pattern of brain activity relative to their culture.

This study suggests that our culture – and how closely we individually identify with our culture – can influence the way our minds work.

Pretty heady.

Population Thinking: How Darwin’s Theory of Evolution Contributes to Cultural Theory

Charles Darwin is best known for his theories of evolution and natural selection.

But biologist Ernst Mayr asserts that Darwin’s concept of “population thinking” is his most important contribution to biology.

In the book, How Culture Transformed Human Evolution, authors Peter J. Richerson and Robert Boyd delve into why this is the case.

This is what they’ve found.

The Theory of Evolution Evolves Our Thinking

Prior to Darwin’s theories on evolution, species were thought to be static and unchanging.

But what Darwin found was that a fluctuating pool of inherited information was passed on across generations over time, and this information was affected by the daily events of the species’ lives, which were also changing.

The persistence of the daily events and the spread of their prevalence would produce inherent properties and traits within a species.

In line with natural selection, those traits that allowed the “survival of the fittest” were passed on to their offspring.

Not only traits, but behaviors that benefited survival – a process Darwin called “the inherited effects of use and disuse.”

In this way, the core of the evolutionary theory is grounded in population thinking, which is the crux of cultural theory.

Cultural Evolution

Culture is an acquired state of behavior, produced via social learning.

Skills, values, norms, beliefs, attitudes, customs, moral systems – these are all acquired and comprise group culture.

And they all evolve via population thinking.

Like the theory of evolution, this theory of cultural evolution delves into why some attitudes and behaviors carry on in a group and others don’t.

As with evolution, the daily lives of people in a society contribute to the process of cultural change.

For instance, a moral value might, at one point in time, appear more appealing in relation to that era’s daily life or current events, thereby spreading and persisting from person to person in a society and generation to generation in a culture.

Similarly, beliefs and behaviors that are more easily imitable and allow survival will spread, while those that might result in group criticism or early death will vanish.

Over time, the persistence of certain beliefs, skills, attitudes, etc., create observable patterns that serve as the genes of culture.

But culture can adapt in a way that genes cannot.

Over the next few weeks, we’ll talk about how population thinking is enmeshed in culture.

Christmas Around the World: Interesting Cultural Christmas Characters & Traditions

In honor of the holiday, let’s take a break from our regularly scheduled programming to visit different cultural Christmas characters and traditions from around the world.

We’ll stop off in Italy to sweep up with La Belfana, in the Netherlands to try on shoes with Sinterklaas and, of course, in Austria, to whip through the snowy streets with Krampus.

Hop on Sinterklaas’ trusty steed, Amerigo, and let’s admire the world of Christmas culture!

Belfana in Italy

Image Credit: Naturpuur

The folkloric La Befana is a Christmas witch that is said to have been invited by the Three Wise Men to deliver gifts to the Christ child.

After refusing the invitation, she had a change of heart and tried to follow the Magi in their journey but, unfortunately, couldn’t catch up.

She never did meet Jesus, but she gave all the gifts intended for him to other children, and her kindhearted nature is still celebrated in Italy today.

Instead of leaving out cookies for Santa, some leave out a glass of wine or panettone for La Befana to kick back after she fills their stockings.

The good witch even sweeps up the home before flying off on her broomstick.

Sinterklaas in the Netherlands

Sinterklaas may be the nearest on this list to most cultures’ traditional idea of Santa Claus. 

He is the Dutch depiction of Saint Nicholas, the Greek bishop on whom Santa Claus is based.

But unlike the American version, the Dutch Sinterklaas rides not a sleigh with reindeer but a white horse named Amerigo. And all his helpers are not called elves but rather “the Peters.”

Sinterklaas wears a red cape and miter and delivers gifts and treats to children’s shoes, which they place near the chimney or back door. 

Most of Sinterklaas’ gifts are of the sweet variety, including marzipan, spiced biscuits, and gingerbread men.

Krampus in Austria

What would a Christmas character list be without a cameo from Krampus?

While most of the world has Father Christmas or jolly Ol’ Saint Nick, Austria went another way.

Each year, the country scares the life out of children with St. Nick’s evil counterpart and accomplice, the ghoul that is Krampus.

The son of Norse goddess, Hel, Krampus is derived from the word for “claw” (krampen) in German.

Santa may have a list of children who are “naughty” or “nice,” offering only coal to the former, but Krampus acts on punishing bad behavior. 

Krampus is said to haunt the streets of Austria in search of bad children – and many actually don his fanged and horned mask, carrying birch tree branches to “whip” the naughty into shape.

The worst of these children, he carries back to his lair in the underworld.

So, “you’d better watch out, you’d better not cry,” because Krampus is coming to town.