Overcoming the Gender Divide in Global Negotiation
A woman with a voice is by definition a strong woman.
—Melinda Gates
Traditionally, it has been held that, when men and women negotiate against one another, men derive a better deal. It is because women are docile, nice, nurturing, kind, and submissive, while men are aggressive, assertive, and dominant. But these stereotypes may not be true when you see high-powered, highly qualified women in the modern world. They may project a picture of accepting, giving, and empathy, but when it comes to negotiating, they could be tough and aggressive. It all depends how one prepares ahead of time to negotiate. As has been said, “chance favors the prepared mind.” Women who prepare themselves will fare better in negotiation than those who do not.
The Gender Divide
Six main differences differentiate women from men negotiators, namely, (a) women want to feel and empathize but men want to prioritize; (b) women want to talk about problems before solving them, while men go directly to looking for solutions; (c) women notice subtleties among people better than men; (d) women say what they feel and move on to other matters, while men tend to hold on to their emotions longer; (e) women feel bad when they are not liked, but men feel bad when they do not solve problems; and (f) men and women have different body languages.1
In general, women have different negotiating styles from men, mainly by displaying patience, listening carefully, seeking everyone’s opinions, and trying to build consensus with the other parties. By showing interest in other people and focusing on the relationship, a team consisting of men and women executives may have a competitive advantage when negotiating in relationship-oriented cultures. Moreover, women have been found to be less receptive to unethical or deceptive tactics than men are.2
As far as communication is concerned, particularly e-mail, women and men tend to communicate differently. As has been said,
“Both men and women structure their messages in an interactive way and that for both, the pure exchange of information takes second place to the exchange of views. Significant gender differences are found in how electronic messages are oriented…Although messages posted by women contain somewhat more inter-actional features they are also informative in contrast with male messages which most often express critical views.”3 These findings are in line with the different negotiating styles between men and women, whereas women value social harmony, while men tend to prefer competitive values.
When comparing the different characteristics of women and men negotiators, men tend to do better at the cost of long-term benefits and lasting relationships. Competitive strategies and adversarial tactics are more suited for onetime transactions. For long-term business deals and repeat business, cooperative strategies are more effective than competitive ones, which are more in line with women’s preferred negotiating styles.4 By using a “softer” approach, women negotiators should prove to be more successful as they view negotiations not just as a business activity but as an interpersonal transaction where relationship plays a crucial role.
In other words, the key difference is because women have dual roles when negotiating, (a) issue related and (b) relationship related. By having two goals in mind, women are in a better position to apply collaborative strategies where success depends to a large extent on how the relationship dimension is handled. This assumes, however, that women negotiators know how to counter manipulative ploys, be willing to apply adversarial tactics when needed, be convincing in asking for concessions, and resist conceding too quickly. Figure 13.1 summarizes some of the key differences between men and women negotiators.
These orientations are more applicable in cultures having a clearly defined gender role. However, with today’s globalization influencing traditional ways of doing business, it is likely that at times these traits no longer reflect the true situation prevailing in the overall context the negotiation is taking place. Nevertheless, when preparing for a negotiation, the more that is known about the other party, the better the quality of the preparation.
Figure 13.1. Major differences between men and women negotiators.
The Cultural Divide
These observations need to be somewhat modified when negotiating in cultures where the role of men and women are different and clearly defined. Hofstede identified five cultural dimensions common to all cultures with different intensity. These cultural categories consist of power distance, individualism versus collectivism, uncertainty avoidance, musculinity versus femininity, and short/long-term orientation.5 Masculinity pertains to societies in which men are supposed to be assertive and expected to seek material success. On the other hand, femininity refers to cultures where both men and women are supposed to be more modest and concerned with the quality of life. For example, masculinity cultures value self-assurance, independence, task orientation, and self-achievement. Femininity cultures value cooperation, nurturing, service to others, relationships, and consensus.
Negotiators from masculinity cultures are best suited for competitive strategies and adversarial tactics, leading to win-lose or lose-lose solutions. On the contrary, femininity cultures value cooperation, relationships, patience, and showing concern for the other party’s welfare, thereby favoring collaborative strategies of the win-win type. In countries where women are not fully represented in executive positions, foreign women negotiators will be considered a foreigner first and will be less likely discriminated against than local women negotiators. Women negotiators doing business where gender equality is yet to be attained should emphasize their company’s importance, their position in the organization, and display confidence. Furthermore, a personal introduction or a letter of support from senior management can help to overcome initial resistance from male negotiators.6
On the basis of his research, Hofstede classified 53 countries according to their masculinity culture. The countries with the highest index are Japan, followed by Austria, Venezuela, Italy, Switzerland, Mexico, Ireland, Jamaica, Great Britain, and Germany. Femininity cultures include Thailand, Portugal, Chile, Finland, Costa Rica, Denmark, Netherlands, Norway, and Sweden.
It is possible to group countries by languages. For instance, German-speaking countries (Austria, Germany, and the German-speaking part of Switzerland) are mainly masculinity cultures, while English-speaking countries (Australia, Canada, Great Britain, Ireland, United States, and New Zealand) are moderately masculinity cultures. Latin countries (France, Spain, and some Spanish-speaking countries) are both masculinity and femininity cultures. Nordic countries (Denmark, Finland, Norway, and Sweden) and the Netherlands are mainly femininity cultures. That explains why many more women are in executive positions in the Nordic countries than elsewhere. Although not exhaustive, such a list is a valuable tool for preparing negotiations in these countries. It is also a fundamental indicator in selecting the team members and team leader.
The Corporate Culture
Corporate culture plays a growing role in business negotiation. Over time, most companies develop their own corporate culture with its corresponding set of values, rules, and policies. One such policy is the recruitment and promotion of women to executive positions. This information will help both men and women negotiators to identify what the other side’s behavior is likely to be and to develop appropriate strategies and tactics. For example, will the other party be led by a women executive, or will the team consist of both men and women negotiators? If a company has no clear policy toward the advancement of women employees and the negotiating team is all male, it is sending a strong message about its position on gender equality. As each negotiation is rather unique, it is critical to select team members who are both qualified technically and sensitive to cultural diversity, including gender differences.
Managing the Gender Divide
Preparing for a negotiation is a time consuming and difficult task, particularly in an international context. Successful cross-gender global negotiations are complex, challenging, and more commonplace than the exception. To overcome stereotyping, women should establish their credentials from the start and present their offers in a clear, brief, and direct language without introducing nonbusiness essential details that may confuse the other party.7 Figure 13.2 provides hints for negotiators to handle the gender divide.
Women negotiators dealing with men executives should
• Start discussing business issues early on
• Project an image of self-confidence
• Show that they are knowledgeable about the issues to be discussed
• Let the other party know that they have the power to get the deal done
• Avoid being too emotional
• Stay away from competitive tactics that can be interpreted as threats
Figure 13.2. Hints for cross-gender negotiations.
Studies have shown that women place greater emphasis on relationships by talking about family or personal matters.8 This reflects the tendency to adopt a relationship negotiating style. Men, on the other hand, tend to prefer the competitive negotiating style. By doing so, they get straight to the point when negotiating “time is money” and make sure they establish their credentials, positions, and status (power recognition).9
Figure 13.3. Questions to ask when preparing for cross-gender negotiations.
To prepare for a negotiation, consult the list of questions given in Figure 13.3 to assess the readiness to negotiate across the gender divide. If the answers are mostly negative or reflect a lack of knowledge, it indicates insufficient understanding of the gender factor in negotiation, requiring more time for preparation, particularly when negotiations are taking place in masculine-oriented cultures.
Getting Ready to Negotiate Across the Gender Divide
Dealing with cross-gender negotiations in an international context requires much more preparation than traditional negotiations. The key to success is to take the time to obtain the maximum information on the other party and to prepare accordingly. In addition, negotiators need to know the national and corporate cultures of the other party, company’s policy toward women’s equality, past negotiation behavioral style, composition of the team, and the overall context in which the negotiation will take place. Having collected this information, the strategy can then be developed, appropriate tactics identified, and team members selected on the basis of their technical and social competencies, including gender sensitivity. If the other party is expected to include women executives in their team, it would be wise to appoint a women negotiator in your own team. In addition, male members should be briefed on cross-gender negotiations, and if time permits, mock sessions should be planned before meeting the other team. According to experienced executives, there is no such thing as an international business negotiation but only an interpersonal business negotiation, where both social and technical competencies are essential to reach optimum results. The point can be made with reference to U.S.–China negotiations on intellectual property rights:
Between 1994 and 1996 the United States Trade Representative Charlene Barshefsky negotiated a trade agreement with China to improve the Chinese intellectual property rights (IPR) enforcement regime to guarantee a better protection for foreign patents and copyrights.
The piracy of American intellectual property in foreign markets, especially in China became a very serious issue. The development of technology made pirated products easier to reproduce and to re-export to the U.S., contributing further to the already existing trade deficit with China.
Prior to the negotiations, Ms. Barshefsky, the United States Trade Representative (USTR) started to design a strategy to address the problem. She knew that trade relations regarding IPR matters with China were highly sensitive and therefore, specific sanctions related to trade issues (IPR in this case) should be considered.
Ambassador Barshefsky analyzed various options including to invoke Section 301 in which China would suffer from trade sanctions unless it provides more protection for U.S. intellectual property works.
The Chinese government never expected Ambassador Barshefsky to be a difficult counterpart because women are considered to be soft negotiators. However, she proved to be a tough challenge to the Chinese government. She was very concise and precise in her demands. She proved to be a risk taker when she decided to contact the regional authorities in China even though her actions would upset the central government in Beijing. She also showed to be friendly, mastered cultural barriers and demonstrated to her counterparts that she had enough authority to deal with the IPR issues.
She has been often described as an intense and tough negotiator. Barshefsky was given the nickname “Stonewall” because of her ability to “out-wait, out-wit and out-talk her opponents.” To illustrate her ability to face adversity when the Chinese representative became aggressive by saying to Mrs. Barshefsky “it’s take or leave it” she replied “If the choice is to take or leave it, of course I will leave it. But I can’t imagine that’s what you meant. I think what you meant is that you would like me to think over your last offer and that we continue tomorrow. I hope you understand that what you are putting on the table is inadequate, but I am going to be thinking more carefully tonight about what you suggested.” With this response, not only did she avoid confrontation, but provided a face-saving gesture to the Chinese negotiator.
Throughout the negotiations, Ambassador Barshefsky was able to be flexible and cooperative when dealing with the IPR issues. She did not turn out to be impatient and she waited for the right moment to act. She also showed to be relationship oriented even though she was very task-oriented.10
Summary
Men negotiators operating in the global marketplace are increasingly interacting with women executives. As more women move into senior positions with negotiation responsibilities, overcoming the gender divide is critical for both men and women alike. Until recently, the literature on negotiation has largely ignored the characteristics of women negotiators. Recent research, however, shows that women negotiators can do as well as men if not better because of their ability to listen, read nonverbal signs, consult others, and adopt cooperative moves. As one of the most frequent obstacles to reaching agreement is misunderstanding among the parties, women negotiators are ideally suited to overcome this problem by taking the time to understand people and by discovering the other person’s underlying interests while establishing trust, credibility, and social harmony.