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CIPS L4M5 (Commercial Negotiations) STUDY GUIDE QUESTIONS AND ANSWERS A+ GRADED.
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CIPS L4M5 (Commercial Negotiations) STUDY GUIDE QUESTIONS AND ANSWERS A+ GRADED.
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CIPS L4M5 (Commercial Negotiations) STUDYGUIDE QUESTIONS AND ANSWERS A+
GRADED.
The number of situations where international cultural differences may
affect negotiations are many and varied. A selection may include
✔✔- When you are buying complex purchase or requiring a long term or
close relationship with the supplier
- When creating partnerships/joint ventures
- When buying services involving teams from other countries
- When minor misunderstandings can lead to major problems
- When goodwill trust is essential for a good working relationship
- When there are different expectations and norms around the giving and
receiving of corporate hospitality and gifts
Managing cultural differences
✔✔In large multi-national organizations it may be possible to employ or
deploy staff with the same cultural background as part of the negotiation
team, or use a local agent or overseas purchasing office
Hofstede's Six Cultural Dimensions
✔✔- Power distance index
- Individualism versus collectivism
- Masculinity versus femininity
- Uncertainty avoidance index
- Long-term orientation versus short-term normative orientation
- Indulgence versus restraint
,Hofstedes Cultural Dimensions - Power distance index (PDI)
✔✔High: Acceptance of a hierarchical order in which everybody has a
place and which needs no further justification
Low: People strive to equalise the distribution of power and demand
justification for inequalities of power
Hofstedes Cultural Dimensions - Individualism versus collectivism (IDV)
✔✔Individualism: As a preference for a loosely knit social framework
Collectivism: Tightly knit framework in society
Hofstedes Cultural Dimensions - Masculinity versus femininity (MAS)
✔✔Masculinity: Preference in society for achievement, heroism,
assertiveness and material rewards for success
Femininity: Stands for a preference for co-operation, modesty, caring for
the weak and quality of life
Hofstedes Cultural Dimensions - Uncertainty avoidance index (UAI)
✔✔High: Maintains rigid codes of belief and behaviour and is intolerant
of unorthodox behaviour and ideas
Low: Societies maintain a more relaxed attitude in which practice counts
more than principles
,Hofstedes Cultural Dimensions - Long term orientation versus short term
normative orientation (LTO)
✔✔High: Pragmatic approach, they encourage thrift and efforts in
modern education as a way to prepare for the future
Low: Societies prefer to maintain time honoured traditions and norms
while viewing societal change with suspicion
Hofstedes Cultural Dimensions - Indulgence versus restraint
✔✔Indulgence: Societies that allow relatively free gratification of basic
and natural human drives related to enjoying life and having fun
Restraint: Societies that suppress gratification of needs and regulate it by
means of strict social norms
Where cultural differences have no impact on the negotiation other more
obvious factors may play a role in your overall sourcing decision
✔✔- Trust and payment issues
- Currency risk issues
- Legal and contracting issues
- Communication and logistical issues
- Ethical and environmental issues
- Political issues
EQ (Emotional Quotient)
✔✔a measure of a persons level of emotional intelligence and refers to a
persons ability to perceive, control, evaluate and express emotions
, EQ (Emotional Quotient) seeks to measure emotional intelligence and is
centered on abilities such as
✔✔- Identifying emotions
- Evaluating how others feel
- Controlling ones own emotions
- Perceiving how others feel
- Using emotions to facilitate social communication
- Relating to others
The JCA Global model of emotional intelligence - Personal intelligence
✔✔Behaviour: Self management
Feeling: Self awareness
Attitude: Self regard
The JCA Global model of emotional intelligence - Interpersonal
intelligence
✔✔Behaviour: Relationship management
Feeling: Awareness of others
Attitude: Regard for others
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