Cross Cultural Communication in Business

1. Cross Cultural Communication in Business

2. Program outline • Introduction to culture & cultural differences • Challenges in cross cultural communication • Understanding cultures – culture models

3. 1 - Introduction to culture & cultural differences

4. "Cultural differences" "For a German and a Finn, the truth is the truth. In Japan and Britain it is all right if it doesn't rock the boat. In China there is no absolute truth. In Italy it is negotiable." Richard D. Lewis

5. Culture = Human mental programming Specific to individual Inherited & learned Personality Specific to group or category Learned Culture Inherited Universal Human Nature Source: G. Hofstede

6. Nature of culture Learned Culture is acquired by learning and experience Shared People as a member of a group, organization, or society share culture Transgenerational Culture is cumulative, passed down from generation to generation

7. The iceberg of culture Languages (verbal & non-verbal) Explicit Conscious Explicit behaviours Habits & traditions (food, housing, clothing, health…) Know-how (communication codes, tools..) Institutions (collective organizations modes: family, education Norms (Do’s & don'ts) Unconscious Values Implicit Mental state & cognitive processes (perception, learning, knowledge, memory…)

8. Symbols Heroes Rituals Values Practices Manifestations of culture: different levels Source: G. Hofstede

9. Manifestations of culture • Symbols: words, gestures, objects that carry a particular meaning which is only recognized by those who share the culture. • Heroes: persons, alive or dead, real or imaginary, who possess characteristics which are highly prized in a culture and who thus serve as models for behavior. • Rituals: collective activities, considered socially essential. • Values: basic assumptions about how things should be in society.They are convictions regarding right or wrong, good or bad, important or trivial. Learned implicitly. Cannot be discussed. • Practices: what is visible to an outsider. Source: G. Hofstede

10. Americans as other see them… • India:“Americans seem to be in a perpetual hurry. Just watch the way they walk down the street. They never allow themselves the leisure to enjoy life; there are too many things to do.” • Turkey: “Once we were out in a rural area in the middle of nowhere and saw an American come to a stop sign. Though he could see in both directions for miles and no traffic was coming, he still stopped!” • Colombia: “The tendency in the US to think that life is only work hits you in the face. Work seems to be the one type of motivation.” • Ethiopia: “The American is very explicit; he wants a “yes” or a “no”. If someone tries to speak figuratively, the American is confused.” • Iran: “The first time my American professor told me, “I don’t know the answer, I will have to look it up,” I was shocked. I asked myself, “Why is he teaching me? In my country a professor would give the wrong answer rather than admit ignorance.” Source: N. Adler., 1991

11. Brazil?

12. Stereotypes… French: logical, cartesian, elitist, authoritarian, proud Americans: superficial, ‘Frontier Spirit’, materialistic, over-optimistic Italians: loud, macho,impatient, over-emotional, talkative, unorganized Chinese: quiet, hardworking, enigmatic, smiling, cruel British: imperialistic, ‘Island mentality’, principled, class-conscious, conservative Germans: rigid, methodical, obsessed with order & privacy, unemotional, territorial

13. Culture The way you live The way you view things The way you communicate Customs, habits, traditions Food & its meaning Music, clothing Religious practice Health practice Child raising Family structures & relationships Meaning of language Interaction pattern Communications Verbal & non-verbal Beliefs, values Spirituality Perceptions Attitudes Expectations First approach to culture

14. Diversity of values & differences in ranking USAJapan Arab 1. Freedom 1. Belonging 1. Family security 2. Independence 2. Group harmony 2. Family harmony 3. Self-reliance 3. Collectiveness 3. Paternalism 4. Equality 4. Age/Seniority 4. Age 5. Individualism 5. Group consensus 5. Authority 6. Competition 6. Cooperation 6. Compromise 7. Efficiency 7. Quality 7. Devotion 8. Time 8. Patience 8. Patience 9. Directness 9. Indirectness 9. Indirectness 10. Openness 10. Go-between 10. Hospitality

15. Common problems… • There are a number of problems that all cultures try to address & bring solutions to: • relation to nature • relation to others • relation to power • relation to rules • relation to activity • relation to emotions • relation to space • relation to time Unity??? Source: N. Prime, 2001

16. Cultural answers through different solutions… • “ Culture, is the mechanism that allows to select an attitude, an interpretation, a solution as the one that makes sense « de facto », when facing a situation ( decision, relationship, emotion…)” Nathalie Prime, 2001 Diversity...

17. Universal problems & cultural responses Source: N. Prime, 2001

18. Values, beliefs & behaviors Culture Values, Beliefs Situations FILTER Perception Behaviors

19. Cultural conditioning (1) As a leader of of cross-cultural team, Ms. C. is having difficulties managing Mr. H., one of the foreign member of the team. He promised to compile a report by the deadline she set, but he didn’t. When she talks to him about it, he won't look her in the eyes. What’s happening? Can you identify the two cultures that Ms. C. and Mr. H. belong to? Source: CCL, 2002

20. Cultural conditioning (2) Ms. C. suspects that Mr. H. is either very disorganized or doesn’t respect her as a leader… His unwillingness to make eye contact looks like evasive behavior to her. Source: CCL, 2002

21. Questions… • Do you understand your own cultural background & conditioning? • Do you approach cross-cultural communication with an awareness of how differences may affect communication? • Do you have the attitude that « different » is bad, inferior, or wrong? • Are you aware of ways that you stereotype others? • Arte you willing to adjust your communication in order to be more effective? Source: CCL, 2002

22. Anticipate & Adapt to Cultural differences • Examine your own cultural conditioning • Watch for discomfort that can signal cultural differences • Recognize & modify your communication Source: CCL, 2002

23. What do we know about culture? Things I do not see Things I see Open for discussion Things they see My blind spot Shared blind spot Their blind spot Things they do not see Source: Jouard, 1964

24. Culture? • "Collective Programming" • Starts from birth, is reinforced in school & by education • Relates to values & core beliefs • Displayed in attitudes & behavior • Some visible characteristics: • Customs, behavior • Some less visible ones: • Values, beliefs

25. 2 - Challenges in cross cultural communication

26. Opening a meeting Informal intro. Cup of coffee. Jokes. Begin. Formal intro. Cup of tea. 10 min small talk. Casual beginning. Formal intro. 15 min small talk. Begin. Formal intro. Protocol seating. Green tea. 15/20 min small talk. Signal from senior member. Begin. 20/30 min small talk while others arrive. Begin when all are there. Number of minutes 5 10 15 20 25 Adapted from Richard D. Lewis

27. Behavior & cultural differences (1) A foreign manager is conducting an annual performance review with one of his direct reports. He begins the session by discussing all the areas in which the employee’s performance meets or exceeds goals. The employee listens attentively with serious and thoughtful expression. But when the manager begins to discuss weaknesses and problem areas, the employee starts smiling. The sterner the manager’s tone, the broader the employee grins. The employee does not comment on anything the manager says or defend or explain. The manager becomes angry because he believes the employee is mocking him and treating the evaluation as a joke. What do you think is happening? What does the employee’s smile may mean for him/her? Source: CCL, 2002

28. Cultural differences: J. meets Y. (1) J. goes to the airport to meet Y. The two men had talked several times on the phone but had only met once before. When Y. spots J. in the baggage area, he enthusiastically embraces him and kisses him on both cheeks. J. feels uncomfortable and hopes that nobody he knows has witnessed this greeting. Source: CCL, 2002

29. Cultural differences: Ms H. & V. (1) When Ms. H presents her proposal at the meeting, V. reacts strongly. He pounds on the table and questions her in a loud voice. When Ms. H casts her eyes down in embarrassment, V. seems to get more excited. He leans across the table and jabs his hands towards her face. Source: CCL, 2002

30. Negotiation & cultural differences (1) Tom in London & Hitoshi in Tokyo both like Armani suits, football, Beethoven, & good French wines. But Tom recently spoke for days with Hitoshi, his potential business partner and yet the barriers between them were never broken. The deal did not get closed. What is your assessment of the situation? Source: CCL, 2002

31. Discomfort & cultural differences (1) • Why doesn’t he/she says yes or no? • In one culture, an indirect signal may signal indecisiveness, while in another culture it signals deference & respect. • Why he/she always staring at me? • In one culture staring can signal aggressiveness or intimidation, while in another culture direct eye contact shows attention & esteem. • Why does he/she have to be right in my face whenever he/she talks to me? • In one culture the range of personal space can be much smaller than in another culture. Source: CCL, 2002

32. Discomfort & cultural differences (2) • Why doesn’t he/she tell me if he/she doesn’t understand something? • In one culture,asking questions is accepted as an effective tool for communication, while in other cultures questioning superiors may signal insolence. • Why doesn’t he/she sit there smiling when I am talking about his performance problems? • In one culture smiling during a discussion about performance problems may signal contempt and disinterest, while in another culture a smile may reflect sincerity and attention. • Why does he make a joke about everything? • In one culture, a joke can signal lack of confidence or seriousness, while in some others it's a sign of deference. Source: CCL, 2002

33. Cultures • We think our minds are free… • But be careful to distinguish between appearance and reality • And remember that every culture is viewed by the others through their own "cultural spectacles"

34. 3 -Understanding cultures – culture models

35. Edward Hall’s “Silent Language” • 5 “silent languages”: • Time • Space • Material goods • Friendship • Agreements Culture as a means of communication...

36. Time: Linear vision (1) Present Future Past Plans for next months/years Immediate tasks, separated & identified Over

37. Time: Linear vision (2) • Action oriented • Time dominated: "time is money" & cannot be "wasted" • Focus on one thing at a time… & within schedule Anglo-Saxons, Germans, Swiss, Scandinavians Adapted from Richard D. Lewis

38. Time: Cyclical vision • Past provides background • Circling around the problems & "walk around the pool" before making decision • Time is precious • But one needs plenty of time to look at details of a deal and develop the personal side of a relationship Far-East, Asians Adapted from Richard D. Lewis

39. Time: Vision from … • The more they can do at the same time, the happier they are • Not interested in schedule & punctuality • Focus on the human side of things: meeting, business & relationship are more important • Time is event, personality related • It can be "used, manipulated, stretched..." Latins, Arabs Adapted from Richard D. Lewis

40. Monochronic vs. Polychronic behavior Polychronic Monochronic Time is crucial Punctuality Get to the point A then B then C then D Time is an asset Time is not ours to manage Events have their own time A & B or C, D or B Talk business, but also football, food, friendship Task, linear Task & Relational, circular

41. Space • Availability of space • use of space: physical & personal; ex, USA – wide open space, frontier spirit & Japan – limited space, island mentality • readiness to make contact, nature & degree of involvement with others: keep distance, suspicion of strangers; ex, Europe vs. USA

42. Material goods • Use of material possessions • North America: indication of status, level of success: car, house, money… • Other cultures: Japan, Middle-East, not viewed as important – emphasis placed on other elements: taste, harmony, friendship… Adapted from Richard D. Lewis

43. Friendship • Formed quickly with neighbors, coworkers • North America • Takes more time, lasts longer, goes deeper and implies obligations • Asia, Middle-East Adapted from Richard D. Lewis

44. Agreements • How to view law, rules, practices & informal customs? • Need for a written agreement, binding – North America, Northern Europe • Oral, handshake, with trust sufficient - Asia, Arabs Adapted from Richard D. Lewis

45. Communication process INTENT & MEANING EFFECT & INTERPRETATION Channel (medium) Sender Receiver Encoding Decoding symbols words pictures gestures… Feedback (clarify, confirm…) Ideas, feelings... cannot be communicated directly... Noise from culture...

46. Explicit & implicit communication Japanese High Context Arabs Latin Americans Italians British French North Americans Scandinavians Germans Low Context Swiss Implicit Communication Explicit Communication

47. Hofstede’s model • 5 dimensions of culture: • Power distance • Individualism vs. collectivism • Feminity vs. masculinity • Uncertainty avoidance • Long term orientation

48. Low High Social integration Little concern for hierarchical status Social differential Significant concern for hierarchical status Power distance Defined as ”the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.” G. Hofstede

49. Power distance: Sweden… Source: G. Hofstede

50. Power distance Impact on management ... • Type of management structure • Decision process • Flow of information • Inequalities/equalities • Formalism • Status