The Role of Culture

1. The Role of Culture Cross-Cultural Communication and Negotiation Mark McKenna BUS 162 (6), International and Comparative Management San Jose State University Chapters 7, Hodgetts, Luthans and Doh, International Management: Culture, Strategy and Behavior , 6th edition (New York: McGraw-Hill Irwin, 2006) Adapted from PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University

2. Verbal Communication Non-Verbal Communication Perceptual Barriers Achieving Effective Communication Cross-Cultural Negotiation Overview

3. Communication Process and Verbal Communication Styles • Communication • The process of transferring meanings from sender to receiver • Verbal communication styles • Context is information that surrounds a communication and helps convey the message • Messages are often highly coded and implicit in high-context societies, such as Japan and many Arab countries • The message is explicit and the speaker says precisely what he or she means in low-context societies such as the United States and Canada

4. High-context/implicit communication cultures Low-context/explicit communication cultures Explicit and Implicit Communication Japanese Arabs Latin Americans Italians English French North Americans Scandinavians Germans Swiss Germans Adapted from Figure 7–1: Explicit/Implicit Communication: An International Comparison

5. Cultures in Which Major Interaction Focus Characteristic It Verbal Style Variation and Content Is Found Indirect vs. direct Indirect Direct Implicit messages Explicit messages Collective, high context Individualistic, low context Succinct vs. elaborate Elaborate High quantity of talk Moderate uncertainty avoidance, high context Exacting Moderate amount of talk Low uncertainty avoidance, low context Succinct Low amount of talk High uncertainty avoidance, high context Phases of Multicultural Development Table 7–1 Major Characteristics of Verbal Styles Adapted from Table 7–1: Major Characteristics of Verbal Styles

6. Cultures in Which Major Interaction Focus Characteristic It Verbal Style Variation and Content Is Found Contextual vs. personal Contextual Focus is on the speaker and role relationships High power distance, collective, high context Personal Focus is on the speaker and personal relationships Low power distance, individualistic, low context Affective vs. instrumental Affective Language is process oriented and receiver focused Collective, high context Instrumental Language is goal oriented and sender focused Individualistic, low context Phases of Multicultural Development Table 7–1 Major Characteristics of Verbal Styles Adapted from Table 7–1: Major Characteristics of Verbal Styles

7. Summary of Verbal Styles

8. Nonverbal Communication • Nonverbal communication • The transfer of meaning through means such as body language and use of physical space • Kinesics • The study of communication through body movement and facial expression • Eye contact • Posture • Gestures • Chromatics • The use of color to communicate messages

9. Nonverbal Communication • Proxemics • The study of the way that people use physical space to convey messages • Intimate distance is used for very confidential communications • Personal distance is used for talking with family and close friends • Social distance is used to handle most business transactions • Public distance is used when calling across the room or giving a talk to a group

10. Intimate distance 18” Personal distance 18” to 4’ Social distance 4’ to 8’ Public distance 8’ to 10’ Personal Space in the U.S. Adapted from Figure 7–3: Personal Space Categories for Those in the United States

11. Nonverbal Communication • Chronemics • Monochronic time schedule • Things are done in a linear fashion. • Manager addresses Issue A first and then moves on to Issue B • Time schedules are very important and time is viewed as something that can be controlled and should be used wisely • Polychronic time schedules • People tend to do several things at the same time • People place higher value on personal involvement than on getting things done on time • Schedules are subordinated to personal relationships

12. Perceptions

13. Achieving Communication Effectiveness • Improve feedback systems • Two basic types of feedback systems between home office and affiliates • Personal (e.g., face-to-face meetings, telephone conversations and personalized e-mail) • Impersonal (e.g., reports, budgets, and plans) • Language training • Cultural training • Flexibility and cooperation

14. Managing Cross-Cultural Negotiations Non-Verbal Communication Perceptual Barriers Achieving Effective Communication Cross-Cultural Negotiation CROSS-cultural negotiation

15. Managing Cross-Cultural Negotiations Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all Planning • identify the objectives negotiators would like to attain and explore the possible options for reaching these objectives • Set limits on single-point objectives • Divide issues into short- and long-term considerations and decide how to handle each • Determine the sequence in which to discuss the various issues

16. Managing Cross-Cultural Negotiations Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all Planning • Get to know the people on the other side • “Feeling out” period is characterized by the desire to identify those who are reasonable and those who are not Interpersonal Relationship Building

17. Managing Cross-Cultural Negotiations Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all Planning • Each group sets forth its position on the critical issues • These positions often change later in the negotiations • Participants try to find out what the other party wants to attain and what it is willing to give up Impersonal Relationship Building Exchanging Task-Related Information

18. Managing Cross-Cultural Negotiations Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all • Success of the persuasion step depends on • How well the parties understand each other’s position • The ability of each to identify areas of similarity and differences • The ability to create new options • The willingness to work toward a mutually acceptable solution Planning Impersonal Relationship Building Exchanging Task-Related Information Persuasion

19. Managing Cross-Cultural Negotiations Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all Planning • Grant concessions and hammer out a final agreement • This phase may be carried out piecemeal, and concessions and agreements may be made on issues one at a time. Impersonal Relationship Building Exchanging Task-Related Information Persuasion Agreement

20. Approaches to Negotiation • Position-based • Competitive, distributive • Value-claiming • Interest-based • Collaborative, integrative • Value-creating (Fisher and Ury, Getting to Yes, 1983)

21. Effects of Each Approach • Some negative effects of the Position-based Approach • Closed-mindedness and rigidity • Compromise, or win-lose solutions • Damaged relationships • Some positive effects of the interest-based approach • Creative exploration for mutual gain • More elegant solutions, or win-win • Strengthened relationships

22. Key Principles of Interest-Based Approach • Separate the people from the problem • Focus on interests, not positions • Generate options • Use objective criteria • Use consensus decision-making

23. Negotiation Exercise Step 1: Getting Ready • Define the Problem • List the Stakeholders & Interests • List Alternatives • Choose your BATNA (Best Alternative to a Negotiated Agreement) • Capture any Options

24. Negotiation Exercise Step 2: Getting Together • Define the Problem • List the Stakeholders & Interests • Brainstorm Options • Evaluate • Move Toward Agreement

25. Cultural Differences Affecting Negotiations • Do not identify the counterpart’s home culture too quickly. Common cues (e.g., name, physical appearance, language, accent, location) may be unreliable. • Beware of the Western bias toward “doing.” Ways of being (e.g., comportment, smell), feeling, thinking, and talking can shape relationships more powerfully than doing. • Counteract the tendency to formulate simple, consistent, stable images.

26. Cultural Differences Affecting Negotiations • Do not assume that all aspects of the culture are equally significant. • Recognize that norms for interactions involving outsiders may differ from those for interactions between compatriots. • Do not overestimate your familiarity with your counterpart’s culture.