Cross-cultural Communication and Negotiation

1. Cross-cultural Communicationand Negotiation Chapter 7

2. Sender meaning Encoding Medium Decoding Receiver interpretation Feedback The Communication Process • Communication is the process of transferring meaning from sender to receiver. The Communication Model

3. The Communication Model • Encoding: The sender expresses a meaning in a message • Medium: the means that a sender uses to transmit the message • Decoding: the receiver gets the message • Interpretation: the receiver tries to understand the meaning of the message • Feedback: The receiver responds to the message

4. Terms in Communication • Intercultural communication: a member of one culture sends a message to a member of another culture. • Attribution: the process in which people look for the explanation of another person’s behavior. • Noise: a factor that causes the receiver to misunderstand the sender's message

5. Context of Communication (1) • Context is the information that surrounds a communication and helps to convey the message • Low-context societies • Message is explicit and the speaker tries to say precisely what is meant • Direct style: focus on speaker's statements • Silence may make people uncomfortable • Facial expressions and body language may be easy to interpret • Business meetings are often focused on objectives.

6. Context of Communication (2) • High-context societies • Business meetings with new contacts focus on relationships first. Business comes later. • Indirect style: speaker does not spell out his message • Avoid saying "no" • Avoid embarrassing people • Control facial expressions and body language

7. Context of Communication (3) • Indirect style (2) • Messages often are implicit: Listener is expected to de-code verbal and non-verbal cues, such as voice, intonation, timing, body language • Silence is used to understand received messages and decide how to reply

8. 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

9. How People Use Physical Spaceto Communicate • 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 in the U. S. • 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.

11. The Use of Time • Monochronic (sequential) 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. 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 less important than personal relationships

12. Managing Cross-Cultural Negotiations • Negotiation:The process of bargaining with one or more parties to arrive at a solution that is acceptable to all • Steps in international business negotiations • Planning – each company does separately • Interpersonal relationship building • Exchanging task-related information • Persuasion and bargaining • Agreement

13. Step 1: Planning • Learn about the other company that will be involved in the negotiations. • Learn about the culture, negotiating behaviors, and business practices of the country in which the other company is located. • Determine what your objectives are. • Identify possible options for reaching each objective.

14. Step 1: Planning (2) • Set negotiating targets or limits. • Know what you would like to get and what you must get in order to meet your company’s objectives • Set limits for 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 issues.

15. Step 2:Interpersonal Relationship Building • In a high-context culture, relationship building will be a long, important process and will precede discussions of business. • Get to know the people on the other side • Identify those who are reasonable and those who are not. • In a low-context culture, get down to business.

16. Step 3:Exchange Task-related Information • 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

17. Step 4: Persuasion • Work toward a final agreement • Success 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

18. Step 5: Agreement • Grant concessions and hammer out a final agreement • American negotiators usually bargain on one issue at a time. • Asian, Russian, and Arab negotiators usually want one big, final agreement and give few concessions until the end.

19. Negotiating for Mutual Benefit“Getting to Yes” • Separate the people from the problem. • Focus on mutual interests. • Generate as many options as you can, but be sure that each option will be a good business deal for your company. • Use objective criteria. • Stand your ground. Neither side should accept a deal that is worse than its best alternative to a negotiated agreement (BANTA)

20. Negotiation Tactics • Location • Time limits • Buyer-seller relations • Bargaining behaviors • Use of extreme behaviors • Promises and threats • Nonverbal behaviors