Cross-Cultural Communication and Negotiation

Cross-Cultural Communication and Negotiation The specific objectives of this chapter are: DEFINE the term communication, examine some examples of verbal communication styles, and explain the importance of message interpretation. ANALYZE the common downward and upward communication flows used in international communication. EXAMINE the language, perception, and culture of communication, and nonverbal barriers to effective international communications.

Cross-Cultural Communication and Negotiation The specific objectives of this chapter are: PRESENT the steps that can be taken to overcome international communication problems. 5. DEVELOP approaches to international negotiations that respond to differences in culture. REVIEW different negotiating and bargaining behaviors that may improve negotiations and outcomes.

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

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

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

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

Communication Process and Verbal Communication Styles • Indirect and direct styles • In high-context cultures, messages are implicit and indirect • Voice intonation, timing, and facial expressions play important roles in conveying information • In low-context cultures, people often meet only to accomplish objectives and tend to be direct and focused in their communications Verbal communication styles (continued)

Communication Process and Verbal Communication Styles • Elaborate and succinct styles • Three degrees of communication quantity— elaborate, exacting, and succinct. • The elaborating style is more popular in high-context cultures that have a moderate degree of uncertainty avoidance • The exacting style focuses on precision and the use of the right amount of words to convey the message and is more common in low-context, low-uncertainty-avoidance cultures • The succinct style is more common in high-context cultures with considerable uncertainty avoidance where people tend to say few words and allow understatements, pauses, and silence to convey meaning. Verbal communication styles (continued)

Communication Process and Verbal Communication Styles • Contextual and personal styles • Contextual style is one that focuses on the speaker and relationship of the parties • Contextual style is often associated with high-powerdistance, collective, high-context cultures • Personal style focuses on the speaker and the reduction of barriers between the parties • Personal style is more popular in low-power-distance, individualistic, low-context cultures Verbal communication styles (continued)

Communication Process and Verbal Communication Styles • Affective and instrumental styles • Affective style is common in collective, high-context cultures and is characterized by language that requires the listener to note what is said and to observe how the message is presented • The meaning is often nonverbal and requires the receiver to use his or her intuitive skills to decipher the message • Instrumental style is goal oriented and focuses on the sender who clearly lets the other party know what he or she wants the other party to know. • The instrumental style is more commonly found in individualistic, low-context cultures Verbal communication styles (continued)

Summary of Verbal Styles

Communication Flows • Downward communication • Transmission of information from manager to subordinate • Primary purpose of manager-initiated communication is to convey orders and information • Managers use this channel for instructions and performance feedback • The channel facilitates the flow of information to those who need it for operational purposes

Communication Epigrams Adapted from Figure 7–2: Communication Epigrams

Matsushita’s Philosophy Table 7–3 Matsushita’s Philosophy Basic Business Principles To recognize our responsibilities as industrialists, to foster progress, to promote the general welfare of society, and to devote ourselves to the further development of world culture. Employees Creed Progress and development can be realized only through the combined efforts and cooperation of each member of the Company. Each of us, therefore, shall keep this idea constantly in mind as we devote ourselves to the continuous improvement of our Company. Adapted from Table 7–3: Matsushita’s Philosophy

Matsushita’s Philosophy Table 7–3 Matsushita’s Philosophy The Seven Spiritual Values • National service through industry • Fairness • Harmony and cooperation • Struggle for betterment • Courtesy and humility • Adjustment and assimilation • Gratitude Adapted from Table 7–3: Matsushita’s Philosophy

Communication Barriers • Language barriers • Cultural barriers • Suggestions that can be of value to American managers who are engaged in international communications include: • Be careful not to use generalized statements about benefits, compensation, pay cycles, holidays, or policies in your worldwide communications. • Since most of the world uses the metric system, be sure to include converted weights and measures in all internal and external communications. • Keep in mind that even in English-speaking countries, words may have different meanings. Not everyone knows what is meant by “counterclockwise,” or “quite good.”

Communication Barriers • Language barriers • Cultural barriers • Suggestions that can be of value to American managers who are engaged in international communications include: • Remember that letterhead and paper sizes differ worldwide. The 81⁄2 by 11-inch page is a U.S. standard, but most countries use an A4 (81⁄4 111⁄2-inch) size for their letterhead, with envelopes to match. • Dollars are not unique to the United States. There are Australian, Bermudian, Canadian, Hong Kong, Taiwanese, and New Zealand dollars, among others. So when referring to American dollars, it is important to use “US$.”

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

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

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

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

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

Flexibility Cooperation: Intercompany Interaction and Negotiation Table 7–7 Negotiation Styles from a Cross-Cultural Perspective Adapted from Table 7–7: Negotiation Styles from a Cross-Cultural Perspective

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

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 Impersonal Relationship Building

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

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 • 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 Impersonal Relationship Building Exchanging Task-Related Information Persuasion

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

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. • 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.

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

Effective Negotiation Characteristics Adapted from Table 7-10: Culture-Specific Characteristics Needed by International Managers for Effective Negotiations

Wal-Mart’s Japan Strategy (p. 227) Case

Cross-Cultural Communication and Negotiation