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PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University

Cross-Cultural Communication and Negotiation

The specific objectives of this chapter are:
1.

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.

2. 3.

Chapter

Cross-Cultural Communication and Negotiation

The specific objectives of this chapter are:
4. 5. 6.

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.

Chapter

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 are often highly coded and implicit in high-context societies, such as Japan and many Arab countries message is explicit and the speaker says precisely what he or she means in low-context societies such as the United States and Canada

Messages The

Explicit and Implicit Communication

High-context/implicit communication cultures Italians English French North Americans Scandinavians Germans Swiss Germans Low-context/explicit communication cultures Japanese Arabs Latin Americans

Adapted from Figure 71: Explicit/Implicit Communication: An International Comparison

Phases of Multicultural Development

Table 71 Major Characteristics of Verbal Styles
Verbal Style Indirect vs. direct Succinct vs. elaborate Major Variation Indirect Direct Elaborate Exacting Succinct Interaction Focus and Content Implicit messages Explicit messages High quantity of talk Moderate amount of talk Low amount of talk Cultures in Which Characteristic It Is Found Collective, high context Individualistic, low context Moderate uncertainty avoidance, high context Low uncertainty avoidance, low context High uncertainty avoidance, high context

Adapted from Table 71: Major Characteristics of Verbal Styles

Phases of Multicultural Development

Table 71 Major Characteristics of Verbal Styles
Verbal Style Contextual vs. personal Major Variation Contextual Personal Interaction Focus and Content Focus is on the speaker and role relationships Focus is on the speaker and personal relationships Language is process oriented and receiver focused Language is goal oriented and sender focused Cultures in Which Characteristic It Is Found High power distance, collective, high context Low power distance, individualistic, low context Collective, high context Individualistic, low context

Affective vs. instrumental

Affective Instrumental

Adapted from Table 71: Major Characteristics of Verbal Styles

Communication Process and Verbal Communication Styles

Verbal communication styles (continued)
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

Communication Process and Verbal Communication Styles

Verbal communication styles (continued)
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.

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Communication Process and Verbal Communication Styles

Verbal communication styles (continued)

Contextual and personal styles

Contextual style is one that focuses on the speaker and relationship of the parties Contextual style is often associated with highpowerdistance, 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

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Communication Process and Verbal Communication Styles

Verbal communication styles (continued)
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

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Summary of Verbal Styles

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Communication Flows
Downward communication
Transmission Primary

of information from manager to subordinate

purpose of manager-initiated communication is to convey orders and information use this channel for instructions and performance feedback

Managers The

channel facilitates the flow of information to those who need it for operational purposes

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Communication Epigrams

Adapted from Figure 72: Communication Epigrams

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Matsushitas Philosophy
Table 73 Matsushitas 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 73: Matsushitas Philosophy

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Matsushitas Philosophy
Table 73 Matsushitas Philosophy The Seven Spiritual Values 1. National service through industry 2. Fairness 3. Harmony and cooperation 4. Struggle for betterment 5. Courtesy and humility 6. Adjustment and assimilation 7. Gratitude

Adapted from Table 73: Matsushitas Philosophy

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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.

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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 812 by 11-inch page is a U.S. standard, but most countries use an A4 (814 1112-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$.

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Nonverbal Communication
Nonverbal communication
The

transfer of meaning through means such as body language and use of physical space study of communication through body movement and facial expression

Kinesics
The

Eye contact Posture Gestures

Chromatics
The

use of color to communicate messages

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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

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Personal Space in the U.S.

Intimate distance Personal distance Social distance Public distance

18 18 to 4 4 to 8 8 to 10

Adapted from Figure 73: Personal Space Categories for Those in the United States

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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

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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

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Flexibility Cooperation: Intercompany Interaction and Negotiation

Table 77 Negotiation Styles from a Cross-Cultural Perspective

Adapted from Table 77: Negotiation Styles from a Cross-Cultural Perspective

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Flexibility Cooperation: Intercompany Interaction and Negotiation

Table 77 Negotiation Styles from a Cross-Cultural Perspective

Adapted from Table 77: Negotiation Styles from a Cross-Cultural Perspective

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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 Planning

1. identify the objectives negotiators would like to attain and explore the possible options for reaching these objectives 2. Set limits on single-point objectives 3. Divide issues into short- and long-term considerations and decide how to handle each 4. Determine the sequence in which to discuss the various issues

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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 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 Impersonal Relationship Building Relationship Building

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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 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 Impersonal Relationship Building Relationship Building

Exchanging TaskExchanging TaskRelated Information Related Information

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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 Planning

Success of the persuasion step depends on

How well the parties understand each others 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 Impersonal Relationship Building Relationship Building

Exchanging TaskExchanging TaskRelated Information Related Information

Persuasion Persuasion

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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 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 Impersonal Relationship Building Relationship Building

Exchanging TaskExchanging TaskRelated Information Related Information

Persuasion Persuasion

Agreement Agreement

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Cultural Differences Affecting Negotiations

1. Do not identify the counterparts home culture too quickly. Common

cues (e.g., name, physical appearance, language, accent, location) may be unreliable.
2. 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.
3. Counteract the tendency to formulate simple, consistent, stable

images.
4. Do not assume that all aspects of the culture are equally significant. 5. Recognize that norms for interactions involving outsiders may differ

from those for interactions between compatriots.

6. Do not overestimate your familiarity with your counterparts culture.

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Negotiation Tactics
Location Time limits Buyer-seller relations Bargaining behaviors
Use

of extreme behaviors threats and other behaviors behaviors

Promises,

Nonverbal

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Effective Negotiation Characteristics

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

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Effective Negotiation Characteristics

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