INTERNATIONAL COMPARATIVE MGMT
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Chapter7.pptxChapter 7
Cross-Cultural Communication and Negotiation
Learning Objectives
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, culture of communication and nonverbal barriers to effective international communications
Learning Objectives
Present the steps that can be taken to overcome international communication problems
Develop approaches to international negotiations that respond to differences in culture
Review different negotiating and bargaining behaviors that may improve negotiations and outcomes
World of International Management - Netflix's Negotiations
Faces setbacks due to negotiation and communication difficulties in:
China - Setbacks due to a long negotiation process
Russia - Setbacks because of Netflix’s lack of communication and negotiation prior to entry
Communication
Process of transferring meanings from sender to receiver
Advent of the telephone, Internet, and personal communication devices has influenced the way people communicate
Types - Verbal or nonverbal
Verbal Communication Styles - Context
Information that surrounds a communication and helps convey the message
Plays a key role in explaining many communication differences
High-context societies
Messages are often highly coded and implicit
Low-context societies
Messages are often explicit and speaker says precisely what s/he means
Table 7.1 - Major Characteristics of Verbal Styles
Indirect and Direct Styles
High-context cultures - Messages are implicit and indirect
Voice intonation, timing, facial expressions play important roles in conveying information
Low-context cultures - People often meet only to accomplish objectives
Direct and focused in their communications
Degrees of Communication Quantity
Elaborate style - Most popular in high-context cultures that have a moderate degree of uncertainty avoidance
Widely used in Arabic countries
Involves talking, detailed descriptions, and repetition
Exacting style - Focuses on precision and use of the right amount of words to convey message
More common in low-context, low-uncertainty-avoidance cultures
Used in England, Germany, and Sweden, etc.
Succinct style
More common in high-context cultures with considerable uncertainty avoidance
People say few words and allow understatements, pauses, and silence to convey meaning
Most common in Asia
Contextual Styles
Focus on the speaker and the relationship of parties
Associated with high-power-distance, collective, and high-context cultures
Speakers choose words that indicate their status relative to the status of the others
Personal Styles
Focus on the speaker and the reduction of barriers between the parties
More popular in low-power-distance, individualistic, and low-context cultures
Speaker uses first names while addressing others
Affective Styles
Characterized by language that requires the listener to carefully note what is said and to observe how the message is presented
Meaning is conveyed nonverbally and requires the receiver to use intuitive skills to decipher the message
Common in collective, high-context cultures
Middle East, Latin America, and Asia
Instrumental Styles
Goal-oriented
Focuses on the sender who clearly lets the other party know what s/he wants the other party to know
Found in individualistic, low-context cultures
Switzerland, Denmark, and the United States
Table 7.2 - Verbal Styles Used in 10 Select Countries
Interpretation of Communications
Effectiveness of communication is determined by how closely the sender and receiver have the same meaning for the same message
If the meaning is different, effective communication will not take place
Downward Communication
Transmission of information from manager to subordinate
Purpose - Convey orders or information
Managers use this channel for instructions and performance feedback
Channel facilitates the flow of information to those who need it for operational purposes
Sending mixed signals is never helpful in communication
Challenges posed by downward communication in an international context
Communication is direct and extends beyond business matters in European countries
Communication is less direct in Asian countries
Upward Communication
Transfer of information from subordinate to superior
Purpose - Provide feedback, ask questions, or obtain assistance from higher-level management
Upward communication is not popular outside Asian countries
Communication Barriers - Language
Knowledge of the language used at the headquarters of an MNC is essential for personnel placed in a foreign assignment
Fluency, technical knowledge, and writing skills
Misinterpretations often result from unskilled use of a language
Inadequate language training
Cultural Barriers in Language
Geographic, cultural, and institutional distance challenge international managers
Native speakers might deviate from the standard business communication practices of other cultures
Language Differences
One of the major reasons that foreign expatriates have difficulty doing business in the United States is that they do not understand American slang
A business executive recently gave the authors the following examples of statements that had no direct meaning for her because she was unfamiliar with slang
“He was laughing like hell”
“Don’t worry. It’s a piece of cake”
“Let’s throw these ideas up against the wall and see if any of them stick”
Why did the foreign expat have trouble understanding these statements, and what could be said instead?
Perceptual Barriers
Perception
Person’s view of reality
Advertising messages
Misunderstandings caused when words are misinterpreted by others
View of others
May be different from what one thinks
Perceptions influence how individuals see others
Table 7.7 - Common Forms of Nonverbal Communication
Nonverbal Communication
Transfer of meaning through means such as body language and use of physical space
Types
Kinesics
Proxemics
Chronemics
Chromatics
Kinesics
Study of communication through body movement and facial expression
Areas of concern - Eye contact, posture, and gestures
Oculesics: Area of communicating through the use of eye contact and gaze
Haptics: Communicating through the use of bodily contact
Proxemics
Study of the way people use physical space to convey messages
Intimate distance: Used for very confidential communications
Personal distance: Used for talking with family and close friends
Social distance: Used to handle most business transactions
Public distance: Used when calling across room or giving a talk to a group
Figure 7.2 - Personal Space Categories for Those in the U.S.
Chronemics
Way in which time is used in a culture
Types
Monochronic time schedule: Things done in linear fashion
Used in societies which consider time schedules important and time to be a controllable factor that needs to be used wisely
Polychronic time schedule: Several things are done at the same time
Place higher value on personal involvement than on getting things done on time
Consider personal relationships more important than time schedules
Chromatics
Use of color to communicate messages
Knowing the importance and the specifics of chromatics
helps avoid embarrassing situations
Achieving Communication Effectiveness
Open feedback systems
Personal - Face-to-face, phone, or e-mail
Impersonal - Reports, budgets, or plans
Provide language training
Non-native speakers of English need to be provided training to aid them in making face-to-face conversations and telephonic conversations
Written communication is important in achieving effectiveness
Provide cultural training
At least one party has to understand the other’s culture
Increase flexibility and cooperation
Improves effectiveness in communication and understanding and cooperation
Negotiation
Process of bargaining with one or more parties to arrive at a solution that is acceptable to all
Follows assessing political environments
Used in creating joint ventures with local firms
Once a firm starts operating, additional areas of negotiation are included
Types of Negotiations
Distributive negotiation: Occurs when two parties with opposing goals compete over a set value
Integrative negotiation: Involves cooperation between two groups to integrate interests, create value, and invest in an agreement
Table 7.8 - Negotiating Types and Characteristics
Negotiation Process
Planning
Involves identifying objectives, exploring options to attain objectives, and finding areas of common ground between parties
Interpersonal relationship building
Getting to know people on the other side
Exchanging task-related information
Parties setting forth its position on critical issues
Persuasion
Success of a negotiation depends on:
Understanding each parties’ position
Identifying areas of similarity and difference
Creating new options
Working toward a solution
Agreement
Granting of concessions and hammering out of a final agreement
Understanding Cultural Differences
Counterpart’s home culture should not be identified too quickly
Western bias toward doing should be approached with caution
Tendency to formulate simple, consistent, and stable images should be counteracted
Significance of all aspects of the culture should not be assumed to be equal
Differences might exist between the norms for interactions involving outsiders and between the compatriots
Familiarity with counterpart's culture should not be overestimated
Negotiation Tactics
Location
Businesses choose a neutral site to avoid gaining advantage of a location and to finish negotiations soon due to the cost of staying at site
Time limits
Important negotiation tactic when one party is under a time constraint
Buyer-seller relationship
Different for certain countries
Americans believe in trading favors
Japanese believe they should get most out of a purchase
Brazilians are deceptive and self-interested
Negotiation Tactics - Five General Principles
Negotiation Tactics - Five General Principles
Bargaining Behaviors
Verbal and nonverbal
Verbal behaviors are important as they improve the final outcome and are critical to the success of a negotiation
Use of extreme behaviors
Some begin with an extreme offer or request, while some begin with an initial initial position that is close to the one they are seeking
Promises, threats, and other behaviors
Influenced by culture, and is designed to influence the other party
Nonverbal behaviors
Silent language (silent period, facial gazing, touching, and conversational overlaps)
