Presentation on theme: "Communicating and Negotiating Across Cultures"— Presentation transcript:
1 Communicating and Negotiating Across Cultures Presenter:Richard R. GestelandGlobal Management LLC
2 Business Culture: A set of expectations and assumptions about how to do business.
3 Two Iron Rules of International Business: The business visitor is expected to understand the local culture.The seller is expected to understand and adapt to the buyer’s culture.
4 But there are over 6900 cultures in today’s global marketplace…
5 Patterns of Cross-Cultural Communication and Negotiating Behavior
6 First: How to avoid stereotyping when we compare business cultures? Stereotypes are lazy ways of describing people.So we will refer to cultural tendencies when we compare international business behavior.
7 Cross-Cultural Communication and Negotiating Behavior: 5 Key Variables Deal-Focus vs Relationship-FocusDirect vs Indirect CommunicationInformal vs Formal Business BehaviorMonochronic vs Polychronic TimeReserved vs Expressive Communication
8 Comparing Deal-Focused and Relationship-Focused Business Behavior
9 Deal-Focused Business Cultures: United StatesNordic countries, Netherlands, Germany, Britain, CanadaAustralia/New Zealand
10 Moderately Deal-Focused Cultures: France, Belgium, Southern EuropeCentral Europe, Eastern Europe, RussiaHong Kong and Singapore
11 Relationship-Focused Cultures: Asia (except Hong Kong and Singapore)Middle-East, AfricaLatin America(= most of the world!)
12 D-F Behavior: R-F Behavior: Making direct initial contact often works.Face-to-face meetings less frequent.Usually use direct language.Indirect initial contact is expected.More face-to-face meetings expected.Often use indirect language.
13 Communication and Context: Relationship-oriented people often use indirect (high-context) language.Deal-oriented people tend to use direct (low-context) language.
14 Direct and Indirect Language: RF people tend to use indirect language to avoid giving offence or loss of face.RF people tend to avoid saying ‘no’ to bosses or customers.DF people tend to use direct language, are often confused by indirect language.
15 Comparing Egalitarian and Hierarchical Business Behavior
16 Egalitarian: More Hierarchical: Nordic countriesNorth AmericaAustralia, New ZealandGreat BritainMost of Continental EuropeAsia, Africa, Latin America, Middle East
17 Egalitarian: Hierarchical: Informal behavior.Status differences tend to be small.Protocol rituals are simpler.Formal behavior.Status differences tend to be larger.Protocol rituals are more elaborate.
18 Comparing Monochronic and Polychronic Business Behavior
19 Monochronic Business Cultures: Germans and German-Swiss (very monochronic)Northern Europeans, North AmericansCzech Republic, HungaryJapan
20 Moderately Polychronic Cultures Most of Central EuropeChina, SingaporeChile, Southern Brazil
21 Polychronic Business Cultures: Southern and Eastern EuropeMost of Latin AmericaSouth and Southeast Asia, Middle East, most of Africa (very polychronic)
22 Monochronic: Polychronic: Punctuality is expected.Meetings usually follow an agenda.It is rude to interrupt meetings.People are less punctual.Meetings may not follow an agenda.Meetings are often interrupted.
23 Comparing Reserved and Expressive Communication Behavior
24 Emotionally Reserved Cultures: Northern Europe, BritainEast and Southeast Asia (very reserved)
25 Moderately/Variably Expressive: North America, Australia, New ZealandCentral and Eastern EuropeSouth Asia, parts of Africa
26 Very Expressive Cultures: Southern EuropeMiddle East, Mediterranean regionLatin America
27 Reserved and Expressive Nonverbal Communication – Four Key Elements: Interpersonal distanceEye contactTouch behaviorGestures
28 Interpersonal Distance: Close: Middle East, Latin America, Southern Europe.Variable: North America, East and Central Europe, South Asia, Australia/NZDistant: Northern Europe, East Asia
29 Eye Contact: Intense: Middle East, Southern Europe, Latin America Moderate: Northern Europe, North America, East-Central Europe.Indirect: East and Southeast Asia
30 Touch Behavior:High Contact: Middle East, France, Southern Europe, Latin America.Moderate: Central/Eastern Europe, North America.Low Contact: Northern Europe.Very Low: East and Southeast Asia.
31 Ambiguous Gestures: Use of left hand Showing sole of shoe ‘Thumbs up’ sign‘Peace’ sign‘A-OK’ signPointing/beckoning with index finger.
32 Communicating and Negotiating Across Cultures Richard R. GestelandGlobal Management LLC