2. Cross-Cultural Communication and Negotiation
Chapter 7
Cross-Cultural Communication and Negotiation

3. Cross-Cultural Communication and Negotiation
The specific objectives of this chapter are to
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.
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.

4. The Overall Communication Process
The process of transferring meanings from sender to receiver.
On the surface this appears straightforward.
However, a great many problems can result in the failure to transfer meanings correctly.
Communication can be verbal or nonverbal.

5. Verbal Communication Styles
Context
Information that surrounds a communication and helps convey the message.
Context plays a key role in explaining many communication differences.
Messages are often highly coded, implicit, and indirect in high-context societies.
Japan, many Arab countries
Messages are often explicit and speaker says precisely what s/he means in low context societies.
U.S. and Canada

6. Explicit-Implicit Communication An International Comparison

7. Major Characteristics of Verbal Styles

8. Verbal Communication Styles
Indirect and Direct Styles
High-context cultures: Messages are implicit and indirect; voice intonation, timing, facial expressions can play important roles in conveying information.
Low-context cultures: People often meet only to accomplish objectives; they tend to be direct and focused in communications.

9. Verbal Communication Styles
Elaborate to Succinct Styles
Three degrees of communication quantity—elaborating, exacting, succinct
Elaborating style most popular in high-context cultures with moderate degree of uncertainty avoidance
Widely used in Arabic countries
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 where people say few words and allow understatements, pauses, and silence to convey meaning
Most common in Asia

10. Verbal Communication Styles
Contextual and Personal Styles
Contextual style focuses on the speaker and the relationship of parties
Often associated with high power distance, collective, high-context cultures
Speakers will choose words that indicate their status relative to the status of the others.
Personal style focuses on the speaker and the reduction of barriers between parties
More popular in low-power-distance, individualistic, low-context cultures
Speakers use first names in addressing others.

11. Verbal Communication Styles
Affective and Instrumental Styles
Affective style is characterized by language requiring the listener to carefully note what is said and to observe how the message is presented.
The meaning is often nonverbal and requires receiver to use intuitive skills to decipher message.
Common in collective, high-context cultures
Middle East, Latin America, and Asia
Instrumental style is goal oriented and focuses on the sender who clearly lets the other party know what s/he wants the other to know.
More commonly found in individualistic, low-context cultures
Switzerland, Denmark, and the United States

12. Verbal Styles Used in 10 Select Countries

13. Communication Flows Downward Communication
Transmission of information from manager to subordinate
Primary purpose of manager-initiated communication is to convey orders/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 a mixed signal is never helpful.

14. Communication Flows Suggestions for Communication
When communicating downward with nonnative speakers
Use most common words with their most common meanings.
Select words with few alternative meanings.
Strictly follow the basic rules of grammar.
Speak with clear breaks between words.
Avoid using esoteric or culturally biased words.
Avoid the use of slang.
Don’t use words or expressions requiring the listener to form mental images.
Mimic the cultural flavor of the nonnative speaker’s language.
Paraphrase and repeat basic ideas continually.
At the end, test how well the other person understands by asking him/her to paraphrase what has been said.

15. Communication Flows Upward Communication
Transfer of meaning from subordinate to superior
Primary purposes are to provide feedback, ask questions, and obtain assistance.
In recent years there has been a call for more upward communication in the U.S.
In Japan, Hong Kong, Singapore upward communication has long been a fact of life.
Outside Asian countries, upward communication is not as popular

16. Communication Epigrams
continues

17. Communication Epigrams

18. Communication Barriers
Language barriers
Knowledge of the language used at headquarters is not enough.
Fluency, technical knowledge, and writing skills are also important.
Misinterpretations often result from unskilled use of a language.
Cultural barriers in language
Geographic, cultural, and institutional distance challenge managers.
Written communications are heavily influenced by culture.

19. Communication Barriers
Perception
A person’s view of reality
Advertising Messages
Countless advertising blunders when words are misinterpreted by others
How others see us
May be different than we think
Perceptions affect the way managers interact and communicate with their counterparts.

20. U.S. Proverbs Representing Cultural Values

21. The Impact of Culture Nonverbal Communication
The transfer of meaning through means such as body language and use of physical space
Chromatics
Use of color to communicate messages; certain colors mean different things in different cultures.
Kinesics
Study of communication through body movement and facial expression.
Eye contact; oculesics―gaze, stare, etc.
Posture: appropriate relaxed appearance
Gestures: handshake, bow, kiss, etc.

22. Nonverbal Communication
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/close friends
Social distance used to handle most business transactions
Public distance used when calling across room or giving talk to group

23. Nonverbal Communication
Chronemics
The way time is used in a culture.
Two types
Monochronic time schedule: things done in linear fashion; time schedules are important; time can be controlled, should be used wisely.
Polychronic time schedule: people do several things at same time and place higher value on personal involvement than on getting things done on time; personal relationships more important than time schedules

24. Personal Space Categories for Those in the U.S.

25. Achieving Communication Effectiveness
Improve feedback systems
Personal: face-to-face, phone,
Impersonal: reports, budgets, plans
Provide language training
English is the international language of business .
Provide cultural training
At least one party has to understand the other’s culture.
Flexibility and cooperation
The essential starting point: recognize/accept the inescapable subtleties and difficulties of intercompany relationships.

26. Managing Cross-Cultural Negotiations
The process of bargaining with one more parties at arrive at solution acceptable to all.
Used in creating joint ventures, then for expansion, local managers, imports/exports of materials and finished goods, recapture of profits
Two types of negotiation
Distributive negotiation: two parties with opposing goals compete over a set value.
Integrative negotiation: two groups integrate interests, create value, invest in the agreement (win-win scenario).

27. Negotiating Types and Characteristics

28. Negotiation Styles from a Cross-Cultural Perspective

29. The Negotiation Process
Planning
Identify objectives; adapt strategy, fine common ground.
Interpersonal relationship building
Get to know people on the other side.
Exchanging task-related information
Each side sets forth its position on critical issues.
Persuasion
Willingness to give some concessions
Agreement
The granting of concessions and hammering out of a final agreement

30. Cultural Differences Affecting Negotiations
When negotiating
Don’t identify the counterpart’s home culture too quickly; common cues (name, appearance, language, accent, location) may be unreliable.
Beware of Western bias toward “doing.” Ways of being, feeling, thinking, and talking can shape relationships more powerfully than doing.
Counteract the tendency to formulate simple, consistent, stable images.
Don’t assume all aspects of the culture are equally significant.
Recognize that norms for interactions involving outsiders may differ from those for interactions between compatriots.
Don’t overestimate familiarity with counterpart’s culture.

31. Negotiation Tactics Location Time limits Buyer-seller relationship
Most businesses will choose a neutral site.
Time limits
An important negotiation tactic when one party is under a time constraint.
Buyer-seller relationship
Some trade favors, others expect buyer to get all.

32. Negotiation Tactics Five general principles
Separate the people from the problem: see other’s side, avoid blame, stay positive; recognize emotions.
Focus on interests over positions: gives insight into the motivation behind why a particular position was chosen.
Generate a variety of options before settling on an agreement: better for everyone to have many options.
Insist that the agreement be based on objective criteria: emphasize the communal nature of the process.
Stand your ground: neither side should agree to terms that will leave it worse off than its best alternative to a negotiated agreement, or BATNA.

33. Bargaining Behaviors
Bargaining behaviors are both verbal and nonverbal.
Use of extreme behaviors: Some begin with an extreme offer or request.
Promises, threats, and other behaviors: often greatly influenced by the culture
Nonverbal behaviors: silent language (silent period, facial gazing, touching, conversational overlaps)

34. Review and Discuss
How does explicit communication differ from implicit communication? Which is one culture that makes wide use of explicit communication? Implicit communication? Describe how one would go about conveying the following message in each of the two cultures you identified: “You are trying very hard, but you are still making too many mistakes.”
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 three 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?

35. Review and Discuss
Yamamoto Iron & Steel is considering setting up a minimill outside Atlanta, Georgia. At present, the company is planning to send a group of executives to the area to talk with local and state officials regarding this plant. In what way might misperception be a barrier to effective communication between the representatives for both sides? Identify and discuss two examples.
Diaz Brothers is a winery in Barcelona. The company would like to expand operations to the United States and begin distributing its products in the Chicago area. If things work out well, the company then will expand to both coasts. In its business dealings in the Midwest, how might culture prove to be a communication barrier for the company’s representatives from Barcelona? Identify and discuss two examples.

36. Review and Discuss
Why is nonverbal communication a barrier to effective communication? Would this barrier be greater for Yamamoto Iron & Steel (question 3) or Diaz Brothers (question 4)? Defend your answer.
For U.S. companies going abroad for the first time, which form of nonverbal communication barrier would be the greatest, kinesics or proxemics? Why? Defend your answer.
If a company new to the international arena was negotiating an agreement with a potential partner in an overseas country, what basic steps should it be prepared to implement? Identify and describe them.
Which elements of the negotiation process should be done with only your group? Which events should take place with all sides present? Why?

37. Review and Discuss
An American manager is trying to close a deal with a Brazilian manager, but has not heard back from him for quite some time. The American is getting very nervous that if he waits too long, he is going to miss out on any backup options lost while waiting for the Brazilian. What should the American do? How can the American tell it is time to drop the deal? Give some signs that suggest negotiations will go no further.
Wilsten Inc. has been approached by a Japanese firm that wants exclusive production and selling rights for one of Wilsten’s new high-tech products. What does Wilsten need to know about Japanese bargaining behaviors to strike the best possible deal with this company? Identify and describe five.