Chapter 7 Cross-Cultural Communication and Negotiation Mike Perez, Cole Underwood, Sarah Torp

Objectives Define 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. 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.

What is communication? How can communication be defined? Communication is constant and we all communicate multiple times everyday.

Verbal Communication Styles communication- the process of transferring meanings from sender to receiver key to successful communication is how well the receiver interprets the sender’s meaning context- information that surrounds a communication and helps to convey the message High- and low-context cultures How might multinational corporations’ marketing strategies differ between high- and low-context cultures?

Verbal Communication Styles Look over Table 7-1 on page 187 Indirect vs. Direct High-context cultures tend to be very indirect and implicit communicators, and low-context cultures tend to be direct and explicit communicators Succinct, Exacting, & Elaborate Refers to the quantity of communication Succinct: say few words and allow understatements, pauses, and silence to convey meaning Asian cultures Exacting: using precision and the right amount of words to convey the message England, Germany, and Sweden Elaborate: a lot of talking, many details, repetitive Arabic countries

Verbal Communication Styles Contextual vs. Personal Contextual: focuses on the speaker and relationship of the parties Example: Asian cultures use words that reflect the role and hierarchical relationship of those in the conversation Personal: focuses on the speaker and the reduction of barriers between the parties American culture uses first names and addresses others informally Affective vs. Instrumental Affective: uses language that requires the listener to carefully note what is being said and to observe how the sender is presenting the message Meaning is often nonverbal Instrumental: goal-oriented and focuses on the sender Individual clearly lets the other party know the message Case Study

How does explicit communication differ from implicit communication? What is one culture that makes wide use to explicit communication? Implicit communication? How would one go about conveying the following message in each of the 2 cultures: “You are trying very hard, but you are still making too many mistakes.”

Downward vs. Upward Downward: Information transmitted from manager to subordinate Used to let people know what is to be done & how well they are doing it Upward: transfer of information from subordinate to superior Provides feed back, ask questions, or obtain assistance from higher level management Discussion: What communication style is the US compared to other European countries?

Language Barrier Many MNC’s prescribe English as the common language for internal communication Is this fair for other countries where English isn’t as well known? The ability to speak the language used at the MNC headquarters is often not enough to ensure the employees are capable to doing the work Is it beneficial to the MNC’s to provide their workers with language training besides English? Look on p.194. So many countries support teaching and learning other languages. Why is the US not like this?

Most Common Languages Language Quiz

Cultural Barriers Employees at MNC headquarters need cultural training as well as language training in order to communicate successfully. Must be aware of different cultures because each person’s perception is completely different and can effect how they judge or make decisions For example….

N ON V ERBAL C OMMUNICATION

Key Definitions Kinesics: Study of communication through body movements and facial expressions Haptics: Communicating through the use of bodily contact Proxemics: The study of the way that people use physical space to convey messages Chronemics: Refers to the way in which time is used in culture

Nonverbal communication: the transfer of meaning through means such as body language and use of physical space 1. Hand gestures 2. Facial expressions (smiling, frowning) 3. Posture & stance 4. Clothing & hair styles 5. Interpersonal distance (proxemics) 6. Eye contact & direction of gaze 7. Artifacts & nonverbal symbols (walking sticks, jewelry) 8. Paralanguage (speech rate, pitch, volume) 9. Taste (symbolism of chatting over food/tea, chewing gum) 10. Time symbolism (What is too late or early for a meeting or phone call)

Nonverbal Cues Why is nonverbal communication a barrier to effective communication? Chromatics: Use of color to communicate messages. Every society uses chromatics, but colors mean something different in each society.

Communication Tips Use the most common words with their most common meanings. Select words that have few alternative meanings Strictly follow the basic rules of grammar – more so than would be the case with native speakers Speak with clear breaks between the words so that it is easier for the person to follow Avoid using words that are esoteric or culturally biased

Communication Tips Avoid the use of slang Do not use words or expressions that require the other person to create a mental image Mimic the cultural flavor of the nonnative speakers language Continually paraphrase and repeat basic ideas At the end, test how well the other person understands by asking the individual to paraphrase what has been said

Negotiation Negotiation- bargaining with one or more parties for the purpose of arriving at a solution acceptable to all Distributive negotiation- bargaining that occurs when two parties with opposing goals compete over a set value Integrative negotiation- bargaining that involves cooperation between two groups to integrate interests, create value, and invest in the agreement most useful approach to business negotiations

The Negotiation Process Planning Interpersonal Relationship Building Exchanging Task-Related Information Persuasion Agreement Cartoon

Bargaining Behaviors Look at Table 7-9 on page 214. Look at Table 7-10 on page 215. 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.

Negotiation Tactics Location: Where the meetings should take place Meet halfway in NYC Cost of staying in neutral city is expensive so beneficial if both companies conclude negotiations quickly Time Limits: Important when one party is under a time constraint Occurs when one party agrees to meet at the home site of the other party Have a scheduled flight or takes place near holiday Buyer-Seller Relations: How should buyers and sellers act? Americans believe in being objective and trading favors Japanese believe that the buyer should get most of what they want and the sellers should be taken care of through reciprocal favors

Case Study: Coca-Cola in India - Please read case study #2 in your books. (Pages )

Case Study: Coca-Cola in India - The U.S and India share many common culture similarities. Many of which could have been a leading contributor to the reason Coke had such a difficult time in India. 1) Government trust 2) Speed the news spreads 3) Difficulty to gain back trust once lost

Case Study: Coca-Cola in India - Coca-Cola, when first addressed by the issue, decided to take a more defensive route. - In hindsight, Coca-Cola could have responded in a couple different ways to better their efforts.  In 2002 when first issue arises, Coke could have made an effort to test its product and make sure it was safe. Instead, in 2003 Center for Science and Environment produces a negative study.  In 1999 when article is published, Coke could have launched its own campaign to make drinking water safer.

Case Study: Coca-Cola in India - Coca-Cola is the largest soft drinks company in the world because it is always trying to expand its reaches. - Coke needs to continue to make changes to obtain more of India’s soft drink market. 1) Continue to lower average water usage ratio. 2) Improve image of Coke Company so that sales rise.(After 12% drop in sales because of water incident) 3) Any events in the future must be dealt with quickly so that problems can be caught before they become a big issue.

Case Study: Coca-Cola in India - Continue to address problems that are brought up involving problems in the company. - Make an effort to help positively affect the global water issue - Shows public that they care about their customers - Hold themselves accountable for mistakes made