Cross-Cultural Communication and Negotiation The Role of Culture Cross-Cultural Communication and Negotiation Mark McKenna BUS 162 (6), International and Comparative Management San Jose State University Chapters 7, Hodgetts, Luthans and Doh, International Management: Culture, Strategy and Behavior , 6th edition (New York: McGraw-Hill Irwin, 2006) Adapted from PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University

Overview Verbal Communication Non-Verbal Communication Perceptual Barriers Achieving Effective Communication Cross-Cultural Negotiation

Communication Process and Verbal Communication Styles The process of transferring meanings from sender to receiver Verbal communication styles Context is information that surrounds a communication and helps convey the message Messages are often highly coded and implicit in high- context societies, such as Japan and many Arab countries The message is explicit and the speaker says precisely what he or she means in low-context societies such as the United States and Canada

Explicit and Implicit Communication High-context/implicit communication cultures Low-context/explicit communication cultures Japanese Arabs Latin Americans Italians English French North Americans Scandinavians Germans Swiss Germans Adapted from Figure 7–1: Explicit/Implicit Communication: An International Comparison

Phases of Multicultural Development Table 7–1 Major Characteristics of Verbal Styles Cultures in Which Major Interaction Focus Characteristic It Verbal Style Variation and Content Is Found Indirect vs. direct Indirect Direct Implicit messages Explicit messages Collective, high context Individualistic, low context Succinct vs. elaborate Elaborate High quantity of talk Moderate uncertainty avoidance, high context Exacting Moderate amount of talk Low uncertainty avoidance, low context Succinct Low amount of talk High uncertainty avoidance, high context Adapted from Table 7–1: Major Characteristics of Verbal Styles

Phases of Multicultural Development Table 7–1 Major Characteristics of Verbal Styles Cultures in Which Major Interaction Focus Characteristic It Verbal Style Variation and Content Is Found Contextual vs. personal Contextual Focus is on the speaker and role relationships High power distance, collective, high context Personal Focus is on the speaker and personal relationships Low power distance, individualistic, low context Affective vs. instrumental Affective Language is process oriented and receiver focused Collective, high context Instrumental Language is goal oriented and sender focused Individualistic, low context Adapted from Table 7–1: Major Characteristics of Verbal Styles

Summary of Verbal Styles

Nonverbal Communication The transfer of meaning through means such as body language and use of physical space Kinesics The study of communication through body movement and facial expression Eye contact Posture Gestures Chromatics The use of color to communicate messages

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

Personal Space in the U.S. Intimate distance 18” Personal distance 18” to 4’ Social distance 4’ to 8’ Public distance 8’ to 10’ Adapted from Figure 7–3: Personal Space Categories for Those in the United States

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

Perceptions

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

CROSS-cultural negotiation Managing Cross-Cultural Negotiations Non-Verbal Communication Perceptual Barriers Achieving Effective Communication Cross-Cultural Negotiation

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

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 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 Interpersonal Relationship Building

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 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 Relationship Building Exchanging Task-Related Information

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 Success of the persuasion step depends on How well the parties understand each other’s 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 Relationship Building Exchanging Task-Related Information Persuasion

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 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 Relationship Building Exchanging Task-Related Information Persuasion Agreement

Approaches to Negotiation Position-based Competitive, distributive Value-claiming Interest-based Collaborative, integrative Value-creating (Fisher and Ury, Getting to Yes, 1983)

Effects of Each Approach Some negative effects of the Position-based Approach Closed-mindedness and rigidity Compromise, or win-lose solutions Damaged relationships Some positive effects of the interest-based approach Creative exploration for mutual gain More elegant solutions, or win-win Strengthened relationships

Key Principles of Interest-Based Approach Separate the people from the problem Focus on interests, not positions Generate options Use objective criteria Use consensus decision-making

Negotiation Exercise Step 1: Getting Ready Define the Problem List the Stakeholders & Interests List Alternatives Choose your BATNA (Best Alternative to a Negotiated Agreement) Capture any Options

Negotiation Exercise Step 2: Getting Together Define the Problem List the Stakeholders & Interests Brainstorm Options Evaluate Move Toward Agreement

Cultural Differences Affecting Negotiations Do not identify the counterpart’s home culture too quickly. Common cues (e.g., name, physical appearance, language, accent, location) may be unreliable. 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. Counteract the tendency to formulate simple, consistent, stable images.

Cultural Differences Affecting Negotiations Do not assume that all aspects of the culture are equally significant. Recognize that norms for interactions involving outsiders may differ from those for interactions between compatriots. Do not overestimate your familiarity with your counterpart’s culture.