Cross-cultural Communication and Negotiation Chapter 7

The Communication Process Communication is the process of transferring meaning from sender to receiver. Medium Receiver interpretation Sender meaning Encoding Decoding Feedback The Communication Model

The Communication Model Encoding: The sender expresses a meaning in a message Medium: the means that a sender uses to transmit the message Decoding: the receiver gets the message Interpretation: the receiver tries to understand the meaning of the message Feedback: The receiver responds to the message

Terms in Communication Intercultural communication: a member of one culture sends a message to a member of another culture. Attribution: the process in which people look for the explanation of another person’s behavior. Noise: a factor that causes the receiver to misunderstand the sender's message

Context of Communication (1) Context is the information that surrounds a communication and helps to convey the message Low-context societies Message is explicit and the speaker tries to say precisely what is meant Direct style: focus on speaker's statements Silence may make people uncomfortable Facial expressions and body language may be easy to interpret Business meetings are often focused on objectives.

Context of Communication (2) High-context societies Business meetings with new contacts focus on relationships first. Business comes later. Indirect style: speaker does not spell out his message Avoid saying "no" Avoid embarrassing people Control facial expressions and body language

Context of Communication (3) Indirect style (2) Messages often are implicit: Listener is expected to de-code verbal and non-verbal cues, such as voice, intonation, timing, body language Silence is used to understand received messages and decide how to reply

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

How People Use Physical Space to Communicate 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 in the U. S. 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’

The Use of Time Monochronic (sequential) 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. 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 less important than personal relationships

Managing Cross-Cultural Negotiations Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all Steps in international business negotiations Planning – each company does separately Interpersonal relationship building Exchanging task-related information Persuasion and bargaining Agreement

Step 1: Planning Learn about the other company that will be involved in the negotiations. Learn about the culture, negotiating behaviors, and business practices of the country in which the other company is located. Determine what your objectives are. Identify possible options for reaching each objective.

Step 1: Planning (2) Set negotiating targets or limits. Know what you would like to get and what you must get in order to meet your company’s objectives Set limits for 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 issues.

Step 2: Interpersonal Relationship Building In a high-context culture, relationship building will be a long, important process and will precede discussions of business. Get to know the people on the other side Identify those who are reasonable and those who are not. In a low-context culture, get down to business.

Step 3: Exchange Task-related Information 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

Step 4: Persuasion Work toward a final agreement Success 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

Step 5: Agreement Grant concessions and hammer out a final agreement American negotiators usually bargain on one issue at a time. Asian, Russian, and Arab negotiators usually want one big, final agreement and give few concessions until the end.

Negotiating for Mutual Benefit “Getting to Yes” Separate the people from the problem. Focus on mutual interests. Generate as many options as you can, but be sure that each option will be a good business deal for your company. Use objective criteria. Stand your ground. Neither side should accept a deal that is worse than its best alternative to a negotiated agreement (BANTA)

Negotiation Tactics Location Time limits Buyer-seller relations Bargaining behaviors Use of extreme behaviors Promises and threats Nonverbal behaviors