1. 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

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

3. 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

4. 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

5. 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

6. 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

7. Summary of Verbal Styles

8. 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

9. 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

10. 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

11. 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

12. Perceptions

13. 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 )
Impersonal (e.g., reports, budgets, and plans)
Language training
Cultural training
Flexibility and cooperation

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

15. 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

16. 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

17. 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

18. 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

19. 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

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

21. 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

22. 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

23. 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

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

25. 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.

26. 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.