1. Cross-cultural Communication and Negotiation
Chapter 7

2. 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

3. 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

4. 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

5. 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.

6. 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

7. 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

8. 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

9. 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

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’

11. 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

12. 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

13. 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.

14. 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.

15. 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.

16. 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

17. 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

18. 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.

19. 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)

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