1. Part Two: Culture and organizations
CHAPTER 12
CULTURAL DIVERSITY IN ORGANIZATIONS
Concept 12.1: Cultural competence in transnational organizations

2. Management of cultural differences
Globalization of companies seems to be:
- linked to cultural diversity of organizations
- connected to internationalization of organizations
Effects of the globalization process on managerial functions
The way executives conceive the interaction between different cultures
Strategy of proclamation or strategy of learning?

3. There are three types in multinationals: Dominant management culture
a copy of the multinational’s home country
Dominant transnational management culture
created by the mother’s company
Minimum management culture
leaving room for national culture
Two Roles: Integrating & adapting

4. Transnational company
‘Transnational’ combines the abilities:
- flexibility, efficiency, transfer of expertise
of a
- multinational, global, international firm
Role of top management is to:
- Create a common vision
- Shared set of values to reflect managers’ goals

5. Individual characteristics Characteristics of an individual such as:
What is diversity?
Notion of diversity
Individual characteristics
Characteristics of an individual such as:
- Work background
- Geographical situation
- Education
In the business life managers see their employees:
- As individuals
- With the characteristics of a specific group

6. Diversity and transnational organization
Managers perceive diversity as a source of both problems and advantages
Problems caused by cultural diversity
- communication and integration-esp when employees required to think & act in the same way.
- practices adopted by the organization across the board-eg same mrktg campaign
Diversity among employees :
- may cause misunderstandings
- obstruct team work and productivity

7. Advantages of cultural diversity
Multinationals are described as being
- More flexible
- Open to new ideas
- More aware of consumers needs
Diversity is considered an advantage when the concern needs to:
- Reposition itself
- Generate ideas
- Develop projects
- Open itself to fresh perspectives
Alder (2002)

8. Intercultural management
To act effectively at international level:
Management which adapts its way of communicating, negotiating and leading to the cultural context of the country in question.
What is needed?
Dos and don’ts are not the answer
Nor is providing instruments for ‘cracking’ cultural codes
Applying a global approach across the board or a country-by-country approach
Involving manager-shd be aware of their oe cultural preferences. Look for working strategies adaptable to another cuture.

9. Transcultural competence
Ability to bridge the differences between the native and destination culture
Developing the propensity to reconcile seemingly opposing values
Some cultures start from their own orientation & accommodate the opposing dimension in reconciliation
At the heart of transcultural competence: principle of reconciliation (Trompenaars & Williams, 2000)
Acquiring a transcultural competence. Success: peer feedback on bus performance-degree of success achieved abroad. Experience on international assignments & working with diversity

10. What is competence? Figure II.1 What is competence?
Figure based on the concept developed by Le Boterf (1994)

11. Competence
Competence cannot be defined as the capacity to solve a problem.
Competence involved a full range of resources:
- Knowledge, skills, cognitive abilities
Key to competence:
- ability to integrate these resources
- through the channel of communication and human interaction

12. How to acquire transcultural competence?
Development of cognitive abilities (memory)
Integration of knowledge and know-how in a particular situation
- Knowledge (database of cases)
- Know-how (identification of a problem)
Goal of a transnational manager
Appropriate attitude in a specific situation
Building up a ‘memory’ of case-studies/ critical incidents

13. Conclusion to Chapter 12
Internationalization has reinforced cultural diversity
Management can use the intercultural situations within/outside the companies
Managers need to acquire tools and working methods
They have to develop competence in a cross-cultural context
Intercultural competence is everyone’s business

14. CULTURE AND COMMUNICATION
Understanding Cross-cultural Management
PART THREE
CULTURE AND
COMMUNICATION

15. BUSINESS COMMUNICATION ACROSS CULTURES
Understanding Cross-cultural Management
CHAPTER 13
BUSINESS COMMUNICATION ACROSS CULTURES
Concept 13.1: Communicating in and between cultures

16. Communicating in and between cultures
Introduction
Increasing complexity of business
Increasingly global nature
Growing interaction between cultures
Universalist approach no longer appropriate
Diversity needs to be taken into account
New management skills needed, particularly in area of communication

17. Communication in and between cultures
Defining intercultural communication: systemic versus dynamic perspective
Systemic:
Comparisons between cultures
Sets of relations between cultures
Dynamic:
Interaction and exchange between cultures: fabric of relations
Process where cultures are defined by
Their own characteristics
Through interaction with others

18. A model of communication
Frame of reference:
Knowledge
Experience
Norms/values
Assumptions
SENDER /
RECEIVER
CULTURE 1
CULTURE 2
LANGUAGE:
verbal and
non-verbal
STYLES
of thinking and communicating
STEREOTYPES
RELATIONSHIPS
Key communication filters
Message
intended
received
Figure III.1 A model of communication

19. A model of communication
When addresser and addressee communicate, they use a frame of reference:
their knowledge of the subject under discussion
their experience in professional or individual terms
their norms, i.e. the norms of the society in which they live
their assumptions, i.e. what is taken as a fact or believed to be true

20. High-context cultures and low-context cultures (Hall and Hall, 1990)
The role of context
Context: the environment in which the communication process takes place
High-context cultures and low-context cultures (Hall and Hall, 1990)
High context: most of information being sent is contained in:
Relationship between those communicating
The situation where they are communicating
Low context: information is explicitly in the message itself

21. Physical distance between people when interacting
Proxemics and culture
Proxemics: how people perceive their social and personal space (Hall, 1966)
The ‘silent’ messages being given through:
Physical distance between people when interacting
The senses: touch, smell, sight and sound
The organization of public spaces (offices, restaurants)

22. An invisible zone with distinct boundaries
Personal space
An invisible zone with distinct boundaries
Extent of zone determined by:
gender
age
personality
the degree of sympathy towards the individuals concerned
the situation in which the individuals are confronted
the culture(s) involved

23. Personal space (Continued)
SMALL PERSONAL SPACE
LARGE PERSONAL SPACE
Arabs
Indians and Pakistanis
South Europeans
South Americans
Asians
North Europeans
Figure Ranking of personal space
Source: Watson (1970)

24. Table 13.1 Channels of business communication
Mode
Description
Examples
Oral communication
Communications transmitted through speech
Personal conversations, speeches, meetings, telephone conversations, conference calls, and video tele-conferences
Written communication
Communications transmitted through writing
s, letters, memos, faxes, formal reports, news releases
Formal communication
Communications transmitted through the chain of command within an organization to other members or to people outside the organization
Internal memos, reports, meetings, written proposals, oral presentations, meeting minutes; external letters, written proposals, oral presentations, speeches, news releases, press conferences
Informal communication
Communications transmitted outside formally authorized channels without regard for the organization's hierarchy of authority
Rumours, chats with colleagues in the hallways or during lunch or coffee breaks
Verbal communication
Communication transmitted in the forms of words
Meetings, voice mail, telephone conversations, internet forums (asynchronic), internet chat (synchronic)
Nonverbal communication
Communication transmitted through actions and behaviour rather than through words

25. Culture and choice of communication mode
Individualist versus Collective
‘Individualist’ business A approaches ‘collectivist’ business B with direct, detailed proposal
For business A, speed and efficiency are key factors in communication
B decides not to respond directly in writing
B requests a face-to-face meeting instead to establish a good relationship before going into detail

26. Culture and choice of communication mode (Continued)
Individualist versus Collective
In B’s eyes, speed and efficiency are less important than establishing trust and confidence.
B uses the oral mode to set the conditions for cooperation
B then uses the written mode once relationships established are scrupulously maintained
‘Individualist’ business A approaches ‘collectivist’ business B with direct, detailed proposal
For business A, speed and efficiency are key factors in communication

27. Computer-mediated communication (CMC)
Pitfalls when using interculturally:
Problems of comprehension (inaccurate language and poorly structured text)
Cultural issues which can lead to misunderstanding and even antagonism.
Recipient considers the style too formal, not explicit
Recipient considers the too informal
In either case, no facial expressions to mitigate or clarify messages given

28. Language during business encounters
What happens when business representatives don’t share a common language?
Use intermediary who can translate the native languages used:
practical problems: availability, extra cost
reliability: Is work accurate, with full nuance?
may hamper the establishment of relationships
delays interaction, reduces impact of non-verbal communication
the interpreter becomes focused, controls the exchange but without responsibility for the final outcome

29. Language during business encounters (Continued)
What happens when business representatives don’t share a common language?
One interlocutor uses the mother tongue of the other.
Advantage: the manager can ‘tune into’ the other’s culture, pick up all the nuances, understand the cultural references and respond appropriately.
Disadvantage: managers operating across many cultures cannot be expected to acquire the language of every culture with which they are (about to be) involved

30. English – a neutral language?
What happens when business representatives don’t share a common language?
Share a neutral foreign language: often called ‘international’ English (IE)
evolved organically, with little complex grammar and few idiomatic phrases.
often needs to be adjusted to accommodate differences in knowledge and understanding between the speakers concerned
differences in pronunciation: influence of mother tongue

31. International English (IE)
Problems:
Differences in levels
Pronunciation: interference from mother tongue, regional English accent
Discussion can be rather superficial and communicating thoughts would be difficult: power of expression reduced
Written IE may cause more problems than those it was intended to solve: the connections between thoughts, ideas and information may become more diffuse or even non-existent

32. International English
Also the question of language as a potent means of expressing cultural identity
How motivated are people to use a language which is not theirs and which does not allow them to assert their own personal or cultural identity?

33. Conversational styles
Once relationship is established, a negotiated communication mode may be established, with the context involved playing a decisive role (e.g. in or outside the office)
Different styles of conversation may still cause problems, e.g.
Interrupting others
Making assertive statements
Avoiding silence
Taking turns
Making negotiable, less conclusive contributions
Using silence for reflection

34. Conversational styles
Listening a key skill:
asking questions to check on understanding.
rephrasing of statements to clarify understanding

35. Facial expressions during interaction
Facial expressions are linked to the context:
differ according to whether the context is clear or ambiguous
express the different degrees of dominance between people with different levels of status
Facial expressions can function in different ways according to culture, e.g. averting a gaze
can have a negative connotation in some cultures
in others it may be seen simply as a sign that the speaker is changing direction in the discussion

36. Conclusion
Even if a common language is used in business, problems in communication may arise because of different cultural backgrounds

37. CULTURE AND COMMUNICATION
Understanding Cross-cultural Management
PART THREE
CULTURE AND
COMMUNICATION

38. BARRIERS TO INTERCULTURAL COMMUNICATION
Understanding Cross-cultural Management
CHAPTER 14
BARRIERS TO INTERCULTURAL COMMUNICATION
Concept 14.1: Barriers in cross-cultural management communication

39. Barriers in cross-cultural management communication
Non-verbal behaviour can play a crucial role in interaction
All cultures use forms of body language to communicate, but the meaning of these forms is subject to different interpretations according to the cultural background of the interpreter

40. Barriers in cross-cultural management communication (Continued)
Non-verbal signals used in a certain context may not only differ but also influence other consequent non-verbal signals.
Question of the intention: did the sender (if from another culture) intentionally choose to transmit a non-verbal message with an exact purpose or was he pretending to do so?
When responding to the signal, the receiver may need to re-adjust his communicative goal, vary the non-verbal messages so that the desired goal is eventually reached.

41. Barriers in cross-cultural management communication (Continued)
Those communicating across cultures must therefore be careful not to assume that certain gestures they perceive do not have the same meaning as in their own culture.

42. Barriers in cross-cultural management communication (Continued)
Figure ‘I’ve had enough’

43. Non-verbal communication barriers in business
Use of body language, e.g.
use of arms by the Dutch, compared to
use of the whole upper part of body by the French
The Dutch may perceive French as very emotional and excited since the Dutch only use gestures made by the French when they feel deeply emotional

44. Non-verbal communication barriers in business (Continued)
Silence
In western cultures, silence marks pauses in a discourse.
In oriental cultures silences are an integral part of communication. Silences can indicate:
Respect, of agreement or disagreement,
Modesty (avoid improper use of words)

45. Non-verbal communication barriers in business (Continued)
The way feelings are expressed can vary so much between cultures and result can be negative feelings towards another
The creation of such prejudices is not the differences in themselves but the way in which the differences are interpreted

46. Assumptions and culture
Assumptions may have:
1) a cognitive dimension, related to presumptions as to how people think that things work,
2) an affective dimension, related to the presumed likings of people and
3) a directive dimension related to the presumed choices of people.

47. Assumptions and culture (Continued)
Assumptions can be time-related:
Is time a scarce good (economy of time)?
Are tasks performed simultaneously or one after the other (monochronic versus polychronic)?
Is life seen as a continuity or as cyclic episodes?
Is the orientation in time towards the past, the present or the future?

48. Assumptions and culture (Continued)
Assumptions can be space-related relating to territories: orientation may be:
‘in group’: the group space includes families, nations, and cultures
‘out-group’: based on the assumption that there is a unity of mankind beyond the borders of in-group spaces
in-group orientation does not completely exclude out-group orientation (e.g. in Nordic European cultures)

49. Assumptions and culture (Continued)
Assumptions can be identity-related: related to identity of self and others
What is seen to be the ideal conduct in certain social contexts:
Main socio-demographic categories (age, sex, social class)
Particular roles in society (such as the perfect politician, or successful businessman)

50. Perceptions and stereotypes
WHO IS SAYING WHAT ABOUT WHOM?
WHO / ABOUT WHOM?
WHAT?
Germans
British
Americans
Spaniards
Dutch
French
They’re pretentious
They’re arrogant
They’re chauvinist
They’re hypocritical
They’ve got no sense of humour
They’re individualistic
Table Who is saying what about whom?
Source: Gruère and Morel (1991)

51. Perceptions and stereotypes
Every culture sees its own system of values in a positive light
If confronted with negative stereotypes of themselves by other nationalities:
will not recognize themselves
will react strongly since they feel under attack
defend their own personal identity
see their national identity more in terms of ‘them’ than ‘us’

52. Identity and communication
National identity characterizes a nationality: sets the limits of an intercultural exchange.
Perception of the other always is based on one’s own culture > ethnocentrism
Ethnocentrism is inherent to any membership of a socio- cultural, ethnic or national group.
It is the intrinsic mechanism separating ‘mine’ from ‘yours’
Our perceptions are made through a barrier which is unconsciously made up of our own values
Ethnocentrism responsible for prejudices and stereotypes

53. Stereotype building
Starting-point for building a cultural stereotype is the norms and values of the culture concerned
A stereotype consists of images created in our minds with regard to a group or groups of people
These images are over-generalizations made from selective (self-) perceptions and information corresponding with our beliefs
A stereotype confirms our prejudices rather than reflecting accurate observations of reality
The development of prejudices is supported or provoked by our cultural environment

54. How to deal with stereotypes?
Suppress them, fight them or ignore them?
Better not to fight against them since they are the first stage in the process whereby the existence of another culture is acknowledged
Stereotypes are necessary for establishing one’s own cultural identity. If a cultural group cannot compare itself to other groups then it cannot become aware of what it is

55. How to deal with stereotypes? (Continued)
If people could place another culture in its own context and avoid judging it according to their own ‘system’, stereotypes would eventually disappear
Note the dynamic nature of interaction:
characteristics of speakers PLUS
structure of the situation and the context, as well as time and space (see chapter 13)
The variable nature of the interaction makes every communicative situation unique and therefore unpredictable

56. Conclusion
The cultures of the interlocutors filters information and interprets it according to their own references
Stereotypes form the most important barrier to intercultural communication