international management ch 7

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Cross-Cultural Communication and Negotiation Sarah Bravenec, Katie Norman, Nathanael Dunn

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Page 1: International management ch 7

Cross-Cultural Communication and Negotiation

Sarah Bravenec, Katie Norman, Nathanael Dunn

Page 2: International management ch 7

Skype Goes Mobile

•“white phone”

•Cheap international connection

•Some mobile carriers prohibit VoIP on their

phones VoIP is a technology used by IP telephony as a means of transporting phone calls

Page 3: International management ch 7

Verbal Communication Styles

Context: information that surrounds a communication and helps to convey the message• High-context:

messages are highly coded, implicit, and indirect do not rely on language alone environment

• Low-context: messages are explicit often meet only to accomplish objectives

Page 4: International management ch 7

Verbal Communicati

on Styles

Communication quantity•Elaborate (Arabic Countries)

• Talking, description with a lot of detail, people often repeat

•Exacting (England, Germany, and Sweden)

• Precision, and the use of the right amount of words to convey the message

•Succinct (Asia)

• People tend to say few words and allow understatements, pauses, and silence to convey meaning

Page 5: International management ch 7

Verbal Communication Styles

Contextual vs. Personal Styles Contextual focuses on the speaker and

relationship of the parties High-power-distance, collective, high-context

cultures Personal focuses on the speaker and the

reduction of barriers between the parties Low-power- distance, individualistic, low-

context-cultures

Page 6: International management ch 7

Verbal Communication Styles

Affective vs Instrumental Affective is characterized by language that

requires the listener to carefully note what is being said and to observe how the sender is presenting the message Intuitive skills

Instrumental is goal-oriented and focuses on the sender Clearly explains

Page 7: International management ch 7

Communication Flows

•Downward Communication • Manager to subordinate • Can be direct or indirect

•Upward Communication• Subordinate to superior• Get employees input and be available to listen to their people’s concerns

Page 8: International management ch 7

Language Barriers

Many require English as the common language

Can’t only “know” the language

Poor writing is a greater barrier than poor talking

Bilingual individuals shouldn’t be queried in their second language

Page 9: International management ch 7

Perceptual Barriers

Perception: a person’s view

of reality

Issues with perception? Advertisements http://www.deborahswallow.com/2009/08/20/cr

oss-cultural-marketing-blunders/ View of others

Page 10: International management ch 7

Impact of culture

Cultural values change nation to nation Time value in U.S. versus some European

nations

Misinterpretation Metric system versus English system

Page 11: International management ch 7

Nonverbal Communication

How people interpret meaning through body language and space Examples of nonverbal communication:

Facial expressions, posture, clothing, eye contact, cosmetics (makeup, tattoos)

http://www.languagetrainers.co.uk/blog/2007/09/24/top-10-hand-gestures/

Haptics is communication through the use of bodily contact (ex: double cheek kiss, handshake)

Page 12: International management ch 7

Proxemics

The way physical space conveys messages Four distances in U.S.

Intimate distance: 18 inches Personal distance: 18 inches to 4 feet Social distance: 4 feet to 8 feet Public distance: 8 feet to 10 feet

Office space

Page 13: International management ch 7

Chronemics

The way time is used in a culture

Monochronic: things done in linear fashion, one at a time

Polychronic: people do several things at one time

Page 14: International management ch 7

Effective Communication

Feedback Personal: face-to-face, phone, email Impersonal: reports, budgets, plans

Language training is necessary English Learn the language of the MNC you work for Correct translation is important

Page 15: International management ch 7

Effective Communication

Important to understand other cultures, especially in an MNC

Cooperation is very important Be flexible

Page 16: International management ch 7

Negotiation

Bargaining with another party in order to arrive at an

agreeable situationManagers spend 50% of their time negotiating

Important to have strong initial offer

Page 17: International management ch 7

Negotiation

Types Distributive: two parties have opposite views

and are competing over a set value Typically ends in a win-lose situation

Integrative: two parties cooperate in order to achieve the best outcome for both Win-win situation

Page 18: International management ch 7

Process of Negotiation

Planning Identify objectives, explore options, find common ground

Relationship building

“Feeling out” the other side

Exchange information

Let position on critical points be known

Persuasion

Most important step; each side must be willing to compromise

Agreement

Final phase, granting concessions

Page 19: International management ch 7

Cultural Differences Affecting

Negotiations

1. Do not identify the counterpart’s home culture too quickly

2. Beware of the Western bias toward “doing.” In Arab, Asian, and Latin groups, ways of being, feeling, thinking, and

talking can shape relationships more

powerfully than doing

Page 20: International management ch 7

Cultural Differences Affecting Negotiations

Do not assume that all aspects of the culture are equally significant In Japan, consulting all relevant parties to a

decision is more important than presenting them a gift

Do not overestimate your familiarity with your counterpart’s culture Missing a single symbol can result in bad typos

Page 21: International management ch 7

Negotiation Styles

US Factual and objective Make early

concessions Have the authority to

seal the deal Deadlines Come to do business

Page 22: International management ch 7

Negotiation Styles

Arabs Emotional appeals part of negotiation style Treat deadlines as only guidelines Analyze details subjectively Start from extreme position Seek to build long-term relationships Easy to negotiate with

Page 23: International management ch 7

Negotiation Styles

Chinese At beginning, seek to agree on the general

focus of the meetings, to achieve general framework for discussion.

Then launch into discussion following the rules of the game that have just been set.

Page 24: International management ch 7

Negotiation Tactics

Location Where should negotiations take place? Neutral site (If US vs. Japan, then Hawaii, for

example) Each party has limited access to home

office/negotiating info High cost of staying at these locations Most negotiators do not want to return home

empty handed

Page 25: International management ch 7

Negotiation Tactics

Time Limits One party can

have the upper hand if the other party is on a tight timeframe

If one party knows when the other party needs to leave, they can draw out negotiations to the very end

Page 26: International management ch 7

Negotiation Tactics

Buyer-Seller Relations How should buyers and sellers act? When the negotiation is over, Americans walk

away with what they’ve got. Japanese, on the other hand, believe that the other

party should be taken care of and ensure that the other party has not been picked clean. In some negotiations, the Japanese thought the

Americans were taking advantage of them, whereas the Americans believed they were driving a good, hard bargain.

Page 27: International management ch 7

Negotiation Tactics

Separate the People from the Problem

Focus on Interests over Positions

Generate Options

Use Objective criteria

Stand ground

Page 28: International management ch 7

Bargaining Behaviors

Use of Extreme Behaviors

Promises, Threats, and Other Behaviors

Nonverbal Behaviors