Cross-Cultural Communication

and Negotiation
❖ The specific objectives of this chapter are to
1. DEFINE the term communication, examine examples of
verbal communication style, and explain importance of
message interpretation.
2. ANALYZE the common downward and upward
communication flows used in international communication
3. EXAMINE the language, perception, culture of
communication and nonverbal barriers to effective international
communications.
4. PRESENT the steps to overcome international
communication problems.
5. DEVELOP approaches to international negotiations that
respond to differences in culture.
6. REVIEW negotiating and bargaining behaviors that may
improve negotiations and outcomes

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The Overall Communication Process

❖Communication
➢ The process of transferring meanings from sender
to receiver.
❖On the surface this appears straightforward
❖However, a great many problems can result in
the failure to transfer meanings correctly

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 Verbal Communication Styles

❖Context
➢ Information that surrounds a communication and
helps convey the message.
❖Context plays a key role in explaining many
communication differences
❖Messages often highly coded and implicit in
high-context societies
➢ Japan, many Arab countries
❖Messages often explicit and speaker says
precisely what s/he means in low context
societies
➢ U.S. and Canada

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Explicit and Implicit Communication
An International Comparison

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 Verbal Communication Styles

❖Indirect and Direct Styles

➢ High-context cultures: messages implicit and
indirect; voice intonation, timing, facial expressions
play important roles in conveying information
➢ Low-context cultures: people often meet only to
accomplish objectives; tend to be direct and
focused in communications

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Interpretation of Communications

❖Effectiveness of communication is determined

by how closely the sender and receiver have
the same meaning for the same message
➢ If the meaning is different, effective communication
will not take place

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 Communication Flows

❖Downward Communication
➢ Transmission of information from manager to
subordinate.
❖Primary purpose of manager-initiated
communication is to convey orders/information
➢ Managers use this channel for instructions and
performance feedback
➢ Channel facilitates the flow of information to those
who need it for operational purposes
➢ Sending mixed signals is never helpful in
communication
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 Communication Flows
Suggestions for Communication
❖ When communicating downward with nonnative
speakers
1. Use most common words with their most common
meanings
2. Select words with few alternative meanings
3. Strictly follow the basic rules of grammar
4. Speak with clear breaks between words
5. Avoid using esoteric or culturally biased words
6. Avoid the use of slang
7. Don’t use words or expressions requiring the listener to
form mental images
8. Mimic the cultural flavor of the non-native speaker’s
language
9. Paraphrase and repeat basic ideas continually
10. At the end, test how well the other person understands by
asking him/her to paraphrase what has been said
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 Communication Flows

❖Upward Communication
➢ Transfer of meaning from subordinate to superior.
❖Primary purposes are to provide feedback, ask
questions, and obtain assistance
➢ In recent years there has been a call for more
upward communication in U.S.
➢ In Japan, Hong Kong, Singapore upward
communication has long been a fact of life
➢ Outside Asian countries, upward communication is
not as popular

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 Communication Barriers

❖Language barriers
➢ Knowledge of the language used at headquarters is
not enough
➢ Fluency, technical knowledge, and writing skills are
also important
❖Cultural barriers in language
– Geographic, cultural, and institutional distance
challenge managers.
– Written communications are heavily influenced by
culture.

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 Communication Barriers

❖Perception
➢ A person’s view of reality.
❖Advertising Messages: countless advertising
blunders when words are misinterpreted by
others
❖How others see us: May be different than we
think
❖ Perceptions affect the way managers interact and
communicate with their counterparts.

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 The Impact of Culture
Nonverbal Communication
❖Nonverbal communication
➢ The transfer of meaning through means such as
body language and use of physical space.
➢ Chromatics
❖Use of color to communicate messages.
➢ Kinesics
❖Study of communication through body
movement and facial expression.
➢Eye contact
➢Posture
➢Gestures

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 Nonverbal Communication

❖ Proxemics
➢ Study of the way people use physical space to convey
messages.
❖Intimate distance used for very confidential
communications
❖Personal distance used for talking with family/close friends
❖Social distance used to handle most business transactions
❖Public distance used when calling across room or giving
talk to group

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 Nonverbal Communication

❖ Chronemics
➢ The way time is used in a culture.
❖ Two types
1. Monochronic time schedule: things done in
linear fashion. Used in societies which consider
time schedules important and time to be a
controllable factor that needs to be used wisely
2. Polychronic time schedule: people do several
things at same time and place higher value on
personal involvement than on getting things done
on time
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 Achieving Communication
Effectiveness
• Improve feedback systems
– Personal: face-to-face, phone, e-mail
– Impersonal: reports, budgets, plans
• Provide language training
– English is the international language of business .
• Provide cultural training
– At least one party has to understand the other’s culture.
• Flexibility and cooperation
– The essential starting point: recognize/accept the
inescapable subtleties and difficulties of intercompany
relationships.
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 Managing Cross Cultural
Negotiations
❖The process of bargaining with one more
parties at arrive at solution acceptable to all.
❖Follows assessing political environments
❖Used in creating joint ventures with local firms
❖ Two types of negotiation
1. Distributive negotiation when two parties with
opposing goals compete over set value.
2. Integrative negotiation when two groups
integrate interests, create value, invest in the
agreement (win-win scenario).

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 Negotiation Styles from a
Cross-Cultural Perspective

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 The Negotiation Process

1. Planning
– Identify objectives; adapt strategy, find common ground.
2. Interpersonal relationship building
– Get to know people on the other side.
3. Exchanging task-related information
– Each side sets forth its position on critical issues.
4. Persuasion
– Understanding other party’s position and willingness to
give some concessions
5. Agreement
– The granting of concessions and hammering out of a
final agreement
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 Cultural Differences
Affecting Negotiations
❖ When negotiating
1. Don’t identify the counterpart’s home culture too
quickly; common cues such as accent may be
unreliable.
2. Beware of Western bias toward “doing”. Ways of
being, feeling, thinking, and talking can shape
relationships more powerfully than doing.
3. Counteract the tendency to formulate simple,
consistent, stable images.
4. Don’t assume all aspects of culture are equally
significant.
5. Recognize that norms for interactions involving
outsiders may differ from those for interactions
between compatriots.
6. Don’t overestimate familiarity with counterpart’s
culture. 7-19
 Negotiation Tactics

❖Location
❖Time limits
❖Buyer-seller relationship
❖Bargaining behaviors
➢ Use of extreme behaviors
➢ Promises, threats and other behaviors
➢ Nonverbal behaviors

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 Negotiation Tactics

• Five general principles

1. Separate the people from the problem: see other’s
side, avoid blame, stay positive; recognize emotions.
2. Focus on interests over positions: gives insight into
the motivation behind why a particular position was
chosen.
3. Generate a variety of options before settling on an
agreement: better for everyone to have many options.
4. Insist that the agreement be based on objective
criteria: emphasize the communal nature of the
process.
5. Stand your ground: neither side should agree to terms
that will leave it worse off than its best alternative to a
negotiated agreement, or BATNA. 7-21