Download Cross-cultural Communication and Negotiation

Cross-cultural Communication
and Negotiation
Chapter 7
The Communication Process

Communication is the process of transferring
meaning from sender to receiver.
Sender
meaning
Encoding
Medium
Decoding
Feedback
The Communication Model
Receiver
interpretation
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
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
4
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.
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
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
Explicit and Implicit Communication
High-context/implicit
communication
cultures
Japanese
Arabs
Latin Americans
Italians
English
French
North Americans
Scandinavians
Germans
Swiss Germans
Low-context/explicit
communication
cultures
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
Personal Space in the U.S.
Intimate distance
Personal distance
Social distance
Public distance
18”
18” to 4’
4’ to 8’
8’ to 10’
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
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
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.
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.



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.
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
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
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.
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)
Negotiation Tactics




Location
Time limits
Buyer-seller relations
Bargaining behaviors



Use of extreme behaviors
Promises and threats
Nonverbal behaviors